Amazon plans drastic cut in packages sent via already-struggling Postal Service

[240B]

Amazon plans drastic cut in packages sent via already-struggling Postal Service

MSN
by Esther Fung
21h



Amazon.com is planning to sharply cut the number of packages it ships through the U.S. Postal Service, a move that could cost the agency billions of dollars in much-needed revenue.

The e-commerce giant, long the Postal Service’s biggest customer, has already begun ratcheting down its postal volume and wants to reduce it by at least two-thirds by this fall, when its current contract with the agency expires, according to people familiar with the matter.

USPS delivered more than a billion packages for Amazon last year, close to 15% of all the packages that the Postal Service delivered in the country. Amazon’s guaranteed volumes have been a source of stability for the agency, which has operated at a loss for most of the past two decades. In fiscal 2025, it reported a net loss of $9 billion.

The Postal Service has expanded its parcel-delivery capacity in recent years, building bigger facilities and buying new machines to process boxes, which replaced aging equipment that focused on letter mail. If the decline in volumes from Amazon isn’t adequately managed, the new equipment and facilities could end up being underutilized. The Postal Service may also have to find more ways to cut costs.

According to people familiar with the matter, Amazon disclosed the plan to the Postal Service in a confidential bidding process for its so-called last-mile delivery service, in which USPS handles the last leg of delivery for businesses. Under new Postmaster General David Steiner, the Postal Service solicited bids from Amazon and other businesses for the service for the first time. Steiner has said the bidding will help the quasigovernmental agency determine the true market value of the last-mile service.

(more)
https://www.msn.com/en-us/money/news/amazon-plans-drastic-cut-in-packages-it-sends-through-the-post-office/ar-AA1YQVZv

[Cyber Liberty]

Amazon used to send most things by FedEx and it was very reliable.  A couple years back they announced they were terminating the contract and everything switched to USPS.  I guess a lot of people had the same issues I had.

And people actually send Election Ballots through USPS.   

[berdie]

My brother sent me a picture of an Amazon delivery at his house. It was from a drone (included in the vid) and landed about 2 ft from the front door. Pretty impressive imho. I'm still on the old fashion way and hope it stays that way.



https://youtu.be/fP0E1tbfi2g

[Drago]

We have a "contract rural letter carrier" lady as our "mailman/person"...she is very good and reliable (and is still handling Amazon stuff).  Not sure how she is handling the gas price increase for her personal postal vehicle tho...prices breeched $5./gal. in the area.

[240B]

The biggest problem with USPS (where I live) is that they do not do front door deliveries.
Ergo, if the package does not fit in the mailbox they send it back to the central office.
They leave you a note, and you have to go there in person to pick it up.

An Amazon customer service person told me this is against standing Amazon policy.
Amazon is a front door delivery service. I have returned a couple of items because of this.
I do not actually return them, but if you do not pick it up USPS will 'return to sender'.

[Cyber Liberty]

The biggest problem with USPS (where I live) is that they do not do front door deliveries.
Ergo, if the package does not fit in the mailbox they send it back to the central office.
They leave you a note, and you have to go their in person to pick it up.

An Amazon customer service person told me this is against standing Amazon policy.
Amazon is a front door delivery service. I have returned a couple of items because of this.
I do not actually return them, but if you do not pick it up USPS will 'return to sender'.

I used to order a lot from Amazon but they killed my desire to order from them when they dumped FedEx.   I live in a rural area, so no Amazon delivery.

[mystery-ak]

I don't have any problems with the USPO delivery...heck my post office delivers
Amazon packages on a Sunday..but it looks like that will stop. I may have to stop paying for Amazon Prime..

[Bigun]

The biggest problem with USPS (where I live) is that they do not do front door deliveries.
Ergo, if the package does not fit in the mailbox they send it back to the central office.
They leave you a note, and you have to go their in person to pick it up.

An Amazon customer service person told me this is against standing Amazon policy.
Amazon is a front door delivery service. I have returned a couple of items because of this.
I do not actually return them, but if you do not pick it up USPS will 'return to sender'.

 Biggest problem with USPS where I live is that they often don't do deliveries at all and when they do it is to a wrong address. P.S. I can't stand the USPS!

[libertybele]

I don't have any problems with the USPO delivery...heck my post office delivers
Amazon packages on a Sunday..but it looks like that will stop. I may have to stop paying for Amazon Prime..

Amazon prime membership keeps going up and their services keep declining.

As for USPS they do fairly well where I live and deliver Amazon on Sundays.  It's the darn lines at our local station that is ridiculous and they keep raising prices (along with everything else).

[Wingnut]

I love the USPS.  Drop a package off.  They take it an eventually they will deliver it.  Not on time. Not to the correct address. Not with the contence of the package inside.   What a great biddness plan.

[240B]

I did the new superfast delivery service by Amazon today. Needed batteries.
They offered to deliver it in 1 hour for $10. I chose 3 hour delivery for $5.
And it worked. In fact, I had the package in my hand in 2 hours.

[libertybele]

I did the new superfast delivery service by Amazon today. Needed batteries.
They offered to deliver it in 1 hour for $10. I chose 3 hour delivery for $5.
And it worked. In fact, I had the package in my hand in 2 hours.

Most items I have purchased from Amazon recently, I usually get by the next day. Only specific items are available through their speedy delivery based on what they have in the local hub closest to you.

Home Depot and Target offers a similar service -- delivery within hours if their local stores have it in stock.  I'm not sure of the cost though.

[Smokin Joe]

Amazon used to send most things by FedEx and it was very reliable.  A couple years back they announced they were terminating the contract and everything switched to USPS.  I guess a lot of people had the same issues I had.

And people actually send Election Ballots through USPS.   

I get three insurance bills, all due on the same day (17th of the month). As of today (18th) two had not yet arrived.

[240B]

[mountaineer]

We have a "contract rural letter carrier" lady as our "mailman/person"...she is very good and reliable (and is still handling Amazon stuff).  Not sure how she is handling the gas price increase for her personal postal vehicle tho...prices breeched $5./gal. in the area.

My uncle's father (died in 1964) was a rural letter carrier who delivered mail on horseback for many years. I always thought that sounded so exciting!