Amazon is reportedly exploring ending its reliance on the US Postal Service as it continues to expand its own shipping network. The e-commerce giant currently spends more than $6 billion annually on USPS services, accounting for nearly 8 percent of the postal agency’s revenue—up from about $4 billion in 2019. However, the potential split appears to stem from stalled negotiations rather than a proactive decision by Amazon.
Amazon stated that the USPS remains a trusted partner and that discussions to extend their long-standing relationship are ongoing. The company expressed concern over a proposed “reverse auction” by the USPS, which would have high-volume shippers, including Amazon, competing for postal resources. Over the past decade, Amazon has invested heavily in its shipping operations, including purchasing Boeing planes, launching electric delivery vans, and expanding drone delivery capabilities. In 2024, Amazon handled over 6.3 billion parcels, compared with the USPS’s 6.9 billion, demonstrating that Amazon’s network already manages more than 90 percent of the postal volume by numbers. With the USPS facing long-term financial struggles and slow modernization, Amazon is weighing all options to ensure reliable delivery for its customers.