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    Home - E-commerce & Retail - Amazon closing parcel delivery gap with USPS, market faces major shakeup
    E-commerce & Retail

    Amazon closing parcel delivery gap with USPS, market faces major shakeup

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    Amazon closing parcel delivery gap with USPS, market faces major shakeup
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    Amazon is fast approaching the United States Postal Service (USPS) as the nation’s top parcel carrier, signaling a seismic shift in the U.S. shipping landscape, according to new data from Pitney Bowes.

    In 2024, Amazon Logistics delivered 6.3 billion packages. That’s up 7.3% from the prior year. It also captures 28% of the parcel market. That puts it just behind USPS, which handled 6.9 billion parcels and held a 31% share. At this pace, Amazon is on track to overtake USPS in total parcel volume by 2028.

    The findings come from the 10th annual Pitney Bowes Parcel Shipping Index, which tracks shipping volumes and revenues across major and regional carriers for packages under 70 pounds.

    On top of offering delivery and web services, Amazon ranks No. 1 in Digital Commerce 360’s Top 2000 Database. The database is how Digital Commerce 360 tracks the largest North American online retailers by their annual ecommerce sales. Amazon is also No. 3 in Digital Commerce 360’s Global Online Marketplaces Database. That database ranks the 100 largest such marketplaces by third-party gross merchandise value (GMV).

    Amazon catching up to USPS on parcel delivery

    The report presents a picture of a rapidly evolving market where legacy players are losing share of newcomers and non-traditional delivery firms. Alternative carriers — grouped under “Others” in the report — handled 800 million shipments in 2024, a 23% increase from 650 million the year before. Their market share rose to 3.5%, up from 3%.

    “This disruption presents a unique opportunity for businesses to take advantage of competitive pricing,” said Shemin Nurmohamed, executive vice president and president of sending technology solutions at Pitney Bowes. “We are witnessing a turning of the tide, evidenced by the nearly 40% volume growth in the five-year CAGR of ‘Other’ carriers.”

    Overall, U.S. parcel volume rose 3.4% to 22.4 billion shipments in 2024. But revenue gains were more modest, climbing just 2.7% to $203.2 billion. Average revenue per parcel dipped slightly to $9.09, a reflection of the heightened pricing pressure amid growing competition. USPS’s rollout of Ground Advantage and expansion by regional carriers have added to the downward pricing trend.

    In Q1 2025, parcel volume growth slowed sharply to 0.4% year-over-year. FedEx, however, posted its first volume increase since 2021 — up 5.8% — thanks to a reorganization that merged its Ground and Services units and launched new offerings like FedEx Ground Economy.

    UPS saw parcel volume fall 5.4% in the first quarter, partly due to a pullback in shipping from Amazon. USPS volumes declined 6.2%, hindered by adverse weather and trade uncertainty. Notably, shipments from China — once a major driver of volume — have cooled, though the impact hasn’t yet hit the “Others” segment.

    Despite the near-term slowdown, Pitney Bowes expects steady growth ahead. Its forecast calls for U.S. parcel volume to reach between 23 billion and 35 billion shipments by 2029, with the scenario hitting 30.5 billion and a 5% compound annual growth rate.

    “The pace of innovation and entry in the parcel space has never been higher,” the report concludes, “and the next five years promise even more upheaval as companies compete to deliver faster, cheaper, and more efficiently.”

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    Sign up for a complimentary subscription to Digital Commerce 360 B2B News. It covers technology and business trends in the growing B2B ecommerce industry. Contact Mark Brohan, senior vice president of B2B and Market Research, at [email protected]. Follow him on Twitter @markbrohan. Follow us on LinkedIn, X (formerly Twitter), Facebook and YouTube.

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