Amazon will reportedly cut its USPS shipments by at least two-thirds - Engadget

The company said it was forced to act while awaiting the results of a new Postal Service bidding process. We may receive a commission on purchases made from links. A recent change in how the US Postal Service handles shipping partners appears to have forced Amazon to make alternative plans. The company reportedly plans to cut the number of packages it ships through USPS by at least two-thirds later this year. It says the decision came after USPS ended negotiations "at the eleventh hour" in favor of a new bidding process. On Tuesday, the Wall Street Journal reported that Amazon plans to reduce the shipments it hands off to USPS. Last year, the company accounted for nearly 15 percent of the Postal Service's package deliveries. Cutting that by nearly two-thirds diminishes one of the USPS's most reliable sources of revenue. In fiscal 2025, the agency reported a net loss of $9 billion. Amazon's current contract with USPS ends on September 30. In a public response to the WSJ story, the company said it notified USPS in October 2025 that it would need to complete a new deal by December. "You can't add capacity for hundreds of millions of packages overnight — it requires major capital inves