finance
Amazon Launches Supply Chain Services for External Businesses
Amazon debuted its new Supply Chain Services on May 4, 2026, extending its freight and logistics capabilities to companies beyond its marketplace. The move provides global delivery options and mirrors the strategy behind Amazon Web Services. Shares of FedEx and UPS fell about 4% in premarket trading following the announcement.
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Amazon debuted Amazon Supply Chain Services on May 4, 2026, opening its freight network to sellers beyond the Amazon marketplace. The service provides access to freight, distribution, fulfillment, and parcel shipping capabilities to businesses of all types and sizes. It offers a global delivery network with two- to five-day delivery and 24/7 service.
Amazon is expanding its third-party logistics capacity through Amazon Supply Chain Services to support businesses in healthcare, automotive, manufacturing, and retail industries. The initiative mirrors the development of Amazon Web Services by building infrastructure for internal operations and then selling it externally.
Amazon Web Services originated from infrastructure built for Amazon's own business and was later sold externally.
Amazon built cloud infrastructure for its own business, proved it internally, and then started selling it as Amazon Web Services. Peter Larsen, vice president of Amazon Supply Chain Services, stated that Amazon is bringing the infrastructure, intelligence, and scale of its supply chain services—proven over decades—to businesses everywhere, much like Amazon Web Services did for cloud computing.
Shares of FedEx dropped around 4% in premarket trading on May 4, 2026, following the Amazon Supply Chain Services announcement.
