finance
Amazon Launches Supply Chain Services and Signs Deals With Procter & Gamble
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.
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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.
