Amazon uses its logistics empire to take on UPS and FedEx in freight, shipping
13 hours ago
- #Supply Chain
- #Logistics
- #E-commerce
- Amazon introduced Amazon Supply Chain Services, integrating its logistics network into a single offering for any business, including those not selling on Amazon's marketplace.
- Initial customers include major companies like Procter & Gamble, 3M, Lands’ End, and American Eagle Outfitters, utilizing Amazon's freight, fulfillment, and parcel services.
- The service supports order fulfillment from competing platforms such as Walmart and Shopify, putting Amazon in direct competition with UPS and FedEx, whose shares dropped nearly 10%.
- Amazon's stock rose slightly, and the company is now the largest parcel shipper by volume in the U.S., leveraging a vast infrastructure of fulfillment centers, trailers, and aircraft.
- The launch mirrors Amazon's strategy with AWS, turning internal capabilities into external businesses, amid concerns over data privacy, which Amazon addresses by prohibiting the use of customer data for marketplace decisions.
- Pricing for Amazon Supply Chain Services varies based on usage, and this move follows other initiatives like selling AI chips and robotics externally.