Amazon's Contract with USPS Set to Expire
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 23 2026
0mins
Source: NASDAQ.COM
- Contract Expiration Impact: Amazon's contract with the USPS is set to expire in October, with plans to cut USPS shipments by at least two-thirds, which could directly affect its last-mile delivery capabilities and potentially lead to decreased customer satisfaction.
- Negotiation Breakdown: Although both parties were in talks for a renewal last December, the USPS unexpectedly backed out at a critical moment, highlighting its fragile financial situation, which may impact Amazon's future delivery costs and profit margins.
- Logistics Network Expansion: Over recent years, Amazon has expanded its own logistics network (Amazon Logistics) to reduce reliance on USPS and UPS, which has enhanced its bargaining power with third-party logistics providers, yet it still needs USPS for costly last-mile deliveries in the short term.
- Increased Market Pressure: The ongoing Iran War has driven up energy prices and throttled consumer demand, putting pressure on both Amazon's e-commerce and cloud businesses, particularly affecting its profit engine, AWS, which faces unpredictable headwinds that could further drag down its stock performance.
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Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise
44 Analyst Rating
41 Buy
3 Hold
0 Sell
Strong Buy
Current: 213.770
Low
175.00
Averages
280.01
High
325.00
Current: 213.770
Low
175.00
Averages
280.01
High
325.00
About AMZN
Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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