Amazon is considering ending its relationship with the U.S. Postal Service and creating its own shipping network, potentially causing trouble for the struggling federal agency.
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The retail giant’s contract with USPS provided $6 billion in revenue in 2025, accounting for 7.5% of the agency’s total annual revenue.
Amazon handled 6.3 billion parcels in 2024 and could overtake the USPS by 2028 in terms of package volume.
Talks to renew the contract have concluded without a new deal, leading Amazon to explore self-distribution of packages previously handled by USPS.
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Despite this, Amazon stated that USPS is a trusted partner and plans are not finalized.
The potential loss of Amazon as a client would be a significant setback for USPS, which has faced financial challenges in recent years.
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