USPS to Retain Bulk of Amazon Package Business, Reuters Reports
Amazon renewed its USPS contract with USPS retaining 80% of Amazon's package business (over 1 billion packages annually) after Amazon threatened to cut delivery business in March 2026. The deal preserves Amazon's largest shipping partnership following failed December negotiations.
This signals Amazon's continued reliance on USPS for last-mile delivery, meaning FBA shipping speeds and costs should remain stable rather than face disruption from a carrier switch. Third-party sellers using Amazon's logistics network won't see service changes, but those using independent USPS shipping may face capacity constraints as Amazon locks up delivery slots.
Amazon's logistics dominance continues as they secure their primary last-mile partner, reinforcing the competitive moat around FBA while potentially limiting shipping options for independent sellers who compete for the same USPS capacity.
Monitor FBA delivery performance metrics in Seller Central -- stable USPS partnership should maintain current shipping speeds without carrier-related delays.
Diversify shipping carriers if currently USPS-dependent -- Amazon's 1B+ package volume may strain USPS capacity for non-Amazon shipments.
Bottom Line
Amazon-USPS renewal means stable FBA logistics for sellers.
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Amazon-USPS renewal means stable FBA logistics for sellers.
Key Stat / Trigger
80% of Amazon's package business retained by USPS
Focus on the operational implication, not just the headline.
Full Coverage
and USPS reached a deal in which USPS will retain 80% of Amazon’s package business, according to Reuters, which published the following statement from Amazon on Monday: “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.”
Reuters said Amazon is USPS’s largest customer and cited a source that said Amazon would continue to use USPS for about 80% of its existing deliveries, or over 1 billion packages a year. Last month, Amazon accused USPS of having “abruptly walked away at the eleventh hour” from negotiations in December.
USPS then opened up entry to its last-mile delivery network in January and launched a new USPS bidding platform. Reuters said in its reporting today that Amazon had criticized that move and threatened to cut its delivery business prior to the deal being reached.
Original Source
This briefing is based on reporting from eCommerce Bytes. Use the original post for full primary-source context.
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