Amazon's expanding fulfilment and delivery network is cementing its role as a dominant force in the US parcel sector as it prepares for contract talks with the US Postal Service, reports Reuters.

Amazon said it is reviewing options for its USPS relationship ahead of the contract expiry next year. The move comes as the nearly US$193 billion US parcel market continues to grow, with Mordor Intelligence projecting it to reach $239.38 billion by 2030.

Pitney Bowes data showed Americans shipped 22.37 billion parcels in 2024, with Amazon delivering 6.3 billion, close behind USPS at 6.9 billion. Amazon surpassed UPS and FedEx in parcel volumes last year and is forecast to overtake USPS by 2028 with 8.4 billion deliveries.

Amazon held a 15.3 per cent revenue share in 2024, just behind USPS at 15.8 per cent. Its growing scale coincides with a retreat in its partnership with UPS, which plans to cut by more than half the volume handled for the retailer by 2026.

The sector faces policy uncertainty after President Donald Trump said in February he was considering folding the loss-making USPS, which posted a $9.5 billion deficit last year, into the Commerce Department. Meanwhile, Amazon has pledged more than $4 billion to expand its rural delivery network by the end of next year.