Amazon plans to cut its package shipments through the US Postal Service by at least two-thirds later this year, according to recent reports. The retail giant says this decision came after USPS abruptly ended negotiations "at the eleventh hour" in favor of implementing a new bidding process for last-mile deliveries.

Last year, Amazon accounted for nearly 15 percent of the Postal Service's package deliveries, making it one of USPS's most reliable revenue sources. The company claims it negotiated in good faith for over a year to reach a deal that would have brought USPS billions, until Postmaster General David Steiner replaced individual negotiations with a competitive bidding system.

Amazon has already submitted a bid under the new process but hasn't received a response, creating uncertainty for its network planning. Meanwhile, the Postal Service faces its own challenges, reporting a $9 billion net loss in fiscal 2025. USPS plans to announce bidding results in Q2 2026.