Amazon has reached a new delivery agreement with the United States Postal Service, ensuring the carrier retains about 80% of its package volume from its largest customer.
The deal represents a significantly better outcome for USPS than earlier concerns that Amazon could reduce its reliance on the agency by as much as two-thirds. Such a reduction would have posed a serious financial threat, as USPS depends heavily on Amazon deliveries, which generate roughly $6 billion in annual revenue.
Despite the renewed agreement, Amazon is continuing to expand its own logistics network, particularly in rural areas. However, sources indicate that this expansion will not fully replace USPS’s extensive last-mile delivery infrastructure.
USPS has been under increasing financial pressure, warning it could face liquidity issues in the near term. The agency has reported cumulative losses exceeding $100 billion since 2007, driven by declining first-class mail volumes and rising operational costs.
The new agreement provides short-term stability for USPS while allowing Amazon to maintain flexibility in its long-term logistics strategy. It also underscores the continued interdependence between the e-commerce giant and the national postal service in handling large-scale package delivery across the United States.
