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Amazon Opens the Network

Amazon Opens the Network

Amazon opens its logistics network to everyone. Plus Octup's new industry report.

Slotted Admin
May 07, 2026

LinkedIn has been full of takes on Amazon Supply Chain Services this week. A lot of people are calling it the operations version of AWS.

Having worked at Amazon in operations and having spent time evaluating and using these services as a shipper outside of the enterprise tier, my view is a bit different.

For the brands they highlighted, 3M, Lands’ End, American Eagle, this makes a lot of sense. But for most ecommerce and multi-channel sellers, it’s not that simple. Unlike AWS, the Amazon Operations network is built on rigorous processes and continuous flow. Exceptions are a 4 letter word. So if your operational muscles, expertise, adn processes aren't buttoned up tight like the big brands, you're likely in for a lot of frustration and headaches.

That's why there is real opportunity here for mid-market fulfillment providers.

If you build the right battle cards, tighten your operations, and align with strong middle mile and final mile partners, you can compete effectively to win and maintain clients in the middle and upper market who value flexibility, partnership and real humans who answer the call when something goes awry.

You rate card will not win on paper vs. Amazon's rates. But rate cards do not capture the cost to brands of operating inside Amazon’s network when their processes are not fully aligned.

Amazon opens its logistics network to everyone

📦 Amazon launched Supply Chain Services, giving any business access to its freight, storage, fulfillment, and delivery network, even if they don’t sell on Amazon. This is not a small test. It’s a full stack offering backed by a network that already moves over 13 billion items a year.

📦 For brands running FBA alongside a 3PL, this is now a real consolidation decision. For 3PLs, this is Amazon stepping directly into the multi-channel value prop that many providers have built their business around.

Amazon Opens Logistics Network to All Businesses → Supply Chain Dive | Introducing Amazon Supply Chain Services → Amazon

2026 eComFuel Trends Report

Despite more operators on the platform than ever, Amazon is just another channel for true brands with meaningful revenue. And Spoiler Alert: Owning your own warehouse is a drag on margin.

📦 The 2026 eComFuel Trends Report, drawn from 300 ecommerce operators representing $3.5B in revenue, shows Amazon's share of community revenue has fallen to 20.1%, back to 2017 levels.

📦 DTC-primary operators grew revenue 65% faster than Amazon-primary peers, with gross margins at 52.7% versus 41.9% on Amazon. The 3PL-plus-FBA combination posted the highest margins and fastest net-income growth in the study.

📦 Brands operating their own warehouses grow far revenues far slower than those who lease space or outsource fully to a 3PL. Despite net margins being high, net margins are at a record low of 10.6% driven by overhead and operational complexity associated with owning your own facility and operations.

2026 eComFuel Trends Report

Carrier reshuffling continues and costs keep stacking

📦 UPS is near completion of its plan to halve daily Amazon volume, having cut 500,000 average daily packages in Q1. Amazon's ASCS launch the same week creates a clean bookend: UPS exits the Amazon parcel relationship as Amazon builds a replacement outbound network for every other shipper.

📦 Surcharges now account for roughly one-third of average package cost. UPS added a $0.23/lb fee on international shipments; FedEx is running parallel demand surcharges at $0.50–$0.70/lb on top of elevated fuel charges. The all-in rate environment has moved materially since Q1 for anyone shipping cross-border.

UPS' Amazon Volume Cuts Are Nearly Done. What's Next? → Supply Chain Dive | UPS Adds Temporary Surge Fee on US Imports and Exports → Supply Chain Dive

Highlight: New Industry Report from Octup

More channels. More operational complexity. More customer expectations. More demand for visibility from brands that want answers faster than ever.

Octup recently released a new industry report focused on what Brands are expecting from their 3PL fulfillment providers in 2026 and beyond. Spoiler alert: It's true partners who communicate at their level.

What makes the report valuable for 3PLs and warehouse operators is that it goes beyond automation headlines and surface-level trends. It digs into the operational realities teams are navigating every day.

A few areas worth paying attention to:

Why operational visibility is becoming a competitive advantage for fulfillment providers
How brands are evaluating fulfillment partners differently as margins tighten
The growing importance of inventory accuracy, forecasting, and exception management as networks become more complex

If you're unfamiliar with Octup, their software helps operators and ecommerce teams improve visibility across inventory, fulfillment, and supply chain workflows. The focus is helping teams identify issues faster, operate more proactively, prevent margin leakage, and make better decisions with cleaner operational data.

If you’re a fulfillment provider trying to understand where customer expectations and operational strategy are heading, this report based on conversations with actual operators is worth checking out.