Amazon has renewed its long-standing partnership with the United States Postal Service (USPS), but with a notable shift USPS will handle around 20% fewer Amazon packages under the updated agreement. Despite this reduction, USPS is still expected to deliver nearly 1 billion Amazon parcels annually, especially in rural and less densely populated areas where Amazon’s own logistics network has limited reach.
At the same time, Amazon continues to expand its in-house delivery capabilities, including its fleet, regional hubs, and last-mile infrastructure. The new agreement reflects a hybrid logistics strategy, where Amazon balances internal delivery operations with external partners to optimize cost, speed, and coverage.
Key highlights:
- USPS delivery volume for Amazon reduced by ~20%
- Nearly 1 billion packages still handled annually
- Amazon expanding its in-house logistics network
- Continued reliance on USPS for rural deliveries
Why it matters:
This move highlights Amazon’s ongoing effort to gain greater control over its supply chain while still leveraging established partners for efficiency. By reducing dependency without eliminating it, Amazon can lower costs and improve delivery speed in key markets, while maintaining nationwide coverage.
It also signals a broader industry trend where large e-commerce players are investing heavily in owned logistics infrastructure, reshaping how goods are delivered across markets.
Takeaway for sellers:
Sellers should expect continued improvements in delivery speed and reliability. Leveraging Amazon’s fulfillment services (like FBA) will remain critical, as logistics efficiency increasingly influences product rankings, conversions, and customer satisfaction.
