Story perspectives

Amazon Cuts USPS Shipments Amid Financial Crisis Warning

3/19/2026

Summary

Story summary

Amazon plans to reduce its package shipments through the U.S. Postal Service by more than two-thirds this fall.
The contract between Amazon and the U.S. Postal Service expires this fall.
Postmaster General David Steiner warned that without increased borrowing authority, USPS could face financial collapse within a year.
USPS handles 30-40% of Amazon's deliveries in rural areas.
Amazon submitted a bid for USPS's new auction process but received no response.

History

Historical Context

The U.S. Postal Service (USPS) has faced financial challenges since the 2006 Postal Accountability and Enhancement Act mandated it to be self-financing. In 2008, it reported a $2.8 billion loss due to declining mail volumes, worsened by e-commerce growth. As Amazon plans to reduce its package shipments through USPS, the agency's financial stability remains uncertain, prompting warnings from Postmaster General David Steiner.

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Story summary

Amazon plans to reduce its package shipments through the U.S. Postal Service by more than two-thirds this fall.
The contract between Amazon and the U.S. Postal Service expires this fall.
Postmaster General David Steiner warned that without increased borrowing authority, USPS could face financial collapse within a year.
USPS handles 30-40% of Amazon's deliveries in rural areas.
Amazon submitted a bid for USPS's new auction process but received no response.

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