Amazon and the U.S. Postal Service have reached a new deal that will see a 20% drop in Amazon deliveries made via the postal system, according to reports.

Sources familiar with the matter told Reuters that, while Amazon is still expanding its own delivery capabilities, it does not see itself growing to a level capable of competing with the U.S. Postal Service’s ability to deliver address by address. 

Due to this, the commerce giant is preserving 80% of its existing deliveries made via the U.S. Postal Service. The deal now awaits approval from the Postal Regulatory Commission, the federal agency that oversees the Postal Service.

An Amazon spokesperson told The Wall Street Journal that “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.”

Last month, sources told Reuters that Amazon was looking to cut back its use of the U.S. Postal Service by two-thirds. The company accounts for about $6 billion of the U.S. Postal Service’s annual revenue, sources told Reuters.

In 2025, Amazon deliveries made up 15% of the U.S. Postal Service’s volume and the agency handled 15% of all of Amazon’s deliveries. U.S. Postmaster General David Steiner warned last month that despite Amazon’s business, the agency still had $9 billion in net losses in fiscal year 2025, and that he expects the agency to run out of money within a year.

Prior to the new deal, Amazon voiced discontent over plans by postal officials to auction off its “last-mile delivery” services, in which the U.S. Postal Service handles the final leg of a delivery’s journey to a business or other destination. The company also contended that the federal agency backed out of negotiations late in the process.