Amazon to Slash USPS Deliveries by Two-Thirds Amid Tender Dispute, Plans Alternative Solutions

Amazon plans to significantly reduce delivery volumes through the United States Postal Service (USPS) — by at least two-thirds already this year. The reason for this is a change in cooperation terms: USPS refused direct negotiations and moved to a new tender system.

What's known

According to The Wall Street Journal, in 2025 Amazon accounted for about 15% of all USPS deliveries. At the same time, the United States Postal Service completed the fiscal year with losses of about $9 billion.

The contract between the parties ends on September 30, 2026. Amazon stated that back in the fall of 2025, they warned USPS about the need to sign a new agreement by December, as logistics of this scale require long-term planning and significant investments. However, according to the company, negotiations were disrupted at the last moment.

After that, USPS head David Steiner introduced a new partner selection model through an open tender. The company explained that this system is expected to ensure more competitive pricing. Amazon applied in February 2026 but has not yet received a response.

The tender results are expected in the second quarter of 2026, with contract finalization in the third. Despite this, Amazon emphasizes its readiness to continue cooperation but is already simultaneously preparing alternative logistics solutions.

Source: WSJ