Amazon is expanding its less-than-truckload freight shipping service to any domestic destination, allowing businesses to move partial cargo loads outside of Amazon's own fulfillment network, the company announced Wednesday.
The service, previously limited to inbound shipments heading to Amazon facilities, will now deliver to third-party warehouses, distribution centers, and retail partners.
Amazon's LTL service is supported by a massive logistics infrastructure, including more than 80,000 trailers and a network of 26 terminals. It typically handles shipments ranging from one to six pallets, or between 150 and 15,000 pounds, the company said.
"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.
Amazon's LTL service has contracted with tens of thousands of Amazon selling partners and vendors since 2019, moving millions of pallets across the U.S. last year. For e-commerce companies already utilizing Amazon’s logistics, the broader rollout aims to streamline supply chains.
"In the past year, we've seen faster transit times and lower costs compared to traditional LTL services," said Zech Hintz, vice president of global supply chain at Pattern, an e-commerce accelerator that has used Amazon’s shipping services for four years. "It's rare to get both, and that's what makes this service stand out."
Amazon is pitching several logistical advantages to compete with traditional freight carriers, including next-day live pickup for orders placed by 5 p.m., same-day pickup via drop trailers, and standing daily pickups for high-volume shippers.
The tech giant and world's second-largest retailer is also leaning heavily on its infrastructure to attract users, offering real-time GPS tracking, automated appointment scheduling, and a sensor-equipped fleet featuring cargo cameras and door sensors. The service also integrates with existing electronic data interchange (EDI) systems for automated ordering and invoicing.
The expansion positions Amazon Freight to compete more directly in the broader commercial logistics market. The division currently manages more than 80,000 trailers and 24,000 intermodal containers across major U.S. metropolitan areas.
