Amazon opens full-scale, less-than-truckload network to all businesses

Amazon announced on Wednesday the expansion of its less-than-truckload service beyond its current inbound-only model to all destinations, including third-party warehouses, distribution centers and retail stores, in a move to fully compete against commercial LTL companies and add another piece to the new initiative offering end-to-end logistics services to all businesses.

The news comes on the heels of last month’s opening freight, distribution, fulfillment, and parcel shipping to non-Amazon sellers, under the umbrella of the new Amazon Supply Chain Services.

Amazon (NASDAQ: AMZN) launched an LTL offering in April 2025 for shippers that don’t require a full trailer, but it was only available for inbound delivery to Amazon facilities, where goods were stored after breaking apart large pallets and later individually shipped through the company’s regular package delivery network.

The retail giant says it is now offering a more traditional hub-and-spoke LTL network in which palletized shipments are picked up, transferred at a nearby terminal and delivered to a final destination still on a pallet at a lower cost than available from legacy LTL carriers.

Analysts have previously said that Amazon’s full-scale entry into the LTL business could significantly disrupt business for incumbent trucking companies, such as FedEx Freight, Old Dominion and Estes. Amazon said the expansion of LTL service is a response to market demand.

“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,” said Jim Ruiz, director of Amazon Freight, said in a news release.

“Now Amazon LTL can move your freight wherever it needs to go, servicing destinations nationwide for businesses of all sizes.” Businesses can ship one to six pallets, or between 150 to 15,000 pounds, into their warehouses, between their own facilities or to their retail partners and distributors, according to Amazon.

Features of the new service include;next-day live pickup for orders placed by 5 p. m. , same-day pickup using a drop-trailer method and standing daily pickups for high-volume shippers. The drop-trailer service involves a unified pool of trailers for LTL and truckload shipments that are dropped at customer facilities instead of being unloaded upon arrival.

LTL shippers receive real-time GPS tracking, automated appointment scheduling at receiving facilities, electronic proof-of-delivery and a sensor-equipped fleet for cargo security. Amazon Freight, part of Amazon Supply Chain Services, spans full truckload, less-than-truckload, and rail services.

Speculation about an expanded Amazon LTL offering has been brewing after Morgan Stanley reported in a research note early this year that Amazon was approaching shippers to gauge their interest in the service. Click here for more FreightWaves/American Shipper stories by Eric Kulisch.

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