Amazon plans to reduce its USPS shipments by two-thirds
Amazon plans to cut its postal shipments by two-thirds before its contract expires this fall. This move could cost the postal service millions in annual revenue.
Amazon.com, Inc. is planning to significantly reduce the volume of packages it distributes through the United States Postal Service, a strategic shift that could impact the agency's revenue by millions of dollars. Reports suggest that the e-commerce leader, which has long been the postal service's largest customer, aims to cut its shipments by at least two-thirds by the autumn of 2026. This transition is expected to coincide with the expiration of the current service contract between the two organizations.
The move highlights a broader trend of the retail giant internalizing its logistics and delivery infrastructure to gain greater control over the shipping process. By expanding its own network of fulfillment centers and delivery vehicles, the company seeks to optimize delivery times and reduce reliance on third-party carriers. Industry analysts note that such a substantial withdrawal of business could pose a significant financial challenge for the postal service, which relies heavily on high-volume commercial contracts.