Amazon now reigns as the largest parcel carrier in the United States, dethroning the country’s own federal agency for mail deliveries.
FreightWaves confirmed that Amazon surpassed the U.S. Postal Service in delivery volume, handling more than 6.7 billion parcels in 2025. The online retailer saw a 9.8% year-over-year growth in parcel deliveries, compared to the 6.6 billion parcels handled by the USPS, which has faced an 8.3% decline.
The outlet noted that Amazon’s rise to the top of domestic parcel handling is not only due to its millions of users on its e-commerce platform. It also handles shipments through contract from third parties, adding to its shipment loads annually.
However, it is not the only upside. FedEx also reported a 5.9% increase in parcel deliveries. However, their load is still several billion parcels below Amazon, sitting at 3.6 billion for the past year. Another major shipping company, UPS, noted a 8.3% decline with only 4.4 billion deliveries handled.
The news comes amid other reports of an ongoing financial crisis plaguing the USPS. A December 2025 Government Accountability report found that the postal service has lost over $109 billion since it became unprofitable in 2007. The self-funded federal agency relies on its own revenue through stamps and shipments to stay afloat, but has struggled throughout the years to do so.
Without government support, the USPS expects to run out of cash by 2027, which would halt its delivery service. In light of this, the Trump administration has already warned that it will either insert new leadership or privatize the agency as its financial constraints worsen, as reported by USA Today.
Now, Amazon’s bypassing the federal agency for the most delivered parcels raises more concerns about the USPS’s relevance and efficiency, potentially thwarting its request for assistance. The USPS also has among the lowest revenue market shares of the major shipping companies.
Despite increases in parcel revenue, the USPS captures only 16.6% of these profits, with UPS dominating the market by nearly a third, taking in $58.3 billion in revenue. As more adults receive items through online retailers and their delivery services, USPS continues to be squeezed out of an increasingly tough market, with Amazon leading the charge.
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