Amazon plans to significantly reduce the number of parcels shipped through the United States Postal Service.

Amazon is planning to significantly reduce the number of packages it sends through the US Postal Service, a move that could cost the agency millions of dollars in much-needed revenue. Amazon has long been the largest customer of the US Postal Service, but the e-commerce giant has started gradually decreasing the volume of packages it sends through the postal service and hopes to reduce the volume by at least two-thirds before the existing contract with the agency expires in the fall. Last year, the US Postal Service delivered over 1 billion packages for Amazon, accounting for nearly 15% of its total national package volume. Amazon's steady package volume has always been a crucial source of income for the agency, which has been in a deficit for most of the past 20 years, with a net loss of $9 billion in the 2025 fiscal year. The US Postal Service has expanded its package delivery capabilities in recent years, building larger processing facilities and purchasing new equipment to handle packages, replacing older equipment focused on mail. If Amazon's package volume decline is not properly addressed, these new equipment and facilities may face underutilization issues. The US Postal Service may need to find more cost-cutting measures.