Amazon Launches Supply Chain Services for External Companies, Securing Deals with Procter & Gamble and Others
Amazon announced on May 5, 2026, the launch of Amazon Supply Chain Services, offering shipping and delivery to external companies. Several firms including Procter & Gamble and 3M have signed on, while shares of rivals like UPS and FedEx declined sharply. Analyst Dan Ives described it as a 'power move' against competitors.
Substrate placeholder — needs review · Wikimedia Commons (CC BY-SA 3.0)Amazon announced on May 5, 2026, that it is expanding its logistics and delivery services to companies outside its e-commerce platform, launching a new initiative called Amazon Supply Chain Services. Procter & Gamble, 3M, Lands’ End and American Eagle Outfitters have signed on to use the services.
The move leverages Amazon's existing network of planes, trucks and vans, which already handles shipping, fulfillment and delivery for hundreds of thousands of sellers on its platform.
3M is using Amazon’s freight services to move products from its manufacturing sites to distribution centers, while American Eagle Outfitters is employing the services to deliver online orders from its website directly to customers. Amazon stated it is making use of extra capacity in its network for these new offerings.
Other reports confirmed UPS and FedEx shares each declined 10%, while GXO Logistics shares fell 13%, XPO Inc. shares dropped 6%, and Old Dominion Freight Line shares decreased 6%. Ives also described it as a 'shot across the bow' of FedEx.
The expansion comes amid other developments for Amazon's delivery operations. The New York City Council is considering legislation that would force Amazon to hire delivery workers currently employed by third-party companies, according to the New York Post. Separately, Amazon has increased the speed of its delivery to one- and three-hour time frames in certain cities.
Key Facts
Story Timeline
6 events- 2026-05-05
Amazon announced expansion of logistics and delivery services to external companies, launching Amazon Supply Chain Services.
1 sourceAmazon - 2026-05-05
Procter & Gamble, 3M, Lands’ End, and American Eagle Outfitters signed on to use Amazon Supply Chain Services.
1 sourceAmazon - 2026-05-05 (following announcement)
UPS shares declined 10.47%, FedEx shares declined 9.11%.
1 sourceMorning Brew - 2026-05-05 (following announcement)
GXO Logistics shares declined 13%, XPO Inc. shares declined 6%, Old Dominion Freight Line shares declined 6%.
1 sourceunattributed - Recent (prior to announcement)
New York City Council considering legislation to force Amazon to hire third-party delivery workers.
1 sourceNew York Post - Recent (prior to announcement)
Amazon increased delivery speeds to one- and three-hour frames in certain cities.
1 sourceunattributed
Potential Impact
- 01
Stock volatility in logistics sector as investors react to Amazon's entry into external services.
- 02
Increased competition for UPS and FedEx in logistics, potentially eroding their market share.
- 03
Enhanced delivery speeds could attract more businesses to Amazon's services, boosting its revenue.
- 04
Broader pressure on trucking and freight companies like GXO, XPO, and Old Dominion due to Amazon's expanded capacity.
- 05
Potential changes to Amazon's labor model if New York City legislation passes, affecting delivery worker employment.
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