07/05/2026

Having opened parts of its logistics network to third parties in recent years, Amazon has now bundled its full supply chain capabilities into a commercial offering, positioning itself as a 3PL. The jury is out who should be most worried about this step.

The e-commerce giant is marketing its new ‘Amazon Supply Chain Services’ (ASCS) arm as an opportunity for shippers to replicate the efficiency of its own set-up beyond isolated service elements like fulfilment, warehousing or trucking.

“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. “Supply chain wasn’t just a function at Amazon – it was core to providing an exceptional shopping experience. Our differentiator. The reason we could offer fast, dependable delivery that nobody else could. And 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.”

The move was hardly surprising, given Amazon’s gradual opening of its network to third-party users – from offering inventory management and fulfilment over space on its freighter flights to less-than-truckload service, which was added to the mix in January. All along, the company has made solutions developed for its internal needs available to the market.

The playbook actually goes back to Amazon Web Services, which has been the revenue engine that allowed the build-up of the company’s logistics capabilities.

As with moves like giving Avianca Cargo the northbound capacity on its flights from Miami to Quito and Bogota, the commercialisation of its supply chain capabilities will funnel more traffic into the network, reducing unit costs.

“They obviously do it to build density,” remarked Cathy Morrow Roberson, founder and head analyst of Logistics Trends & Insights. “They’re going to bundle services and start offering them at a nice and attractive rate that UPS and FedEx are not able to offer.”

At the same time, the launch of ASCS positions Amazon as a one-stop supply chain provider. Beyond offering the various elements of its network it also musters the company’s IT muscle to run forecasting, manage inventory placement and other activities associated with 3PLs and 4PLs.

“They’re going to be very attractive to small and mid-sized businesses,” Ms Roberson said.

For all its heft, ASCS is not in the same league as the large multinational players when it comes to global coverage.

“They have gaps,” Ms Roberson said. “The question is: are they going to fill those in? They could possibly find partners for international reach.”

There are also limits in terms of product range. Clearly, critical life sciences shipments do not match ASCS’s profile. However, it covers quite a range of segments, including pharmaceuticals and auto parts. In a more classical e-commerce role, Amazon has been delivering online orders for American Eagle Outfitters.

At the launch Amazon proudly listed some large customers who are using some of its logistics services already. For Procter & Gamble, it is moving raw materials to production facilities and finished goods across its distribution network, while 3M contracts it to ship products from its manufacturing sites to distribution centres around the world.

Who should be most worried about Amazon positioning itself as a 3PL in the market, leveraging its network and the processes and technology that have enabled it to accelerate transit times? Some observers have pointed at trucking firms and asset-light logistics providers, but Ms Roberson regards the integrated express carriers as the sector that is most at risk.

“It’s more a threat to UPS and FedEx than to the 3PLs, because that’s what Amazon has become. Now we have our fourth integrator,” she said, adding: “and they have not near as many surcharges”.

The integrated express carriers have certainly drawn a lot of criticism for their incessant tweaks of surcharges, coming on top of general rate increase well above inflation level.

Shares of UPS and FedEx stock recovered some ground on 6 May after dropping earlier this week.