Amazon doesn’t want the blame for the Post Office closure

Amazon is responding to a report from The Wall Street Journal that uncovered its plan to significantly reduce shipments with the United States Postal Service (USPS), which has recently declared financial struggles. According to Amazon, the decision was not intentional, alleging that the USPS unexpectedly withdrew from contract negotiations. By this fall, Amazon aims to decrease USPS shipments by over two-thirds, coinciding with their contract expiration. Despite a year-long negotiation process promising substantial revenue for USPS, the discussions ceased unexpectedly in December. Amazon relies on USPS for last-mile deliveries, especially in rural areas where USPS handles 30 to 40 percent of deliveries due to their six-day delivery mandate. The business benefits from discounted shipping rates, a practice the USPS has halted for individual businesses. To boost revenue, USPS started a competitive bidding process for these deliveries. Postmaster General David Steiner expressed urgency, seeking to explore market prices. Without action from Congress, the USPS faces insolvency within a year. Steiner emphasizes the need for increased borrowing capacity to better reposition the Postal Service. Amazon claims to have sought engagement with USPS, but didn’t receive a response to the bid it submitted in February 2026. The company is preparing alternatives to meet customer needs post-auction. Steiner notes the USPS delivers 1.7 billion packages for Amazon annually and wishes to continue their partnership if pricing terms are fair. The USPS hasn’t commented on the situation yet.