Logistics

Forwarding | Warehousing and Distribution

Amazon’ s integrated logistics offering divides industry opinion

By Eric Johnson

Amazon’ s launch of a suite of supply chain services for shippers not currently using its e-commerce seller ecosystem has sparked a healthy debate within the logistics industry about whether the services represent a threat to third-party logistics providers( 3PLs).

On one side of that debate are those who think Amazon’ s foray into diversified logistics is taking shape in a way that threatens everyone from integrators such as UPS and FedEx to mom-and-pop forwarders and freight brokers to supply chain software vendors.

“ Amazon has built a fully integrated execution engine,” Brittain Ladd, a former Amazon executive and a retail supply chain and technology analyst, said in a LinkedIn post.“ Not a platform. Not software. An integrated execution engine that also includes robotics and automation.”

One longtime logistics veteran who did not want to be identified described the announcement to the Journal of Commerce as“ Groundhog Day,” given that it felt familiar.

Large retailers have attempted this type of offering in the past. Walmart in the late 2000s toyed with the idea of offering third-party contract logistics services to other shippers, but the idea never gained enough traction to grow into a substantial business unit.

More recently, American Eagle Outfitters cut bait on a third-party logistics venture designed to attract other shippers.

It’ s hard to pinpoint how and why these ventures didn’ t succeed, but some part of it is attributable to the reticence of shippers to use competitors as logistics partners.

Competitor tension

Amazon is a different beast than American Eagle and even Walmart, but some of that competitive tension will surely remain. Although Amazon noted in its announcement that retail customers such as Lands’ End and, ironically, American Eagle, are currently users of its supply chain services, it’ s hard to imagine retailers that compete directly with Amazon’ s e-commerce business engaging in a massive migration to its logistics offering.

Some commenters made the link between the announcement of Amazon Supply Chain Services( ASCS)

“ When customers learn that Amazon can reduce their costs... they will choose Amazon.”

Ladd said sources within Amazon believe the company will be able to save third-party shippers a sizable percentage over what they might be paying now by using current combinations of transportation, contract logistics, final mile, and software partners.

“ I don’ t care how long a 3PL has done business with a customer,” he said.“ When customers learn that Amazon can reduce their costs... and transition their logistics needs into Amazon’ s ecosystem with minimal disruption, they will choose Amazon.”

On the other side are mostly transportation and logistics veterans who suggest the announcement is primarily marketing— a neat and more digestible packaging of offerings that Amazon has long provided as individual services, such as warehousing, fulfillment, and brokered and for-hire transportation.

Eric Williams, CEO of freight brokerage pricing vendor Beagl and a former transportation executive with Target referred to the ASCS announcement as“ essentially just a marketing ploy” in a post on social media platform X, while Flexport CEO Ryan Petersen said Amazon has“ had this offering for many years.”

20 Journal of Commerce | June 1, 2026 www. joc. com