Amazon said on Monday that it would sell its logistics services to companies unaffiliated with the online sales giant.
With Amazon Supply Chain Services, the company will broaden its existing freight, distribution, fulfillment and parcel shipping offerings. Large corporations including American Eagle Outfitters and Procter & Gamble have already signed on.
“Amazon is bringing the infrastructure, intelligence and scale of its supply chain services — proven over decades — to businesses everywhere, much like Amazon Web Services did for cloud computing,” Peter Larsen, vice president of the service, said in a statement.
Amazon currently offers these services to vendors that sell items through its website. The shift to broaden the scope of Amazon’s logistics arm had an immediate impact on competitors. Shares of FedEx closed down 9.1 percent Monday, while UPS fell more than 10 percent. Amazon’s stock rose 1.4 percent.
Amazon handled more than six billion parcels in 2024, according to last year’s Pitney Bowes Parcel Shipping Index, second only to the Postal Service in the United States. Amazon’s parcel revenues were more than $31 billion in 2024, according to the index.
The Postal Service, by comparison, handled just under seven billion parcels. Amazon has more than 200 fulfillment centers across the United States and a fleet of more than 80,000 trailers and 100 aircraft operated through company partnerships.
The expansion follows a playbook similar to the introduction of Amazon Web Services, which grew out of the retail giant’s technology infrastructure and last year accounted for 30 percent of the global cloud computing industry, according to a report by Synergy Research.
That exposed some vulnerabilities in such reliance. Last year, an outage across a part of Amazon’s cloud computing network took hundreds of services offline.
Lands’ End is working with Amazon’s network to fulfill orders, and American Eagle is using it to deliver online orders, according to the statement. Procter & Gamble will ship raw goods through the service. The chemical and Scotch tape maker 3M is already using Amazon’s freight services to ship items from its manufacturing sites to distribution centers worldwide, Amazon said in the statement.
