# amazon logistics **Source:** https://geo.sig.ai/brands/amazon-logistics **Vertical:** Logistics & Supply Chain **Subcategory:** General **Tier:** Leader **Website:** logistics.amazon.com **Last Updated:** 2026-04-14 ## Summary Amazon.com's parcel delivery operation; 6.3B US deliveries in 2024 (28.2% market share), surpassed UPS and FedEx individually, rivals USPS, same-day Prime delivery, DSP program competing with UPS and FedEx. ## Company Overview Amazon Logistics is the package delivery and last-mile distribution operation of Amazon.com, Inc. (NASDAQ: AMZN) — built from 2014 to the present as an internal logistics capability that has grown into a full-scale competitive parcel delivery network now rivaling the established carriers it was designed to supplement. In 2024, Amazon Logistics processed 6.3 billion US delivery orders — representing 28.2% of all US package shipments and 6.78% year-over-year volume growth — establishing Amazon as the second-largest US parcel carrier by volume, trailing only USPS (31% market share) and surpassing UPS and FedEx individually. Amazon Logistics operates through a tiered infrastructure: Amazon Air (40+ cargo aircraft delivering packages between sort centers overnight), Regional Sort Centers (high-throughput sortation facilities distributing packages to delivery stations), Delivery Stations (last-mile facilities where packages are loaded into vans for neighborhood delivery), and Delivery Service Partner (DSP) program (100,000+ independent contractors operating branded Amazon delivery vans under franchise-like agreements). Amazon also operates its Flex program (individual gig drivers delivering packages in personal vehicles), drone delivery (Prime Air, authorized in limited markets), and Amazon Hub Locker (self-service package pickup locations). The Amazon Logistics network is designed around same-day and next-day delivery promises that differentiate Amazon Prime from competitor e-commerce experiences. Amazon Logistics' captive delivery model creates a competitive advantage for Amazon's e-commerce business by controlling the customer experience at the final, most emotionally salient stage of online shopping: a customer's Amazon package is delivered on-time, trackable through the Amazon app with live driver location updates, left in a secure location (or returned to the van if the location is insecure), and supported by Amazon's no-questions-asked return policy — creating a delivery experience that independent sellers on Amazon can offer to their customers without building their own logistics infrastructure. The control over last-mile delivery (which UPS and FedEx provide at external cost) eliminates the negotiating leverage that UPS and FedEx previously exercised over Amazon's shipping rates as Amazon's volume grew — Amazon built an alternative to reduce dependency on carriers that were raising rates faster than Amazon's e-commerce margins could absorb. Amazon Logistics' variable cost structure (DSP contractors, Flex gig drivers) allows rapid scale-up during Q4 peak season without the fixed headcount that USPS, UPS, and FedEx maintain year-round. In 2025, Amazon Logistics competes in the US parcel delivery market against United Parcel Service (NYSE: UPS, $93.0B 2024 revenue), FedEx (NYSE: FDX, $88.0B 2024 revenue), and USPS (government agency, 31% US market share) for merchant shipping contract volume, last-mile delivery density efficiency, and same-day delivery coverage area expansion. Amazon Logistics now serves third-party shippers through the Amazon Shipping (formerly Amazon Shipping Public Beta) offering — selling its excess last-mile delivery capacity to non-Amazon merchants, transforming Amazon Logistics from a captive delivery operation into a competing carrier for UPS and FedEx's merchant customer base. The 28.2% US market share represents a structural shift from a carrier-dependent model — in 2015, Amazon was almost entirely dependent on UPS, FedEx, and USPS for delivery; by 2024, Amazon Logistics handled 28% of its own US deliveries. The 2025 strategy focuses on expanding same-day delivery coverage (same-day eligible Prime customers in 100+ metro areas), growing Amazon Shipping third-party merchant volume, and continuing drone delivery expansion in suburban markets. ## Frequently Asked Questions ### What is Amazon Logistics? Amazon Logistics is Amazon's comprehensive delivery and fulfillment network, operating as the third-largest package delivery service in the United States. It encompasses over 435 million square feet of fulfillment centers, 40,000+ semi-trucks, 30,000 delivery vans, 110 aircraft, and advanced drone delivery capabilities, processing 6.3 billion U.S. deliveries in 2024. ### How does Amazon Logistics compare to UPS and FedEx? In 2024, Amazon Logistics handled 28.2% of all U.S. package shipments (6.3 billion packages), rivaling USPS's 31% market share and surpassing UPS and FedEx individually. Amazon's 27.8% compound annual growth rate from 2019-2024 significantly outpaces traditional carriers, positioning it as a major competitive force in U.S. logistics. ### When did Amazon start its own delivery service? Amazon opened its first fulfillment centers in 1997, launched its trucking fleet in 2005, and began building its last-mile delivery network in earnest around 2016. The expansion accelerated significantly in 2020 during the COVID-19 pandemic, when Amazon scaled its delivery operations to reduce reliance on third-party carriers. ### Where does Amazon Logistics operate? Amazon Logistics operates over 200 fulfillment centers worldwide, with over 435 million square feet of facilities in the United States alone. The network spans all major U.S. metropolitan areas and is expanding internationally. Amazon Air operates both domestic and international routes, while Prime Air drone delivery is available in select U.S. cities. ### How much does Amazon spend on logistics? Amazon spent $95.8 billion on shipping in 2024 (up 7.04% year-over-year) and $194.3 billion combined on shipping and fulfillment (up 7.88% YoY). These massive investments support the infrastructure and operations required to deliver billions of packages with industry-leading speed. ### What makes Amazon Logistics different from traditional carriers? Amazon Logistics is vertically integrated into Amazon's e-commerce platform, enabling seamless coordination between inventory management, order processing, and delivery. Unlike traditional carriers serving multiple clients, Amazon optimizes its entire network for its own retail operations while increasingly offering Logistics-as-a-Service to external businesses. ### How does Amazon's drone delivery work? Amazon's Prime Air service uses MK30 autonomous drones to deliver packages under 5 pounds within 60 minutes to customers within a 7-8 mile radius of fulfillment centers. Operating in Phoenix, San Antonio, Waco, and Pontiac, the service costs Prime members $4.99 ($9.99 for non-members) and operates during daylight hours in favorable weather. ### What is Fulfillment by Amazon (FBA)? FBA is a service enabling third-party sellers to store inventory in Amazon's fulfillment centers while Amazon handles all logistics—picking, packing, shipping, customer service, and returns. Approximately 70% of third-party sellers (representing 61% of Amazon's total units sold) use FBA, generating significant revenue at approximately 30% take rate. ### How many packages does Amazon deliver per day? Amazon Logistics processed an average of 17.2 million delivery orders per day in 2024, equivalent to over 717,200 packages per hour. The company fulfilled same- or next-day delivery for over 9 billion U.S. Prime purchases in 2024, representing a 29% increase from 2023. ### What is Amazon's sustainability commitment for logistics? Amazon has committed to achieving net-zero carbon emissions by 2040 through initiatives including deploying electric delivery vehicles, implementing sustainable packaging solutions, and powering facilities with renewable energy. The company views sustainable logistics as both an environmental responsibility and long-term competitive advantage. ### Can external businesses use Amazon Logistics? Yes, Amazon now offers Logistics-as-a-Service (LaaS), making its fulfillment capabilities available to third-party businesses beyond Amazon marketplace sellers. Additionally, Amazon Warehousing & Distribution (AWD) acts as a 3PL provider, enabling sellers to manage inventory across multiple sales channels using Amazon's infrastructure. ### What are Amazon's future logistics plans? Amazon is rapidly scaling same-day delivery infrastructure, aiming to reach over 4,000 towns and cities by end of 2025. Prime Air targets 500 million annual drone deliveries by 2029. The company continues expanding fulfillment center network, investing in AI and robotics, and building its Logistics-as-a-Service platform to serve external businesses. ## Tags b2b, b2c, global, supply-chain, transportation --- *Data from geo.sig.ai Brand Intelligence Database. Updated 2026-04-14.*