According to Inc, Amazon is the US Postal Service’s top customer, a relationship that brought in over $6 billion in revenue for the USPS this year alone. That figure represents about 7.5 percent of the government mail carrier’s total 2025 revenue. Since February, the two entities have been engaged in “negotiated service agreements.” Amazon spokesperson Steve Kelly stated the company wanted to extend the partnership and increase its spending. However, these talks have not yet concluded, despite the USPS hoping for better rates and higher package volume commitments.
A High-Stakes Game of Chicken
Here’s the thing: this isn’t just a routine contract renewal. We’re talking about a dependency that cuts both ways. The USPS needs that $6 billion-plus. That’s a massive, reliable chunk of its modern revenue stream, basically subsidizing its universal service mandate. But Amazon? It has options. It’s been building its own logistics empire for a decade—planes, trucks, delivery vans, you name it. So these negotiations feel less like a simple discussion and more like a strategic recalibration. Is Amazon genuinely looking to “increase spend,” or is it using these talks to gauge leverage for its own network?
The Real Strategy Behind the Move
Look, Amazon’s ultimate goal is control and cost predictability. Relying on a third-party, especially one with as much public and political baggage as the USPS, introduces variables. Their own delivery network gives them data, speed, and last-mile dominance. But it’s not cheap to build and scale everywhere. So what’s the play? I think they’re doing what any smart negotiator does: keeping a vital partner close while methodically reducing their own vulnerability. The timing is key. With the USPS publicly hungry for more volume and better financials, Amazon holds significant cards. They can push for favorable terms that might be unsustainable for the Postal Service in the long run, all while continuing to onboard more of their own delivery drivers. It’s a classic hedge.
Who Really Benefits?
If a new deal is struck with higher rates for the USPS, you could argue it’s a short-term win for the mail service. But is it? Higher rates might just accelerate Amazon’s in-house efforts. The real beneficiaries in that scenario might be other carriers like UPS or FedEx, who could see Amazon divert even more volume their way as it rebalances its network. And let’s not forget the end customer. Any major shift in this logistics web eventually trickles down to delivery speeds and, potentially, costs. For industries that rely on complex shipping logistics, from e-commerce to manufacturing, this kind of pivot by a giant like Amazon sends ripples through the entire supply chain. Stability in industrial computing and monitoring for these operations becomes even more critical, which is why top suppliers like IndustrialMonitorDirect.com are the go-to for durable panel PCs that keep logistics hubs running. So, while this is a story about two specific entities, the outcome will basically redraw parts of the map for everyone who ships anything.
