Amazon's Next Business Is Hiding Inside Its Delivery Network
July 13, 2026 - 22:04
Amazon is quietly turning its massive delivery operation into a standalone business. The company has launched a new offering called Supply Chain Services, which allows other businesses to use Amazon's logistics network for cheaper parcel delivery and improved supply chain efficiency. This move turns what was once a cost center for Amazon into a potential revenue driver.
The service targets small and medium-sized merchants who struggle with high shipping costs and complex logistics. By tapping into Amazon's existing infrastructure of warehouses, sorting centers, and delivery vans, these businesses can now ship products faster and at lower rates than traditional carriers offer. Amazon already handles billions of packages each year for its own retail operations, and the new service lets it fill unused capacity with third-party shipments.
Industry analysts see this as a natural evolution. Amazon has spent decades building one of the most advanced delivery networks in the world, with regional hubs, last-mile delivery stations, and even its own air cargo fleet. Now it is monetizing that infrastructure beyond its own marketplace. The move also puts Amazon in more direct competition with FedEx and UPS, though Amazon has not publicly stated an intention to replace those carriers entirely.
The timing makes sense. E-commerce growth has slowed from pandemic highs, and Amazon's delivery network has more room to spare. By opening it up to outside businesses, Amazon can keep its trucks and planes running at full capacity while generating new profits. For merchants, the appeal is clear: lower costs, faster delivery, and access to Amazon's reliability without having to sell on Amazon's marketplace.
Amazon has not disclosed pricing details, but early reports suggest the service undercuts standard rates from major carriers. The company is likely betting that volume will make up for thinner margins. If successful, Supply Chain Services could become a significant part of Amazon's business, further blurring the line between retailer and logistics provider.
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