Amazon is looking to change the way you see your national carrier options.

Manifested shipping has a nearly 5,000-year history, with some of the first known examples utilizing the amphorae of ancient Mediterranean cultures. Amphorae, tall ancient Greek/ Roman jars, were used to both carry goods like olive oil as well as contain the manifest’s information. Specific amphorae, marked with the goods type, would contain stones to indicate the number of the containers in question, sealed by the shipper to be opened by the recipient, with the shipper responsible for any goods that “fell overboard.” In that 5,000-year history, only one thing has remained constant – change.

For over 50 years, the US thought we were different. We've had three major national carriers: FedEx, UPS, and the United States Postal Service (USPS). They’ve dominated over 98% of all small-parcel shipments. They’ve run competitors like DHL out of the country or purchased anyone that showed promise, like RPS, the company FedEx bought to create FedEx ground. It was not until the mid-2000s that we started to see any material change as new carriers started to challenge at the fringes of the market.

In 2014, Amazon entered the small-parcel market in a few select cities, aiming to improve delivery times and reduce costs. Over the next four years, Amazon expanded Amazon Shipping to cover most of the US population, reducing its dependence on former partners, UPS and FedEx.

In 2020, the pandemic solidified Amazon’s role as a major carrier in the US, making it clear it was here to stay.Although many did not realize it at the time, in 2018, Amazon had already begun experimenting with its next step: delivering packages for shippers whose orders did not originate on the Amazon platform.

As we all move further into the summer season of 2025, Amazon is now offering carrier services to just about anyone willing to use them. With that being said, here’s what you should be thinking about:

The Pros

Amazon was one of the e-commerce retailers primarily responsible for breaking the recipient's habit of saying, “I need you to ship to me using Carrier X, as I don’t like the driver for Carrier Y.” This opened the door for all shippers to use the best fit carrier for each shipment. The implication is that customers will also not care if Amazon is delivering a package that did not originate from an Amazon site purchase. The result is happier customers at a lower logistics cost.

Delivery Seven Days a Week

Amazon is already known for delivering seven days a week. But here is the kicker: there are no additional fees for weekend delivery service.Every day is a delivery day at the same price.

No Residential Charges

On the topic of charges, or lack thereof, Amazon does not charge a residential fee either.This, combined with a seven-day delivery schedule, can have a significant impact on logistics spend for a given customer experience.

More lanes mean more benefit from time-in-transit shopping and advanced date shopping. When multi-carrier shipping software first began to take hold in warehouses, users quickly discovered that the ground networks for UPS and FedEx were distinct. This meant that a destination that might require a three-day shipment for one carrier could be a two-day shipment for another, and the same applied to next-day versus two-day shipping. As additional carriers were added, the ability to take advantage of extended next-day and second-day deliveries at the lowest price point was also expanded. Adding Amazon, with such a complete coverage model, can only further improve those looking for faster and more affordable solutions.

The Cons

While Amazon’s shipping services come with several benefits, there are some cons that should be considered.

Limited Origins

To battle the concerns of some of the cons below, Amazon has built completely new induction centers for this product. This ensures that packages shipped with Amazon as a carrier, rather than Amazon as a marketplace, are not comingled. Building out origin hubs takes time, however. At the time of this writing, there are fewer than 20 induction hubs that can pick up within a 200-mile radius. Amazon is known for expanding quickly, but if your inventory sources are not located in one of the existing pickup locations, you may not be able to use that inventory source.

Amazon Is a Data Monster

Using Amazon as a carrier means that Amazon will have more information about your business. Many companies, including retailers and manufacturers, find themselves competing directly with Amazon. It can be a hard pill to swallow to give money to part of a company that you compete with on a daily basis. Many retailers outright ban anything related to Amazon Web Services (AWS), and Amazon, as a carrier, could end up facing the same fate within a company. It should be noted that Amazon also claims the data is not comingled. Personnel from the marketplace should never be able to see the data on who is shipping what volume.

Amazon is Amazon, the single largest small-parcel shipper in the world. If a region has capacity concerns, will Amazon-sourced packages be prioritized over third-party packages?

Program Cancellation Concerns

The Magnificent 7 (Microsoft, Amazon, Nvidia, Meta Platforms, Apple Inc., Alphabet Inc., Tesla, Inc.) are huge companies that start massive initiatives. These initiatives often fail to meet the companies' set goals, and they are subsequently canceled. Amazon extending its homegrown shipping services to other companies carries a non-zero risk of this happening as well. This risk should be mitigated with a good multi-carrier shipping software, as the other carrier offerings are available to move volume as needed.

Breakup Concerns

There is currently an open antitrust case from the Federal Trade Commission (FTC) and 19 states and territories. The outcome of this case could lead Amazon to split into two or more companies, putting much of its business model and subsequent services at risk as well.

Any major logistics decision requires careful consideration and adopting Amazon Shipping as a carrier is no different. The pros, like seven-day delivery and a lack of residential charges, do not come without a tradeoff. Shippers must assess factors such as limited origin points and concerns around data privacy to ensure they align with their business before making any decisions.

Amazon Shipping: The Road Forward

In short, the emergence of Amazon as a national parcel carrier introduces significant opportunities and challenges for shippers. While its innovative services, such as seven-day delivery and the absence of residential surcharges, offer compelling advantages, businesses must carefully weigh these benefits against limitations like limited origins and concerns over data privacy.

For companies willing to embrace Amazon’s carrier model, the rewards could include streamlined logistics, improved customer satisfaction, and reduced costs. However, for those hesitant to share their operations with such a dominant competitor, alternative strategies may be necessary to maintain control and avoid potential drawbacks. Ultimately, adapting to Amazon’s evolving logistics landscape is not just a choice; it’s a strategic imperative for staying competitive in a rapidly shifting market.

Justin Cramer is co-founder of ProShip, Inc.