Amazon plans to reduce its USPS package volume by at least two-thirds this fall. This reduction coincides with the expiration of the company's current shipping contract.
Amazon has historically been the largest customer for the U.S. Postal Service. The e-commerce giant has already begun decreasing its shipping volume with the agency.
Amazon disclosed the decision during a confidential USPS bidding process for last-mile delivery services. The strategy aims to expand Amazon's internal logistics network to lower long-term costs.
The USPS handled over one billion Amazon packages last year. This significant volume reduction represents a major revenue loss for the financially strained agency.