A tentative agreement between Amazon and the US Postal Service will result in a 20 percent reduction in deliveries, as reported by The Wall Street Journal. This new deal, while less severe than Amazon's earlier threat of a two-thirds cut, still poses a significant financial challenge for the Postal Service.
Amazon, which represents 15 percent of USPS's volume and generates $6 billion in revenue, expressed satisfaction with the partnership. An Amazon spokesperson stated that the agreement supports their ongoing collaboration with USPS.
The contract, originally set to expire in September 2026, faced complications when USPS withdrew from negotiations in December 2025, prompting Amazon to consider enhancing its own delivery capabilities. Following the unfruitful bids from Amazon's competitors, USPS decided to re-enter discussions.
This agreement is pending approval from the federal Postal Regulatory Commission, and despite the reduced volume, it could still lead to over $1 billion in revenue losses for USPS.