Amazon set to slash packages sent via USPS

Amazon is reportedly planning to sharply reduce the number of packages it ships through the United States Postal Service (USPS) by at least two-thirds by fall, when its contract expires.

The move could cost USPS billions in revenue. It delivered over 1 billion Amazon packages, nearly 15% of its total volume, last year.

Financial pressure mounts
USPS already faces heavy losses, reporting a $9 billion net loss in fiscal 2025. Amazon’s reduced volume may leave new sorting facilities and upgraded equipment underused.

The agency may now need deeper cost cuts while continuing to serve over 170 million addresses six days a week, with 71% of routes reportedly unprofitable.

What’s next
Amazon may shift to other carriers or expand its own network. The company already delivered 6.7 billion packages in 2025, surpassing USPS’s 6.6 billion, signaling a major shift in US retail logistics.