Report: Amazon Looks to Expand Its Delivery Network as USPS Talks Stall
Article Date: 4 December 2025
Summary
Amazon is preparing to expand its own nationwide delivery network after negotiations over a new shipping agreement with the U.S. Postal Service stalled, according to The Washington Post. The Postal Service depends on Amazon for more than $6 billion in annual revenue — roughly 7.5% of its 2025 income — and an escalation in the relationship could reshape the U.S. parcel market.
Amazon had sought a four-year negotiated service agreement to lock in rates and volume commitments; formal talks have largely ended without a deal. USPS plans a reverse auction in early 2026 to sell access to its mail facilities, which would force Amazon to compete for postal capacity. Amazon is reportedly preparing plans to move the bulk of its packages away from USPS by the end of 2026, while still leaving open the possibility of a deal after recent executive-level talks.
Key Points
- Amazon generates over $6 billion a year for USPS, about 7.5% of the Postal Service’s 2025 revenue.
- Negotiations for a new four-year shipping agreement between Amazon and USPS have largely stalled.
- USPS plans a reverse auction in early 2026 to sell access to its mail facilities to the highest bidder.
- Amazon is preparing contingency plans to pull most packages from USPS by the end of 2026 if no deal is reached.
- The current contract between Amazon and USPS expires on 1 October 2026.
- Industry analysts warn no private shipper can fully replace Amazon’s volume for USPS, but Amazon already runs a large last-mile network and is reducing reliance on UPS, FedEx and USPS.
Content Summary
The Washington Post report says talks between Amazon and the U.S. Postal Service over a new shipping contract have stalled. Amazon had been negotiating a four-year extension under a negotiated service agreement that would have stabilised rates and volumes. With formal talks largely over, USPS plans to auction access to its facilities, which could force Amazon to compete with others for postal capacity.
Amazon is developing plans to expand its own delivery infrastructure and potentially shift the majority of its parcel volume away from USPS by the end of 2026, although senior executives have spoken and the company keeps the door open for a deal. The move would hit USPS finances — Amazon is its single largest customer — and could materially change the competitive dynamics of the U.S. parcel market.
Context and Relevance
This story matters to anyone involved in e-commerce, retail, logistics or postal operations. USPS relies heavily on large shippers like Amazon for revenue; losing a big chunk of that business would pressure postal finances and could change pricing, capacity and service patterns across the network. Retailers, 3PLs and carriers should watch for shifts in capacity allocation, pricing and last-mile partnerships as Amazon scales its own network and other firms react.
Author style
Punchy: This isn’t a ‘nice to know’ — it’s a strategic alarm bell. If Amazon pulls significant volume from USPS it will ripple through pricing, carrier capacity and delivery expectations across the US. Read the detail if you move parcels, run fulfilment or plan logistics strategy.
Why should I read this?
Short version: this could change how parcels get from A to B in the US. If you sell online, ship stuff, or manage logistics, Amazon’s next move affects costs and delivery options. We’ve done the legwork so you don’t have to — the full piece explains the timelines and the likely fallout.
