The Amazon–USPS Deal Is About More Than the Postal Service. It Is About Your Delivery Network.

15 Apr 2026

The Amazon–USPS Deal Is About More Than the Postal Service. It Is About Your Delivery Network.

Most sellers are focused on ads. The logistics side of the business does not always get the same attention — but it should, because what happens in the carrier network shows up directly in your seller metrics.

On April 6, Reuters reported that Amazon and the U.S. Postal Service reached a new agreement. Under the deal, Amazon will retain about 80% of its existing deliveries with USPS, or more than 1 billion packages per year. For sellers, that number matters more than it might initially appear.

How Close This Came to Looking Very Different

This deal did not happen smoothly. That 20% cut is a dramatically better outcome for the postal agency than the two-thirds or larger reduction that Reuters reported Amazon had threatened last month.

The backdrop is important. Negotiations encountered serious difficulties in December, when the Postal Service initiated a bidding process for last-mile facility capacity, which surprised Amazon and led the company to assess other options. For the Postal Service, which reported a $9 billion net loss last year, the deal averts what could have been a serious revenue shock. Amazon accounts for nearly 15% of USPS package deliveries nationwide, translating to about $6 billion annually.

 

 

An outcome where Amazon shifted two-thirds of that volume away would have put USPS under genuine financial stress — and the ripple effects would not have stayed contained to the Postal Service’s balance sheet.

Why USPS Coverage Is Not Replaceable Overnight

USPS is the only carrier that reaches every address in the United States — 165 million delivery points daily, including rural areas where no private carrier operates at scale. USPS delivered more than a billion packages for Amazon, which accounted for around 15% of Amazon’s total package delivery and up to 40% of its delivery to rural areas.

When that last-mile coverage develops gaps, sellers feel it directly. Late shipment rates climb. Valid Tracking Rate drops. Customer complaints follow. None of that is fixable through better ad targeting or campaign optimization.

Amazon had been preparing for multiple scenarios, including expanding its own delivery network and reaching out to smaller carriers to absorb displaced volume. Quartz But absorbing that kind of rural delivery footprint is not something that happens quickly. The federal mail system’s near-universal address coverage has enabled Amazon to sustain rapid delivery in rural areas, where private carriers often struggle to match its reach or costs.

Amazon Is Still Building Its Own Network — But Not to Replace USPS Yet

This deal does not mean Amazon is stepping back from logistics investment. In April 2025, Amazon committed $4 billion to expanding its rural delivery network through the end of 2026, including building 200 rural delivery stations and recruiting small business owners in rural towns as part-time parcel carriers.

The direction is clear: Amazon wants more control over its own last-mile infrastructure over time. But the pace of that shift matters. The 20% reduction suggests Amazon is gradually shifting volume toward its own logistics infrastructure, but not at the pace that would destabilize USPS overnight. For the broader carrier market, this deal buys time.

For sellers, that means the current delivery structure remains largely intact — for now. The transition is happening, but it is measured.

What This Means for Brands Selling on Amazon

Amazon moved over 5.9 billion packages in 2023 across its full carrier mix — Amazon Logistics, UPS, USPS, and regional partners. That kind of volume needs redundancy. USPS is a significant part of what provides it, especially during Q4 when every node in the network operates under pressure.

The accounts that grow consistently are the ones where the team watches the full picture, not just the ad dashboard. Logistics stability is a growth input. It does not appear in your campaign reports, but it appears in your results — in your Late Shipment Rate, your Valid Tracking Rate, your customer satisfaction scores, and ultimately your Buy Box eligibility.

For sellers who operate across rural and suburban markets, this agreement preserves something that would have been difficult to replace: reliable, affordable, nationwide last-mile delivery at scale.

What to Watch Going Forward

Amazon will continue its delivery expansion, but short of growth that would rival USPS’s address-by-address reach. That balance is worth monitoring closely as Amazon’s internal logistics network matures.

A few things worth tracking in the months ahead: whether the 20% volume reduction creates any visible gaps in rural delivery performance, how Amazon’s $4 billion rural infrastructure build progresses through the rest of 2026, and whether USPS’s financial position — which warned it could run out of cash as soon as October — stabilizes under the terms of this agreement.

The short-term picture for sellers is stable. The longer-term question is how Amazon’s carrier mix continues to evolve, and what that means for delivery coverage in markets where USPS currently does the heavy lifting.

If your team only reviews performance inside the ad dashboard, this is a reminder that some of the most important variables affecting your results never appear there at all.

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Author: Oleksandr Kovalov
Founder & CEO @ ANavigator

— The ANavigator Team

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Embracing Change and Innovation in Amazon E-commerce
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December 1, 2023
Embracing Change and Innovation in Amazon E-commerce

Amazon E-commerce Innovation: Embracing Change in a Dynamic Marketplace

The Amazon marketplace, known for its dynamic and ever-changing nature, presents a fascinating world of opportunities and challenges for sellers and brands. This platform, which started as a relatively open market, has evolved into a complex and competitive arena, demanding continuous adaptation and Amazon e-commerce innovation from its participants.

Since its early days as a burgeoning online marketplace, Amazon has transformed into a global e-commerce powerhouse, reshaping the way products are sold and marketed. Sellers now face an environment where standing out requires not only quality products but also strategic, data-driven approaches and a deep understanding of Amazon e-commerce innovation trends. Recognizing and adapting to these shifts is essential for anyone looking to carve out a successful niche in this competitive space.

Key Aspects of Amazon E-commerce Innovation

Amazon continues to drive innovation by introducing tools and programs that enable brands to optimize their presence and marketing efforts. From advanced PPC advertising options to the powerful DSP services Amazon offers, sellers have access to robust tools that enhance their visibility and help them reach their ideal customer base. This level of innovation requires sellers to constantly adapt their strategies, ensuring they make the most of these features to maximize their reach and profitability.

Moreover, Amazon’s emphasis on customer experience influences its evolving policies and standards, pushing sellers to keep up with quality, delivery, and product standards. This drive for innovation affects not only marketing approaches but also operational efficiency, requiring sellers to align their logistics and customer service with Amazon’s high standards. As the platform continues to evolve, sellers need to stay informed of the latest innovations in e-commerce to maintain a competitive edge.

Adapting to Change for Long-Term Success

Thriving in Amazon’s competitive landscape requires more than just an understanding of the basics. Successful sellers invest in learning about Amazon e-commerce innovation to make informed decisions and respond proactively to shifts in market trends and customer expectations. By embracing change, optimizing advertising strategies, and staying current with Amazon’s latest tools, sellers can ensure their businesses grow and succeed.

In the ever-evolving world of Amazon, adaptability and innovation are keys to long-term success. Those who actively embrace Amazon’s innovations and changes in the e-commerce landscape will find themselves well-positioned to thrive.

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Amazon Just Removed Custom Return Instructions for FBM Sellers
Blog
August 20, 2026
Amazon Just Removed Custom Return Instructions for FBM Sellers
Starting August 2026, a field that seller-fulfilled brands have quietly relied on for years disappeared from Seller Central. The option to add custom return instructions in Return Settings and the Manage Seller-Fulfilled Returns screen is gone, confirmed by Amazon moderator Billy_Amazon in the Seller Central forums when sellers began reporting the change around August 13. Amazon's notice was a single sentence: "Starting August 2026, the option to add return instructions in your return settings will no longer be available." No replacement was announced. No equivalent field was introduced. For brands selling bulky, expensive, fragile, or condition-sensitive products through FBM, the implications are worth thinking through carefully, particularly in the context of five other FBM return changes that have already taken effect in 2026. What Sellers Actually Lost The custom return instructions field allowed FBM sellers to communicate specific requirements directly to buyers when a return was authorized. Common uses included telling customers to return items unused, include original packaging, use specific packaging materials, or understand that return shipping was their responsibility when the item was not defective. For products where condition on return directly affects resale value- outdoor equipment, electronics accessories, custom items, fragile goods, anything with hygiene or safety considerations- that field was doing real operational work. It set expectations before the package was shipped back, which reduced the frequency of returns arriving damaged, used, incomplete, or improperly packaged. Without it, buyers now receive a return label with Amazon's standard messaging. The seller has no dedicated channel to communicate product-specific return requirements at the moment of return authorization. Amazon's stated alternative is Buyer-Seller Messaging; FBM sellers can still reach buyers through the messaging system to communicate return requirements. That is technically true, but it is a manual, reactive step rather than a systematic one. It requires the seller to initiate a message after every return authorization, and it is subject to Amazon's messaging policies, which restrict commercial communication. The Broader FBM Return Picture in 2026 The removal of custom return instructions is one piece of a larger pattern of FBM return policy changes that have accumulated throughout 2026. Taken together, they represent a significant tightening of how seller-fulfilled returns work, and a consistent shift toward Amazon controlling more of the return experience while sellers absorb more of the cost. Effective February 8, 2026, all FBM sellers must use Amazon prepaid return labels for every order, regardless of item value. The previous high-value exemption, which allowed sellers of electronics, jewelry, cameras, and other expensive items to opt out of prepaid labels, was eliminated entirely. Sellers of high-ticket items now absorb prepaid return shipping costs on every return. Effective January 26, 2026, the FBM refund processing window was extended from two business days to four calendar days. If a seller does not process a refund within four calendar days of receiving a returned item, Amazon may issue an automatic refund, and in most cases, the seller loses eligibility for SAFE-T claim reimbursement. The four-day window sounds generous but requires tight operational discipline. Returns that arrive on Friday need a decision by Monday. Returns that arrive around holidays compress the inspection timeline further. Sellers previously had two business days, which excluded weekends. The new four calendar-day window sounds longer but is operationally shorter in practice for sellers without weekend fulfillment operations. What FBM Sellers Should Do Now The absence of a custom instructions field does not mean you have no options. It means the options require more proactive effort. The most effective replacement for custom return instructions is proactive messaging. When you authorize a return, immediately send a Buyer-Seller message that covers your key return requirements: unused condition, original packaging, return shipping responsibility if applicable. This does not happen automatically, so it needs to be built into your return authorization workflow as a standard step, not an occasional practice. For products where specific handling is genuinely important- fragile items, products with hygiene implications, items where incomplete packaging significantly affects resale value- review whether your product detail page, packaging inserts, and any post-purchase communications address return expectations proactively. Reducing the information gap before a return is initiated is more reliable than bridging it at the point of authorization. On the SAFE-T claim side, the four-day inspection window is now the critical deadline. A seller generally has four days after receiving the returned product to inspect it and submit a SAFE-T claim. Eligible claims may cover the return label cost plus up to 50% of the item's price, depending on circumstances and product category. If returned inventory arrives damaged, used, or incomplete, document the condition immediately upon receipt and submit the SAFE-T claim within the window, not after. For brands with high-value SKUs where the combination of mandatory prepaid labels, four-day refund windows, and now removed return instructions creates compounding risk, the economics of FBA versus FBM are worth revisiting by ASIN. FBA fees are higher, but Amazon takes on the return risk and associated costs for FBA inventory. For high-value items where damage or fraud is a real concern, those extra fees may now be cheaper than the combined cost of prepaid labels, damaged returns, and missed SAFE-T claims. The Broader Pattern 2026 has been the most active year for FBM return policy changes in recent memory. Mandatory prepaid labels, a revised refund window, high-value exemption removal, and now the elimination of custom return instructions have all landed within eight months. Each change individually is manageable. Together, they represent a consistent shift: Amazon is standardizing the return experience for buyers at the cost of seller control and flexibility. For brands running significant FBM volume, the practical response is not to fight the direction; it is to rebuild operational workflows around the current reality, document returns thoroughly, use SAFE-T claims consistently, and evaluate whether FBM remains the right fulfillment model for each SKU in your catalog. The custom return instructions field is gone. The work it was doing still needs to happen; it just requires more deliberate effort than it did before August 2026. If you want to stay updated on Amazon changes, subscribe to our blog. If you need support with PPC, DSP, AMC, analytics, or a long-term growth strategy, contact the ANavigator team at info@anavigator.co  Book a call to get a FREE AUDIT using the link below:     Book a call – FREE AUDIT   Follow my Weekly Newsletter on LinkedIn:  / amazon-digest-for-brands-7232361008185372672   Follow me on LinkedIn:  / ookovalov  Follow ANavigator on social media:  / anavigator    /@anavigator_official  / anavigator7    / @anavigators     LinkedIn page to contact us:   Author: Oleksandr Kovalov Role: Founder & CEO @ ANavigator — The ANavigator Team
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Blog
August 18, 2026
Since September 2025, Amazon DSP advertisers have had access to Netflix's ad inventory. What changed on August 4, 2026, is practical: Amazon published the full technical documentation for how to actually set up a Netflix campaign through Amazon DSP, including deal types, vendor requirements, frequency capping, audience limitations, and reach reporting. The integration is no longer in early access. It is a live, documented advertising channel. For brands already running Amazon DSP, this is worth understanding in detail before adding it to a media plan. Why This Integration Exists Netflix reaches a unique and attentive audience - 44% of members who see an ad on Netflix never saw it on broadcast TV or other streamers. Campaigns on Netflix drive almost 2x the TV norm on long-term brand building and 23% above benchmarks on purchase intent compared to competitors. Amazon's interest in the partnership is straightforward. Amazon DSP's authenticated identity graph, built from purchase behavior, browsing signals, and retail data, can now be applied to Netflix's premium streaming environment. A retail brand that previously could use Amazon's purchase data only to target audiences on Amazon-owned properties can now extend those same audience definitions to Netflix inventory. Amazon's purchase signals reach Netflix's living room. For brands, this collapses a step that previously required separate negotiations, separate tech stacks, and separate measurement. Netflix inventory is now accessible through the same DSP interface, the same deal workflow, and the same reporting layer you use for Prime Video and other streaming placements. How Netflix Campaigns Work in Amazon DSP Netflix supply is available for private auction and programmatic guaranteed deals only, it is not available through open auction. Before creating a campaign, you need a Netflix deal with the correct configuration. Existing deals are not compatible with Amazon audience-enabled campaigns and will not work. There are two ways to secure a deal. You can work with Netflix or your Amazon Ads representative directly, in which case the deal appears automatically in your Amazon DSP manager account via API once it is ready. Or you can submit a deal proposal to Netflix directly inside Amazon DSP through the deal proposal workflow. Once a deal is in place, the campaign setup follows the standard Amazon DSP structure: campaign, ad groups, and ads. Activation is straightforward: enable the ad groups and campaign via the toggle in the Campaigns interface. Vendor requirements are strict. Netflix maintains firm third-party vendor requirements for all ad serving and measurement. Supported ad serving vendors are Google Campaign Manager 360 and Innovid. Supported measurement and verification vendors are DoubleVerify and Integral Ad Science. All other third-party vendors are not supported. If you are currently using a different vendor for your DSP campaigns, you will need to switch to one of the approved options or use Amazon DSP-hosted ad options before running on Netflix inventory. What Amazon Audiences Can and Cannot Do on Netflix Starting Q2 2026 in the US, advertisers can apply Amazon Audiences to Netflix campaigns, audience segments built from Amazon's purchase and behavioral data, applied to Netflix's streaming environment. That is the meaningful capability at the center of this integration. Your Amazon customer cohorts, category buyers, high-LTV segments, competitor brand shoppers, can now be used to target audiences on Netflix. The limitations are specific and worth knowing before building a campaign: Amazon audiences are available on private marketplace run-of-network deals only. They are not available on programmatic guaranteed deals. Do not layer third-party audiences, genre detargeting, or Netflix-side targeting on Amazon audience-enabled deals - this will stop delivery. Similar audiences and durable audiences are not available on Netflix inventory. Ad Exposure remarketing is not available. Audience-level reporting is not available. Brand safety settings through Amazon DSP do not apply to Netflix inventory; contact Netflix directly for brand safety options. Frequency caps are fully enforced for private auction and preferred deals. For programmatic guaranteed deals, impressions count toward caps but cannot be suppressed on the Netflix line item. What Is Actually Measurable De-duplicated reach and frequency metrics are now available for Netflix ad group lines and populate automatically, no setup, no opt-in, no additional cost. These metrics are available across all 11 Netflix ad-supported locales. Netflix and Spotify are now direct integrations available through Amazon DSP, with reach and frequency metrics that feed into cross-publisher measurement. That matters for brands running streaming TV alongside Netflix; you can measure unduplicated reach across Prime Video, Netflix, and other inventory sources from the same platform, without reconciling separate reports. The measurement piece is what has historically made streaming TV difficult to justify in a performance-oriented media plan. De-duplicated reach and frequency data, combined with Amazon's purchase attribution from the same DSP, changes that calculus meaningfully. What Brands Should Be Thinking About Before Running Netflix Campaigns Netflix inventory is premium, which means it is expensive relative to other streaming placements, and the minimum deal thresholds reflect that. This is not a format to test with a small budget expecting performance metrics comparable to Sponsored Products. The right frame for Netflix through Amazon DSP is brand building with measurable audience reach, not direct-response conversion. The brands for whom this makes sense have a few things in common. They are already running Amazon DSP with meaningful budget; Netflix is an addition to a working DSP strategy, not a standalone channel. They have a product or brand story that benefits from a lean-back, high-attention streaming context. And they have creative that is production-quality for the streaming environment, not repurposed Sponsored Brands video. A recent Dove campaign spanning consumer products and custom creative on Netflix saw an almost 60% increase in new shoppers for products. That result reflects both the reach quality of Netflix's audience and the creative investment Dove made for the placement. The format rewards brands that treat it like a premium channel, not a cheaper extension of search advertising. If you are running Amazon DSP and have not yet looked at Netflix as an inventory source, the August 2026 documentation update is a useful moment to evaluate it. The technical setup is now clearly documented, the audience integration is live, and the measurement tools are in place. Whether the economics make sense depends on your category, your brand objectives, and your existing DSP performance, but the access barrier that existed before the Amazon partnership is gone. If you want to stay updated on Amazon changes, subscribe to our blog. If you need support with PPC, DSP, AMC, analytics, or a long-term growth strategy, contact the ANavigator team at info@anavigator.co  Book a call to get a FREE AUDIT using the link below:     Book a call – FREE AUDIT   Follow my Weekly Newsletter on LinkedIn:  / amazon-digest-for-brands-7232361008185372672   Follow me on LinkedIn:  / ookovalov  Follow ANavigator on social media:  / anavigator    /@anavigator_official  / anavigator7    / @anavigators     LinkedIn page to contact us:   Author: Oleksandr Kovalov Role: Founder & CEO @ ANavigator — The ANavigator Team
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