On Thursday (June 28, 2018), Amazon announced the launch of a “Delivery Service Partner” program intended to help individuals start and grow their own independent businesses by delivering Amazon packages. According to Amazon, successful owners can earn as much as $300,000 in annual profit operating a fleet of up to 40 delivery vehicles. Here is an overview of the program and how to apply.
Overview of Amazon’s Delivery Service Partner program
Amazon has a challenge. One of the keys to the continuation of its rapid growth is to have multiple means to deliver products to its customers. (Remember the drones?) On its surface, this new idea sounds like a perfect solution to an obvious challenge. And it borrows tried-and-true elements of various pre-existing business models ranging from independent contracting relationships to franchising to traditional outsourcing. But with a dramatic twist: One of the largest companies in the world wants to be your customer which means these small companies start off, day one, with a solution to one of a new company’s most significant challenges: attracting customers.
Here are some highlights of the program
- Amazon will take an active role in helping interested business owners start, set up and manage their own delivery business.
- According to Amazon, successful owners can earn as much as $300,000 in annual profit operating a fleet of up to 40 delivery vehicles.
- Amazon says individual owners can build their business knowing they will have the following:
- Delivery volume from Amazon
- Access to the company’s sophisticated delivery technology
- Hands-on training
- Discounts on a suite of assets and services, including vehicle leases and comprehensive insurance.
Beware of the risks
There is no such thing as a “risk-free” small business. While Amazon is a juggernaut of entrepreneurship, they try out many concepts that don’t work out. This may be a great opportunity, but not for you. You should review any opportunity like this with trusted financial and legal advisors. Here’s something Amazon is doing that will help you understand the risks: Part of the application process is a three-week boot-camp to help you understand what running such a business would be like.
The delivery service partner program is another example of the “coopetition“ between
small businesses and Amazon we’ve covered for the past five years.
Doesn’t Amazon already have something like this?
The new venture is separate from an existing on-demand delivery service called Amazon Flex (previously called Prime Now). Amazon Flex will continue to operate in its traditional on-demand marketplace style (like “uber eats” and countless others). In fact, Amazon has many examples of on-demand economy marketplaces in addition to Amazon Flex, including Amazon Home Services.
Where to find requirements and how to apply
- Amazon has launched a web page for individuals wanting more information.
- Amazon Delivery Service Program brochure
Promotional video provided by Amazon
Photos | Amazon.com