Amazon Launches Supply Chain Services, Competing with UPS and FedEx
Amazon opens its shipping network to third-party businesses through new Supply Chain Services division, directly challenging traditional logistics companies.

Amazon has launched Amazon Supply Chain Services (ASCS), a new division that opens the company's extensive shipping and logistics network to businesses outside its marketplace. The service offers freight, distribution, fulfillment, and parcel shipping capabilities to third-party companies.
The move represents Amazon's expansion beyond serving its own e-commerce platform to directly compete with established logistics giants including UPS, FedEx, and DHL. Amazon has built one of the world's largest shipping networks over the past decade to support its retail operations.
News of Amazon's logistics expansion triggered significant stock price declines for traditional shipping companies. Shares of both UPS and FedEx fell as investors assessed the competitive threat from Amazon's entry into the broader logistics market.
The new service leverages Amazon's existing infrastructure, which includes warehouses, delivery vehicles, and last-mile delivery capabilities across multiple countries. Industry analysts have characterized the move as a potentially transformative development in the shipping and logistics sector.
Amazon's logistics expansion follows a similar pattern to its Amazon Web Services cloud computing division, which began as internal infrastructure before becoming a major revenue source by serving external customers. The company has not disclosed pricing details or the full scope of services that will be available through ASCS.