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Chronicles

The story behind the story

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Sources: Amazon is testing its own delivery service called Seller Flex; trial began this year in West Coast states, with broader rollout planned in 2018

Online retailer would deliver from other merchants' warehouses  —  Trial program underway on West Coast before national expansion

Bloomberg Spencer Soper

Context & Ripple Effects

Seller Flex is an early step in Amazon extending delivery operations beyond its own facilities, using merchants’ warehouses as pickup points. Related coverage later tracks that expansion into a delivery service for businesses and an online freight offering that matches shippers with truck drivers.

The operating model also reappears in a later test using Flex drivers for mall retailers and in a service enabling merchants to send inventory directly to stores and warehouses. That continuity makes the West Coast trial more than a last-mile experiment: it tests Amazon’s role across merchant-controlled inventory flows.

First-order effects

  • Participating West Coast merchants can have Amazon collect and deliver orders from their own warehouses, while Amazon gains operational experience outside its fulfillment-center network.
  • Seller Flex puts Amazon in direct control of the delivery leg for third-party inventory without requiring that inventory to enter an Amazon warehouse first.

Second-order effects

  • A broader rollout would give Amazon a base of merchant-originated shipments for Shipping with Amazon, increasing its overlap with business-delivery providers.
  • The same merchant pickup and routing capabilities can support later services for retailer deliveries and freight matching, linking last-mile operations to Amazon’s wider logistics offering.

Third-order effects

  • Amazon’s logistics business is shifting toward a network that connects merchant warehouses, retailers, stores and carriers rather than one centered solely on Amazon fulfillment centers.
  • If merchant adoption scales, delivery providers face a customer that can bundle marketplace access with transportation services, concentrating more of merchants’ fulfillment decisions inside Amazon.

The trend: Amazon is broadening from retailer-operated fulfillment into logistics infrastructure that moves goods for merchants from their own facilities.