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Amazon says U.S. Postal Service 'walked away at the eleventh hour' in negotiations

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Why This Matters

Amazon's recent contract negotiations with the U.S. Postal Service highlight the fragility of major logistics partnerships and could lead to significant changes in package delivery strategies. For consumers, this may impact delivery times and costs as Amazon explores alternative shipping options. The development underscores the evolving landscape of logistics and the importance of reliable carrier relationships in e-commerce growth.

Key Takeaways

Amazon on Wednesday addressed its business relationship with the U.S. Postal Service, saying in a blog post that recent contract renewal negotiations with the carrier fell apart in December when it "abruptly walked away at the eleventh hour."

The comments came after several outlets reported on Tuesday that Amazon plans to sharply reduce the number of packages it sends through the Postal Service after failing to come to an agreement.

The company, which has long been the mail service's largest customer, reportedly aimed to cut USPS volumes by at least two-thirds when its contract expires at the end of September.

"Our goal was to increase our volumes with USPS, not reduce them — until USPS abruptly walked away at the eleventh hour in December," Amazon said.

Amazon said it had been negotiating with the Postal Service for more than a year to reach a new, long term agreement before talks fell apart. It said it has since submitted a bid as part of the carrier's new auction process with the "hope to continue our partnership, even at a reduced level."