logistics

Amazon and the US Postal Service: relationship, services, and key facts

Amazon and the United States Postal Service (USPS) have a long-standing operational relationship in which USPS provides last‑mile delivery services in many locations across th...

Mara Ellison
Amazon and the US Postal Service: relationship, services, and key facts

How Amazon and the US Postal Service interact

Amazon and the United States Postal Service (USPS) have a long-standing operational relationship in which USPS provides last‑mile delivery services in many locations across the United States. This relationship helps Amazon reach customers in areas where its own network is less dense and supports USPS revenue during periods of declining mail volumes. Below we explain the primary services involved, how they work in practice, and common questions about contracts, package handling, and delivery performance.

Key services USPS provides for Amazon

Last‑mile delivery and hybrid services

USPS is a major last‑mile delivery partner for Amazon, handling a significant share of packages under programs such as Amazon Multi‑Channel Merchant (MCM) and through a hybrid service that combines Amazon’s transportation network with final delivery by USPS. In rural and lower‑density areas, USPS often completes the final delivery after Amazon or a third‑party carrier moves the package to a local facility.

For sellers using Fulfillment by Amazon (FBA) or Fulfilled by Merchant (FBM), USPS may deliver parcels when it is the most efficient option based on origin, destination, and service level. These deliveries appear in tracking with a transition from the transporting carrier to USPS once the package reaches the local delivery unit.

Official programs and agreements

The relationship is shaped by several factors, including contractual terms, service-level agreements, and pricing for transportation and final delivery. USPS offers programs such as Informed Delivery, which provides digital notifications of mailpieces, and Retail Ground, which serves e‑commerce parcels. Amazon negotiates rates and service scopes to align with customer expectations for speed and reliability.

While exact contract values are not routinely disclosed, USPS has publicly reported that e‑commerce deliveries represent a growing share of its volume and revenue. The table below summarizes verified details about the relationship based on public information and official statements.

Key facts at a glance

AttributeVerified DetailSource Type
Primary service usedUSPS last‑mile and hybrid delivery for Amazon parcelsPublic statements and regulatory filings
Program examplesAmazon MCM, hybrid services, Informed Delivery, Retail GroundUSPS and Amazon program documentation
ScopeSupports rural and lower‑density areas; part of Amazon’s broader carrier mixAnalyses of carrier performance and public contracts
Contract visibilitySpecific financial terms are not publicly disclosed; high‑level service relationships are acknowledgedOfficial announcements and regulatory documents
Impact on delivery experienceFacilitates broader geographic coverage and cost‑effective final deliveryCarrier performance reports and customer feedback

How packages move through the network

When USPS handles a parcel for Amazon, the package typically moves through several stages. It is first picked up or processed by Amazon or a third‑party carrier, then transported to a regional facility. From there, USPS takes over final delivery to the recipient. Tracking events will reflect this handoff, showing the transporting carrier followed by a USPS update indicating out for delivery or delivery attempted.

This blended approach allows Amazon to scale its operations while leveraging USPS’s extensive network of local post offices and delivery routes. It also helps maintain delivery continuity in areas where building and maintaining private delivery infrastructure would be less efficient.

Common questions about Amazon and USPS

  • Does Amazon use USPS for all deliveries—no. Amazon uses a mix of carriers, including USPS, where it optimizes cost and coverage, but many packages are handled by UPS or regional carriers.
  • Can tracking show USPS involvement—yes. Tracking pages often display a transition event when USPS takes over final delivery, making it visible to customers.
  • Are there service guarantees—USPS provides its own service standards for different products, which apply when USPS is the delivering carrier for an Amazon shipment.
  • How does this affect delivery speed—using USPS can influence speed depending on the service chosen and local network density, with hybrid services designed to balance speed and reach.
  • What about rural areas—USPS plays a key role in reaching rural and lower‑density locations, where its infrastructure provides broader coverage than private networks alone.

Operational and market context

E‑commerce growth and changes in postal volumes have strengthened the partnership between Amazon and USPS. USPS has invested in automation and updated service offerings to remain competitive in parcel delivery, while Amazon benefits from extended coverage without the need to build every delivery node itself. Regulatory filings and public statements indicate that e‑commerce parcels are an increasingly important revenue stream for USPS amid shifting mail trends.

At the same time, the relationship depends on clear contracts, performance metrics, and alignment on customer expectations. Service levels, liability for loss or damage, and pricing are continuously negotiated to reflect volume, service requirements, and market conditions. This ongoing collaboration illustrates how two large organizations adapt their operations to serve customers efficiently within the broader logistics landscape.

Impact on customers and sellers

For customers, the involvement of USPS can mean broader delivery options, including delivery to PO Boxes where private carriers typically do not deliver, and potentially lower costs that sellers pass on through competitive pricing. For sellers, using FBA or FBM with USPS as part of the carrier mix can improve delivery economics and reach in regions where other carriers are less efficient.

Tracking transparency is important: when USPS is the final carrier, customers see USPS-specific updates and should follow USPS service commitments for estimated delivery windows. Sellers and marketplace managers should monitor performance metrics, including on‑time rates and handling times, to ensure a consistent customer experience aligned with service expectations.

Summary of the relationship

Amazon and USPS maintain a functional, data‑driven partnership in which USPS provides last‑mile and hybrid delivery services across the United States. This collaboration expands Amazon’s geographic reach, supports rural delivery, and helps USPS manage volume changes. While specific financial details are not public, the overall service relationship is well established and reflected in tracking, service programs, and ongoing operational coordination.

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