Amazon wants to be everyone’s third-party logistics (3PL) provider.
On Monday, the e-commerce giant unveiled that it is opening its full portfolio of freight, distribution, fulfillment and parcel shipping capabilities to all businesses—expanding its logistics capabilities beyond just Amazon sellers.
Amazon Supply Chain Services (ASCS) essentially combines functions previously embedded within the tech titan’s logistics network, including the company’s popular Fulfillment by Amazon (FBA) service, its low-cost bulk storage Amazon Warehousing and Distribution (AWD) service and its Amazon Global Logistics (AGL) offering, which enables businesses to book freight from China and Vietnam and ship it directly to Amazon fulfillment centers.
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Additional services within ASCS will also include inventory replenishment, demand forecasting and customs clearance.
Jason Miller, a professor of supply chain management at Michigan State University’s Eli Broad College of Business, said the expansion beyond current Amazon sellers “makes good sense.”
“It represents diversification building on Amazon’s already existing capabilities, a common pattern we see in the transportation/3PL space,” Miller told Sourcing Journal.
Peter Larsen, Amazon’s vice president of the ASCS unit, compared the scaling of the new offering to the company’s crown jewel—cloud computing division Amazon Web Services (AWS). The segment grew from an internal project launched in 2006 into the dominant market leader in the cloud infrastructure space with roughly 29 percent of market share, according to Synergy Research Group.
“Supply chain wasn’t just a function at Amazon—it was core to providing an exceptional shopping experience,” Larsen said in a statement. “Our differentiator…With the launch of ASCS, we’re confident we can give any other business access to the same cost efficiency, reliability and speed that we’ve built for Amazon customers.”
With Amazon further encroaching directly in the territory of top logistics players, the market reacted in kind.
Shares at chief competitors FedEx, UPS and DHL fell more than 9 percent, 10 percent and 9 percent respectively in Monday trading. Other logistics powerhouses with major selloffs included C.H. Robinson (9 percent), GXO (17 percent) and Kuehne+Nagel (7.5 percent).
Amazon is capitalizing on the growing popularity of outsourced logistics as e-commerce growth accelerated fulfillment and delivery expectations and cost control became a larger priority among businesses. According to 3PL market research and consulting firm Armstrong & Associates, 94 percent of U.S. Fortune 500 companies now work with at least one 3PL, up from 46 percent in 2001.
Apparel retailers American Eagle Outfitters (AEO) and Lands’ End are among the first companies signing up to use the service.
AEO is using Amazon’s parcel shipping network to deliver online orders from both its American Eagle and Aerie website directly to customers nationwide. Lands’ End is using a unified inventory pool within Amazon’s network to fulfill orders across multiple sales channels.
“Amazon is one of our key e-commerce partners, and we’re excited to leverage Amazon Supply Chain Services to position inventory closer to customers so we can reach them even faster,” said Andrew McLean, CEO of Lands’ End, in a statement. “This consistency is central to our solutions-based approach, enabling us to serve customers with confidence and agility, especially during peak seasons.”
Procter & Gamble is using Amazon’s freight services to move raw materials to production facilities and move finished goods across its distribution network, while 3M is leveraging the offering to move products from its manufacturing sites to global distribution centers.
With the launch, Amazon says it is extending its 3PL capacities to support B2B shipments in industries like healthcare, automotive and manufacturing.
However, Miller suggested that Amazon won’t easily crack segments like healthcare even with the service expansion.
“I suspect Amazon is going to compete more for the commoditized service segments, as opposed to the higher value-adding/specialized segments,” said Miller. “They will also likely be looking for business that helps smooth out the seasonality of their retail offering.”
Amazon’s third-party service offerings for its marketplace sellers have delivered big business, accounting for nearly 24 percent of the revenue at the Everything Store in 2025, or $172.2 billion in net sales. The unit grew 10.3 percent year over year in
In the 2026 first quarter, these services generated $41.6 billion in net sales, or 23 percent of Amazon’s revenue. But the offerings increased those sales 13.9 percent from the year prior, up from the 12 percent jump seen at its primary revenue driver, online store sales.
According to Amazon, sellers using the Big Tech firm’s end-to-end solutions see nearly 20 percent higher sales.
While the move carries surface-level benefits for Amazon, namely a potential new customer base, the company has largely offered its services individually, rather than taking on the full jack-of-all-trades model that rivals like FedEx and UPS have scaled their businesses on in recent years.
“Amazon opening up its network is a logical move, but scaling into true forwarding, 3PL, and supply chain logistics is a different challenge,” said Russell Hoppes, vice president of solutions and delivery at transportation management system Locus and a former UPS executive. “Amazon’s network was built to optimize Amazon’s own fulfillment flows. True 3PL and forwarding require a very different level of flexibility—coordinating across industries, service models, geographies, compliance requirements and exceptions. That is where this will be tested.”
