All Glossary
Amazon Logistics
Understand Amazon Logistics and its impact on your business. Learn how AMZL, DSPs, and last-mile delivery affect Prime eligibility and shipping speeds.
Amazon Logistics is Amazon’s in-house delivery network that handles the last-mile shipping of orders placed on Amazon.
What is Amazon Logistics?
Amazon Logistics US is Amazon’s in-house shipping and delivery network responsible for the last mile of fulfillment—moving packages from Amazon sorting and delivery stations directly to the customer’s doorstep.
It was designed to enable quicker delivery times, including same-day and next-day shipping throughout the United States, and lessen Amazon's reliance on other carriers like UPS and FedEx. Rather than operating as a public courier or independent logistics firm, Amazon Logistics is an internal delivery division that is entirely owned and run by Amazon.
Why is Amazon's logistics important for sellers?
Amazon’s logistics is critical for sellers because it directly impacts delivery speed, Prime eligibility, customer satisfaction, and account health.
Reducing late deliveries and order flaws, protecting performance metrics, and winning the Buy Box are all made possible by quick and dependable logistics. Particularly in the fiercely competitive U.S. market, vendors gain from consistent shipping standards, fewer customer complaints, and improved conversion rates when Amazon manages fulfillment and last-mile delivery.
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What is the difference between Amazon Fulfillment and Logistics?
Amazon Fulfillment (FBA – Fulfillment by Amazon) takes place inside the warehouse. It includes storing inventory, using advanced robotics (such as Amazon’s Proteus robots) to retrieve products, and packing orders for shipment.
Amazon Logistics begins after the order is packed. It covers transportation and last-mile delivery—moving the package from the fulfillment or delivery center to the customer’s doorstep.
Is "Amazon Shipping" the same as Amazon Logistics?
While often used interchangeably by customers, there is a nuance:
Amazon Logistics (AMZL): Refers specifically to the physical delivery network (vans, drivers, and planes) that drops off packages.
Amazon Shipping: Often refers to the broader service offered to sellers, or a specific service where Amazon picks up and delivers parcels for businesses selling on other platforms, not just the Amazon marketplace.
What does AMZL mean in Amazon logistics?AMZL stands for Amazon Logistics. It is Amazon’s internal logistics division responsible for last-mile delivery in the United States, coordinating package movement from Amazon delivery stations to customers through DSP drivers, Amazon Flex, and other partnered carriers. |
Which logistics company is used by Amazon?
Primary: The majority of packages are now delivered by Amazon Logistics (AMZL) via DSPs.
Secondary: Amazon still utilizes a "multi-carrier" strategy for overflow or specific geographic needs:
UPS: Used for some heavier shipments or areas where the Amazon network is less dense.
USPS: Often used for "last-mile" delivery in rural areas where it is more cost-effective for the postal service to make the final drop.
FedEx: Usage has dropped significantly and is rarely used for Prime deliveries today.
Clarification: Amazon is not part of the USPS; they are separate entities that sometimes collaborate.
What is Amazon Flex?Amazon Flex is a delivery program that uses independent, gig-based drivers to deliver Amazon packages using their own vehicles. Flex drivers handle last-mile deliveries from local Amazon delivery stations, helping Amazon expand delivery capacity and speed across the U.S., especially during peak demand periods. |
Is Amazon a 3PL (Third-Party Logistics) or 4PL (Fourth-Party Logistics)?
Classification: Amazon is generally considered a massive 3PL (Third-Party Logistics) provider because it handles warehousing, picking, packing, and shipping for sellers.
Evolution: Some industry experts argue Amazon is evolving into a 4PL (Fourth-Party Logistics) because it manages the entire supply chain ecosystem, including technology, data, and external carriers (like via Amazon Global Logistics), rather than just moving goods.
Who is replacing UPS for Amazon?
The Shift: Amazon is essentially replacing UPS with itself.
Growth: By building out its own massive network of fulfillment centers, planes (Amazon Air), and local DSPs, Amazon has moved from being UPS's largest customer to its largest competitor.
Future: The goal is to handle nearly 100% of its own volume internally to control costs and the customer experience, effectively cutting out the middleman.
Summary
Amazon Logistics US is Amazon’s fully owned, in-house delivery network that manages last-mile shipping across the United States. Built to replace reliance on carriers like UPS and FedEx, it enables faster delivery speeds, Prime reliability, and tighter cost control.
For sellers, Amazon Logistics directly impacts Buy Box eligibility, customer satisfaction, delivery performance metrics, and overall account health. By integrating fulfillment, advanced warehouse automation, and a vast delivery network powered by AMZL, DSPs, Amazon Flex, and select carriers, Amazon has transformed from a carrier-dependent retailer into a dominant logistics powerhouse—and a direct competitor to traditional couriers.
Key Takeaways
Internal "Last-Mile" Control: Amazon Logistics is a proprietary network focused exclusively on the final stage of delivery.
Critical for Sellers: Leveraging this network is essential for maintaining Prime eligibility and winning the Buy Box.
Logistics vs. FBA: FBA handles the "inside" work, while Logistics handles the "outside".
The "Blue Van" Network: The system relies primarily on Delivery Service Partners (DSPs)—entrepreneurs operating branded fleets.
Market Evolution: Amazon is effectively replacing major carriers with itself.
Frequently Asked Questions
