Amazon cuts back Postal Service deliveries in new agreement

Amazon has reached a tentative agreement with the U.S. Postal Service (USPS) to reduce its reliance on the mail agency for deliveries. Under the new deal, the USPS will continue to handle approximately 80 percent of Amazon's deliveries, representing a 20 percent cut from previous levels. This agreement follows months of negotiations during which Amazon had reportedly threatened a much larger reduction, potentially by two-thirds or more. The outcome allows the USPS to retain a significant portion of its delivery volume from the e-commerce giant, which is a major customer. This decision impacts the operational scope and revenue stream for the U.S. Postal Service.