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Dive Brief:

• Amazon delivered more packages than the U.S. Postal Service in 2025, establishing the e-commerce giant as the top U.S. parcel carrier by volume, according to a March 16 report from ShipMatrix, a shipping consultancy and analytics provider.
• Amazon's logistics arm reached 6.7 billion packages delivered last year, surpassing the Postal Service's 6.6 billion packages. UPS came in third with 4.4 billion packages — an 8.6% year-over-year decline — and FedEx placed fourth with 3.6 billion packages.
• ShipMatrix attributed Amazon's jump to online sales growth, an expansion in rural delivery and less 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.

Dive Insight:

Amazon has rapidly grown its in-house delivery network through the years to become a titan in the last-mile delivery space. The company's rise to the top came perhaps quicker than some expected, as Pitney Bowes' Parcel Shipping Index predicted last year that Amazon would take the crown by 2028.

The e-commerce giant's momentum isn't only tied to orders from its own marketplace, as more shippers are tapping into Amazon Shipping as a delivery option for sales through other channels. Meanwhile, the now-lagging Postal Service is looking to turnaround its slump with new shipper-focused initiatives shepherded by Postmaster General David Steiner.

Amazon's climb doesn't necessarily spell doom for UPS and FedEx, as they are still the top two carriers in terms of market share by revenue. UPS led the way last year with 29.8% of revenue-based market share, and FedEx came in second at 26.4%. Both companies continue to distance themselves from lower-yielding services like delivering T-shirts to homes, instead pursuing more lucrative segments such as healthcare and data centers.

Many alternative carriers are looking to fill the void left by UPS and FedEx's shifting customer priorities and snagging more business-to-consumer volume for themselves. Delivery providers outside the top four — including Walmart and Target's in-house networks and smaller parcel carriers — saw the largest YoY volume leap in 2025 at 13%, according to ShipMatrix.

Overall revenue growth for the U.S. parcel market reached 4.1% YoY in 2025 as FedEx, UPS and the Postal Service generated additional income via rate increases, according to ShipMatrix. Parcel delivery volume ticked up 0.4% YoY, but growth is expected to pick up: ShipMatrix forecasted a compound annual growth rate of 3.9% over the next three years.