Amazon has opened its end-to-end logistics network, Amazon Transport Services, to third-party businesses, marking a significant shift in its strategy as it monetises its supply chain infrastructure beyond its own marketplace.
The move allows any business to use Amazon’s logistics stack including freight, warehousing, fulfillment, and last-mile delivery even if they do not sell on the platform. In effect, Amazon is positioning its logistics capabilities as a standalone service offering, similar to how it scaled Amazon Web Services from internal infrastructure into a global business.
This expansion puts Amazon in direct competition with global logistics players such as FedEx and UPS, while also intensifying competition in India with companies like Delhivery, Blue Dart, Shiprocket, and Ekart Logistics.
Amazon said businesses can opt for modular services or the full logistics stack, depending on their requirements. This flexibility could appeal to brands seeking faster deliveries, better control over supply chains, and reduced operational complexity.
Globally, companies such as Procter & Gamble and 3M have already begun using Amazon’s logistics services, signalling early enterprise adoption.
In India, Amazon already provides shipping and fulfillment solutions to sellers on its platform. Expanding these services to external businesses could significantly increase network utilisation and create a new revenue stream from its existing infrastructure.
The strategy reflects Amazon’s attempt to leverage scale and unused capacity within its logistics network, turning it into a profit centre. However, the move is also expected to reshape competition, as traditional logistics players face a tech-driven entrant with deep infrastructure and data capabilities.
For businesses, the offering provides a compelling alternative combining speed, scale, and integrated technology while for the industry, it signals a new phase of competition in supply chain services.
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