Amazon has reached an agreement with the United States Postal Service (USPS) to maintain 80% of its current delivery volume handled by the USPS.
According to reports from the Wall Street Journal, Reuters, and other foreign media outlets, Amazon has reached a new package handling agreement with the USPS, reducing the number of packages delivered by the USPS by 20%, a much smaller reduction than the two-thirds previously reported by Reuters; the USPS will still deliver more than 1 billion packages for Amazon annually.
Amazon is the USPS’s largest customer, accounting for 15% of its package deliveries in 2025, generating $6 billion in revenue from Amazon.
Amazon plans to invest more than $4 billion by the end of 2026 to expand its delivery network in rural America, but fully taking over USPS capacity in the short term remains a challenge.
The USPS is currently mired in operational difficulties, accumulating net losses of $118 billion since 2007, and has warned that it may run out of funds as early as October. To cope with rising transportation and fuel costs, the USPS has sought approval for a postage increase effective April 26.
An Amazon spokesperson stated that the new agreement with the USPS will strengthen the long-term partnership between the two companies and jointly support customers and the community.
Amazon’s relationships with other customers are also changing; logistics giant UPS announced last year that it would cut about half of its business with Amazon to focus on its more profitable delivery operations.
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