Amazon.com (NASDAQ: AMZN) has announced an expansion of its Amazon Supply Chain Services to include a less-than-truckload freight offering available to all U.S. businesses, effective June 10.
The new service allows companies to move goods to third-party warehouses, distribution centers, retail partners, and other commercial destinations across the country.
Amazon designed the expanded offering for shipments typically ranging from one to six pallets, covering loads between 150 and 15,000 pounds.
Less-than-truckload shipping serves businesses that need to move freight by pallet but do not require a full truck, placing Amazon in direct competition with established logistics carriers and brokers.
The launch pushes Amazon deeper into a freight market long dominated by carriers, brokers, and third-party logistics providers such as FedEx Freight, C.H. Robinson, and RXO.
Bank of America lead analyst Justin Post maintained a Buy rating on Amazon and a $310 price target in a note issued June 11, implying roughly 30% upside from the stock’s $238 price at the time.
Post said Amazon’s expanded less-than-truckload offering could bring more outside freight into Amazon’s network, though the near-term revenue impact may be limited.
Bank of America said the LTL expansion could improve network density, reduce empty miles, and better utilize the transportation assets Amazon has already built over years of internal logistics investment.
The firm also estimated that the service could support Amazon’s long-term retail margin opportunity at 12%, up from an estimated 7% in 2026, though it does not expect the freight service to become a major revenue driver immediately.
Bank of America noted that Amazon’s model resembles a third-party logistics coordinator or broker-like platform rather than a full national LTL carrier, making it more directly competitive with asset-light intermediaries.
That distinction suggests asset-based carriers such as FedEx Freight, Old Dominion, XPO, and Saia may be more insulated in the near term, given their dense terminal networks and national cross-dock infrastructure.
Shares of XPO Logistics fell around 5% following the announcement before recovering approximately 5% the next day, reflecting initial investor concern about Amazon disruption followed by a reassessment of its competitive timeline.
Bank of America listed several risks to its Amazon forecast, including rising competition from offline retailers, potential cloud share losses to artificial intelligence rivals, and higher AWS investment costs that could pressure margins.
Macroeconomic pressures on consumer spending and the potential for increased stock volatility amid economic uncertainty were also flagged as risks by the firm.
The LTL launch fits Amazon’s broader strategy of converting its internal logistics infrastructure into revenue-generating platforms available to outside businesses, mirroring how AWS emerged from Amazon’s own technology systems.
Amazon and Walmart continue to compete aggressively to monetize their logistics, delivery, and fulfillment networks, with both companies seeking to transform internal capabilities into new business lines.
The freight expansion may not immediately transform Amazon’s earnings, but it signals the company’s intention to turn a cost-heavy logistics operation into a platform that other businesses pay to access.
