USPS to Retain Bulk of Amazon Package Business, Reuters Reports

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USPS to Retain Bulk of Amazon Package Business, Reuters Reports

Amazon and USPS reached a deal in which USPS will retain 80% of Amazon’s package business, according to Reuters, which published the following statement from Amazon on Monday:

“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.”

Reuters said Amazon is USPS’s largest customer and cited a source that said Amazon would continue to use USPS for about 80% of its existing deliveries, or over 1 billion packages a year.

Last month, Amazon accused USPS of having “abruptly walked away at the eleventh hour” from negotiations in December. USPS then opened up entry to its last-mile delivery network in January and launched a new USPS bidding platform. Reuters said in its reporting today that Amazon had criticized that move and threatened to cut its delivery business prior to the deal being reached.

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Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). She is a member of the Online News Association (Sep 2005 - present) and Investigative Reporters and Editors (Mar 2006 - present). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com. See disclosure at EcommerceBytes.com/disclosure/.

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