Overview
- Amazon is evaluating contingency plans to shift billions of parcels from USPS if no new contract is reached before the Oct. 1, 2026 expiration, with sources indicating a potential phase-out by late 2026.
- Amazon says USPS remains a long-standing and trusted partner and that it hopes to extend the relationship, while also reviewing options to ensure delivery reliability.
- USPS received roughly $6 billion from Amazon in 2025, about 7–8% of its operating revenue, and the mail service has reported multibillion-dollar annual losses, heightening the stakes of any split.
- Amazon’s network handled 6.3 billion U.S. parcels in 2024 versus USPS’s 6.9 billion and, per industry forecasts, could surpass USPS volumes by 2028 after years of investments in planes, delivery stations, and electric vans.
- USPS is preparing an auction to sell access to postal facilities, UPS plans to cut Amazon volume by more than half by 2026, and FedEx has renewed select last‑mile work with Amazon, signaling shifting parcel flows across carriers.