Amazon Agrees 20% Cut in USPS Shipments, Maintains Over 1B Annual Packages
Amazon and USPS agreed to reduce Amazon’s package volume by 20%, preserving delivery of over one billion parcels annually under a new contract effective Oct. 1. The revised deal, less severe than earlier reports of a two-thirds reduction, follows Amazon’s strategy to optimize shipping costs across carriers.
1. New USPS Volume Agreement
Amazon and USPS finalized a contract effective Oct. 1 that reduces Amazon’s package volume by 20%, ensuring USPS delivers over one billion Amazon parcels annually. This commitment is substantially lower than earlier estimates of a two-thirds cut and now awaits review and approval by the Postal Regulatory Commission.
2. Logistics Strategy and Financial Impact
The modest reduction aligns with Amazon’s push to rebalance shipments across multiple carriers and secure better cost terms while maintaining service levels in rural areas. USPS earned more than $6 billion from Amazon in 2025—around 15% of its delivered volume—and a 20% cut could further strain its finances amid consecutive annual net losses exceeding $9 billion.