Does UPS Deliver Amazon Packages in 2026? (In-Depth Guide for Savvy Shoppers)
Hey there! As an avid online shopper, you‘ve probably noticed those Amazon packages arriving at your doorstep with increasing frequency these days. But with Amazon delivering billions of packages per year, how exactly are they pulling it off?
You may be wondering: Does UPS deliver Amazon packages? What about FedEx or USPS?
Great questions! I was curious too, so I did some digging into how Amazon handles all those deliveries in 2024 and beyond. Here‘s the inside scoop we savvy shoppers should know.
Does UPS Still Deliver for Amazon?
The short answer is yes, UPS does deliver some Amazon packages. However, it‘s now responsible for a minority of Amazon‘s deliveries.
According to MWPVL International, a supply chain consulting firm, UPS delivered around 13-14% of Amazon‘s packages in the U.S. as of late 2021.
For context, that‘s down from nearly 24% of packages back in 2019. So UPS‘ share of Amazon volumes is dropping rapidly as Amazon expands its own capabilities.
In addition to UPS, Amazon relies on the USPS for around 6% of packages, FedEx for 3%, and regional carriers for another 4% as of 2021.
But who delivers most of Amazon‘s packages? The answer next shows Amazon‘s immense growth.
Yep, Amazon Delivers Its Own Packages
Here‘s the amazing stat: Amazon Logistics delivered an estimated 65-70% of the company‘s packages in the U.S. in 2021.
To make this happen, Amazon has built a massive end-to-end delivery operation:
- Over 350 fulfillment centers in North America alone to store inventory and pack orders.
- Around 1,500 delivery stations positioned in cities and suburbs to serve as final sortation hubs.
- A fleet of 50,000 branded delivery vans and cars for last-mile drop-offs.
- 4 major air hubs with plans for more to move packages between regions overnight.
In fact, Amazon Logistics handled an estimated 2.5-3 billion packages in the U.S. in 2021 according to MWPVL. That‘s nearly half of all Amazon‘s packages here.
And get this: Amazon only launched its in-house delivery network about 10 years ago in 2012. The growth has been incredible. Analysts at Morgan Stanley estimate Amazon Logistics has gone from delivering just 2% of Amazon‘s packages in the U.S. in 2013 to around 70% today.
As you can see, Amazon rapidly scaled up its own end-to-end delivery capabilities to support one- and two-day Prime shipping.
Just How Many Packages Does Amazon Deliver?
The total number of packages delivered by Amazon globally is staggering:
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In 2021, Amazon delivered an estimated 4-5 billion packages worldwide according to Morgan Stanley. In the U.S. alone, it was 2.5-3 billion packages.
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By 2023, analysts forecast Amazon‘s package volume will soar to 6-8 billion packages delivered globally!
To put those numbers into perspective:
- UPS delivered around 5.5 billion packages worldwide in 2021.
- FedEx handled 3.4 billion packages globally in 2021.
So Amazon is now in the same league – and rapidly gaining ground – on the top global delivery providers as it handles more volume in-house.
Pretty mind-blowing for a company that primarily focused on ecommerce and technology until a few years ago!
As a Customer, Can I Choose the Delivery Service?
When you order a product shipped and sold directly by Amazon, they decide which courier will deliver it based on their algorithms, with no option for customers to select.
Prime members do get some choice between delivery speeds at checkout, usually:
- Free 2-day shipping
- Next-day delivery for an extra fee
- Same-day delivery in some cities
Choosing faster speeds often means your package will be handled by Amazon‘s network rather than UPS. That‘s because Amazon positions inventory closer to population centers to support quicker fulfillment.
Now, if you order from third-party sellers on Amazon‘s marketplace, they have more flexibility with choosing delivery providers. Often they opt to handle fulfillment themselves and can use UPS, USPS, FedEx or others.
Many larger sellers also pay Amazon to fulfill their orders through Fulfillment by Amazon (FBA) which we‘ll explain next.
Fulfillment by Amazon (FBA) and Delivery
If you buy from third-party sellers on Amazon, there‘s a good chance it will be delivered by Amazon Logistics if they use FBA.
With FBA, sellers have their products stored in Amazon‘s warehouses. Amazon handles receiving inventory, packing orders, shipping packages, returns – basically the entire fulfillment process.
According to Marketplace Pulse data, over 65% of third-party Amazon sellers were using FBA as of January 2022. So most marketplace items ship from Amazon warehouses using Amazon delivery services.
During peak seasons like Prime Day or Black Friday, FBA volumes swell even higher. At times, Amazon will rely on overflow help from UPS and other carriers to support the spike in orders.
But for the most part, FBA means Amazon sellers depend on Amazon‘s quickly expanding delivery capabilities.
Is Amazon Expanding Delivery Options for Customers?
In two words: Absolutely, yes!
By building out its own delivery network, Amazon can provide customers more shipping choices at lower costs.
Some of the major ways Amazon is expanding delivery capabilities:
- Aggressively growing its fleet of branded delivery vehicles – expected to hit over 200,000 vans and cars by 2025.
- Building hundreds of new fulfillment centers closer to population hubs to enable faster ground delivery.
- Expanding its air delivery network with more planes and regional air hubs for overnight transport.
- Investing billions in new warehouse automation and technology.
- Continued experiments with drone delivery via Prime Air.
- Rolling out alternative delivery options like secure Amazon Hub lockers and in-garage Key delivery.
Analysts estimate Amazon will invest over $60 billion in logistics/delivery expansion between 2021-2023. That‘s huge, even for Amazon!
The goal: give customers delivery where and when they want it. This means more choice with two-hour grocery delivery, less than 24-hour Prime shipping, and new innovations like those sidewalk roving robots.
Meet Amazon Flex – On-Demand Package Delivery
Amazon leverages its massive delivery infrastructure in another way too – by enabling regular people like students or part-timers to deliver packages.
Introducing Amazon Flex – it‘s essentially Uber for Amazon deliveries.
Independent contractors sign up to make deliveries in their own cars using the Amazon Flex app. You simply look for available delivery blocks in your area, reserve one, go pick up packages from an Amazon location, then hit the road making deliveries.
The Flex program exploded during the pandemic, numbering over 100,000 drivers at its peak in 2021. For context, that‘s nearly double the size of Amazon‘s full-time driver workforce.
By leveraging Flex drivers, Amazon can scale up or down to meet demand around busy periods like Prime Day or Cyber Monday. Flex drivers also support faster Same-Day and Prime Now deliveries in some cities.
According to drivers, Amazon Flex earners average $18-25 per hour including tips, but can surge higher during super peak times. It provides flexible earnings for gig workers, students, or anyone looking for extra cash – all while helping Amazon meet delivery demand.
What‘s It Like Working as an Amazon Delivery Driver?
As Amazon‘s delivery network has boomed, so have roles for full-time Amazon delivery drivers.
Based on average wages reported on Glassdoor, delivery drivers earn approximately $16 to $22 per hour. Tips help boost total compensation.
Here are some of the advantages of being an Amazon delivery driver:
- Consistent full-time hours – typically four 10-hour shift per week
- Health, dental, and vision benefits
- 401(k) retirement plan with company match
- Paid time off and holidays
- All gas, maintenance, and delivery van expenses covered
- No personal vehicle required
- Overtime pay opportunities during busy periods
- Potential for tips from happy customers
- Advancement opportunities to supervisory roles
The job is ideal for those who like driving, working solo, and being on the go. Personally, I think it would be fun to spend days cruising around jamming to music while dropping off orders!
The Verdict: UPS Plays a Role, But Amazon Rules Delivery
Let‘s recap what we‘ve learned:
- UPS still delivers around 10-15% of Amazon‘s packages, but its share is dropping fast.
- Powered by a massive logistics network, Amazon Logistics now delivers the majority of the company‘s packages.
- Amazon‘s yearly delivery volume is approaching UPS and FedEx levels.
- Customers don‘t get to choose delivery carrier, but Prime speed selections can influence it.
- Most FBA sellers depend on Amazon‘s delivery services for fast fulfillment.
- Amazon continues aggressively expanding delivery capabilities for even faster shipping.
So while UPS and other carriers pitch in, it‘s clear Amazon is now dominating the world of ecommerce delivery. By taking control of its logistics empire, Amazon can meet customer expectations for fast, free shipping on pretty much any product imaginable.
The next time an Amazon van pulls up outside your home, you‘ll know exactly how it got there. Let me know if you have any other questions on how Amazon makes deliveries happen!