If USPS handles fewer Amazon packages, rural deliveries could be affected while Amazon finishes implementing a $4 billion rural delivery network.
While Prime price hikes are unlikely in the near-future, it's smart to audit your membership every six months to make sure it's still worth it.
Consider bundling orders and compare other retailers if you notice shipping delays to your address.
Amazon and the U.S. Postal Service (USPS) are at odds. While it sounds like inside-baseball logistics drama, it could have very real consequences for everyday shoppers.
Here’s what’s happening, and more importantly, what you should actually do about it.
What just happened?
Amazon says contract negotiations with USPS broke down late last year, claiming the Postal Service “walked away at the eleventh hour.”
That’s a big deal because USPS has historically handled a large chunk of Amazon deliveries. Now, reports suggest Amazon could cut USPS delivery volume by up to two-thirds when the current contract expires later this year.
Why this matters to you
1. Delivery speed could get weird (depending on where you live).
USPS has always been Amazon’s go-to for:
- Rural deliveries
- P.O. boxes
- Hard-to-reach areas
If Amazon pulls back, you could see the following:
- More rural deliveries handled by Amazon drivers or contractors.
- Potential delays in rural areas where USPS was the most efficient option.
An Amazon representative contacted ConsumerAffairs to assure Prime members that 2/3 of deliveries already go through the company's own last-mile system and they should see no changes to current delivery speeds.
2. Some shoppers may wonder if weekend deliveries could change.
One of USPS’ biggest advantages was their ability to deliver Amazon packages on Sundays.
If USPS stops delivering, you could see the following:
- Fewer Sunday deliveries in some areas.
- More reliance on Amazon’s own network (which varies by region).
The Amazon rep squashed these concerns and said they have no plans to change delivery speeds or Sunday delivery.
3. Amazon's logistics costs are rising.
Amazon is currently doing the following:
- Expanding its own delivery network ($4 billion expansion).
- Investing billions into rural logistics.
- Potentially replacing a low-cost partner (USPS).
These expensive ventures could lead to:
- Higher Prime costs down the road.
- More minimum order thresholds.
- Fewer “free shipping” perks on those low-cost items.
Even though logistics costs are rising, Amazon told ConsumerAffairs they have zero plans to raise prices, either to Prime or any shipping thresholds.
What smart shoppers should do right now
This is where you can stay ahead of the changes.
1. Pay attention to who delivers your packages.
Start noticing if it’s:
- USPS
- Amazon Logistics
- UPS/FedEx
By paying attention, you’ll quickly learn which carrier is the fastest and most reliable in your area.
Pro tip: If USPS is your most reliable option, consider shipping to a P.O. box while it’s still widely supported.
2. Adjust your expectations on delivery speed.
A safe strategy moving forward, until we see how this all shakes out, is to consider the following:
- Build in an extra day or two for delivery of important items.
- Avoid last-minute ordering for time-sensitive needs.
Pro tip: For critical purchases you need quickly, filter for items labeled “Arrives Tomorrow,” as those are typically fulfilled from nearby warehouses.
3. Compare retailers more often.
Be sure to check these other services when deciding if Prime is right for you:
- Walmart (strong last-mile network)
- Target (same-day pickup + drive-up)
- Costco (limited selection but strong pricing)
4. Watch for Prime value changes.
If logistics costs do rise over time, Prime pricing is one area analysts and shoppers will likely watch closely.
In particular, they'll be watching:
- Price increases
- Fewer perks
- Changes to shipping guarantees
Pro tip: It’s smart to audit your Prime membership every six months. If you’re not using streaming, photos, or frequent shipping, it may not be worth it anymore.