Amazon & USPS Reach New Deal, Preserving Most Delivery Volume

Amazon and the United States Postal Service have reached a new package delivery agreement, extending a long-standing partnership that remains important to both sides. According to recent reports, USPS is expected to keep about 80% of Amazon’s parcel delivery volume under the new deal, a far better outcome than earlier expectations that the postal operator could lose a much larger share of the business. For sellers and logistics providers, the agreement signals continued stability in a key part of the U.S. last-mile delivery network.

The deal is especially meaningful for USPS because Amazon remains one of its largest commercial customers. Reuters reported that Amazon contributes about $6 billion in annual revenue to USPS, while the postal service continues to handle roughly 1.7 billion Amazon packages a year. Even as Amazon expands its own logistics capabilities, USPS still plays an important role in nationwide parcel coverage, particularly in rural and less densely populated areas where large-scale delivery infrastructure is harder to replace quickly.

Why This Agreement Matters to USPS

For USPS, keeping most of Amazon’s package volume provides important revenue continuity at a time when the organization remains under financial pressure. Reuters noted that USPS has reported cumulative losses of $118 billion since 2007, largely due to the long-term decline in traditional mail volume. Against that backdrop, retaining Amazon’s parcel business helps support network utilization and reduces the risk of a sharper operational shock.

USPS is also continuing to respond to cost pressure through pricing adjustments. On March 25, 2026, USPS officially announced a transportation-related, time-limited 8% price increase affecting Priority Mail, Priority Mail Express, USPS Ground Advantage, and Parcel Select, with the change scheduled to begin on April 26, 2026, subject to regulatory review. This shows that while the Amazon agreement offers stability, USPS is still actively trying to improve its financial position through other measures as well. (USPS)

Why Amazon Still Needs USPS

Amazon has continued investing heavily in its own delivery network, but that does not mean it can or wants to fully replace USPS in every market. Amazon announced in 2025 that it would invest more than $4 billion to expand its rural delivery network in the United States, and the company has since said that by the end of 2026 its footprint will grow to more than 200 delivery stations. That expansion clearly shows Amazon’s determination to strengthen its logistics reach. (Amazon News)

At the same time, USPS still offers something Amazon cannot instantly recreate at full scale: deep national reach, especially in remote and rural communities. That is why this new agreement makes practical sense. Amazon can continue building its own infrastructure where it sees efficiency gains, while still relying on USPS as a major last-mile partner in areas where the postal network remains highly effective. In other words, this is less about replacing one network with another and more about maintaining the most efficient balance between cost, coverage, and service continuity. (Reuters)

What Sellers Should Watch

For Amazon sellers, this agreement is reassuring, but it should not be viewed in isolation. It comes at a time when carrier pricing, service standards, and delivery expectations are all evolving. That is why policy developments tied to usps tracking changes and operational rule updates still deserve attention, even when major partnerships remain in place. A stable delivery relationship does not necessarily mean a static cost structure or unchanged service environment. (USPS)

Sellers should also remember that fulfillment planning is closely tied to promotional timing. Although Amazon has not released a full official annual calendar covering all amazon sales dates 2026, Amazon has already confirmed that its 2026 Big Spring Sale ran through March 31, which shows that event-based inventory preparation remains a key part of seller operations. When marketplace promotions, delivery capacity, and shipping costs intersect, logistics planning becomes just as important as sales planning.

A Practical Middle Ground

Overall, the new Amazon-USPS agreement looks like a pragmatic compromise. USPS keeps most of a critical customer’s package volume, while Amazon preserves access to a national delivery partner as it continues investing in its own network. In a market shaped by rising transportation costs, changing delivery models, and increasing pressure on operational efficiency, this kind of compromise may be the most realistic solution for both sides.

For businesses shipping goods into the U.S. market, the broader takeaway is clear: strong logistics performance depends not only on marketplace demand, but also on the reliability of upstream transportation and downstream delivery networks. Forest Shipping is an international freight forwarder that helps move cargo from China to destinations worldwide, supporting sellers and importers with more efficient cross-border shipping solutions in an increasingly complex logistics environment.