“Amazon Supply Chain Services gives all businesses access to the same infrastructure that moves, stores, and ships goods for hundreds of thousands of Amazon sellers.”
Amazon is taking aim at UPS and FedEx by offering new shipping services to businesses in the US. In response to the announcement, UPS and FedEx stocks both sank on Monday.
In a post to X, Amazon said, “Amazon is opening its entire logistics network—freight, distribution, fulfillment, and parcel shipping capabilities—to every business, of all types and sizes.”
https://twitter.com/amazon/status/2051241496737628587?s=46
“Amazon has built one of the most reliable and efficient supply chains on Earth. Now, Amazon Supply Chain Services gives all businesses access to the same infrastructure that moves, stores, and ships goods for hundreds of thousands of Amazon sellers. Healthcare, automotive, manufacturing, retail, and more. Businesses across industries can now tap into Amazon's logistics network,” the company added.
Both FedEx and UPS were down by 10 percent in midday trading. Shares of Amazon have remained largely unchanged. The newly formed “Amazon Supply Chain Services” will allow for companies to use Amazon’s supply chain network for logistics and delivering products as well as raw materials.
The announcement could make Amazon a major player in shipping alongside UPS and FedEx. The company has a massive network of warehouses and a fleet of 100 cargo planes.
Amazon has also maintained a longstanding partnership with UPS spanning decades. However, in 2025 and 2026, UPS has been scaling back its reliance on its partnership with Amazon. In a press release, Amazon said that several large companies are already using the services, including Procter & Gamble, 3M, and American Eagle Outfitters.
“Whether you are a small retailer looking to grow your customer base on the Amazon store or a global manufacturer looking to efficiently distribute raw materials to production facilities—ASCS gives you the flexibility to choose the services and level of support you need,” the company said.
Amazon will offer freight, distribution, fulfillment, and parcel shipping for business with the new ASCS offering.
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