On May 4, 2026, Amazon announced the launch of Amazon Supply Chain Services (ASCS), a single offering that bundles the company’s freight, fulfillment, distribution, and parcel shipping capabilities and makes them available to any business, including those that don’t sell on Amazon’s marketplace.
The move opens up the same logistics network Amazon has spent two decades building for itself, and places the company directly alongside FedEx and UPS in the U.S. small parcel market.
What Amazon announced
Amazon Supply Chain Services consolidates capabilities Amazon has previously sold through separate products. These include Amazon Freight, Amazon Warehousing and Distribution, Fulfillment by Amazon (FBA), and Amazon Shipping. ASCS bundles them into a single end-to-end logistics offering. The service is open to businesses across retail, healthcare, manufacturing, and other industries, and can be used to move, store, and deliver goods at any stage of the supply chain, from raw materials to final-mile delivery to consumers.
Notably, ASCS can fulfill orders placed on platforms that compete with Amazon, including Walmart, Shopify, and TikTok Shop.
Several outlets have compared the launch to Amazon Web Services in 2006, when Amazon turned its internal cloud infrastructure into a product for outside businesses.
What’s inside the offering
ASCS pulls together four main pieces of Amazon’s existing logistics footprint:
- Freight transportation using Amazon’s fleet of trailers, intermodal containers, and more than 100 cargo aircraft.
- Warehousing and distribution across Amazon’s U.S. fulfillment center network.
- Fulfillment for orders placed across multiple sales channels, including non-Amazon marketplaces.
- Parcel shipping through Amazon Shipping, the company’s two-to-five-day parcel delivery service.
For shippers, this means Amazon Supply Chain Services covers everything from inbound raw materials to small parcel last-mile delivery under one provider, a footprint that has historically required stitching together multiple carriers, third-party logistics providers, and warehousing partners.
How it compares to FedEx and UPS
Amazon was already the largest parcel shipper in the United States by volume in 2025, having surpassed both FedEx and UPS. With ASCS, Amazon is now offering that parcel capacity to third parties at scale.
Amazon Shipping, the parcel piece of ASCS, focuses on standard ground delivery in the two-to-five-day window, the same competitive zone as FedEx Ground and UPS Ground, which together handle the bulk of U.S. e-commerce small parcel volume.
The market reaction reflected those competitive stakes: on the day of the announcement, UPS shares fell nearly 10% and FedEx shares dropped more than 9%.
Who’s using it so far
Amazon named four initial customers at launch, each using a different piece of ASCS:
- Procter & Gamble is using Amazon’s freight network to move raw materials.
- 3M is using ASCS to transport products to distribution centers.
- Lands’ End is using Amazon’s fulfillment centers to ship orders across multiple sales channels.
- American Eagle Outfitters is using Amazon Shipping for last-mile parcel delivery.
The mix of consumer goods, industrial, and apparel customers points to a broad cross-section of shippers rather than a single vertical.
Amazon shipping tracking and visibility
Within Amazon Shipping, parcel tracking is handled through Amazon’s own tracking system, which provides shipment status updates from pickup through delivery. Businesses using ASCS access shipping data, tracking, and reporting through Amazon’s shipper portals, similar to the Amazon Shipping product that has been in pilot with select shippers in prior years. Amazon shipping tracking numbers are issued by Amazon rather than by FedEx or UPS, meaning shippers route tracking inquiries and exception handling through Amazon’s support channels.
What this means for the parcel shipping market
A few factual takeaways for parcel and supply chain teams:
- Amazon is now a fully addressable carrier. Previously, using Amazon’s logistics network typically required selling through Amazon’s marketplace. ASCS removes that requirement.
- The U.S. small parcel market now has a third national carrier offering an end-to-end ground product alongside FedEx and UPS. Industry coverage describes this as the most significant structural shift in domestic parcel shipping in years.
- Bundled vs. unbundled logistics. ASCS is positioned as an integrated freight-plus-fulfillment-plus-parcel offering, a different shape from buying parcel shipping separately from FedEx or UPS and warehousing separately from a 3PL.
- Pricing as a lever. Multiple analyst notes referenced in launch coverage cite pricing as the primary mechanism through which ASCS will compete in parcel.
How any individual shipper evaluates ASCS will depend on their existing carrier mix, service-level requirements, geographic footprint, and integration overhead, variables outside the scope of this article.
The bottom line
Amazon Supply Chain Services is the company’s formal entry into the open parcel shipping and contract logistics market. It packages Amazon’s freight, warehousing, fulfillment, and small parcel capabilities into a single offering, accepts business from companies regardless of whether they sell on Amazon, and lists P&G, 3M, Lands’ End, and American Eagle Outfitters as launch customers. For shippers tracking developments in the FedEx and UPS competitive landscape, ASCS is the latest data point in a market that continues to evolve.
Where SiftedAI can help
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