Amazon and US Postal Service reach deal on delivery cuts - postal deliveries cut by 20 percent as 'longstanding partnership' continues

Date:
Tue, 07 Apr 2026 12:25:00 +0000

Description:
USPS will retain around 80% of its Amazon parcels, however the ecommerce
giant wants to use its own growing network.

FULL STORY ======================================================================Copy link Facebook X Whatsapp Reddit Pinterest Flipboard Threads Email Share this article 0 Join the conversation Follow us Add us as a preferred source on Google Newsletter Tech Radar Pro Are you a pro? Subscribe to our newsletter Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed! Become a Member in Seconds Unlock instant access to exclusive member features. Contact me with news and offers from other Future brands Receive email from us on behalf of our trusted partners or sponsors By submitting your information you agree to the Terms & Conditions and Privacy Policy and are aged 16 or over. You are
now subscribed Your newsletter sign-up was successful Join the club Get full access to premium articles, exclusive features and a growing list of member rewards. Explore An account already exists for this email address, please log in. Subscribe to our newsletter 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. Article continues below You may like Amazon reveals 16,000 jobs cut worldwide, with AWS hit hard, as it looks at 'reducing layers, increasing ownership, and removing bureaucracy' Your Amazon shop will soon cost more 3.5% 'fuel and logistics-related surcharge' added due to Iran war knock-on effects Amazon officially dethrones Walmart as America's biggest company - and it's not done yet 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.

"Were 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. Are you a pro? Subscribe to our newsletter Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed! Contact me with news and offers from other Future brands Receive email from us on behalf of our trusted partners or sponsors By submitting your information you agree to the Terms & Conditions and Privacy Policy and are aged 16 or over.

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. Follow TechRadar on Google News and add
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Link to news story: https://www.techradar.com/pro/amazon-and-us-postal-service-reach-deal-on-deliv ery-cuts-postal-deliveries-cut-by-20-percent-as-longstanding-partnership-conti nues


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