On May 4, 2026, Amazon announced the launch of Amazon Supply Chain Services (ASCS) — a third-party logistics (3PL) division making the shipping infrastructure it built for its own operations available to businesses in any industry (healthcare, automotive, manufacturing, retail, and more): freight, warehousing, inventory management, and last-mile delivery. According to Supply Chain Dive and DC Velocity, Amazon spent roughly three years developing these capabilities for its own operations and third-party sellers, and processes hundreds of millions of packages through these channels. Peter Larsen, VP of ASCS, was quoted saying: "Supply chain wasn't just a function at Amazon — it was core to providing an exceptional shopping experience." Among the first customers to adopt the service: Procter & Gamble and 3M (freight services from manufacturing sites to distribution centers), as well as Lands' End and American Eagle Outfitters (unified inventory pools for multi-channel sales and direct-to-consumer parcel shipping). According to Supply Chain Dive, Amazon had already surpassed the U.S. Postal Service (USPS) as the top domestic delivery provider by volume in 2025, according to ShipMatrix data, and the new 3PL network is expected to further accelerate that trend. According to Bizportal, the announcement sent FedEx and UPS shares sharply lower, as investors interpreted the move as Amazon positioning itself as a direct competitor to the established shipping carriers. This comes against the backdrop of a difficult period for the logistics sector — roughly three years of weakness since the pandemic ended, with falling demand and excess capacity weighing on profitability.
Amazon Opens Its Logistics to the World: How It's Threatening FedEx and UPS

On May 4, 2026, Amazon launched Amazon Supply Chain Services (ASCS) — an end-to-end logistics service now open to any business, not just Amazon marketplace sellers. The announcement, which mirrors AWS's cloud strategy, sent FedEx and UPS shares sharply lower.
Why it matters
The move repeats the strategy behind AWS — turning internal infrastructure into a profitable external product — but this time in the established, mature logistics industry rather than a young cloud market. Amazon's entry as a direct competitor to FedEx and UPS, precisely during a period of structural weakness in the sector, poses a real strategic threat to the incumbents.
What's next
If Amazon succeeds in signing up more large customers like Procter & Gamble and 3M, FedEx and UPS may be forced to compete on price exactly when margins are already thin. Further consolidation/M&A moves in the logistics sector in response are also possible.
Verified facts
- Amazon launched Amazon Supply Chain Services (ASCS) on 04.05.2026, opening its logistics network to businesses in any industry (DC Velocity, Supply Chain Dive, Bizportal)
- Early customers include Procter & Gamble, 3M, Lands' End, and American Eagle Outfitters (DC Velocity, Supply Chain Dive)
- Amazon had already surpassed USPS as the top domestic delivery provider by volume in 2025, per ShipMatrix data (Supply Chain Dive)
- The announcement sent FedEx and UPS shares sharply lower (Bizportal, TheLoadstar)
- All three accessible sources describe the move as repeating the AWS strategy — turning internal infrastructure into an external product