Amazon

Who’s really to blame for the Post Office crisis?

Published

2 hours ago

March 19, 2026

Amazon doesn’t want the blame for the Post Office going under

Amazon to Reduce USPS Shipments Amid Financial Struggles

In response to a report by The Wall Street Journal, Amazon is making changes to its shipping strategy with the United States Postal Service (USPS). The ecommerce giant plans to significantly decrease its use of USPS for deliveries, citing financial concerns within the postal service.

Amazon’s Version of Events

Amazon has stated that it did not intend to scale back its partnership with the USPS. According to Amazon, negotiations for a new contract were progressing until the USPS abruptly halted discussions, leading to the current situation.

Details of the Plan

The WSJ reports that Amazon aims to reduce USPS shipments by at least two-thirds by the fall, coinciding with the expiration of their current contract. Despite investing in its delivery infrastructure, Amazon still relies on the USPS for last-mile deliveries, particularly in rural areas.

Financial Implications for USPS

The USPS, facing financial challenges, has implemented changes to boost revenue, including a new bidding process for last-mile deliveries. Postmaster General David Steiner warns that without action from Congress to increase borrowing capacity and postage prices, the USPS could face insolvency within a year.

Amazon’s Response and Future Plans

Amazon has expressed willingness to continue its partnership with the USPS at a fair price. Despite submitting a bid in February, Amazon has not received a response from the USPS. The company is preparing to meet customer delivery needs independently if necessary.

Outlook on the Relationship

Steiner acknowledges the importance of the USPS’s collaboration with Amazon, emphasizing the need for a mutually beneficial agreement. The USPS has yet to comment on the situation.