Amazon claims the United States Postal Service (USPS) walked away from deals at the eleventh hour, causing them to decrease their volumes with the postal service.
This comes after news outlets reported that Amazon would sharply cut the number of packages it sends through USPS.
Reuters reported that e-commerce would reduce postal shipments with USPS by at least two-thirds by September, which is when the current contract ends.
Amazon and USPS have been in talks for months to reach an agreement on extending their business relationship.
Amazon said that USPS "abruptly walked away at the eleventh hour,” creating “significant uncertainty” for the company’s long-term planning and said its goal was to increase volumes with USPS, not reduce them.
“We negotiated with them in good faith for more than a year to reach a deal that would bring them billions in revenue and believed we were heading toward an agreement,” the e-commerce giant said in a statement.
“We've submitted a bid as part of their new auction concept and hope to continue our partnership, even at a reduced level.”
According to Amazon, the company has spent over US$5 billion annually with USPS and has advocated on its behalf with lawmakers to strengthen the Postal Service's long-term financial stability, including our support for the Postal Service Reform Act of 2022.
Last year, Amazon accounted for nearly 15% of the postal service’s package deliveries.
Cutting that by around two-thirds would diminish one of USPS’s most reliable sources of revenue after the agency reported a net loss of $9 billion in 2025.
The mail service in December announced a new last-mile “bid solicitation platform,” which it said could generate billions of dollars in revenue and help make the Postal Service “a more financially viable institution.”
Postmaster General David Steiner also asked Congress to loosen USPS regulations and let him raise prices.
He warned that the agency will “run out of cash” in about a year and that he wants to raise its current $15 billion debt cap.
Amazon (NASDAQ: AMZN) stock closed down 2.48% to $209.87. Its market cap is $2.25 trillion.
