Amazon and USPS reach new delivery deal; Amazon to cut USPS volume by about 20%, sources say

Deal reached after tense negotiations

It has been reported that Amazon and the U.S. Postal Service have struck a new delivery agreement, and the picture is less dramatic than earlier reports suggested. Instead of slashing the share of Amazon parcels sent through the Postal Service by two-thirds, it has been reported that Amazon will reduce that volume by roughly 20%. A cooling of the rhetoric, then — but not a total peace treaty.

What the arrangement means

Details remain thin and neither side has published a full breakdown, but the shift signals Amazon nudging more parcels onto its own network and private carriers while still relying on USPS for last-mile reach. It has been reported that the smaller-scale reduction avoids the cliff-edge scenario that had alarmed postal officials and lawmakers. Still: 20% is meaningful. For a company the size of Amazon, that’s a lot of packages rerouted.

Why anyone should care

This isn't just corporate hair-splitting. The Postal Service depends on e-commerce volume for crucial revenue; big swings can ripple through rural post offices, service levels and the agency’s bottom line. For consumers it could mean subtle changes in delivery partners and timing. And for the broader logistics business, the episode underscores a trend: major retailers are increasingly building delivery muscles to cut reliance on legacy carriers. Power and pipes — who controls them matters.

What’s next

Contract language, timing and the pace of any change weren’t publicly disclosed. Expect scrutiny from regulators and Congress, and more jockeying over peak-season capacity. In short: Amazon didn’t go all-in on a two-thirds cut, but it’s still moving the chess pieces. The logistics game is far from over.

Sources: wsj.com