{"id":95601,"date":"2026-05-06T00:00:00","date_gmt":"2026-05-06T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/logistics\/?p=95601"},"modified":"2026-05-06T06:07:56","modified_gmt":"2026-05-06T06:07:56","slug":"can-amazon-turn-its-logistics-network-into-a-full-service-supply-chain-business","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/logistics\/2026\/05\/06\/can-amazon-turn-its-logistics-network-into-a-full-service-supply-chain-business\/","title":{"rendered":"Can Amazon turn its logistics network into a full-service supply chain business?"},"content":{"rendered":"<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\"><strong>Is <\/strong><strong>Amazon<\/strong><strong> moving to take over the logistics stack?<\/strong> Amazon is <a href=\"https:\/\/press.aboutamazon.com\/2026\/5\/amazon-launches-amazon-supply-chain-services-opening-its-logistics-network-to-all-businesses\" target=\"_blank\" rel=\"noopener\">opening<\/a> its logistics network to external businesses \u2014 effectively building an end-to-end logistics machine, under the brand Amazon Supply Chain Services, that could compete with UPS and FedEx.<\/p>\n<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\"><strong>What Amazon is actually selling:<\/strong> Amazon is pitching freight transport, bulk storage, inventory positioning, fulfillment across non-Amazon sales channels, and parcel shipping with two-to-five-day delivery. The company says the network includes more than 80k trailers, over 24k intermodal containers, and more than 100 aircraft \u2014 but still <a href=\"https:\/\/www.reuters.com\/business\/retail-consumer\/amazon-opens-up-its-logistics-network-other-businesses-2026-05-04\/\" target=\"_blank\" rel=\"noopener\">behind<\/a> FedEx and UPS.<\/p>\n<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\"><strong>Market <\/strong><strong>reax<\/strong><strong>:<\/strong> UPS and FedEx shares fell more than 9% after the launch \u2014 while the sell-off spread into other logistics names \u2014 with DHL down 7.3% and GXO down nearly 13%.<\/p>\n<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\"><strong>Big <\/strong><strong>names are already<\/strong><strong> in play.<\/strong> Procter &amp; Gamble is using the network to move raw materials and finished goods; 3M is using it between manufacturing sites and distribution centers; Lands\u2019 End is using a unified inventory pool across sales channels; and American Eagle Outfitters is using Amazon\u2019s parcel network for direct-to-customer deliveries.<\/p>\n<p class=\"tag-border-left\">Why it matters<\/p>\n<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\"><strong>UPS had already decided to shrink its Amazon exposure<\/strong>, with previous <a href=\"https:\/\/www.reuters.com\/business\/ups-forecasts-2025-revenue-below-estimates-2025-01-30\/\" target=\"_blank\" rel=\"noopener\">plans<\/a> to cut Amazon volumes by more than 50% by 2H 2026 and focus on fewer and more lucrative deliveries.<\/p>\n<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\"><strong>Amazon makes it more complicated: <\/strong>Established carriers have <a href=\"https:\/\/www.reuters.com\/business\/retail-consumer\/amazon-opens-up-its-logistics-network-other-businesses-2026-05-04\/\" target=\"_blank\" rel=\"noopener\">spent years<\/a> pulling back from weaker e-commerce exposure and deeper into denser markets. Amazon is now <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2026-05-04\/fedex-ups-shares-tumble-on-amazon-s-watershed-logistics-move\" target=\"_blank\" rel=\"noopener\">chasing<\/a> them into higher-value work, including healthcare, where both companies have been trying to build deeper margin protection.<\/p>\n<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\"><strong>Amazon has already grown too large to be treated as just another e-commerce shipper. <\/strong>The logistics giant delivered last year more than a quarter of the 23.9 bn parcels shipped in the US, while FedEx and UPS combined moved around a third.<\/p>\n<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\">\n","protected":false},"excerpt":{"rendered":"<p>Amazon delivered last year more than a quarter of the 23.9 bn parcels shipped in the US, while FedEx and UPS combined moved around a third<\/p>\n","protected":false},"author":1,"featured_media":95602,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[56],"tags":[17,55,124],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-95601","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-logistics-in-the-news","tag-enterprise-logistics","tag-logistics-in-the-news","tag-supply-chains","wpautop","entry"],"acf":{"mongo_id":"0c579128-b6d3-473a-85f1-2d440dee13e0","order":"8","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2024\/8\/1399.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Amazon turns supply chains into its next battleground","related_issue":[95588],"teaser":"Amazon delivered last year more than a quarter of the 23.9 bn parcels shipped in the US, while FedEx and UPS combined moved around a third","photo_link":"","related_sponsor":"","voice_url":"","en_translation_ref_id":"","section_story_id":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Can Amazon turn its logistics network into a full-service supply chain business? - Logistics<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/logistics\/2026\/05\/06\/can-amazon-turn-its-logistics-network-into-a-full-service-supply-chain-business\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" 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