As major retailers like Walmart, Target, and Macy’s have increasingly begun investing in their fulfillment capabilities to compete with Amazon’s online delivery dominance, the e-commerce giant has quietly made an unexpected move to stay ahead of the competition.
Since its inception, Amazon has been redefining consumer expectations in retail. It has focused heavily on its delivery network, expanded fulfillment centers, experimented with drones, and even developed AI-powered robotics to accelerate operations.
With same-day, one-day, and two-day delivery options, Amazon continues to raise the bar for online retail logistics. Now, it has taken a step further by quietly launching a new service with USPS.
This summer, Amazon (AMZN) began rolling out a doorstep pickup service in collaboration with USPS for select customer returns, as reported by Supply Chain Dive. The new service appears to be in a pilot phase, as it has not been officially announced on Amazon’s website and is limited to certain items and select locations.
While a full list of participating locations or products has yet to be disclosed, Third Person CEO & Founder Matthew Hertz shared his experience with the service in Nashville, Tennessee, on LinkedIn.
Hertz noted that the service was free and required only a box and a shipping label to complete the return, though he was unsure whether it was limited to Nashville or available nationwide.
Former Amazon Global Mile Corporate Counsel Member, William Terrell, who served as primary legal support for Amazon Global Logistics, commented: “Amazon is all about more options. So the UPS contract isn’t as robust as it once was, but I don’t think you’ll see Amazon go to a main return provider. They want the customer to have as many options as possible.”
Indeed, Amazon already offers multiple return options, including drop-offs at Staples, Whole Foods, and The UPS (UPS) Store locations.
Amazon’s long-standing history with USPS
Although this return service is new, Amazon’s relationship with USPS dates back to 1994, when founder Jeff Bezos had just started the now multi-trillion-dollar company. He would pack books in a garage in Seattle and drive them to his local post office for USPS to deliver them.
Today, Amazon describes USPS’s existing delivery network as having an “unparalleled footprint and hundreds of thousands of dedicated postal workers and letter carriers [who] can easily make this happen.”
Retail returns in the holiday season
Peak shipping season for Amazon and most retailers generally begins on Black Friday, which falls on November 29 this year, and continues through Christmas. With the holidays right around the corner and seasonal orders about to surge, mass returns are to be expected.
According to The National Retail Federation’s (NRF) 2025 Retail Returns Landscape, retailers estimate that 15.8% of their annual sales, totaling nearly $850 billion, will be returned in 2025. Around 19.3% of online sales are also expected to be returned.
Related: Target announces a major change affecting its entire business
“Returns are no longer the end point of a transaction,” said NRF Vice President of Industry and Consumer Insights Katherine Cullen in a press release. “They provide an opportunity for retailers to crea˝te a positive experience for customers and can translate to brand loyalty. Retailers are constantly evolving and working to meet customer expectations, and they recognize the importance the returns process plays.”
Consumers cite free returns as a priority, with 82% considering them important factors when online shopping. Immediacy is also necessary, with 76% more likely to choose return options offering an instant refund or exchange.
“To stay competitive amid rising return rates and behaviors like bracketing, retailers must modernize their reverse logistics to enhance customer satisfaction, reduce fraud and safeguard their operations in today’s high-pressure retail landscape,” Co-founder and CEO of Happy Returns David Sobie said in the press release.
Retail rivals ramp up fulfillment
In response, competitors are making bold moves to enhance online fulfillment.
- Macy’s (M) recently opened a 1.4 million-square-foot automated warehouse in China Grove, North Carolina, its largest and most technologically advanced facility, designed to accelerate online order fulfillment, improve accuracy, and ensure stores remain well-stocked to meet the growing demands of its omnichannel business.
- Walmart (WMT) expanded its drone delivery services, launched its “Get It Now” feature for faster delivery to Walmart+ customers, and built “dark stores” to speed up order processing.
- Target (TGT) has been leveraging its Shipt delivery service platform to enable faster store-to-customer deliveries. The platform allows drivers to strategically pick up orders directly from Target’s physical stores and deliver them directly to customers without a nearby sortation center.
