Amazon.com Inc (NASDAQ:AMZN) is broadening its logistics ambitions, adding a less-than-truckload freight service to its Amazon Supply Chain Services platform that allows businesses to ship goods to any third-party warehouse, distribution centre, or retail partner.
The move taps into Amazon's existing transportation infrastructure, including more than 80,000 trailers and 24,000 intermodal containers.
The company cited lower costs and faster transit times than competitors as early selling points, though its LTL terminal footprint remains limited. Logistics consultancy MWPVL estimates Amazon operates roughly 26 LTL terminals, compared to an average of 295 among the top five carriers.
Bank of America analysts characterized the announcement as an extension of existing internal capability rather than a signal of new capital deployment or physical network expansion. Amazon appears to be routing external freight through available capacity on its current network, functioning more as a third-party logistics coordinator than building a dedicated, terminal-heavy LTL operation.
That broker-like model puts Amazon in most direct competition with asset-light freight intermediaries such as CH Robinson and RXO, where the battle is fought on demand aggregation and pricing.
The strategic logic, according to Bank of America, is network utilization: adding third-party freight volumes improves density, reduces empty miles, and supports long-term margin expansion in Amazon's retail business. The bank estimates Amazon's retail margin opportunity at 12%, up from a projected 7% in 2026.
Near-term revenue contribution is expected to be modest. MWPVL projects incremental capital spending on the platform to remain measured, with Amazon potentially positioned to compete more directly with national carriers by 2028-2029. The longer-term prize is considerable: Armstrong and Armstrong estimates that each one-percentage-point share of the third-party logistics market represents $13 billion in revenue.
Bank of America maintained its Buy rating on Amazon.