Amazon–USPS deal secures delivery volumes amid logistics pressure
Synopsis
Amazon–USPS deal preserves about 80% of package volumes, ensuring continued last-mile delivery coverage and supporting postal revenue stability. The agreement follows earlier concerns over shipment cuts and reflects ongoing dependence between large e-commerce companies and national postal systems in the evolving parcel delivery market.
Amazon–USPS deal retains most delivery volumes, stabilising postal revenue and maintaining nationwide coverage, while reflecting continued reliance on postal networks in a competitive parcel delivery market.
Key Highlights
- Amazon–USPS deal maintains about 80% of package delivery volume under revised agreement terms
- USPS continues handling roughly one billion Amazon parcels annually across its delivery network
- Amazon contributes approximately $6 billion yearly, forming a key share of USPS revenue
- Deal reflects ongoing reliance on postal systems despite growth of private logistics networks
Amazon–USPS deal will preserve about 80% of Amazon’s package delivery volumes with the U.S. Postal Service, reducing the scale of earlier proposed cuts.
The agreement follows extended negotiations over pricing and access to delivery networks.
The revised terms ensure that USPS continues to handle a significant portion of Amazon’s last-mile shipments, including deliveries in rural and less densely populated regions.
Estimates indicate that the postal service manages nearly one billion Amazon packages annually within its network.
Volumes steady, partnership continues
Amazon had previously explored reducing shipments through USPS by a large margin.
The final agreement limits those reductions and maintains continuity in nationwide delivery coverage.
USPS remains Amazon’s largest external delivery partner. The company contributes about $6 billion annually to USPS revenue, accounting for roughly 7–8% of its total income, based on Reuters data.
Financial strain and pricing changes
The postal service continues to face financial pressure, reporting cumulative losses exceeding $118 billion since 2007. It also recorded an annual loss of about $9 billion in its latest fiscal year.
To manage rising costs, USPS has proposed increasing package delivery rates by around 8% and raising stamp prices.
These changes formed part of the broader negotiations with large shipping clients, including Amazon.
Competitive parcel market dynamics
Amazon delivered approximately 6.7 billion packages in 2025, slightly surpassing USPS volumes of 6.6 billion, according to ShipMatrix estimates.
The U.S. parcel market remains competitive, with Amazon, UPS and FedEx among the largest operators.
Despite expanding its own logistics network, Amazon continues to rely on USPS for cost-effective last-mile delivery. Similar patterns are seen globally, where national postal operators remain essential for reaching remote areas.
FAQs
Q1. How much delivery volume is retained in the Amazon–USPS deal?
About 80% of Amazon’s package delivery volume remains with USPS under the new agreement.
Q2. Why is USPS important for Amazon deliveries?
USPS provides cost-effective last-mile delivery, especially in rural and hard-to-reach areas.
Q3. How large is Amazon’s delivery network?
Amazon delivered around 6.7 billion packages in 2025, slightly exceeding USPS volumes.
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Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
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