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USPS Proposes 5-10% Surcharge on Amazon Shipments to Raise $400M

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  //business-finance.news-articles.net/content/202 .. surcharge-on-amazon-shipments-to-raise-400m.html
  Published in Business and Finance on Wednesday, December 24th 2025 at 12:29 GMT by ABC12

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The U.S. Postal Service’s Plan to Raise Cash and What It Means for Amazon

The U.S. Postal Service (USPS) is again looking for ways to shore up its finances. In a recent announcement reported by ABC‑12 News, the USPS said it is considering a new fee‑increasing strategy that could push up the cost of shipping for its biggest customer: Amazon. The move would be a direct attempt to raise cash to address the agency’s mounting debt and declining revenue, but it could also have ripple effects across the e‑commerce giant’s logistics network and the broader marketplace economy.

Why the USPS Is in This Position

The USPS has been on a financial rollercoaster for years. In 2022, the agency posted a record $6.5 billion deficit – a stark contrast to the $3.4 billion profit it reported in 2019. The decline has been driven by a drop in first‑class mail volume, higher operating costs, and the lingering effects of the pandemic, which saw a surge in e‑commerce and a shift away from traditional mail. USPS also faces a debt of more than $80 billion, a legacy of the 2020 “post‑pandemic” bailout that covered the agency’s pandemic‑related costs. The agency has been forced to find ways to generate new revenue streams, and the new fee proposal is part of that push.

The Proposed Fee Increase

According to the article, the USPS is contemplating a “postage surcharge” on shipments that are sent to Amazon’s fulfillment centers. While the agency has not yet finalized the details, preliminary figures suggest a potential increase of 5–10 % in the cost of sending packages via USPS. The surcharge would apply to all Amazon sellers who use the USPS as their primary carrier, but it would only affect shipments that arrive at Amazon’s fulfillment centers – a move designed to target the company’s vast volume of parcels.

The new fee would come into effect as early as Q3 2025, pending final approval and the completion of a public comment period. If adopted, the surcharge could raise up to $400 million in additional revenue over the next three years – a significant chunk of the cash the agency needs to stay afloat.

What This Means for Amazon

Amazon is Amazon’s biggest customer in terms of shipment volume, and the company’s logistics strategy is heavily dependent on USPS. In 2021 alone, the company shipped roughly 400 million packages via USPS, and the carrier accounted for more than 25 % of Amazon’s total shipping traffic. The new fee could therefore translate into a substantial increase in Amazon’s shipping costs.

However, Amazon’s response is not a foregone conclusion. The company has already diversified its logistics portfolio, working closely with UPS, FedEx, and DHL to spread risk and reduce dependency on any one carrier. Moreover, Amazon’s “Prime” members expect fast, low‑cost shipping, and any cost increase could erode the company’s competitive advantage if not offset by other efficiencies.

In a statement to ABC‑12, an Amazon spokesperson said, “We are always monitoring the market for cost‑effective shipping options, and we work closely with USPS and other carriers to maintain the service quality our customers expect.” The spokesperson did not comment on whether Amazon would negotiate a lower surcharge or switch carriers in the future.

The Bigger Picture: Impact on the Marketplace

The potential surcharge also has implications for millions of small‑business sellers on Amazon. Many of these sellers rely on USPS to ship their products at the lowest possible cost. A 10 % hike could squeeze margins and could push some sellers to look for cheaper carriers or to raise their product prices to cover the extra shipping cost. The article notes that small sellers have already been feeling the pinch from the COVID‑19 pandemic and rising costs, and this fee could add to that strain.

Additionally, the USPS’s move could spur competition. If Amazon and other big e‑commerce platforms find the surcharge too expensive, they might accelerate investment in alternative logistics solutions such as their own delivery vans, drones, or partnerships with regional couriers. That could further fragment the industry and give smaller carriers an opening to step into the void left by USPS.

Public Response and Next Steps

The USPS is inviting public comments on the proposed surcharge and will hold a public hearing in March 2025. Stakeholders, from Amazon executives to small‑business owners, have already filed comments. The USPS has pledged that it will consider all feedback before making a final decision.

In the meantime, ABC‑12’s follow‑up coverage includes interviews with postal economists and a deep dive into the agency’s financial statements. The article cites a recent analysis by the Postal Service Research and Evaluation (PSRE) division, which suggests that the surcharge could help reduce the agency’s net debt by roughly 20 % over five years – a significant improvement, but still leaving the USPS on a precarious path.

Takeaway

The USPS’s plan to raise cash by introducing a new surcharge on Amazon shipments illustrates the agency’s desperate search for revenue. For Amazon, the change could increase shipping costs, potentially reshaping its logistics strategy and affecting the margins of small sellers. For the e‑commerce ecosystem, the surcharge could accelerate diversification of carrier partnerships and heighten competition. As the USPS moves forward with public hearings, the outcome will hinge on a delicate balance between financial sustainability and the logistical realities of a rapidly evolving market.