Amazon to Cut USPS Package Shipments by Two-Thirds Amid Contract Dispute
Here's what it means for you.
This shift could impact delivery timelines and costs for e-commerce professionals relying on USPS services.
What happened
Amazon announced plans to cut its package shipments through the USPS by at least two-thirds by fall 2026.
The Context
- Contract negotiations collapsed: After over a year of discussions, USPS shifted to a competitive bidding process, leading to Amazon's decision.
- USPS financial strain: The postal service reported a $9 billion net loss in fiscal 2025, exacerbating its operational challenges.
- Amazon's logistics expansion: Amazon has developed its own delivery network, handling 6.7 billion packages in 2025, surpassing USPS's 6.6 billion.
The Number
— Amazon accounted for 15% of USPS package deliveries in fiscal year 2025, highlighting its significant role in USPS operations.
Takeaway
Bidding outcomes for last-mile services are expected in Q2 2026, with potential implications for shipping strategies across the e-commerce landscape.
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Amazon will reportedly cut its USPS shipments by at least two-thirds
Amazon is reportedly set to reduce its shipments through the United States Postal Service (USPS) by at least two-thirds later this year, following the USPS's decision to end negotiations in favor of a new bidding process. This change comes amid ongoi...
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Amazon will reportedly cut its USPS shipments by at least two-thirds
Amazon is reportedly set to reduce its shipments through the United States Postal Service (USPS) by at least two-thirds later this year, following the USPS's decision to end negotiations in favor of a new bidding process. This change comes amid ongoi...
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