Amazon launched Amazon Supply Chain Services (ASCS) to make its end-to-end logistics network available to all businesses. The service provides external companies access to Amazon's freight, distribution, fulfillment, and parcel shipping infrastructure. This strategic move aims to monetize core assets, following the model established by Amazon Web Services.
Procter & Gamble, 3M, and American Eagle Outfitters are among the first major brands to utilize the service. UPS shares fell 1.5% in premarket trading following the announcement. FedEx shares dropped 2.5% on the news.
Analysts view the expansion as a significant competitive threat to established third-party logistics providers. The network offers businesses the same cost efficiency and speed built for Amazon's own e-commerce platform. This initiative could alter how goods move from manufacturing facilities to customers.