Amazon and USPS Reach New Delivery Deal: 20% Volume Cut Instead of Planned Two-Thirds Reduction
Amazon and the U.S. Postal Service signed a revised delivery agreement on April 6, 2026, in which Amazon will reduce USPS package volume by roughly 20%—far less than the two-thirds cut Amazon had threatened earlier in the year. USPS will continue handling approximately 1 billion Amazon packages annually, preserving about $6 billion in revenue for the agency. While the deal averts a USPS financial crisis, the 20% volume reduction still means USPS must spread its fixed infrastructure costs across fewer packages, likely pressuring it to raise rates for third-party shippers—including FBM sellers—who depend on it for affordable last-mile delivery.
Real-World Impact
A FBM seller currently paying $8.50/label for USPS Ground Advantage who sees a 5–8% rate ripple from reduced USPS volume would pay $8.93–$9.18/label — roughly $86–$136 in added annual costs per 200-unit/month operation on top of the 8% USPS fuel surcharge already taking effect April 26.
Key Points
- Amazon and USPS signed a new delivery agreement on April 6, 2026 — Amazon will reduce USPS volume by ~20%, not the originally threatened two-thirds cut
- USPS retains roughly 1 billion Amazon packages per year, worth approximately $6 billion in annual revenue
- Amazon is accelerating its own last-mile logistics network to handle the volume shifting away from USPS
- With fewer packages covering the same fixed infrastructure costs, USPS may be forced to raise rates on remaining customers
- FBM sellers in rural areas face the highest risk — USPS is often the only practical carrier for low-cost rural delivery
- Sellers who use Amazon Buy Shipping labels may see higher USPS label costs reflected automatically in Seller Central
What You Should Do Now
- 1Monitor USPS commercial rate announcements — a second mid-year rate adjustment beyond the April 26 fuel surcharge is increasingly likely
- 2Compare UPS and FedEx ground rates against USPS for your key shipping lanes; the gap has narrowed and may close further
- 3For rural-heavy order profiles, evaluate Amazon's own delivery network (Shipping with Amazon) as an alternative where available
- 4Assess whether high-volume FBM SKUs should be shifted to FBA to insulate margins from carrier cost volatility