Amazon and USPS Strike Deal

Quick Summary

Amazon and USPS signed a new delivery deal on April 6. Amazon cuts only 20% of its USPS volume, not the 66% reported in March
USPS retains roughly 80% of Amazon parcels (~1.2 billion per year). Rural delivery infrastructure stays intact
The USPS 8% surcharge still takes effect April 26. FBM sellers who ship via USPS will pay more regardless of the deal
The new contract runs through 2028. Combined with FBA fuel surcharges and placement fee increases, fulfillment costs are up across all channels in 2026

Nova surfaces every Amazon fee, refund, and margin shift in your live P&L, across 21 marketplaces. Open the live P&L

What's Happening

Amazon and USPS have signed a new delivery deal. Reuters confirmed on April 6 that Amazon will reduce its USPS shipping volume by 20%, not the 66% that was widely reported in March. USPS keeps 80% of Amazon's parcel business. This is the kind of announcement we flag in our internal review because it changes inputs to the daily P&L. This is the kind of announcement we flag in our internal review because it changes inputs to the daily P&L.

This is a major reversal from what the industry expected. Three weeks ago, the Wall Street Journal reported Amazon planned to pull two-thirds of its USPS volume. Our previous coverage Detailed the potential fallout from that scenario. Now we have clarity: the worst case didn't happen.

The Verge reports the new contract runs through 2028 with renegotiation clauses. FreightWaves and Logistics Management both confirmed the deal terms independently.

What the Deal Looks Like

Volume Retained by USPS

80%

Of Amazon's parcel volume stays with USPS

Actual Volume Cut

20%

Down from the feared 66% cut

Estimated Parcels Remaining

~1.2B

Annual Amazon parcels USPS will still handle

Feared Outcome vs. Actual Deal

Factor	Feared (March Reports)	Actual Deal (April 6)
Volume cut	66%+	20%
USPS revenue impact	Catastrophic (~$4B loss)	Manageable (~$1.2B reduction)
Rural delivery disruption	Severe (AMZL thin in rural)	Minimal (USPS retains most routes)
Contract duration	Expiring Oct 2026 with no renewal	New deal through 2028
USPS 8% surcharge	Likely permanent, possibly higher	Still taking effect April 26

What This Means for Amazon Sellers

Rural Delivery Stays Stable

The biggest fear was that USPS losing 66% of Amazon's volume would degrade rural delivery infrastructure. With 80% of volume retained, USPS keeps enough revenue to maintain its rural network. If you sell products popular outside metro areas, your delivery SLAs should hold. Track delivery performance through your daily performance dashboard to catch any localized issues.

The USPS 8% Surcharge Still Hits April 26

Don't celebrate too early. The USPS 8% surcharge was filed with the Postal Regulatory Commission before the deal was signed. It takes effect regardless. FBM sellers who ship via USPS will pay more starting April 26. The deal softened the blow but didn't eliminate it.

FBA vs FBM Math Shifts Less Than Expected

With a 20% cut instead of 66%, the USPS infrastructure stays mostly intact. FBM sellers who ship via USPS face the 8% surcharge, but not the service degradation we feared. Combined with Amazon's 3.5% FBA fuel surcharge, the gap between FBA and FBM costs hasn't widened as dramatically. Run a product-level comparison in Nova's P&L Dashboard to see where each channel stands for your catalog.

Cost Increases Are Still Real

Between the USPS surcharge, FBA fuel surcharge, and inbound placement fee increases, fulfillment costs in 2026 are higher than 2025 no matter which channel you use. The deal just means the increase is moderate instead of severe. Model every fee change against your margins with Nova's Profit Calculator.

Updated Timeline

Date	Event
March 17	WSJ reports Amazon plans 66%+ USPS volume cut
March 25	USPS files 8% surcharge with Postal Regulatory Commission
April 6	Amazon and USPS sign new deal: 20% volume cut, contract through 2028
April 26	USPS 8% surcharge takes effect
2028	New Amazon-USPS contract up for renegotiation

What You Should Do Now

1.
Recalculate FBM shipping costs with the April 26 surcharge
The USPS 8% surcharge is happening. Update your shipping cost assumptions for every FBM SKU. Use Nova's Profit Analytics to see which products absorb the increase and which need a price adjustment.
2.
Monitor delivery SLAs over the next 60 days
Even a 20% volume reduction means some routing changes. Watch your daily performance metrics for delivery-related complaints. The transition period is when things are most likely to slip.
3.
Compare fulfillment channel profitability at the SKU level
With multiple fee changes stacking up in April 2026, a portfolio-level check is overdue. Nova's P&L Dashboard Breaks down every Amazon fee at the product level so you can see exactly where your margins stand after these changes.
4.
Explore MCF for non-Amazon channels
If you sell on Shopify, eBay, or your own store, Amazon's Multi-Channel Fulfillment may now be more cost-effective than USPS for many product sizes. Evaluate the tradeoff between cost savings and deeper Amazon dependency.

How Nova Helps You Navigate This

Track Every Fee Change Across Your Catalog

Nova's P&L Dashboard tracks 40+ Amazon fee types at the product level. When the USPS surcharge and FBA fuel surcharge both hit in April, you'll see the impact on each SKU's contribution margin without manually recalculating anything.

Use Winners & Losers to spot products where April's cost increases are compressing margins. Catch the problem in days instead of discovering it in your monthly close. See how it works.

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Frequently Asked Questions

Common questions about this topic

Yes. On April 6, 2026, Amazon and USPS signed a new delivery contract. Amazon will reduce its USPS shipping volume by 20%, far less than the 66% cut reported in March. The new deal runs through 2028.

USPS retains approximately 80% of Amazon's parcel volume, which translates to roughly 1.2 billion packages per year. This is enough to maintain USPS's rural delivery network and avoid the catastrophic revenue loss that was feared.

Yes. The USPS 8% surcharge was filed with the Postal Regulatory Commission before the deal was finalized and takes effect on April 26, 2026, regardless. FBM sellers who ship via USPS will still face higher shipping costs.

The gap between FBA and FBM costs hasn't widened as dramatically as feared. FBM sellers face the 8% USPS surcharge, while FBA sellers face a 3.5% fuel surcharge. The infrastructure stability from the deal means FBM via USPS remains viable, though more expensive than before.

The new contract runs through 2028 with renegotiation clauses. This gives both parties stability for about two years before terms need to be revisited.

Verified Sources

All information verified from official Amazon sources and trusted industry analysts as of publication date.

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