WASHINGTON, Dec 4 : Amazon.com mentioned Thursday the e-commerce big is in discussions with the U.S. Postal Service about its future relationship and contemplating its choices earlier than its present contract expires subsequent 12 months.
The Washington Post reported Thursday new Postmaster General David Steiner plans to carry a reverse public sale in early 2026 that may create extra competitors throughout the Post Office for Amazon’s enterprise by providing entry to postal amenities to the best bidder, somewhat than on to Amazon. It would make the corporate compete with nationwide retail manufacturers and regional transport companies.
The Post mentioned Amazon is USPS’ prime buyer, offering greater than $6 billion in annual income in 2025, accounting for roughly 7.5 per cent of its gross 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 mentioned in an announcement. “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 mentioned Amazon’s present 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 mentioned.
USPS didn’t instantly remark.
Losing its enterprise could be a significant blow to the unbiased authorities company that has been hit by an 80 per cent decline in first-class mail quantity since 1997.
For Amazon, constructing out its supply community would bolster its standing in a parcel trade the place it’s already a significant participant because of its sprawling warehouse community and a largely non-union workforce that has allowed it to regulate prices.
Last 12 months, Amazon Logistics dealt with 6.3 billion parcels, simply behind prime participant USPS’ 6.9 billion, based on Pitney Bowes’ parcel transport index. The firm is anticipated to overhaul USPS in parcels by 2028, the information confirmed, a milestone it might hit sooner if the tie-up ends.
The firm has already pledged greater than $4 billion in April to broaden its U.S. rural supply community by the top of subsequent 12 months.
Steiner met just about with Amazon CEO Andy Jassy on November 14, based on the report.
USPS, which posted a $9.5 billion loss final 12 months as digital communications erode mail volumes and personal rivals broaden their footprint, has additionally drawn the eye of U.S. President Donald Trump.
Trump mentioned in February he was contemplating merging USPS – which he known as “a tremendous loser for this country” – with the Commerce Department, a transfer Democrats mentioned would violate federal legislation.
“USPS needs Amazon a lot more than Amazon needs USPS,” mentioned New York-based ecommerce analyst Juozas Kaziukenas. “Amazon has all the cards in their hands in this case.”