Amazon Opens Its Logistics Network to External Companies

🕐 Updated: 2026-05-05 06:00 CST | E-commerce giant formally enters the third-party logistics market.

The Core Event

The New York Times reported on May 4 that Amazon announced it is opening its internal logistics network to non-Amazon merchants, allowing external businesses to use Amazon’s warehousing, sorting, and delivery services. This move marks Amazon’s formal entry into the third-party logistics (3PL) market, directly challenging the traditional dominance of FedEx and UPS.

Background: A Decade of Logistics Investment

Amazon’s logistics capabilities were not built overnight. Over the past decade, the company has invested hundreds of billions of dollars in its own delivery network, including:

  • Warehousing: Over 1,500 fulfillment centers, sortation facilities, and delivery stations across the United States
  • Air fleet: More than 100 cargo aircraft, constituting one of the largest commercial freight fleets in the U.S.
  • Last-mile delivery: Amazon Logistics now covers same-day or next-day delivery for most U.S. regions

Strategic Intent

Analysts point to two key strategic considerations behind Amazon’s logistics opening:

  1. Revenue diversification: Converting sunk costs into revenue streams by improving utilization of logistics assets
  2. Ecosystem lock-in: Merchants using Amazon logistics are more likely to also use other Amazon services (such as AWS cloud), deepening customer stickiness

Industry Impact

This move poses a direct threat to FedEx and UPS. Both companies have already felt the pressure from Amazon’s “de-FedEx/UPS” strategy in recent years — Amazon has progressively reduced its reliance on these two traditional delivery giants, shifting more packages to its own network. Now Amazon is actively competing for their third-party customers, further reshaping the competitive landscape.

A logistics industry analyst commented: “FedEx and UPS have advantages in coverage and B2B service capabilities, while Amazon’s strength lies in speed and e-commerce integration. There is overlap in these companies’ competitive territories, and rivalry is inevitable.”

Source: The New York Times