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As the number of shipments by Amazon (NASDAQ: AMZN) continues to grow, the company is looking to outsource the delivery of those packages. Amazon just announced a new program called Amazon Delivery Service Partners so it can address this demand.
And the new program offers an opportunity for small businesses to be part of one of the most successful ecommerce companies in the world by launching their own delivery service. Amazon is looking for hundreds of entrepreneurs to join the venture.
The program goes hand in hand with Amazon’s plan to make individuals and small businesses part of its ecosystem. Small businesses make up a large percentage of the company’s e-commerce merchants, and extending this concept to the company’s logistics could be an interesting move.
Dave Clark, Amazon’s senior vice president of worldwide operations, explains this thinking in a recent press release. Clark says, “Customer demand is higher than ever and we have a need to build more capacity. As we evaluated how to support our growth, we went back to our roots to share the opportunity with small-and-medium-sized businesses. We are going to empower new, small businesses to form in order to take advantage of the growing opportunity in e-commerce package delivery.”
Amazon Delivery Service Partners Program
Amazon will offer entrepreneurs full support to ensure you succeed as an owner.
It all starts with a three-week comprehensive training. From the time you start your application until you get your business up and running could take anywhere from one to six months, Amazon says. This will depend on your availability and the number of opportunities in your area.
The setup process includes exclusive deals Amazon has negotiated for startup assets as well as business management services as you move forward. This includes top-in class third-party providers for everything from Amazon-branded vehicles customized for delivery to discounts on vehicle leases, maintenance, fuel, insurance, professional uniforms, accounting services, legal support and more.
Amazon says individuals can start their delivery service with as little as $10,000. And if you are an eligible military veteran, the company has set up a $1 million fund with $10K reimbursements.
As far as earning potential, owners can make anywhere from $75k to $300K in annual profits. This, of course, will depend on the number of vehicles you operate. Owners can expect to oversee 20 to 40 Amazon-branded vehicles responsible for delivering packages to customers from one of 75 Amazon delivery stations.
Amazon expects its owners to set up their businesses, build their teams, deliver packages, create their team culture and grow their businesses.
Local Employment Opportunities
When fully operational, Amazon expects its owners to hire 40 to 100 employees. For local small business owners, this is a possible way to provide opportunities for their community.
You can download the full brochure here (PDF) or get started here.
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Images: Amazon
Thanks Mr. Guta for bringing this into article. How About the Asian Region are there services such as this?
Michael Guta
Hi Dave,
You are welcome.
Amazon hasn’t announced anything yet, but here is hoping they make it available in other markets.
Tony Velasquez
It’s too bad that you have to have $30,000 in e bank to apply.
Aira Bongco
And there is so much demand for this. Now that everything is mostly sold online, there is a greater need for delivery services.
Michael Guta
Hi Aira,
You are right. The demand is huge and Amazon has found a great way to tackle the logistics problem while at the same time giving small business owners and entrepreneurs a great opportunity.
Crazy how Amazon is basically outsourcing the creation & operation of their own shipping company to rival UPS and FedEx. They push most of the risk to small businesses in exchange for the Amazon name & some simple support. I’m really conflicted on this one.
Michael Guta
Hi Robert,
The support is actually pretty extensive, and Amazon’s approach to dealing with UPS and FedEx is ingenious.
Nigel Tyson
I guess the adage: “Keep your friends close and your enemies closer” is not lost on Amazon’s push into the delivery business, albeit the sheer size of Amazon has created it’s own ecosystem.