Amazon is significantly expanding its logistics business. Until now, the company primarily used its network for shipping orders from its own online retail. Now, the company is opening the service to other businesses. This could increase pressure on major logistics companies.

Amazon is offering the new service under the name “Amazon Supply Chain Services.” Companies can now ship their goods through Amazon, even if they don’t sell their products on the Amazon marketplace. This significantly extends the company’s business beyond its own online retail.

Amazon Takes on Transportation in Many Ways

The company is not limiting itself to traditional parcel delivery to end customers. According to its own statements, Amazon also organizes extensive transportation for businesses. This includes deliveries of raw materials for industrial processing.

The offering ranges from shipping individual packages to large transports with tractor-trailers. It also includes transportation by plane or ship. This allows Amazon to cover numerous areas that have often been handled by freight companies. However, the service is exclusively for business customers. Currently, private individuals cannot ship packages through this offering.

Amazon Also Offers Storage and Complete Processing

In addition to the actual transport, Amazon takes on additional tasks upon request. Companies can store their products with Amazon and then have them shipped by the company. The prerequisite is that the goods are also sold through Amazon.

The company can handle the entire shipping process. This includes packaging the products and delivering them to customers. If necessary, Amazon also takes care of customs clearance for imports.

Notably, the offering is also aimed at retailers who actually compete with Amazon. The company appears to be trying to expand its logistics as a standalone business sector.

Also of interest: Amazon will soon let Alexa shop for customers

Many Questions Remain About the Offering

So far, Amazon has not provided specific information about which services will be available in which countries. Nevertheless, this move is likely to put further pressure on the logistics industry.

In recent years, Amazon has already caused a stir by expanding its own delivery structures. By opening the network to other companies, this effect could now intensify. Established providers such as DHL and Hermes are likely to closely monitor the expansion of Amazon’s offering.

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