Amazon is in a defensive stance following a report by The Wall Street Journal, which uncovered its plans to significantly reduce its reliance on the United States Postal Service for shipments. This revelation comes amid the USPS’s financial struggles, as it recently announced it is nearing a cash crunch. In response, Amazon released an extensive statement on Wednesday, clarifying that their decision was not voluntary. The company stated that negotiations faltered when the USPS unexpectedly withdrew from contract discussions.

According to the WSJ, Amazon intends to decrease the volume of packages sent via USPS by more than two-thirds by autumn, coinciding with the expiration of their current contract with the USPS. Amazon has emphasized its efforts over the past year to negotiate a deal that could generate substantial revenue for the postal service. However, the USPS reportedly exited negotiations at a critical juncture last December.

Despite Amazon’s substantial investment in developing its own delivery and logistics infrastructure, it still relies on the USPS for last-mile deliveries, particularly in rural areas. The WSJ notes that the USPS manages approximately 30 to 40 percent of Amazon’s deliveries in these remote regions, where delivery costs are typically higher. While the USPS is required to deliver six days a week in such areas, Amazon and similar large-scale shippers have benefited from discounted postal rates. However, according to the WSJ, the USPS is now refraining from negotiating individual rates, which has further strained its finances.

In an attempt to stabilize its financial situation, the USPS has introduced a new bidding system for last-mile deliveries. “There’s only one certainty — if we keep doing things as usual, we’re doomed within a year,” Postmaster General David Steiner explained to Reuters last year. He emphasized the need to reassess pricing to ensure it reflects fair market value.

During a recent hearing, Steiner reiterated that without congressional intervention to increase its borrowing capacity and postal rates, the USPS will be financially insolvent in under a year. “Increasing our borrowing authority is a straightforward solution that grants us time,” Steiner noted, as reported by The New York Times. “Time that is crucial for determining the best path forward for the Postal Service in serving the American public.”

Amazon has expressed its ongoing attempts to engage with Steiner but claims it has not received a response regarding the bid it submitted in February 2026. “We have participated in their new auction process and aim to maintain our collaboration, even if it is at a reduced capacity,” Amazon’s statement reads. “However, without a stable agreement, we must prepare to fulfill our customers’ delivery needs independently of the auction’s outcome.”

Steiner told Reuters that the USPS delivers around 1.7 billion Amazon packages each year. He added that he would “love to continue” the agency’s relationship with Amazon but “at a fair price.” The USPS didn’t immediately respond to a request for comment.