Amazon launched Amazon Supply Chain Services to provide its logistics and fulfillment network to external businesses. The service consolidates Amazon’s air and ocean freight, trucking, and last-mile delivery into a single package.
This move directly challenges FedEx and United Parcel Service, whose shares fell following the announcement. Procter & Gamble, 3M, and American Eagle Outfitters are among the first reported customers.
Analysts compare this strategic initiative to Amazon Web Services (AWS), which transformed internal infrastructure into a dominant cloud computing business. Amazon aims to generate higher returns on its massive infrastructure investments through this new revenue stream.
The company intends to become a central platform for the global supply chain. This offering provides a one-stop shop for businesses of all sizes.