Amazon in discussions with USPS about future relationship
FILE PHOTO: Workers move products during Cyber Monday at Amazon's fulfilment center in Robbinsville, New Jersey, U.S., December 1, 2025. REUTERS/Eduardo Munoz/File Photo
WASHINGTON, Dec 4 : Amazon.com said Thursday the e-commerce giant is in discussions with the U.S. Postal Service about its future relationship and considering its options before its current contract expires next year.
The Washington Post reported Thursday new Postmaster General David Steiner plans to hold a reverse auction in early 2026 that might create more competition within the Post Office for Amazon's business by offering access to postal facilities to the highest bidder, rather than directly to Amazon. It would make the company compete with national retail brands and regional shipping firms.
The Post said Amazon is USPS' top customer, providing more than $6 billion in annual revenue in 2025, accounting for roughly 7.5 per cent of its sales.
"We've continued to discuss ways to extend our partnership that would increase our spend with them, and we look forward to hearing more from them soon - with the goal of extending our relationship that started more than 30 years ago," Amazon said in a statement. "We were surprised to hear they want to run an auction after nearly a year of negotiations, so we still have a lot to work through."
The Post said Amazon's current contract with USPS expires in October 2026.
"Given the change of direction and the uncertainty it adds to our delivery network, we're evaluating all of our options that would ensure we can continue to deliver for our customers," Amazon said.
USPS did not immediately comment.
Losing its business would be a major blow to the independent government agency that has been hit by an 80 per cent decline in first-class mail volume since 1997.
For Amazon, building out its delivery network would bolster its standing in a parcel industry where it is already a major player thanks to its sprawling warehouse network and a largely non-union workforce that has allowed it to control costs.
Last year, Amazon Logistics handled 6.3 billion parcels, just behind top player USPS' 6.9 billion, according to Pitney Bowes' parcel shipping index. The company is expected to overtake USPS in parcels by 2028, the data showed, a milestone it could hit sooner if the tie-up ends.
The company has already pledged more than $4 billion in April to expand its U.S. rural delivery network by the end of next year.
Steiner met virtually with Amazon CEO Andy Jassy on November 14, according to the report.
USPS, which posted a $9.5 billion loss last year as electronic communications erode mail volumes and private rivals expand their footprint, has also drawn the attention of U.S. President Donald Trump.
Trump said in February he was considering merging USPS - which he called "a tremendous loser for this country" - with the Commerce Department, a move Democrats said would violate federal law.
"USPS needs Amazon a lot more than Amazon needs USPS," said New York-based ecommerce analyst Juozas Kaziukenas. "Amazon has all the cards in their hands in this case."
