UPS recently revealed it plans to reduce its Amazon shipping volume by more than 50% by mid-2026. That is a pretty big shift for a partnership that helped shape modern eCommerce shipping. For years, Amazon packages flowed through the networks of traditional carriers like UPS, FedEx, and USPS. If you ordered something online, there was a good chance a brown truck eventually showed up at your door. But behind the scenes, Amazon has been working on something much bigger: its own Amazon delivery network.
Over the past decade, the company has quietly built a massive logistics network of its own. Delivery vans, regional sorting centers, cargo planes, and thousands of independent delivery businesses now make up a system designed to move millions of packages every day. In other words, Amazon is not just using the shipping network anymore, it is building one.
And that shift is starting to change how the entire eCommerce shipping ecosystem works.
Amazon’s Delivery Network Is Getting Hard to Ignore
What started as a way to support Prime shipping has turned into one of the largest delivery operations in the world. Today, Amazon runs a massive logistics ecosystem that includes:
- Thousands of Delivery Service Partner businesses
- A growing fleet of cargo aircraft and delivery vans
- Regional sortation centers designed to speed up last-mile delivery
Together, these pieces form a delivery network capable of moving millions of packages every day. From Amazon’s perspective, the strategy is straightforward. The more of the delivery process it controls, the more control it has over shipping speed, reliability, and the overall customer experience.
And when a company the size of Amazon starts building its own logistics network, it tends to change the rules for everyone else.
Why UPS Is Pulling Back
For years, Amazon represented a massive amount of package volume for carriers like UPS. But not all shipping volume is equally profitable. According to reporting from Supply Chain Dive, UPS has said it plans to reduce its Amazon shipping volume by more than 50% by 2026 as part of a broader strategy to focus on higher-margin deliveries. Or put another way, UPS is prioritizing profitable shipments over sheer package count.
Coverage from FreightWaves explains that the company is pivoting toward what it calls premium logistics services, including healthcare shipments, international packages, and higher-value deliveries.
From UPS’s perspective, the math is fairly straightforward. Amazon shipments create enormous volume, but they often come with tight margins. Meanwhile, Amazon has been expanding its own logistics network, which means it can handle more of its deliveries internally. The result is a gradual shift in the relationship between the two companies.
UPS is focusing on higher-margin shipments, and Amazon is increasingly building the capacity to deliver its own packages.
The Carrier Landscape Is Starting to Change
For eCommerce merchants, the most interesting part of this story is not just the relationship between UPS and Amazon. It is what the shift says about the future of shipping. The carrier ecosystem that powered the early days of eCommerce was relatively straightforward. Major carriers handled the bulk of deliveries, and merchants typically relied on a small set of shipping partners.
Today, the landscape looks a little different.
Large marketplaces are building their own logistics networks. Carriers are becoming more selective about the shipments they prioritize. And merchants are often relying on multiple fulfillment strategies at the same time.
That might include:
- Traditional carriers like UPS or USPS
- Regional shipping providers
- Third-party logistics providers
- Dropshipping suppliers
In other words, the shipping stack for eCommerce businesses is becoming more complex. And managing that complexity is quickly becoming part of running a modern online store.
Why Shipping Operations Are Becoming More Important
As shipping networks evolve, fulfillment is no longer just a back-office task. It has become a strategic part of how eCommerce businesses compete. Customers expect fast delivery. Merchants want to keep shipping costs under control. And the logistics landscape continues to shift as carriers and marketplaces adjust their strategies. That means merchants increasingly need visibility across their shipping operations.
Orders may ship through different carriers. Inventory might live across multiple warehouses or suppliers. And tracking information still needs to reach customers quickly and accurately. That is where shipping automation tools come into play.
Platforms like Ordoro help merchants manage multi-carrier shipping, synchronize inventory across channels, and automate fulfillment workflows. Instead of manually coordinating shipments across multiple systems, merchants can keep their operations organized as their business grows.
The Bigger Lesson for eCommerce Merchants
The story about Amazon and UPS is really a story about how the shipping landscape is evolving. Marketplaces are building logistics networks. Carriers are focusing on profitable deliveries. And the systems that move packages around the world are becoming more sophisticated every year. For merchants, the takeaway is fairly simple. Shipping strategy matters more than it used to.
The businesses that stay flexible, understand how the carrier ecosystem is changing, and invest in tools that help manage fulfillment complexity will be better positioned to grow.
Frequently Asked Questions About Amazon’s Delivery Network
Is Amazon building its own shipping network?
Yes. Amazon has invested heavily in logistics infrastructure including delivery vans, cargo aircraft, sorting centers, and a network of independent delivery businesses.
Why is UPS reducing Amazon shipping volume?
UPS has said it plans to reduce Amazon shipping volume in order to focus on higher-margin shipments and premium logistics services.
Does Amazon still use traditional carriers?
Yes. Amazon still works with carriers like UPS, FedEx, and USPS, particularly during peak shipping periods and in areas where additional capacity is needed.
How does this affect eCommerce merchants?
Changes in the carrier landscape can influence shipping costs, delivery options, and fulfillment strategies. Many merchants rely on multi-carrier shipping strategies to stay flexible.
Simplifying Shipping Operations for Growing eCommerce Businesses
As carriers adjust their strategies and large marketplaces build their own logistics networks, shipping is getting more complicated for eCommerce merchants. Orders may move through multiple carriers. Inventory might live across several warehouses or suppliers. And customers still expect fast, reliable delivery.
That’s where tools like Ordoro come in.
Ordoro helps merchants manage multi-carrier shipping, automate fulfillment workflows, and keep inventory synchronized across sales channels, all from one platform.
Curious how it works? Watch the Ordoro walkthrough and schedule time to connect with one of our experts.