Amazon has officially launched new Amazon Supply Chain Services (ASCS), a move that opens the company’s internal logistics network to businesses of all sizes, regardless of whether they sell on its platform. By separating its freight, warehousing, and fulfilment infrastructure from its retail store, Amazon stands as a direct competitor to traditional logistics providers like UPS and FedEx.
The launch, announced on Monday, is being framed by the company as the “AWS of logistics.” Similar to how Amazon Web Services transformed cloud computing by selling excess internal digital capacity, ASCS aims to provide external businesses with the same scale and efficiency Amazon built for its own operations. The service is targeted at industries ranging from healthcare and automotive to manufacturing and retail.
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“Amazon is bringing the infrastructure, intelligence, and scale of its supply chain services, proven over decades, to businesses everywhere,” said Peter Larsen, vice president of Amazon Supply Chain Services. Larsen emphasized that the network, originally developed as a core differentiator for fast delivery, is now accessible to help other businesses achieve similar cost efficiencies and speed.
Early enterprise partners including 3M, Procter & Gamble, American Eagle Outfitters, and Lands’ End have already begun utilizing the network. Procter & Gamble is using Amazon’s freight capabilities to move raw materials to production sites, while American Eagle is using the parcel shipping network for direct-to-consumer deliveries. Lands’ End CEO Andrew McLean noted that the service allows the brand to position inventory closer to customers, increasing delivery speed during peak seasons.
The ASCS suite includes a comprehensive range of capabilities. Its freight transportation spans across ocean, air, ground, and rail, supported by a fleet of over 80,000 trailers and 100 aircraft. Businesses can also utilize unified inventory pools for distribution and fulfilment, alongside a parcel shipping service that offers two-to-five-day delivery seven days a week.
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This expansion follows years of testing through the Fulfilment by Amazon (FBA) program, which has shipped billions of units for independent sellers since 2006. According to Amazon, sellers using these end-to-end solutions have historically seen sales increases of nearly 20% due to the reduced operational complexity.
With the rollout of a centralized digital console for service management, Amazon is now fully entering the $1.3 trillion logistics market, offering a single-network solution from the factory floor to the customer’s doorstep.