After more than a year of contentious negotiations, Amazon and the U.S. Postal Service have reached a new agreement that will see USPS retain 80% of the current delivery load from its biggest customer, multiple sources report. This final 20% reduction in that delivery load is much less than the two-thirds reduction that was previously reported to be on the table.
The partners’ current agreement will end Sept. 30, 2026. USPS has a roughly $80 billion budget, of which Amazon represents about $6 billion annually, accounting for about 15% of the packages USPS currently delivers each year.
USPS and Amazon had been in talks for a new contract since February 2025, but those discussions fell apart in December when USPS announced plans to open up access to its last-mile delivery network to other commercial shippers through a new bidding process. In a statement from earlier this month, Amazon said that USPS “abruptly walked away” from negotiations around the same time, creating “significant uncertainty” for the ecommerce giant, which has relied on USPS for last-mile deliveries for more than 30 years.
Despite the years of work Amazon has dedicated to building out its own regionalized delivery network, the company said it still needs USPS’s help, and so submitted a bid in February 2026 as part of USPS’s new auction system. That appears to have done the trick, and while USPS will be getting less Amazon business than it had before, it has retained a much more sizeable portion than was previously anticipated.
“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,” Amazon said in a statement shared with Reuters. USPS did not immediately respond to a request for comment.
USPS is working to orchestrate a turnaround following $9 billion in net losses in 2025 and $9.5 billion in losses the previous year, reports Sourcing Journal. New Postmaster General David Steiner, who took on the role in May 2025, has been pushing for growth, with an expansion of the Postal Service’s first- and last-mile delivery assets seen as key levers.
