After threatening major reductions, Amazon reaches new package delivery deal with US Postal Service

Amazon has reportedly reached a new agreement with the US Postal Service (USPS) on package deliveries. This move dismisses earlier concerns about a significant reduction in the volumes the postal agency handles. The deal comes after reports that Amazon had considered reducing its reliance on USPS for deliveries.



According to a report by the news agency Reuters, sources have claimed that USPS is expected to retain about 80% of its existing deliveries from Amazon, which remains one of its largest customers. The agreement provides some stability for USPS at a time when it continues to face financial pressure and declining revenue from traditional mail services.

What Amazon previously said USPS about package deliveries

Amazon had earlier indicated the possibility of reducing its reliance on the United States Postal Service by as much as two-thirds, according to previous reports. The potential cut raised concerns for USPS, which generates around $6 billion annually from Amazon deliveries and handles approximately 1.7 billion packages for the company each year, as US Postmaster General David Steiner told Reuters.



The postal agency had warned that it could run out of cash as early as October 2025, with the possible reduction in Amazon business adding to its financial challenges. USPS has reported cumulative losses of $118 billion since 2007, as first-class mail volumes continue to decline.



Amazon has also been expanding its own delivery network and had previously said it would invest more than $4 billion to strengthen its rural delivery capabilities in the United States by the end of 2026. At the same time, the company had raised concerns about USPS's plans to auction access to its last-mile delivery network.



Despite these developments, Amazon said in a statement to Reuters, "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."


Apart from this, USPS has also been asking for permission to change its prices. For example, it wants to temporarily raise the prices of priority mail and package delivery by 8% and the prices of first-class stamps from 78 cents to 95 cents, the report adds. This USPS request comes amid rising transportation and fuel costs.