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Amazon opens logistics network for external businesses with new supply chain service

#International News#Industrial#United States of America
Last Updated : 6th May, 2026
Synopsis

Amazon has introduced a new service, Amazon Supply Chain Services, allowing external businesses to access its logistics and delivery network. The system enables companies of all sizes to manage transportation, storage and delivery of goods ranging from raw materials to finished products. The offering includes Amazon’s freight, distribution, fulfillment and parcel shipping capabilities. Early adopters include major companies such as Procter & Gamble, 3M and American Eagle Outfitters. The announcement also influenced market sentiment, with logistics players UPS and FedEx seeing a decline in premarket trading.

Amazon has expanded its logistics capabilities by launching Amazon Supply Chain Services, a move that opens its established delivery and storage network to external businesses. The company stated that organisations across sectors can now utilise its end-to-end supply chain infrastructure for handling goods from production inputs to final delivery.


The service provides access to Amazon’s integrated logistics system, which covers freight movement, warehousing, fulfilment operations and parcel distribution. This network is supported by multiple transportation modes, including ocean, air, road and rail connectivity, allowing businesses to manage supply chains through a single platform.

The company has indicated that several large corporations have already begun using the service. These early participants include consumer goods major Procter & Gamble, industrial manufacturer 3M, and apparel retailer American Eagle Outfitters, reflecting interest from diverse industries.

Following the announcement made earlier this week, shares of major logistics companies reacted in premarket trading. UPS declined by around 1.5%, while FedEx saw a drop of approximately 2.5%, as investors assessed potential competition from Amazon’s expanded logistics footprint.

Amazon’s network is backed by significant infrastructure, including more than 80,000 trailers, around 24,000 intermodal containers and a fleet of over 100 aircraft. This scale positions the company to handle large-volume logistics operations across domestic and international routes.

Source Reuters

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