Amazon Strikes Deal to Retain Most Package Volume with U.S. Postal Service

A lifeline for the beleaguered mail carrier

Amazon announced Monday that it has reached a new agreement with the United States Postal Service that will keep roughly 80 % of the retailer’s existing delivery volume – more than a billion parcels a year – under the postal network. The deal, described by Amazon as a continuation of a “longstanding partnership,” is expected to provide significant revenue relief to the cash‑strapped agency.

Rural delivery at the forefront

Under the terms, USPS will handle the bulk of Amazon’s shipments to rural addresses, while the e‑commerce giant will supplement capacity with its own logistics and contracted carriers. The arrangement dovetails with Amazon’s plan, unveiled last year, to invest over $4 billion in expanding its own rural delivery network by the end of 2026.

Financial backdrop

USPS has been seeking regulatory approval for an 8 % temporary price increase on priority mail and package services to offset rising fuel and transportation costs. Securing Amazon’s business, its biggest single customer, offers a timely boost amid ongoing budget pressures.