Amazon and USPS Strike Deal: 20% Package Cut Instead of Two-Thirds Reduction
Amazon and the U.S. Postal Service struck a new delivery deal where Amazon will cut packages shipped through USPS by 20%. This is much smaller than the two-thirds reduction Amazon originally proposed earlier this year.
Amazon and the U.S. Postal Service reached a new agreement that will reduce Amazon's package shipments through USPS by 20%, according to sources familiar with the deal. The reduction is far smaller than Amazon's original proposal to cut shipments by two-thirds.
The deal means USPS will retain about 80% of its existing deliveries from Amazon, its biggest customer. Amazon had disclosed the steeper cut plan to the Postal Service during a bidding process for package delivery services earlier this year.
The agreement is crucial for USPS, which has struggled financially for years. Amazon packages make up a significant portion of the postal service's revenue, helping fund mail delivery to every address in America, including rural areas that private companies often avoid.
The compromise protects thousands of postal worker jobs while still allowing Amazon to shift some volume to its own delivery network and other carriers. Amazon has been building its own delivery fleet for years to reduce dependence on USPS and other shipping partners.
This deal saves thousands of postal worker jobs and keeps mail delivery reliable in your neighborhood. USPS gets to keep 80% of its biggest customer's business, which helps fund the mail service that delivers to every American address.
Watch for details on when the 20% reduction begins and which regions see changes in Amazon delivery patterns.
Was this article helpful?
0 people found this helpful