Amazon, USPS Strike Delivery Deal Worth $4.8 Billion Annually

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4.8.2026

Quick Facts

Amazon will retain 80% of its delivery volume with USPS, down from previous levels but still worth approximately $4.8 billion annually
The deal covers over 1 billion packages per year and awaits Postal Regulatory Commission approval
USPS warned it will run out of cash within 12 months without new borrowing authority

Amazon has reached a new delivery agreement with the U.S. Postal Service that scales back the e-commerce giant’s package volume while preserving a partnership worth billions.

The deal maintains approximately 80% of Amazon’s existing delivery volume with USPS, representing over 1 billion packages annually, according to sources familiar with the matter. This marks a 20% reduction from previous levels but still generates roughly $4.8 billion in annual revenue for the Postal Service.

“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,” Amazon spokesperson Terrence Clark said.

The agreement comes after months of uncertainty following USPS’s decision in December to introduce a competitive bidding system for last-mile delivery services. Amazon had previously accounted for $6 billion in annual revenue for USPS, representing nearly 15% of delivered packages and up to 40% in some rural areas.

USPS Postmaster General David Steiner warned Congress that the agency faces a critical financial situation. The Postal Service reported net losses of $9 billion in 2025, adding to $9.5 billion in losses the previous year. Since 2007, USPS has accumulated $118 billion in net losses as first-class mail volumes have declined to levels not seen since the late 1960s.

For Amazon, the deal removes uncertainty around logistics costs and capacity planning. A complete break with USPS would have required massive capital expenditure to rapidly scale Amazon’s internal delivery network, particularly in rural areas where building proprietary delivery fleets remains expensive.

“That detour introduced real uncertainty into our network planning and ultimately didn’t deliver for USPS as intended,” said John Rosato, a senior manager for public policy at Amazon, referring to the bidding process.

The tentative agreement now requires review and approval from the Postal Regulatory Commission. The commission will assess whether the terms align with USPS’s legal mandate to cover costs and avoid unfair marketplace competition.

Amazon announced a $4 billion investment in rural delivery expansion in April 2025, a move interpreted as preparation for reduced reliance on USPS. The company surpassed the Postal Service as the top delivery provider by volume in 2025, according to ShipMatrix data.