UPS Reduces Amazon Deliveries Volume by 2026: What’s Next?

A pivotal move set to reshape the logistics and ecommerce field, UPS reduces Amazon deliveries by more than 50% by the end of 2026. 

This strategic shift reflects deeper transformations in the shipping and fulfillment space, as UPS and Amazon recalibrate their decades-long relationship amid rising cost pressures, changing business priorities, and the emergence of Amazon’s self-reliant logistics infrastructure

As UPS Amazon deliveries scale back significantly, many sellers, especially those operating through Amazon’s Fulfillment by Amazon FBA program, are left wondering what this means for their shipping reliability, cost structure, and long-term logistics planning. 

Why Is UPS Reducing Amazon Shipments?

1. Lower Margins on Amazon Shipments 

One of the core reasons UPS cuts Amazon deliveries to focus on higher-margin opportunities is rooted in profitability. 

Shipping packages for Amazon often involved high volumes with thin profit margins, especially in an environment where delivery timelines are shrinking, labor and fuel costs are rising, and customer expectations are increasing. 

Amazon’s massive shipping scale demands volume-based discounts, which put pressure on carrier margins. UPS has confirmed that the Amazon UPS partnership was not yielding the kind of returns that align with its long-term financial strategy. 

As a result, UPS is now shifting its capacity away from low-margin accounts to focus on more profitable clients – especially small to mid-sized businesses and enterprise shippers who bring better per-package yield. 

2. Amazon’s Growing in-House Logistics Network

Another major driver behind the volume reduction is the rapid expansion of Amazon’s in-house logistics network. Over the last few years, Amazon has built a delivery infrastructure that now rivals, and in many cases, surpasses traditional carriers. 

From Amazon on-branded delivery vans to regional fulfillment centers and the expanding Amazon Air Fleet, the ecommerce giant is aggressively bringing its delivery operations under direct control. 

This naturally leads to a decreased dependency on external partners like UPS, with internal routing replacing what used to be handled by third parties. 

While Amazon delivery with UPS Amazon is still true in limited cases, Amazon is increasingly choosing its own routes to control cost, speed, and customer experience end-to-end. 

3. Peak Season Struggles and Cost Pressures

During holiday peak seasons, UPS and Amazon often encountered logistical strain due to the sheer volume of shipments and the expectation of fast delivery windows. Managing the Amazon load during these periods put enormous pressure on UPS infrastructure, driving up costs and increasing labor dependency. 

By cutting down on Amazon volume, UPS can better allocate resources during critical delivery periods and reduce its exposure to volatility. 

The move is part of a broader effort to ensure that operations are better aligned with controllable, profitable workflows. 

4. Strategic Shift Towards High-Value Clients

UPS is now clearly prioritizing higher-margin clients over volume, marking a strategic repositioning of the company’s business model, one that emphasizes profitability, service flexibility, and operational control. 

While Amazon once represented more than 10% of UPS’s total revenue, the shift indicates that retaining the largest shipper at all costs is no longer a top priority. 

This decision also aims to rebalance relationships. Many industry analysts believe did UPS cut ties with Amazon stems not from animosity, but from a maturing dynamic where both parties are seeking autonomy and greater control over their respective futures. 

What Does This Mean for Amazon Sellers and FBA Businesses?

The news that UPS reduces Amazon deliveries is more than just a headline, it carries real-world implications for Amazon sellers and FBA operators. 

First and foremost, it signifies a changing logistics ecosystem where businesses can no longer assume long-term stability from legacy partnerships like the Amazon and UPS partnership or even the Amazon and USPS contract. 

Reduced UPS involvement could mean increased reliance on Amazon’s internal network, which may benefit some sellers in terms of delivery speed but also creates risks around flexibility, cost transparency, and career choice. 

For FBA sellers using UPS store Amazon returns, it’s unclear how the cutback will impact return workflows or whether Amazon will shift these services to in-house logistics or other partners. 

Additionally, sellers who previously benefited from UPS’s infrastructure, especially in areas where Amazon’s logistics footprint is limited, may experience changes in shipping times or service availability. 

There may also be ripple effects in stock value, with the Amazon volume cut impact UPS stock showing fluctuating investor sentiment depending on how UPS adapts its business model moving forward. 

Forceget’s Competitive Advantage in the UPS Transition

While UPS and Amazon contract dynamics evolve, Forceget offers an alternative that blends advanced technology with personalized service, making it ideal for sellers needing reliable logistics without the uncertainty of shrinking legacy agreements. 

Forceget’s AI-driven supply chain tools, global freight forwarding capabilities, and fulfillment network provide scalable options for brands looking to diversify shipping strategies. 

Whether through air or ocean freight, last-mile delivery integration, or smart inventory planning, Forceget equips sellers to stay ahead of disruptions. 

Unlike traditional carriers locked into inflexible contracts, Forceget enables merchants to adapt quickly, cut unnecessary costs, and manage multiple carrier options under a unified logistics dashboard. As Amazon UPS partnership phases down, Forceget provides the strategic flexibility businesses need to thrive. 

Key Takeaways

As UPS and Amazon move toward different priorities, one focusing on profitability, the other on independence, businesses must prepare for a more fragmented, tech-driven delivery environment. 

For Amazon sellers, understanding the implications of this transition is important. Whether it’s delivery timing, cost adjustments, or return policy logistics, the impact will be felt across operations. 

The breakdown of the Amazon UPS partnerships is not a complete separation, but it is a signal that businesses should explore agile partners like Forceget that can offer a diversified, tech-enabled logistics experience. 

With the right approach, this shift becomes less of a setback and more of an opportunity, to reassess, restructure, and optimize fulfillment for a stronger, more future-proof business model.