Amazon and the U.S. Postal Service have struck a tentative deal that will reduce the volume of packages the e-commerce giant ships through the agency by 20 percent, according to the New York Times. The agreement comes after a year of negotiations between the two parties.

The deal preserves what has become a crucial revenue stream for USPS, which has struggled financially for years. Amazon's shipments represent a significant portion of the Postal Service's package delivery business — a rare growth area as first-class mail continues its long decline.

For Amazon, the reduction likely reflects its expanding in-house delivery network. The company has spent billions building out its own fleet of vans, planes, and delivery drivers over the past decade. That infrastructure now handles the majority of Amazon's deliveries in many markets, reducing its dependence on third-party carriers.

The 20 percent cut suggests Amazon is threading a careful needle. It's pulling back enough to shift more volume to its own network, but not so drastically that it destabilizes USPS finances or invites regulatory scrutiny. The Postal Service, meanwhile, gets to keep 80 percent of the business — and the revenue it desperately needs.

What remains unclear is how this affects delivery speeds and costs for customers. Amazon's own network generally offers faster delivery in urban and suburban areas, but USPS still provides crucial last-mile coverage in rural regions where building proprietary infrastructure makes little economic sense.

The deal is tentative, meaning final terms could still change. But the broad strokes reveal the ongoing tension between Amazon's drive for control and the reality that it still needs partners — at least for now.