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Amazon Opens Logistics Network to Businesses

Engadget •
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Amazon has launched Amazon Supply Chain Services (ASCS), opening its vast logistics network to businesses beyond Amazon sellers. The retail giant is partnering with major companies including Procter & Gamble, 3M, Lands' End and American Eagle Outfitters to leverage Amazon's freight, distribution, fulfillment, and parcel shipping capabilities. This strategic move transforms Amazon's internally-built logistics infrastructure into a revenue-generating service for other industries.

Amazon's supply chain has long been a competitive advantage, enabling fast, dependable delivery that competitors struggled to match. With warehouses, planes, trucks and delivery vehicles worldwide, Amazon has become America's largest parcel carrier by volume. The company has already operated as the world's largest third-party logistics provider for over two decades through fulfillment services for marketplace sellers.

By expanding logistics services to external businesses, Amazon directly competes with established carriers like USPS and DHL Group. The $1.3 trillion third-party logistics market represents a massive opportunity for Amazon's new venture. With its existing infrastructure and scale, Amazon's entry into this space threatens to disrupt the entire logistics industry, potentially destabilizing carriers already facing financial challenges like the USPS.