Amazon to Deliver 86% of Own Packages, Cutting USPS & UPS Reliance

Amazon is dramatically accelerating its vertical integration into parcel delivery, projecting that it will handle over 86% of its own package deliveries in the coming year. This strategic move represents a fundamental shift in how the e-commerce giant manages its logistics network and signals declining dependence on traditional carriers USPS and UPS. For supply chain professionals, this development carries significant implications for carrier relationships, competitive dynamics in last-mile delivery, and the broader trend of major retailers building proprietary logistics capabilities.

The company's internal forecast—though preliminary—indicates Amazon has successfully scaled its Fulfillment by Amazon (FBA) network and Amazon Logistics operations to absorb the vast majority of its parcel volume. This is not merely an operational optimization; it reflects years of infrastructure investment in sorting facilities, delivery stations, and driver networks across North America. The shift compounds pressure on traditional carriers, which have long depended on e-commerce volume to offset declining mail revenues and justify their fixed cost bases.

Supply chain teams should monitor this trend closely, as it may reshape carrier relationships, pricing negotiations, and capacity availability for other high-volume shippers. Additionally, this move positions Amazon to offer more competitive fulfillment services to third-party sellers and may accelerate the consolidation of last-mile delivery into fewer, more specialized players.