Why This Matters to Distributors: Amazon is increasingly turning the logistics network it built for its own operations into a commercial service business. By opening its less-than-truckload network to all shippers and destinations, Amazon is creating a new transportation option for distributors while intensifying competition for traditional carriers and third-party logistics providers.
Amazon has expanded its less-than-truckload freight service beyond its marketplace ecosystem, allowing businesses of all sizes to ship palletized freight to any destination in the United States.
The move broadens the reach of Amazon Freight, which has historically focused on moving freight for Amazon sellers and vendors shipping into the company’s fulfillment network. Under the expanded program, shippers can now use Amazon’s less-than-truckload, or LTL, service to move freight to third-party warehouses, distribution centers, retail partners, and other commercial locations.
The offer is part of Amazon Supply Chain Services, the company’s growing portfolio of logistics services that includes freight transportation, warehousing, fulfillment, and parcel delivery.
Amazon said the expansion follows strong demand from existing customers. Since launching its LTL service in 2019, the company said it has served tens of thousands of Amazon selling partners and vendors and moved millions of pallets through its network.
“The feedback from Amazon selling partners using our LTL service was clear: the technology, visibility and reliability were exactly what they needed, and they wanted to use it more broadly,” Jim Ruiz, director of Amazon Freight, said in a statement.
LTL shipping allows businesses to transport partial truckloads by sharing trailer space with other shippers rather than paying for a dedicated truck. Amazon said the service is designed for shipments ranging from one to six pallets, or 150 to 15,000 pounds.
The company said customers will have access to next-day pickup options, drop-trailer programs, electronic data interchange integrations and real-time shipment visibility through GPS tracking. Amazon also said its fleet includes cargo cameras, door sensors and automated freight monitoring systems designed to improve shipment security and tracking accuracy.
The expansion gives customers access to a transportation network supported by more than 80,000 trailers and 24,000 intermodal containers operating across the United States. Amazon said the network also includes terminals in major metropolitan markets and supports truckload, LTL, and rail transportation services.
The announcement represents the latest step in Amazon’s effort to commercialize the logistics infrastructure it spent decades building to support its retail and marketplace businesses. In recent years, the company has expanded beyond parcel delivery and fulfillment services into truckload transportation, freight brokerage, warehousing, and supply chain management.
For distributors, the move further blurs the line between Amazon’s role as a retailer, marketplace operator, and logistics provider. Many distributors rely on national and regional LTL carriers to replenish branches, move inventory between facilities, and deliver products to customers. Amazon’s expanded service creates another transportation option while increasing competitive pressure on incumbent freight providers.
The launch also strengthens Amazon’s broader supply chain strategy. Rather than offering standalone transportation services, the company is assembling an end-to-end logistics platform that combines freight movement, warehousing, fulfillment, and parcel delivery under a single provider.
As Amazon continues opening its logistics infrastructure to outside businesses, distributors and manufacturers are gaining access to one of the largest transportation networks in North America. At the same time, the expansion signals Amazon’s growing ambition to compete for a larger share of the U.S. freight and supply chain market.
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