Amazon announced on Monday that it will permit other companies to store and transport a wide range of goods—from raw materials to finished products—through its extensive logistics network, as the e-commerce giant moves to challenge a market long dominated by UPS and FedEx.

The "Amazon Supply Chain" service will enable businesses across industries such as retail, healthcare, and manufacturing to utilize the company’s end-to-end supply chain network, which spans ocean, road, rail, and air freight.

This move could position Amazon as a significant player in the U.S. logistics industry, intensifying competition for existing firms on both price and speed.

The company operates a fleet of more than 100 cargo aircraft—second only to FedEx and UPS in size—along with a vast network of warehouses and sorting centers. Shares of both FedEx and UPS fell more than 9%, while Amazon's stock rose nearly 1%.

The initiative will also help Amazon unlock new growth opportunities for its e-commerce operations, further enhancing its existing services, which already support thousands of independent third-party sellers on its global platform.

Businesses will be able to leverage Amazon’s fast delivery options—ranging from two to five days—as well as its inventory forecasting capabilities and other distribution and fulfillment services.

Analysts at Evercore ISI described the move in a report as a "direct competitive hit" to parcel delivery firms such as UPS and FedEx.

They noted that contract logistics providers DHL Supply Chain, Maersk Logistics, and GXO Logistics are also among the most affected companies.

Shares of DHL fell 7.3%, GXO dropped nearly 13%, while Maersk’s stock remained largely unchanged.

Amazon stated that businesses can use its logistics solutions across all sales channels, including their own websites, social media platforms, and physical stores. The company revealed it has already partnered with consumer goods giant Procter & Gamble, industrial conglomerate 3M, and apparel retailer American Eagle.

Amazon’s expansion targets the business-to-business (B2B) shipping market, which is viewed by logistics firms as a high-margin opportunity due to deliveries that are typically more dense, predictable, and cost-effective than consumer-facing shipments.

Parth Tarsania, CEO of Equisights Research, said the move signals that "Amazon is attempting to transform logistics from a cost burden into an infrastructure product."

The strategy also draws from the experience of Amazon’s cloud computing division—Amazon Web Services (AWS)—which was launched in 2006 to overhaul the company’s own IT infrastructure and later grew into the world’s largest cloud services provider.

Meanwhile, UPS and FedEx have been gradually shifting away from retail shipping in favor of higher-margin segments such as healthcare, data centers, and B2B transportation.

Analysts at Baird noted, "We would not be surprised to see near-term softness in less-than-truckload, air freight, and freight forwarding businesses as the market assesses the competitive implications of this announcement."