LAFAYETTE, La. (KPEL News) - Online shopping has become huge, with Louisiana shoppers choosing Amazon over some in-store retail experiences. Convenience comes with a price at times, however, and that cost may rise soon.

UPS is having to make some tough choices thanks to a dip in stock price, and your online shopping experience may take a hit because of it.

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UPS Shares Take a Dive

The package delivery company, UPS, saw its stock price drop 17 percent recently after reporting a weaker-than-expected revenue forecast for 2025. Experts were expecting a forecast of almost $100 billion, but the UPS numbers came in at just $89 billion.

As a result the company is restructuring its delivery network across the U.S. in order to provide more cost-efficient service, which is expected to save the company roughly $1 billion this year.

But the restructuring involves altering its partnership with Amazon, the online shopping giant that has worked with UPS for years.

Amazon Deliveries Slashed

A high number of Amazon deliveries in Louisiana are delivered through UPS, but the two companies have restructured their agreement to cut deliveries for Amazon by more than 50 percent.

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According to CNBC, Amazon is the largest customer UPS has, but it's not the most profitable customer. In fact, UPS CEO Carol Tome said in a comment that Amazon's business is "very dilutive" to the company's domestic profit margins.

Along with the Amazon restructure, UPS laid off around 12,000 employees in early 2024 to cut costs.

How It Impacts Louisiana

Louisiana shoppers who rely on Amazon and UPS for deliveries may see longer delivery times or increased prices to get items to their homes more quickly. This could be especially troublesome for local businesses who get supplies for the office through Amazon.

However, Amazon's own growth may offset some of those impacts. The retail giant has been expanding its operations in recent years, including using planes, trucks, and drones to increase delivery speed.

For it's part, Amazon does expect an impact on Louisiana. In a statement to KPEL News, Amazon spokesperson Kelly Nantel said, “Due to their operational needs, UPS requested a reduction in volume and we certainly respect their decision. We’ll continue to partner with them and many other carriers to serve our customers.”

But the other impact of the UPS cuts is the impact it could have on the local economy via job cuts and fewer openings for seasonal delivery drivers.

UPS Eyes Temu, Shein

It looks like UPS is making the shift to more profitable customers a part of the restructuring plan. This includes relatively new online retailers Temu and Shein, which have huge online followings - especially among younger shoppers.

What's Next?

The hope is that the changes will be profitable for both UPS and online retail shoppers in Louisiana and across the country. In the short term, it could have negative impacts on Louisiana shoppers and even businesses.

Louisiana shoppers and businesses will have time to make adjustments, however. The new agreement with Amazon is supposed to really take effect by mid-2026.

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