Amazon Strikes Deal with USPS
Amazon.com declared it has formed a new deal with the US Postal Service regarding package deliveries, ensuring that the financially troubled mail system will keep approximately 80 percent of its current deliveries from its largest client.
The 20 percent reduction is a significantly improved result for the postal agency compared to the two-thirds or greater cut that Reuters mentioned Amazon had threatened last month.
Last month, USPS cautioned that it might deplete its funds as early as October, and the possibility of Amazon substituting the carrier by broadening its own delivery system or utilizing competitors posed a significant threat.
Amazon will maintain its delivery expansion, though it will not match USPS's extensive address-by-address coverage, according to reports.
USPS operates with a budget of about $80 billion, and reports indicate that Amazon accounted for $6 billion in yearly revenue for the agency.
"Amazon states, 'We are happy to have established a new agreement with USPS that enhances our enduring partnership and allows us to keep assisting our customers and communities together."
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USPS did not provide an immediate response. US Postmaster General David Steiner informed Reuters in December that USPS ships approximately 1.7 billion packages each year for Amazon.
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Amazon opposed USPS's intentions to sell access to its last-mile delivery network. In April 2025, Amazon announced plans to invest over $4 billion to enhance its rural delivery network in the US by the close of 2026.
Last month, USPS announced it was looking for approval for a temporary 8 percent increase in prices for priority mail and package deliveries, starting April 26, in response to climbing transportation and fuel expenses.
In March, Steiner stated that increasing the cost of a first-class stamp to 95 cents from the existing 78 cents would assist USPS in reducing losses.
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USPS has disclosed net losses totaling $118 billion since 2007 as first-class mail, its most lucrative service, has dropped to its lowest level since the late 1960s.