Amazon and the U.S. Postal Service finalized a tentative agreement to reduce package shipments by 20%, ending a year of contentious negotiations. The move preserves critical revenue for the financially strained agency, which reported a $9 billion annual loss in November. While Amazon aims to expand its own delivery infrastructure, the deal ensures USPS retains its role in last-mile deliveries, a service vital for reaching rural areas.

The agreement, pending regulatory approval, will take effect in October, with USPS still handling over 1 billion Amazon packages yearly.