United Parcel Service (NYSE: UPS) shares have experienced volatility this year as the company undergoes a major transition.

While some investors have grown impatient with the pace of change, this sentiment may actually present a buying opportunity.

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The delivery giant is in the midst of a strategic shift away from low-margin Amazon deliveries toward higher-margin customers.

Although the market has reacted with skepticism, the underlying fundamentals suggest a positive trajectory.

Why UPS Is Reducing Amazon Deliveries

In early 2025, UPS announced plans to cut its Amazon delivery volume by 50% before the second half of 2026.

Amazon was UPS's largest customer by revenue, accounting for 11.8% of total sales in 2024. However, Amazon's orders made up 20% to 25% of UPS's total U.

S. package volume.

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By shedding this low-margin business, UPS aims to reduce labor costs and free up capacity for more profitable deliveries.

The long-term potential is significant, but short-term headwinds have weighed on the stock.

Throughout 2025, trade tensions and a weakening macroeconomic environment dampened shipping demand. Results fell short of expectations, and UPS temporarily suspended its earnings guidance.

This eroded investor confidence and triggered a sharp pullback in shares.

Although UPS stock has recovered since late 2025, it has remained rangebound around $100 per share.

Even after reporting better-than-expected results, investors have been impatient with the pace of operational improvement.

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Why Now Is the Time to Invest

UPS's turnaround may not be happening as quickly as the market desires, but progress is evident.

Overall revenue and earnings declined year over year due to the Amazon phase-out, but the pivot toward higher-margin customers is yielding results.

During the first quarter of 2026, daily volumes from small and medium-sized businesses rose 1.6%.

Revenue per package increased by 6.5%, and healthcare product deliveries reached a record $3 billion. These incremental improvements signal that the strategy is working.

As UPS continues to optimize its customer mix, further gains are likely.

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The market's current impatience creates an entry point for investors who recognize the long-term value in this transportation giant.