Amazon is officially moving beyond its identity as a retail giant to become the world’s most powerful logistics provider.
Earlier this month, the company launched Amazon Supply Chain Services (ASCS), a strategic pivot that brings more businesses to utilize Amazon’s infrastructure, even if they don’t sell on the Amazon marketplace.
CEO Andy Jassy explicitly compared the launch to the early days of Amazon’s Web Services (AWS).
“Similar to AWS, when Amazon extended its own internal cloud infrastructure services to enterprises, this gives other companies the benefit of Amazon’s experience and extensive network,” said Jassy.
Amazon’s ocean to door global network
Launched on May 4, ASCS has already attracted big names as its first customers, including Procter & Gamble and American Eagle.
ASCS is an expansive platform that opens Amazon’s entire global shipping and distribution network to any business, regardless of whether they sell products on Amazon.
By opening its own logistics network to everyone, Amazon is positioning itself to handle the “dirty work” of commerce for brands that lack the scale to build their own infrastructure.
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The service includes several key technical and operational pillars:
- Global freight and customs: Amazon manages the transportation of goods from international factories directly to US ports and handles customs and paperwork.
- Massive multimodal transport: External businesses have access to Amazon’s fleet, which includes over 100 aircraft, 80,000+ trailers, and 24,000+ intermodal containers.
- Robotic fulfillment scale: Inventory is stored across 200 US fulfillment centers, powered by over 1 million robots to ensure maximum speed.
- Shipping: Reliable parcel delivery to customers’ doorsteps, enabling businesses to benefit from flexible pickup and drop-off locations and transparent shipment tracking.
“Amazon is bringing the infrastructure, intelligence, and scale of its supply chain services – proven over decades – to businesses everywhere, much like Amazon Web Services did for cloud computing,” said Peter Larsen, vice president of Amazon Supply Chain Services.
And Jassy sees this as a big revenue opportunity, noting that AWS has grown from its inception into a $150 billion annual run rate; he is also optimistic about ASCS’ growth.
The impact of this service launch has also been immediate. Major global brands, including 3M, Procter & Gamble, Lands’ End, and American Eagle, have already integrated their supply chains into the ASCS network to move both raw materials and finished goods.
The post retail rivalry: Amazon vs. Walmart
This expansion places Amazon on a direct road with Walmart, which has also been building its own post-retail infrastructure for years.
As noted in my previous coverage of Walmart’s move to sell in-house maintenance services commercially, the Bentonville retail giant is using a different but aggressive strategy to step outside the retailer tag.
Walmart recently expanded its in-house support team that maintains its own over 4,600 stores nationwide, much like Amazon’s move to make its existing logistics infrastructure available to all commercial businesses in need.
The following table compares the distinct infrastructure strategies currently being deployed by the two retail giants:
|
Feature |
Amazon |
Walmart |
|
Business Unit |
Amazon Supply Chain Services (ASCS) |
Upstream Facility Services |
|
Core Asset |
Ships, planes, trucks & 1M+ robots |
8,000 skilled technicians & 4,600+ stores |
|
Strategic Goal |
The AWS of shipping, renting global network |
Commercializing store maintenance & proximity |
|
Primary Advantage |
Global end-to-end control |
Local physical density |
However, while the goal for both is similar, diversifying revenue streams, their tactical advantages are distinct:
- Amazon’s global reach: Amazon’s strength is its end-to-end global control. It owns places and ships to move products across oceans, along with a powerful network for seamless local deliveries.
- Walmart’s local density: Walmart, on the other hand, leverages its physical footprint. With 90% of the US population living within 10 miles of a Walmart, the company has an expansive fulfillment center, which now includes cross-border trade and long-haul shipping.
In early 2026, Walmart also launched its export facility, helping sellers reach customers in Mexico and Canada, according to Supply Chain Dive.
“Walmart is currently testing new marketplace capabilities that leverage our fulfillment and logistics network to help sellers on our US marketplace reach customers shopping across borders,” an Amazon spokesperson told Supply Chain Dive.
Amazon’s ASCS is a direct counter-move, intended to protect its dominance in cross-border trade while adding to its existing customer base. This new service will be open to companies that are not sellers on Amazon’s website and operate directly to customers via their own websites.
“Supply chain wasn’t just a function at Amazon – it was core to providing an exceptional shopping experience. Our differentiator. The reason we could offer fast, dependable delivery that nobody else could,” said Larsen.
Further noting that through ASCS it can “give any other business access to the same cost, efficiency, reliability, and speed that we’ve built for Amazon customers.”
Jassy added, “Most companies don’t feel like it’s a good idea to have to run their own logistics when they can use our supply chain services.”
He noted that Amazon’s own process of becoming an unmatched retail business with strong logistics services gives it the edge and the drive to commercialize these services.
“And so if you think about what we had to do as a retail business, we had to get really good at being able to move products from manufacturers to upstream storage warehouses, to the actual fulfillment centers where you actually do the fulfillment, to allowing people to sell in multiple marketplaces but have one inventory pool, to the last mile delivery. We had to get good at all those to scale our retail business….It makes so much sense to expose these services to companies of all sizes,” said Jassy.
By opening its network to all industries, Amazon has also become a primary competitor to UPS and FedEx, and this could impact existing market shipping rates as competition increases.
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