Amazon and USPS reached a new package-handling deal that cuts Amazon’s volume by 20% rather than two-thirds

Amazon struck a new package-handling deal with the U.S. Postal Service that will reduce Amazon's shipping volume through the agency by 20%, a far smaller cut than the two-thirds reduction Amazon had originally proposed earlier this year. Amazon is the USPS's largest customer, shipping nearly 15% of all packages the agency delivered last year and generating roughly $6 billion in annual revenue, which makes even a 20% reduction a meaningful hit to an agency that reported a net loss of $9 billion in fiscal 2025. The deal still leaves USPS delivering more than one billion Amazon packages per year and must be reviewed and approved by the Postal Regulatory Commission before taking effect.