Amazon.com is reportedly talking with the United States Postal Service (USPS) over the future of their delivery partnership ahead of its expiry next year.
The Washington Post newspaper reported that Postmaster General David Steiner plans to hold a reverse auction in early 2026, opening access to postal facilities to the highest bidder rather than continuing to give the work to Amazon.
This would make the e-commerce giant compete with national retail brands and regional shipping firms for capacity, which is considered vital to its delivery network.
The Post quoted people with knowledge of the matter in this article, which was reported by other media outlets, including Reuters.
Amazon is USPS’s largest customer, contributing more than $6 billion in revenue in 2025 or about 5% of the agency’s sales under a partnership that has lasted for more than 30 years, according to the Post.
USPS’ first-class mail volumes have slid 80% since 1997, and it reported a $9.5 billion loss last year as digital communication accelerates and private competitors expand.
“We were surprised to hear they want to run an auction after nearly a year of negotiations, so we still have a lot to work through,” Amazon said in a statement.
The company said it continued to discuss ways to extend the partnership and increase spending with the agency.
New York-based ecommerce analyst Juozas Kaziukenas said USPS needed Amazon a lot more than Amazon needed USPS.
“Amazon has all the cards in their hands,” he was quoted in this Reuters article as saying.
