Amazon is making one of its boldest moves beyond e-commerce by opening its massive logistics infrastructure to outside businesses, directly challenging shipping giants UPS and FedEx in the broader supply chain and business-to-business distribution market.
Through its new Amazon Supply Chain Services platform, companies across sectors including retail, healthcare, and manufacturing can now use Amazon’s integrated logistics network for storage, transport, forecasting, and fulfillment. This includes access to Amazon’s extensive ocean, rail, road, air, and warehouse systems — infrastructure originally built to support its own retail empire.
The strategic shift could significantly disrupt the U.S. logistics industry. Amazon already operates more than 100 cargo aircraft and a vast fulfillment ecosystem, giving it the scale to compete aggressively on delivery speed, operational efficiency, and potentially pricing. The market reaction was immediate, with shares of major logistics incumbents falling sharply on concerns that Amazon may replicate in logistics what it previously achieved in cloud computing with AWS.
This move is particularly threatening because it targets high-margin business-to-business logistics rather than just consumer delivery. B2B shipping often offers more predictable, denser routes and stronger profitability than retail parcel delivery, making it a critical battleground for UPS, FedEx, DHL, and other established players.
Amazon’s strategy appears to transform logistics from an internal operational cost into a monetizable infrastructure platform — effectively creating a logistics-as-a-service model. By allowing brands to use its network across websites, social channels, and physical stores, Amazon is positioning itself not merely as a retailer, but as a foundational commercial infrastructure provider.
If successful, this expansion could reshape supply chain economics much like AWS transformed enterprise computing, potentially making Amazon one of the most influential logistics operators globally.
