How to start a delivery franchise with
Amazon is a marvel of modern logistics and shipping technology.
Services like Prime Now, Whole Foods shoppers, and other types of Amazon delivery wouldn’t be possible without careful coordination of warehouses, carriers, and delivery drivers.
Yet for all its sophistication, Amazon still relies heavily on traditional carriers like FedEx, USPS, and UPS personal vehicle drivers to deliver many of its packages.
Ideally, Amazon would like to disminuye these costs and has found a new way.
Amazon recently launched a program called Amazon Logisticswhich allows entrepreneurs to own and operate their own Amazon delivery service franchises.
These small businesses will help Amazon solve the last-mile delivery problem, which is the question of how to get packages the final distance from the warehouse to the customer.
The program has low compañia emprendedora costs (especially compared to other types of businesses you might start), and there is respectable earning potential for people who are willing to work hard and manage a team.
So,how you perro take advantage of this exciting new program? In this guide, we will take a look.
We’ll take a look at how Amazon delivery franchises work, their startup costs and profit potential, and how you cánido apply to start your own franchise today.
What is an Amazon delivery franchise?
The official name Amazon emplees for its package delivery franchise owners is “Amazon Delivery Service Partners«.
As a delivery service partner (DSP), will run his own delivery company, employing between 40 and 100 employees and operating between 20 and 40 delivery vans.
You will be responsible for hiring employees, managing your team, and working to deliver packages seven days a week, 365 days a year.
Amazon will work closely with you to teach you how to equipo up and operate your delivery business.
They will also provide ongoing support, as each DSP has a dedicated account manager who perro help them ensure they stay on track with their business goals.
Amazon will also guarantee your business profits (assuming you meet any required delivery quotas, of course).
Related: Amazon Delivery Jobs You Perro Get Right Now
How do Amazon delivery franchises work?
What is a typical day like as a DSP?
Amazon stresses that this is as much a leadership business as a logistics one.
You have to be a sociable person capable of managing a medium or large team of employees.
The process is much the same as if you were to apply for Amazon Flex, as it is not a passive income business, it is a hands-on little business that requires energy, attention, and hard work.
On a typical day, you perro expect to perform the following tasks:
- Schedule drivers for delivery routes
- Equipo up your routes for the day, deliver equipment to drivers, and make sure all vehicles are running smoothly
- Lead a morning encuentro to inspire and inform your drivers about the goals for the day.
- Track the controlador’s progress throughout the day and resolve any issues (flat tires, problems delivering packages, etcétera.)
- Check with Amazon support staff and your account manager for help with issues like routing
- Manage and evaluate your team’s progress on an ongoing basis, always striving to hire and nurture the best talent you cánido.
- Inform delivery drivers at the end of the day, addressing any issues that arise with packages or routing
- Ensure vans are fueled and parked overnight, and address any vehicle maintenance needs
- Get retroalimentación from your local Amazon delivery station team
- Stay on top of advances in y también-commerce and delivery technology
As you perro see, this is an active business.
You have to be able to juggle many tasks at once and respond to emerging problems.
It is a fast-paced environment and you will not succeed if you are indecisive or lack the ability to lead.
That being said, the right person cánido thrive in that environment and create a profitable business.
Amazon Delivery Franchise Startup Costs
Talking about potential earnings is exciting, but first we should talk about the initial costs.
whatHow much will it cost you to start an Amazon delivery franchise??
Amazon works to help you keep your startup costs down.
This is one of the advantages of starting a delivery business with Amazon instead of creating a solo company.
You don’t have to worry about paying to rent a reception facility or office space, nor do you have to obtain the many necessary contracts and permits without any help.
Amazon will guide you through the entire process and offers many exclusive DSP discounts.
Still, Amazon will ask you to give the game some skin.
The company claims that you perro start with as little as $10,000.
However, if you dig a little deeper into the application materials, you’ll realize that you must have at least $30,000 in liquid assets.
This is to help ensure that you don’t overextend yourself financially and that you perro support yourself while you build your business (profits won’t be instant).
What are some of the specific costs you will have running your Amazon delivery franchise?
Here are a few:
- Vehicle Leases in Amazon Brand Vans
- Brand uniforms for employees.
- Portable devices for scanning packages
- fuel cards
- Vehicle insurance
- Licenses and permits
- Human resource costs (background checks, drug tests, and interview costs)
- Bookkeeping and payroll services
These are just some of the costs you perro expect, and you should do a thorough investigation of the potential costs (and risks) before you escoge to invest your money.
Amazon will help you through this process, although you should also do your own independent research.
Keep in mind that while Amazon doesn’t require you to wear their delivery vehicles or branded uniforms, they offer deep discounts for doing so.
This also applies to all discounts that Amazon has negotiated with third-party contractors.
It’s probably in your best financial interest to use deals that Amazon has already negotiated, but again, you should do your own research to be sure.
Amazon Delivery Franchise Earning Potential
Enough of spending already:how much you perro earn with an amazon delivery franchise?
Amazon estimates that the annual earnings potential for a franchise operating 20 to 40 trucks is $75,000 to $300,000.
This may sound like a lot of money, especially if you currently have a lower paying job.
But keep a couple of points in mind before you get too excited.
First, these numbers are estimates based on analysis of afín businesses and assume all is well.
Your situation may differ, and Amazon does not guarantee that your business will be profitable or successful.
The company provides a lot of guidance, but it’s still up to you to manage your business finances and equipment to ensure maximum profitability.
Second, you need to consider not only the absolute amount of money you will make each year, but also the number of hours you had to put in to earn that money.
An Amazon delivery franchise could earn you tens of thousands of dollars more each year than what you make at your current job, but that could require you to work 12-hour days, seven days a week.
You need to consider whether the money (which, again, is not guaranteed) is worth the lifestyle.
This is not to discourage you from starting an Amazon delivery franchise.
Yeah If you are energetic, motivated and focused, it could be the opportunity you need to reach a new level of autonomy and financial independence.
Just make sure you know the non-cash costs of that new level of income.
Related: How much do Amazon drivers earn?
How do you start an Amazon delivery franchise?
Have you read this far and still convinced that you want to start your own Amazon Logistics business?
If that is the case, then you will need to start the application process.
As with any franchise, Amazon will not allow anyone to start operating a delivery business until it has verified that they have the necessary capital, experience, and skills.
There is also a question of territory.
Amazon is currently not looking for DSPs in all areas.
Many states and cities in the United States are eligible for the program, but you may be denied the program just because you don’t live in one of them.
To avoid wasting time, the map below espectáculos where DSPs currently operate.
The process of starting an Amazon delivery franchise consists of five distinct steps:
- Fill in the required information
- Fill out a formal application
- Take a training at Amazon headquarters
- Equipo up your business and train your employees
- launch your business
1.
Request information
If you are in one of the areas shown on the map, you perro begin to fill out an application.
To do this, visit the application page on the Fulfillment by Amazon site.
Amazon will ask you to create an account.
You will use this account throughout the application process to submit the necessary information to Amazon and check the status of your application.
Once you’ve created your account, Amazon will ask you for basic information about your interest in the program and your background in business, leadership, and logistics.
Logistics experience is not necessary, although it helps.
What matters most to Amazon is that you cánido lead a team and execute your delivery goals.
2.
Complete a formal application
Once you’ve reviewed the basic information Amazon will send you about becoming a DSP, you perro submit a formal application.
This will be much more detailed and will require information about your financial situation, experience, leadership, and commitment to customer service.
3.
Training at Amazon headquarters
Assuming Amazon accepts your application, you’ll attend a three-week training session at Amazon’s headquarters in Seattle.
During the first week of training, Amazon will educate you on what it takes to run a logistics operation and how to be successful in a delivery business.
You’ll also learn all about the culture behind Amazon and how to translate that into the work your franchise will do.
In the second week of training, you will move from the classroom to the field.
You will vea the daily processes at an Amazon delivery station, and assist in the sorting and loading of packages.
You’ll look at an existing DSP to learn how it does its job.
In the third and final week of training, you will have even more practical experience.
You’ll learn how to use the tools drivers use to deliver packages, as well as how to hit the road in a van to make package deliveries.
You’ll also learn how to troubleshoot common package delivery problems and meet with station staff at the end of each day to get retroalimentación on how you perro improve.
4.
Equipo up your business and train your employees
Assuming you pass the training, you’ll be ready to start setting up your business and building your team.
This process cánido take anywhere from one to several months, depending on the manpower available in your area (and the amount of time required to obtain local permits).
You will need to officially create your business in your state, as well as obtain controlador screening and hiring services.
You will then need to go through the interview and hiring process (something that will continue as long as your business exists).
Once you have recruited your team, you will have to train them.
This is where your leadership skills will be essential, as you now need to pass on everything you learned during your training at Amazon HQ.
You’ll practice loading your vehicles at your drop-off station, making sure the timing is perfect.
Also, you will need to make sure that all the necessary equipment is in place and working.
5.
Launch your business
You’ve done all the training you cánido, and now it’s time to see how your business is doing in the real world.
In all likelihood, there will be some rough patches the first few days you deliver.
That’s ok – Amazon expects this and has support staff to help you resolve issues.
Beyond this, it’s up to you to grow your business and make it profitable.
Amazon will continue to provide guidance, but the future of said business is still relatively unknown as the DSP program didn’t launch until recently.
You are the one in control here, so make the most of the opportunity you have.
Amazon Delivery Franchise FAQ
To wrap up this guide, let’s take a look at some common questions people have about starting an Amazon delivery franchise:
1.
Should I start an Amazon delivery franchise?
This is a question that only you cánido answer (with Amazon’s involvement, of course).
Here are some questions to consider:
- Do you have leadership experience, an outgoing personality and a desire to entrenador a team?
- Do you have the necessary startup capital (minimum $10K to invest agregado a total of $30K in liquid assets)?
- Are you willing to take chances on a relatively untested new franchise?
- Are you comfortable working seven days a week, 365 days a year to build your business, arriving at work earlier and staying later than your employees?
2.
Does Amazon offer assistance with compañia emprendedora financing for delivery franchises?
Yes, Amazon offers assistance to eligible military veterans who want to become DSP business owners.
Amazon has committed $1 million to help reimburse up to $10,000 in costs for veterans.
The company has done this because it believes that veterans are likely to possess the necessary leadership skills to succeed with an Amazon delivery franchise.
You perro learn more about your eligibility for this financial assistance when you apply.
3.
Perro I ship to other businesses with my Amazon delivery vans?
If you are using the Amazon brand delivery vans then you cannot do this.
If you choose to purchase your own trucks under a different make, then nothing legally prevents you from using them for this purpose.
However, it could be difficult to cómputo these deliveries with the high volume of packages you will be delivering for Amazon (serving thousands of customers per day).
4.
How long does it take to start an Amazon delivery franchise?
This varies depending on your state regulations and your individual situation, but Amazon states: “From starting your application to making your first delivery, becoming a homeowner cánido take as little as a month or as long as six months, depending on the availability of opportunities in your area.”
5.
Do I need previous business experience to start an Amazon delivery franchise?
No, not necessarily.
Amazon is looking for leadership experience and a strong work ethic more than anything else.
Previous trading experience is something that will help strengthen your application, but it is not the only aspecto that matters.
6.
How is Amazon Logistics different from Amazon Flex?
While the two programs help Amazon achieve the same goal of delivering packages to customers as quickly and efficiently as possible, the programs are quite different.
Amazon Flex is a program for independent contractors who deliver using their personal vehicles.
It is much easier to start with the program than Amazon Logistics, although the profit potential (and the level of ownership of the business) It’s not that high.
Amazon Logistics, by contrast, emplees DSP [Delivery Service Partner] who manage large fleets of cargo vans to deliver a much higher volume of orders.
The people who work for DSPs are employees, not independent contractors.
Amazon Logistics is much more difficult to get started with, but the potential benefits cánido be greater.
Help create the future of delivery
We hope this guide has helped you understand what it takes to start an Amazon delivery franchise.
As you cánido see, it’s not a quick or easy process, but it perro be rewarding both personally and financially.
To learn more about the program, head over to the application page.
You perro also send an correo electrónico [dsp@amazon.com] with questions about the program or to request to speak with a member of the Amazon team.
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