Amazon is planning to cut its package delivery volumes with the U.S. Postal Service by at least two-thirds by September, as the e-commerce giant pulls back on one of its largest partnerships.

According to the Wall Street Journal, Amazon will look to slash its deliveries with USPS when its current contract ends in September, which could threaten billions in revenue for the agency. Amazon accounted for nearly 15% of USPS's total throughput in 2025, and generates an estimated $6 billion annually in revenue for the agency. The company also delivered more packages than USPS, FedEx or UPS for the first time in a single year in 2025. 

In a March 18 blog post, Amazon claimed that the decision to scale back its deliveries with USPS was in response to the agency abruptly walking away from negotiations on a new contract "at the eleventh hour" last December.

"We've repeatedly requested engagement with Postmaster General Steiner to work toward a solution," the company said. "We want to find a path forward, but that window is rapidly closing."

Amazon said that moving forward, it hopes to continue its partnership with USPS in some form, even if it's at a reduced level. However, it added, the longer it goes without guarantees from the agency, the more it will need to invest in "alternative options." In a March 17 statement to Reuters, U.S. Postmaster General David Steiner expressed uncertainty regarding USPS's relationship with Amazon in the months to come, while declining to comment on the specifics of Amazon's planned reduction of deliveries.

At a recent hearing in front of the U.S. House of Representatives, Steiner said that USPS is on pace to run out of money to pay its employees and vendors by 2027 and that, without government intervention, it may have to stop deliveries altogether.

"I am not sure that the American public is aware that the Postal Service is at a critical juncture," he said. "Less than a year from now the Postal Service will be unable to deliver the mail if we maintain the status quo."

Over his tenure, Steiner's predecessor Louis DeJoy enacted sweeping cuts at the agency, which he claimed was operating on a "broken" business model. The cuts included reduced hours at post offices, higher prices for mail, and slower mail delivery targets. USPS — which relies largely on stamps and service fees for its funding rather than tax dollars — has reported a financial shortfall in nearly every fiscal year dating back to 2006, when Congressional Republicans passed a law requiring the agency to fully fund worker retirement health care benefits for the next 75 years.