Amazon Overtakes USPS as the Top U.S. Parcel Carrier by Volume
Amazon delivered more packages than the U.S. Postal Service in 2025, making it the highest-volume parcel carrier in the country for the first time. The milestone, reported by ShipMatrix on March 16, arrived years ahead of some industry forecasts and reflects how quickly Amazon has built its in-house logistics network into a dominant force in last-mile delivery.
The Numbers
Amazon's logistics arm delivered 6.7 billion packages in 2025, narrowly surpassing USPS at 6.6 billion. UPS came in third with 4.4 billion packages, a decline of 8.6% from the previous year, and FedEx placed fourth with 3.6 billion packages.
ShipMatrix attributed Amazon's growth to three factors: continued online sales growth, an expansion of rural delivery coverage, and reduced reliance on UPS for shipping. “With both FedEx and UPS showing less interest in delivering low value business-to-consumer parcels, the e-commerce giant Amazon, once their biggest customer, continues to grow,” the report said.
The timing is notable. Pitney Bowes' Parcel Shipping Index had predicted last year that Amazon would take the top spot by 2028. It got there three years early.
What Is Driving Amazon's Growth
Amazon's delivery volume is no longer tied solely to its own marketplace orders. More third-party shippers are using Amazon Shipping to fulfill orders from other sales channels, broadening the base of packages flowing through Amazon's network. As UPS and FedEx continue pulling back from lower-margin business-to-consumer deliveries, Amazon is absorbing volume those carriers are leaving behind.
Rural delivery expansion has also been a meaningful contributor. Reaching customers in areas that were previously underserved by Amazon's own network required building out delivery infrastructure in markets where the company previously leaned on carriers like USPS and UPS. That investment is now showing up in volume numbers.
Where UPS and FedEx Stand
Amazon overtaking USPS by volume does not tell the full story of the parcel market. UPS and FedEx remain the top two carriers by revenue-based market share, with UPS leading at 29.8% and FedEx following at 26.4%. Both companies are deliberately moving away from high-volume, low-margin residential deliveries in favor of more profitable segments like healthcare logistics and data center supply chains.
The strategic retreat from business-to-consumer volume by UPS and FedEx is creating space for others to fill. Alternative carriers outside the top four, including Walmart and Target's in-house delivery networks alongside smaller parcel providers, saw the largest year-over-year volume jump in 2025 at 13%, according to ShipMatrix.
What the Broader Market Looks Like
Overall parcel delivery volume in the U.S. grew 0.4% year over year in 2025, with revenue growing 4.1%, driven largely by rate increases from FedEx, UPS, and USPS. ShipMatrix projects a compound annual growth rate of 3.9% for parcel volume over the next three years as e-commerce demand continues to build.
USPS is not conceding ground without a response. Postmaster General David Steiner is leading new shipper-focused initiatives aimed at reversing the Postal Service's volume decline and making USPS a more competitive option for e-commerce shippers.
What This Means for Sellers
For sellers who use Amazon Shipping or rely on Amazon's fulfillment network, the volume milestone reflects the scale and reach of the infrastructure now supporting their orders. Amazon's rural expansion in particular means more delivery addresses are now viable for fast fulfillment through Amazon's own network rather than third-party handoffs.
For sellers shipping through UPS and FedEx, the carriers' shift toward higher-margin segments is worth monitoring. As both companies continue pulling back from residential parcel delivery, rate structures and service levels for standard e-commerce shipments may shift. Alternative carriers gaining volume share in the business-to-consumer space represent options worth evaluating as the competitive landscape continues to change.
