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USPS to keep 80% of Amazon deliveries in new package deal

By MyNorthwest.com Staff
Mail Delivery As U.S. Postal Service Starts Review Of Package Fees A United States Postal Service (USPS) letter carrier wears protective gloves while sorting an Amazon.com Inc. box in Fairfax, Virginia, U.S., on Tuesday, May 19, 2020. The Postal Service in recent weeks has sought bids from consulting firms to reassess what the agency charges companies such as Amazon, UPS and FedEx to deliver products on their behalf between a post office and a customer's home, the Washington Post reported last week. Photographer: Andrew Harrer/Bloomberg via Getty Images (Andrew Harrer/Bloomberg via Getty Images)
By MyNorthwest.com Staff

This story was originally published on MyNorthwest.com.

Amazon and the U.S. Postal Service (USPS) have reached a new package-handling deal.

First reported by Reuters, Amazon will retain about 80% of its existing deliveries with USPS, equivalent to more than 1 billion packages a year. This deal means the post office will hang onto most of the business from its largest customer. Amazon represents roughly $6 billion in annual revenue for USPS, as it delivers around 1.7 billion packages annually for Amazon.

“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,” an Amazon spokesperson said in a prepared statement.

Amazon previously threatened to reduce its deliveries with USPS by two-thirds, according to Reuters. Still, Amazon stated it will continue to expand its own delivery service.

USPS, despite operating on an approximate $80 billion budget, warned officials it could run out of cash as soon as ​October. USPS has lost $118 billion in revenue since ​2007.

The financial terms of the agreement have not been revealed, as of this reporting.

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