Similar to how AWS began by externalizing Amazon's internal computing infrastructure, Amazon is now unbundling its shipping and fulfillment operations. This pivot monetizes its formidable logistics network, aiming to replicate the success of AWS as a dominant commercial service.

Amazon offers services like Amazon Shipping, which handles package pickup and delivery, and "Buy with Prime," allowing external e-commerce merchants to use Amazon's network and display the trusted Prime logo on their own websites for fulfillment. These provide an end-to-end solution for businesses.

Amazon's expansion into third-party logistics sets up a direct and consequential clash with incumbent shipping titans FedEx and UPS. The relationship has soured as Amazon’s own delivery capacity has grown, turning a key partner into a powerful competitor.

This move could significantly benefit small and medium-sized businesses by granting them access to a world-class delivery network, previously unattainable. It allows them to compete with larger players on shipping speed and cost, leveraging Amazon's robust infrastructure.

"Logistics-as-a-service" means Amazon is offering its colossal, globe-spanning logistics network and fulfillment capabilities as a commercial, third-party service. Businesses can now tap into the same infrastructure that powers Amazon's own efficient e-commerce delivery.

After years of investing tens of billions annually to build a logistics machine for its own e-commerce delivery, Amazon is now shifting its strategy to monetize this formidable asset. The goal is to turn its internal advantage into a commercial, third-party service, expanding beyond its own marketplace.