Quick Facts
- Amazon Supply Chain Services launched May 5, 2026, opening freight, distribution, fulfillment and shipping to all businesses
- UPS stock fell 10% and FedEx dropped 9% while Amazon rose 3% on the announcement
- Major brands including Procter & Gamble, 3M, Lands’ End and American Eagle signed up as early adopters
Amazon launched Amazon Supply Chain Services on Monday, opening its vast logistics network to businesses of all types and sizes. The move puts the e-commerce giant in direct competition with UPS and FedEx.
The new service leverages Amazon’s network of over 200 U.S. fulfillment centers, 80,000 trailers, 24,000 intermodal containers and 100-plus aircraft. Amazon ships more than 1,000 packages every minute globally.
Wall Street reacted swiftly to the news. Amazon stock rose 3% while UPS fell 10% and FedEx dropped 9.4% in its worst session in over a year. Contract logistics provider GXO Logistics cratered 16.5%.
“Amazon is bringing the infrastructure, intelligence, and scale of its supply chain services—proven over decades—to businesses everywhere, much like Amazon Web Services did for cloud computing,” said Peter Larsen, VP of Amazon Supply Chain Services.
Major corporations have already signed up. Procter & Gamble is using Amazon’s freight services to transport raw materials to production facilities. 3M is moving products from manufacturing sites to distribution centers worldwide through the service.
The services include full truckload, less-than-truckload and intermodal transport, air freight, inbound shipping from China with customs clearance, two-to-five day parcel shipping, and bulk storage and distribution.
Amazon claims transportation costs up to 25% lower than alternatives. Sellers using its fully managed supply chain option report an average 20% higher sales conversion.
The global market for third-party logistics services is valued at $1.3 trillion. Amazon is positioning itself to grab a larger share of the 3PL market that generates more than $1.4 trillion annually.
The strategy mirrors Amazon’s approach with AWS, where it built cloud computing infrastructure for its own needs before opening it to other businesses. Amazon first introduced Supply Chain by Amazon in September 2023 for marketplace sellers.
Supply chain analyst Satish Jindel warned freight brokers and forwarders to take the announcement seriously. “Those operators will have to demonstrate how they can provide better personalized shipping support than a tech behemoth,” he said.
The move strengthens Amazon’s competitive edge by layering new revenue streams onto existing infrastructure. This gives Amazon more money to invest in scale and efficiency while making it harder for competitors to keep pace.
