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Amazon’s delivery volume surpasses FedEx for the first time to rank third in the United States

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The data shows that Amazon had the largest year-over-year increase in package volume, up 127 percent from 1.85 billion packages in 2019, followed by the U.S. Postal Service (up 34 percent), FedEx (up 21.7 percent), and UPS (up 12.6 percent).  

USPS will have the most packages in 2020 at 7.6 billion, followed by UPS (4.92 billion), Amazon (4.2 billion), and FedEx (3.25 billion). According to Pitney Bowes, these four companies together account for 99 percent of the market, with USPS accounting for 38 percent, UPS for 24 percent, Amazon for 21 percent, and FedEx for 16 percent.  

In terms of domestic package revenue, UPS and FedEx are close to equal, at $60 billion and $58.3 billion, respectively, followed by USPS ($32.5 billion) and Amazon ($18.5 billion), due to the fact that most of Amazon’s delivery services are free for Prime members, despite the fact that Amazon has higher package volume than FedEx.

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The index notes that overall, parcel volumes grew 37 percent in 2020, from 14.7 billion to 20 billion pieces, and e-commerce share increased from 19.6 percent to 24.5 percent. Pitney Bowes also predicts that after doubling from 2015 to 2020, U.S. domestic parcel volumes will double again between 2020 and 2026, from 20.1 billion pieces to 39 billion pieces, a compound annual growth rate of 10 percent.

Jason Dies, executive vice president of Pitney Bowes, said 99 percent of U.S. domestic delivery volume in 2020 will be handled by these four courier companies and much more by regional upcountry couriers. When asked about the claim, he said that mathematically, the rest of the market is only 1% of the business. He also noted that while Amazon’s business has grown significantly, it still relies heavily on the USPS for its last-mile delivery service.

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