Amazon is piloting a new supply chain service that will enable partnering merchants to deliver products to warehouses operated by other logistics providers, marketplaces, and retail stores. 

“Sellers will be able to offload even more of the complexity of their supply chain logistics to Amazon, both for the products they sell in Amazon’s store and through other sales channels, including online and physical store locations,” said Dharmesh Mehta, Amazon’s vice president in charge of worldwide seller services. “We are excited to help sellers, both on and off Amazon, save more money, drive more business growth, and have more time to continue inventing amazing products for customers.”

The new offering, which will likely see a wider rollout later this year, marks the eCommerce giant’s latest effort to diversify its business beyond serving consumers and having greater inventory control before products are sold in physical stores or online. Its launch also points to Amazon’s effort to replace various businesses involved in the supply chain, such as those handling ground transportation, ocean freight, customs, and inventory storage, with its own one-stop solution. 

Amazon’s decision to launch the service comes at a time when it is experiencing a slowdown in demand in consumer demand. The company has also recently looked to charge merchants a higher fee, eating up nearly half the cost of each sale, and explore new avenues for building additional revenue streams. 

In Q2, Amazon’s seller services contributed to $32.3 billion in revenue, an 18% increase compared to the same period last year. The service is now more profitable than the company’s cloud services business.