Amazon's Postal Saga: Sorting Fact from Fiction

Amazon is going on the defensive after a report from The Wall Street Journal revealed that the ecommerce giant plans to slash shipments with the United States Postal Service, which said this week that it's running out of money. In a lengthy statement published on Wednesday, Amazon says it didn't want to reduce shipments with the USPS, and that negotiations only stalled after the USPS "abruptly walked away" from negotiations for a new contract.

The company's response comes amid growing concerns over the Postal Service's financial viability, with some pointing fingers at Amazon as a major contributor to the agency's woes. However, Amazon is adamant that it is not to blame, arguing that its partnership with the USPS has actually helped sustain the agency and that it remains committed to working with the Postal Service.

According to the WSJ report, Amazon plans to cut packages sent through the USPS by at least two-thirds by this fall, around the same time its contract with the independent federal agency is set to expire. Amazon contends that this decision was not made unilaterally, but rather was the result of a breakdown in contract negotiations.