Amazon and the U.S. Postal Service (USPS) have reached a new agreement that reduces the volume of Amazon packages shipped via USPS by 20 %, from roughly 1.7 billion to about 1 billion shipments annually, thereby preserving 80 % of Amazon’s current USPS package volume.
The deal is a critical financial lifeline for USPS, which has reported cumulative losses of $118 billion since 2007 and warned it could run out of cash as early as October. Amazon’s annual contribution of approximately $6 billion to USPS revenue is a significant portion of the carrier’s income, and the new agreement secures that revenue stream while allowing Amazon to maintain a cost‑effective partnership for its same‑day and two‑day delivery network.
Amazon has invested more than $4 billion in expanding its rural delivery network, a plan announced in April 2025 and slated for completion by the end of 2026. Despite this investment, Amazon still relies on USPS for last‑mile delivery in rural and underserved areas; the agreement guarantees that capability and mitigates the risk of a sudden loss of USPS capacity.
The agreement follows a December negotiation breakdown in which Amazon threatened a two‑thirds cut in volume. Amazon’s spokesperson Terrence Clark said, "We're pleased to have reached a new agreement with USPS that furthers our longstanding partnership and will let us continue supporting our customers and communities together." A senior Amazon public‑policy manager, John Rosato, noted, "That detour introduced real uncertainty into our network planning and ultimately didn't deliver for USPS as intended. Trust was significantly strained in the process." The deal is tentative and subject to approval by the Postal Regulatory Commission.
The partnership averts a potential crisis for USPS and preserves a critical logistics channel for Amazon. With Amazon’s overall delivery volume at 6.7 billion packages in 2025 and projected 8.4 billion by 2028, while USPS handled 6.6 billion packages in 2025, the agreement underscores the continued interdependence of the two companies and signals a shift toward market‑based pricing for USPS services.
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