UPS to Sever Business Relationship with Amazon

UPS is continuing to distance itself from its business relationship with Amazon. By the second half of 2026, UPS stated that it will reduce its shipping volumes for Amazon by more than 50 percent under the companies’ revised arrangement.

Amazon Not the Most Profitable Customer

"Amazon is our largest customer, but it’s not our most profitable customer," said CEO Carol Tomé during an investor call about the shipping and logistics company’s latest financials.

Amazon’s Share of UPS’ Revenue

Business with Amazon accounted for about 11 percent of UPS’ 2024 revenue, which totaled $91.1 billion. Amazon was a larger share of UPS’ revenue during the peak of the COVID-19 pandemic; in 2020, the retailer was for 13.3 percent of its annual revenue.

Similar Plans to FedEx

UPS shared similar plans to cut back its business with Amazon, as its revenue from the retailer dwindled from quarantine-era levels. This move is similar to FedEx’s decision in 2019 to uncouple its services from Amazon when it announced that it would not renew its ground-delivery contract with the big tech partner.

Amazon’s Growing In-House Shipping Options

Although Amazon does rely on outside companies for some shipping, those relationships have sometimes turned tenuous as the retailer continues to grow its in-house options for delivering orders. In 2019, FedEx took a similar path of uncoupling its services from Amazon when it announced that it would not renew its ground-delivery contract with the big tech partner. A few months later, Amazon blocked third-party sellers from using FedEx ground-delivery services.