UPS Cuts 2 Million Daily Amazon Packages and Raises 2026 Outlook
UPS Completes Amazon Volume Reduction
The planned volume reduction marks a significant change in the relationship between one of the largest US parcel carriers and the country’s largest online retailer. Amazon now represents about 9% of UPS business, according to reporting on the carrier’s July 28 results. At the pandemic-era peak, Amazon generated more than 13% of UPS revenue.
UPS has characterized the removed packages as lower-yield volume. Amazon has built substantial in-house delivery capacity and is particularly strong in lightweight, short-distance urban deliveries. UPS is placing greater emphasis on business-to-business shipments, healthcare logistics and other time-sensitive services that make broader use of its network.
Revenue Forecast Moves Higher
UPS reported second-quarter revenue of $22.8 billion, an increase of 7.6% from the same period a year earlier. It raised its expected full-year 2026 revenue to approximately $91.2 billion, up from its previous forecast of $89.7 billion.
The results suggest that the carrier is prioritizing revenue quality over parcel count. For the wider ecommerce market, the shift also shows how major retailers’ delivery networks and national parcel carriers continue to divide US last-mile volume.
What China-Based Amazon Sellers Should Watch
China-based Amazon sellers should monitor the carrier shown in customer tracking, delivery promises by region and any changes in transit performance during peak periods. A different mix of Amazon Logistics, UPS and other carriers can affect the final domestic leg after an order is placed.
The UPS announcement does not by itself change China-to-US customs procedures, international freight rates or Amazon FBA inbound requirements. Sellers shipping inventory from China to US fulfillment centers should continue to plan around Amazon appointment rules, inventory receiving times and their own ocean or air freight schedules. The immediate change concerns US parcel delivery capacity rather than the international movement of FBA inventory.