Amazon to Cut USPS Shipments by Two-Thirds by Fall

Amazon plans to reduce the volume of packages it ships through the United States Postal Service by at least two-thirds before the companies' current contract expires this fall, a move that could deprive the agency of billions in revenue at a time of deepening financial strain.

The e-commerce giant, the Postal Service's largest customer, shipped more than one billion parcels through the agency in fiscal 2025, accounting for about 15 percent of its total deliveries. Officials say Amazon has already begun scaling back shipments, with the full reductions expected by September. The decision follows months of negotiations that broke down after the Postal Service shifted to an open-bid process for large shippers, moving away from direct contracts.

An Amazon spokesperson said the company had negotiated in good faith for over a year, expecting a deal that would deliver billions in revenue to the Postal Service. "We believed we were heading toward an agreement, when the USPS abruptly walked away at the 11th hour and introduced the auction concept," the spokesperson stated. Amazon has submitted a bid and expressed hope for a continued partnership at a reduced level, but it is preparing...