Shipping with Amazon (SWA): Next Generation Fulfillment Solutions

In today’s rapidly evolving e-commerce landscape, logistics is no longer just a backend operation – it’s a strategic advantage. That’s why Shipping with Amazon (SWA) has emerged as a bold move by Amazon to directly challenge FedEx, UPS, and traditional carriers. This service gives sellers access to Amazon’s delivery power even when fulfilling outside the marketplace. In this article, we’ll explore what Shipping with Amazon (SWA) is, how it compares to FedEx and UPS, its strengths and weaknesses, and why Amazon doesn’t even need SWA to turn a profit to make it a success.

What is Shipping with Amazon (SWA)?

Shipping with Amazon (SWA) is Amazon’s self-managed ground shipping service that allows sellers to purchase shipping labels and have Amazon handle delivery from pickup to doorstep. Originally designed for Amazon marketplace sellers, the service is now available to external merchants via a simple portal.

The process includes setting up a pickup request, printing Amazon-approved labels, and leaving packages for Amazon’s network to deliver in 2–5 business days. This service has become increasingly popular for its competitive pricing, streamlined logistics, and reliable delivery performance – especially for high-volume e-commerce brands looking for consistency and scale.

Differences between Amazon SWA vs. FedEx vs. UPS

Before deciding which carrier is right for your business, it’s essential to compare SWA with FedEx and UPS. Each service has its strengths and limitations based on pricing, delivery speed, and support. Here’s how they compare:

This table gives you a clear overview of where Shipping with Amazon (SWA) stands out, especially in terms of cost transparency and seller convenience

Pros and Cons of Shipping with Amazon (SWA)

Let’s break down the main advantages and drawbacks of using Shipping with Amazon (SWA) for your logistics operations. These factors will help you decide if it aligns with your business model and customer expectations.

Pros of Shipping with Amazon (SWA)

• Flat-rate pricing with no hidden fees: Shipping with Amazon (SWA) simplifies cost management by offering flat-rate shipping. Sellers do not have to worry about surprise fuel charges, fluctuating rates, or hidden service fees. This pricing structure is especially helpful for small and medium-sized businesses trying to scale without margin erosion.
• No residential or weekend surcharges: Unlike FedEx and UPS, which typically apply extra fees for delivering to homes or on weekends, SWA includes these services at no additional cost. This helps sellers offer competitive shipping rates and even free shipping without hurting their bottom line.
• Easy pickup scheduling through seller portal: Sellers can schedule pickups directly through Amazon’s portal, streamlining the shipping workflow. No need for third-party logistics tools or negotiating with local carriers – Amazon handles the coordination for you.
• Strong delivery network backed by Amazon: SWA leverages Amazon’s extensive infrastructure – fulfillment centers, regional hubs, and last-mile delivery drivers. This means faster, more reliable shipping for your customers, often rivaling the speed of two-day services.
• Integrates with Seller-Fulfilled Prime options: For qualified sellers, SWA supports integration with Seller-Fulfilled Prime (SFP), allowing them to meet Prime delivery standards while fulfilling orders from their own facilities. This boosts visibility and customer trust on the Amazon marketplace.

Cons of Shipping with Amazon (SWA)

• Currently limited to U.S. metro areas for pickup: One of the major limitations of Shipping with Amazon (SWA) is its limited coverage. Pickups are only available in select metropolitan zones, making the service inaccessible to rural or suburban sellers for now.
• Only available to invited or registered sellers: Not every seller can sign up for SWA right away. Access is often restricted to those invited or pre-approved by Amazon, which limits the tool’s immediate availability to the broader seller community.
• Less flexibility in customizing shipping experience: Since SWA follows Amazon’s operational standards, sellers have limited room for personalization. Options like branded packaging or custom inserts may be restricted, which can impact brand identity and unboxing experience.
• Package handling is strictly regulated by Amazon’s terms: SWA enforces strict guidelines for labeling, packaging, and pickup readiness. Failure to meet these criteria may lead to rejected pickups or delays, which could frustrate customers and increase operational burden.
• May not support every package type or weight class: SWA is optimized for standard e-commerce parcels. Oversized, fragile, or specialty items may fall outside its accepted shipping parameters, forcing sellers to rely on alternative carriers for those orders.

Why Shipping with Amazon doesn’t need to make a profit

Shipping with Amazon (SWA) isn’t designed to operate like a traditional carrier aiming for immediate profit. Amazon is playing a long game, where logistics isn’t just a cost – it’s a strategic asset. Below are three key reasons why.

Serving the Web and Serving Food

Amazon’s logistics network doesn’t just support packages – it powers its entire service ecosystem. From books to groceries to pharmaceuticals, everything Amazon delivers feeds into its promise of speed and reliability. By internalizing shipping, Amazon can better control delivery windows, reduce failures, and enhance the Prime experience. This creates stronger customer retention and encourages more frequent purchases, especially for consumables and essentials. 

Even if SWA doesn’t turn a profit directly, it increases the lifetime value of every Prime subscriber and seller on the platform. In essence, logistics becomes a foundational pillar that supports the rest of Amazon’s revenue streams, like Prime memberships, subscriptions, and marketplace commissions.

Shipping Products by Shipping Products

Each time a seller uses SWA to ship a package, Amazon gains more data and operational feedback. This isn’t just shipping – it’s infrastructure training. Every delivery improves route optimization, fulfillment algorithms, and last-mile efficiency. Over time, this creates a self-improving system where scale feeds performance. Amazon isn’t just moving boxes; it’s refining the entire shipping experience using real-world transactions. 

As SWA scales, Amazon lowers per-package costs, strengthens its delivery precision, and builds a competitive edge over FedEx or UPS. It’s a strategic feedback loop: shipping more enables better shipping. This virtuous cycle keeps Amazon ahead in both e-commerce and logistics – even if margins stay thin.

Productizing the Operations of Other Firms

Much like AWS transformed Amazon’s internal cloud infrastructure into a global service, SWA turns Amazon’s logistics operations into a product that other businesses can adopt. By offering shipping as a service, Amazon opens a new revenue stream without holding inventory or selling goods. Third-party merchants, DTC brands, and even non-Amazon platforms can now tap into Amazon’s delivery muscle. 

This allows Amazon to monetize its existing infrastructure while increasing its shipping volume, which further strengthens efficiency. It’s a textbook case of scaling through service. SWA doesn’t need to be a high-margin business – its true power lies in making Amazon indispensable to sellers beyond its own marketplace.

Shipping with Amazon (SWA): FAQ

What does SWA mean on Amazon?

SWA stands for “Shipping with Amazon,” a program that lets sellers use Amazon’s logistics network to fulfill orders. It includes purchasing labels, scheduling pickups, and tracking delivery through Amazon’s system. The goal is to give sellers fast, affordable shipping – even outside of the Amazon marketplace.

What is the SWA in shipping?

In the logistics world, SWA refers to Amazon’s in-house shipping service. It provides ground shipping at flat rates and includes features like free pickups, tracking, and label generation. It’s designed for high-volume e-commerce merchants seeking predictable delivery.

Why is Amazon not using UPS anymore?

Amazon is gradually reducing dependence on UPS and FedEx to cut costs and gain more control over delivery times. With Shipping with Amazon (SWA), Amazon now fulfills a large percentage of its own orders using trucks, local hubs, and delivery partners.

What is the trick for free shipping on Amazon?

Free shipping often comes from optimizing your order to meet the minimum requirement or subscribing to Amazon Prime. However, for sellers, using Shipping with Amazon (SWA) helps reduce extra charges like weekend or residential fees – helping offer “free shipping” without sacrificing margin.

In conclusion, Shipping with Amazon (SWA) is not just another delivery option—it’s a major signal that Amazon is ready to redefine logistics on its own terms. With simplified pricing, seamless integration, and robust infrastructure, SWA empowers sellers to deliver faster and more affordably while relying on Amazon’s expansive network. As e-commerce continues to scale, so will the value of owning the delivery experience. For sellers looking to grow, Shipping with Amazon (SWA) is a strategy worth considering now—before your competitors do.

With a proven track record of managing over 10 million orders annually and partnerships with 500+ global carriers, Key Logistics is your trusted logistics partner for eCommerce success. We offer:

• Smart fulfillment systems that reduce costs and shorten delivery times
• Strategically located warehouses in Ontario and other key regions
• Seamless integration with Shopify, Amazon, eBay, TikTok Shop, and more
• Customizable solutions for packing, labeling, and last-mile delivery
• 24/7 customer support from logistics experts who understand your needs

Whether you’re a startup or an established brand, our scalable, tech-driven logistics solutions are built to grow with you. Join thousands of global businesses already optimizing their supply chains with Keys Logistics. Contact us now and let’s build a smarter, faster, and more reliable logistics future – together.