- USPS just lost around 20% of its Amazon parcels
- Amazon is USPS's biggest customer, worth around $6 billion annually
- Amazon has continued to expand its own delivery network, opening it up to others
Amazon has struck a deal with the US Postal Service (USPS) which will see the latter lose a chunk of its business - but still come off better than previously anticipated.
As reported by the Wall Street Journal WSJ, the deal will mean USPS could still end up delivering around one billion Amazon packages a year - marking a roughly 20% decrease compared with the previously floated two-thirds reduction.
The renewed delivery agreement, pending regulatory approval, is welcome news for USPS, as Amazon is its largest customer, worth around $6 billion annually.
USPS will retain more Amazon parcels than previously thought
Amazon was considering shifting toward more of its own network for deliveries, however ultimately both its performance for high volumes of parcels and USPS's expertise in rural and last-mile delivery are equally highly valuable.
"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 company spokesperson said.
As for USPS, the company has faced intense pressure in recent years, facing multibillion-dollar annual losses and placing a bit bet on Amazon as a customer. Amazon has continued to expand its own networks in that time.
For example, in April 2025, the company declared it would invest over $4 billion to expand its delivery network across rural America, effectively tripling the size of its rural delivery infrastructure by the end of 2026 and creating more than 100,000 jobs in the process.
Besides being a delivery network for its own ecommerce business, Amazon also boasted in September 2025 that more than five billion products move through its network of global logistics, domestic freight and bulk warehousing annually – all of which from independent sellers.
USPS introduced a last-mile delivery bidding process in December to help it determine the true value of the service, likely in a bid to address profitability, and it's this process that prompted Amazon to reassess its partnership with the postal agency.
