In a significant strategic pivot, the United States Postal Service (USPS) is rethinking its long-standing relationship with Amazon and other high-volume consolidators.
Postmaster General David Steiner announced last week that the agency will no longer provide "exclusive access" to its network for a select few giants. Instead, the USPS aims to "monetize" its greatest asset—its unrivaled first- and last-mile delivery network—by opening it up to a broader range of retailers and shippers.
This move signals a potential end to the "sweetheart deals" that have allowed companies like Amazon to utilize the USPS infrastructure at deeply discounted rates for Sunday delivery and last-mile fulfillment.
"Undervalued Assets"
For years, the USPS has served as the backbone for Amazon's delivery network, particularly in rural areas where private carriers often refuse to go. However, USPS leadership now believes this arrangement has "undervalued" their network.
"We previously encouraged access to this valuable asset for only a few high-volume customers," Steiner told the USPS Board of Governors. "I believe this undervalued our reach, limited business partnerships, and restricted revenue generation."
The goal is now to maximize revenue by offering these same premium services—including same-day and next-day delivery—to all retailers, big and small, rather than reserving them for a single dominant player.
Impact on Amazon and E-Commerce Sellers
This shift comes as Amazon aggressively builds out its own rural delivery network to reduce reliance on the USPS. However, for the millions of packages still flowing through the postal network, the implications are clear:
- End of Deep Discounts: The USPS has already begun eliminating "deepest presort discounts" for package consolidators (intermediaries like UPS Mail Innovations or DHL eCommerce). This forces volume into the USPS's own "Ground Advantage" network, potentially raising costs for shippers who rely on cheap consolidator rates.
- Level Playing Field: By opening up last-mile services to other retailers, the USPS is effectively helping Amazon's competitors offer similar delivery speeds. Steiner explicitly mentioned talks with UPS and other "similarly situated companies" to expand last-mile coverage.
- Focus on Returns: A key part of the new strategy is to dominate the returns market. With over 33,000 retail locations, the USPS wants to become the "most convenient returns facilitator" in the U.S., a direct challenge to Amazon's own return network.
For e-commerce sellers, this is a double-edged sword. While it may lead to higher costs if you use consolidators, it also promises better, faster USPS services for direct shippers.
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24 Nov, 2025
