UPS Ditches Amazon Shipping Volume Amid Margin Concerns

UPS, the world's largest shipping courier, has significantly reduced its dependence on Amazon over the past two years. In early 2025, UPS announced it would cut its Amazon-related shipping volume by more than 50% through 2026. By mid-2026, UPS had phased out its standard last-mile delivery services for Amazon across major markets, reducing shipment volume by millions of pieces per day.

This move might seem counterintuitive given that Amazon was UPS's largest customer, generating about 11% of its revenue in 2024 and 2025. However, those last-mile shipments clogged sorting facilities and generated lower profits than longer-range deliveries. To stabilize long-term margins, UPS sacrificed near-term revenue.

UPS is focused on securing higher-margin orders from small- to medium-sized businesses and healthcare customers to offset the loss of Amazon's orders. The company also plans to trim its workforce, close some facilities, and automate more tasks to streamline its business. For 2026, UPS expects its revenue to rise 3% to $91.2 billion as its adjusted EPS grows 1% to $7.22.