{"id":86192,"date":"2026-04-07T17:06:05","date_gmt":"2026-04-07T21:06:05","guid":{"rendered":"https:\/\/www.mytotalretail.com\/?post_type=article&p=86192"},"modified":"2026-04-07T17:06:05","modified_gmt":"2026-04-07T21:06:05","slug":"amazon-reaches-reduced-deliveries-deal-with-u-s-postal-service","status":"publish","type":"article","link":"https:\/\/www.mytotalretail.com\/article\/amazon-reaches-reduced-deliveries-deal-with-u-s-postal-service\/","title":{"rendered":"Amazon Reaches Reduced Deliveries Deal With U.S. Postal Service"},"content":{"rendered":"

Amazon.com said Monday it has reached a \u200cnew agreement with the United States Postal Service (USPS) \u200con package deliveries, reports Yahoo Finance<\/a>. Sources told Reuters the deal will result \u200bin Amazon, which is USPS’s largest single customer, retaining around 80 percent of its existing deliveries with USPS, or more than 1 billion packages \u200cper year.<\/p>\n

Amazon’s \u2060plan to replace the Postal Service with its own nationwide delivery service \u2060posed an existential threat to the mail agency, which has a roughly $80 billion budget. The e-commerce giant \u200brepresented $6 billion \u200bin annual revenue for the USPS, \u200baccording to two people \u200cfamiliar with the business arrangement. Amazon earlier had criticized \u200bUSPS plans to \u200bauction off access to its last\u2011mile \u200cdelivery network. The retailer \u200bhad threatened \u200bto cut its delivery business at the cash-strapped Postal Service by at least two-\u200bthirds, Reuters \u200creported last month.<\/p>\n

Total Retail’s Take:<\/strong> A 20 percent reduction in deliveries, while not ideal, is a far better outcome for the U.S. Postal Service than what Amazon had previously threatened. The USPS depends heavily on the e-commerce giant to sustain its budget, as the single retailer is reported to represent around 7.5 percent of the USPS’ revenue. U.S. Postmaster \u200bGeneral David Steiner told Reuters in December that USPS delivered about 1.7 billion packages annually for Amazon.<\/p>\n

“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 \u200ctogether,” Amazon said in a \u200bstatement.<\/p>\n

Amazon has been working to expand its own delivery services network across the U.S., which would further threaten the USPS as it grows. In April 2025, Amazon pledged to spend $4 billion by the end of 2026 to triple the size of its rural delivery network. In June, it announced<\/a> it would provide same- and next-day Prime delivery to 4,000 smaller cities, towns and rural communities across the country.<\/p>\n","protected":false},"excerpt":{"rendered":"

Amazon.com said Monday it has reached a \u200cnew agreement with the United States Postal Service (USPS) \u200con package deliveries, reports Yahoo Finance. Sources told Reuters the deal will result \u200bin Amazon, which is USPS’s largest single customer, retaining around 80 percent of its existing deliveries with USPS, or more than 1 billion packages \u200cper year. 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