Have you ever been puzzled when a product purchased on eBay arrives in packaging bearing Amazon's logo? This isn't a shipping error but rather evidence of Amazon's quiet revolution in the logistics industry. As the e-commerce giant seeks to dominate the competitive delivery market, it's expanding its logistics services far beyond its own platform—with significant implications for the entire e-commerce ecosystem.
From Internal Service to External Expansion
Originally designed to serve its own marketplace sellers, Amazon's logistics network has grown to surpass its internal needs. As seller Bernie Thompson noted, Amazon once handled fulfillment for all his sales channels—meaning an eBay purchase could originate from an Amazon warehouse and be delivered by Amazon's logistics team.
This phenomenon stems from Amazon's new "Shipping with Amazon" service, which extends fulfillment capabilities (FBA) to merchants selling on competing platforms. The move signals intensifying competition with traditional carriers like FedEx and UPS, marking a strategic shift in Amazon's logistics ambitions.
Building a Logistics Empire: Data and Capital at Scale
Amazon's logistics infrastructure has grown exponentially since its 2014 global transportation network launch. Today it boasts:
• 400,000 drivers
• 40,000 semi-trucks
• 30,000 vans
• 70+ aircraft
The company's self-fulfillment rate jumped from 46.6% in 2019 to 72% currently, supported by an 80% increase in capital expenditures for logistics expansion during 2021. Recent milestones include a $1.5 billion air hub in Kentucky and plans for a 4-million-square-foot distribution center in Johnston.
The Logistics-as-a-Service Playbook
Amazon's strategy extends beyond parcel delivery. Its UK "Logistics as a Service" program, slated for US expansion within 18 months, allows external merchants to leverage Amazon's network. The company even offers discounted LTL truck space utilization and has reportedly begun transporting US Postal Service cargo on its aircraft.
E-commerce consultant Chris McCabe summarizes the vision: "Amazon wants to provide a new version of the Postal Service where everything is available everywhere—and fast."
Challenges in the Delivery Lane
While sellers may benefit from reduced shipping costs and improved efficiency, Amazon faces complex challenges in balancing relationships between its marketplace and competitors, maintaining service quality, and navigating regulatory scrutiny.
As Amazon continues investing billions to expand its transportation network, the e-commerce landscape braces for transformation. The company's logistics expansion doesn't just aim to streamline its operations—it seeks to redefine how goods move through the entire digital economy.