Trending Now - Amazon and USPS Finalize Agreement to Reduce Package Volume by 20%

WHO:

Engadget - An Amazon spokesperson stated, "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."

Engadget - Amazon is the largest customer of the United States Postal Service (USPS).

Engadget - An Amazon spokesperson provided a statement regarding the new agreement.

WHAT:

Engadget - Amazon accounts for 15 percent of USPS's volume and generates $6 billion in revenue for the postal service.

TechRadar - USPS will retain around 80 percent of its Amazon parcels.

Engadget - Amazon will reduce the packages it ships through USPS by 20%.

Engadget - The initial proposal from Amazon threatened to cut USPS deliveries by as much as two-thirds.

Engadget - The 20 percent reduction could result in more than $1 billion in lost revenue for USPS.

Techmeme - The new agreement is still subject to approval by the federal Postal Regulatory Commission.

WHERE:

Engadget - The agreement involves the United States Postal Service, which operates across the United States.

WHEN:

Engadget - Amazon's contract with USPS was set to expire in September 2026.

Engadget - Amazon aimed to strike a deal by December 2025.

Engadget - USPS abruptly pulled out of negotiations in December 2025.

WHY:

Engadget - The Postal Service decided to re-engage with Amazon after bids from several Amazon rivals fell short of its volume and revenue expectations.

Engadget - Amazon's goal was to increase its volumes with USPS, not reduce them.

Engadget - USPS decided to re-engage with Amazon after bids from several Amazon rivals fell short of its volume and revenue expectations.

HOW:

Engadget - Amazon was reportedly considering expanding its own delivery network if the USPS deal fell through, although it is suggested that the company may have started those rumors itself to encourage negotiations.

Engadget - Amazon was reportedly considering expanding its own delivery network if the USPS deal fell through.

(UPDATED April 7, 2026 13:21 UTC)

Amazon has announced a new agreement with the United States Postal Service, which will allow them to continue their longstanding partnership that supports customers and communities. The deal is significant, as Amazon accounts for 15 percent of USPS's volume and generates $6 billion in revenue for the postal service, with USPS retaining around 80 percent of its Amazon parcels. This decision comes after the Postal Service re-engaged with Amazon, following bids from Amazon's rivals that did not meet their volume and revenue expectations.

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(UPDATED April 7, 2026 07:20 UTC)

Amazon, the largest customer of the United States Postal Service, has announced a new agreement that will see the company reduce the packages it ships through USPS by 20 percent, a move that could lead to over $1 billion in lost revenue for the postal service. This agreement, which is still pending approval from the federal Postal Regulatory Commission, comes after USPS previously pulled out of negotiations in December 20th25, despite Amazon's initial proposal threatening to cut deliveries by as much as two-thirds. Amazon's goal was to increase its shipping volumes with USPS, and if this deal had not materialized, the company was reportedly considering expanding its own delivery network.