Amazon Considers Breaking With USPS, Potentially Reshaping U.S. Shipping

What Happened

Amazon is weighing a plan to end its long-standing partnership with the United States Postal Service. This relationship currently generates more than six billion dollars in annual revenue for the Postal Service.

According to reports, the company is exploring a full transition to its own delivery network by the end of 2026. This would be one of the most consequential changes in the logistics industry in years. Amazon’s size, reach, and influence over national shipping patterns make the shift especially significant.

The USPS partnership has long been central to Amazon’s ability to deliver to every corner of the country at a predictable cost. Over the last decade, Amazon has built a vast ground-and-air network of its own. It now operates thousands of delivery stations, a fleet of vans and trucks, and a rapidly expanding air cargo service. Company officials say relying more heavily on this internal system would allow Amazon to accelerate delivery speeds, reduce bottlenecks, and control operations more directly.

The loss would be huge for the USPS. The agency faces chronic deficits, declining mail volume, and higher labor costs. Amazon is its largest customer, and losing this revenue would deepen the Postal Service’s budget issues during a critical period.

Why It Matters

The effects of an Amazon exit will spread through the economy. The Postal Service delivers everywhere, including remote areas that private carriers avoid or charge more to reach. Amazon’s shipping volume helps meet this service requirement. Without it, USPS will likely have to change prices, staffing, or service levels.

Amazon now surpasses both UPS and FedEx in U.S. parcel volume. A clean break from the USPS would make it a true national carrier. The company could then experiment with delivery, tighten shipping times, and develop new services without an outside partner.

The competitive landscape would shift as well. UPS and FedEx would likely pursue some of the volume Amazon no longer gives to USPS. Amazon’s plan points in the opposite direction, building capacity to deliver the overwhelming majority of its own parcels. Traditional carriers could benefit from short-term overflow but may also face long-term challenges as Amazon deepens its logistics presence.

For USPS, the burning question is sustainability. Rising operational costs and shrinking mail revenue threaten its long-term viability. Losing more than six billion dollars in annual income would force Postmaster General and Congress to confront the financial gap. Options could include raising postage rates, seeking new subsidies, cutting services, or restructuring certain mandates.

How It Affects Readers

For Amazon customers, the change could mean faster and more predictable deliveries. The company has already moved toward next-day and same-day service in many urban regions. Controlling the entire delivery chain would make those promises easier to keep. Service quality may improve, especially in areas where USPS has struggled with staffing shortages or inconsistent delivery times.

For USPS customers, the impact is more uncertain. If the agency loses a major revenue source, it may be forced to raise parcel prices, adjust delivery schedules, or scale back services. Rural communities could feel the effect most since USPS remains the only affordable carrier in remote regions.

For workers, the move would expand Amazon’s logistics workforce, creating new roles in sorting, transportation, and last-mile delivery. USPS employees could face cutbacks depending on how the agency responds.

A decision like this would reshape the national shipping economy. Amazon’s network is now large enough to operate independently, and USPS must prepare for a future where one of its most important customers could disappear. Whether the split happens will depend on internal cost modeling and USPS’s ability to negotiate new terms.