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Amazon is reportedly planning to drastically cut the volume of packages sent via the U.S. Postal Service.
According to sources, the American e-commerce giant Amazon plans to significantly reduce the number of packages shipped via the United States Postal Service.
The sources added that, as the USPS’s largest customer, Amazon has been decreasing its postal shipments and intends to cut at least two-thirds of its current volume before the existing contract expires in September.
USPS Postmaster General Louis DeJoy said in an interview during a congressional hearing on Tuesday that the USPS is still negotiating with Amazon. “I can’t tell you how the negotiations will ultimately turn out,” DeJoy said.
Amazon and USPS have been in negotiations for months to extend their business partnership. The sources said that the volume has already begun to decline gradually, with a full reduction expected this fall.
In April this year, Amazon announced it would invest over $4 billion by the end of 2026 to expand its rural delivery network in the U.S., doubling efforts to speed up deliveries and stimulate demand among small-town and rural shoppers.
DeJoy noted in December last year that Amazon used USPS to handle 1.7 billion packages annually.