USPS handed financial lifeline after reaching new deal with Amazon to deliver 1 billion packages
Source: The Independent
Tuesday 07 April 2026 13:18 EDT
Amazon and the U.S. Postal Service have reportedly come to a tentative agreement regarding package handling, backing away from a potential standoff that could have seen the online retailer cut its shipping volumes by two-thirds. The new arrangement involves a more gradual 20 percent reduction in volume, sources familiar with the matter told The Wall Street Journal.
This deal follows a period of friction between the two entities, during which Amazon had weighed a significant scale-back of its partnership with the national mail carrier.
The agreement is currently pending review and approval by the Postal Regulatory Commission, the federal agency that oversees USPS operations. Even with the planned reduction, the Postal Service is still on track to deliver more than 1 billion packages for Amazon each year.
The financial stakes are high for the USPS, which has come to rely on the consistent revenue provided by Amazons massive shipping scale. As the agencys biggest customer, Amazon was responsible for nearly 15 percent of all USPS deliveries last year, representing approximately $6 billion in revenue for the service.
Read more: https://www.the-independent.com/news/world/americas/amazon-us-postal-service-deal-b2953183.html
REFERENCES
https://www.democraticunderground.com/10143577441
https://www.democraticunderground.com/10143587738
Lovie777
(23,092 posts)Amazon wants the post office. The country's largest Union is at risk.
hlthe2b
(114,067 posts)FakeNoose
(41,785 posts)Amazon and other mail order customers have always been required to give a street address for package delivery. It's sometimes a problem for various reasons, privacy being one of them.
But the US Postal Service can make deliveries to PO Boxes, and they are the only ones who can. I've found the Priority Mail service to be as reliable as UPS or Fedex Ground, and the pricing is pretty close. First Class mail is something I rarely use anymore - too slow and unreliable.
dexdah
(63 posts)not a lifeline
live love laugh
(16,408 posts)and now Amazon is holding them hostage.
D. Spaulding
(510 posts)I think I read they lost 9 billion last year. That Amazon reduction would have hurt, as their first class mail has been dwindling for the last several years. I retired from the USPS a couple of years ago.
live love laugh
(16,408 posts)so glaring from his investment in UPS that the OIG investigated him spent 5 years destroying equipment and stealing trade secrets as well as reducing service. There were funds put aside by the postal service for retirement 75 years in advance!! What happened to that money? Now a fedex executive is postmaster general.