Jun 21 2019
Amazon has launched a new program that helps people who live in the U.S. to start their own franchise business delivering Amazon packages. You can start your own Amazon delivery business for an initial investment of $10,000.
When you become an Amazon Delivery Service Partner (DSP), the online retailer helps you with leasing vans, insurance, gas cards and training to manage your own fleet of delivery vans.
According to Amazon’s website:
“We are looking for hands-on leaders who are passionate about hiring and coaching great teams.” With low startup costs, built-in demand, and access to Amazon’s technology and logistics experience, this is an opportunity to build and grow a successful package delivery business. Join a community of Amazon delivery service partners in one of the fastest growing industries in the world.”
If building a business with the knowledge that you will have delivery volume from the biggest online retailer in the world while having access to cutting-edge technology interests you, keep reading, as we’ll give you the steps for how to start your Amazon delivery business.
But first, here’s some more information about the Amazon DSP opportunity. Delivery drivers are in high demand because of the growth of online shopping. The benefits of joining this partnership are that Amazon puts the power of its reputation and its resources behind a franchise, which is a proven business model. This is accompanied by the technology to provide a variable revenue model based on how many packages are delivered.
Here’s some more information about becoming an Amazon DSP.
Who should start their own Amazon delivery business?
According to Amazon, this opportunity is for you, even if you have little or no logistics or delivery experience. Those who already run existing package delivery businesses can also make an application. If you have an existing package delivery business, Amazon has said that you can continue to deliver your packages for other companies.
Where should you be located to start your own Amazon delivery business?
According to Amazon, this opportunity is near its 75 delivery stations, which is located all across the country. Have a look at this map for the available locations.
How much does it cost to start your own Amazon delivery business?
Amazon has advised that your cost as the owner will be as little as $10,000. This is because they are using their buying power, technology and logistics network to keep costs low.The goal when you start this franchise is to grow to have 20 to 40 vans, which equates to about 100 employees to deliver packages 24/7.
How much do Amazon delivery business make??
Amazon assumes that, if you own one of these franchises and have around 20 to 40 vans, you could make revenue of around $1 million to $4.5 million per year and your profits will be around $75,000 to $300,000 per year. You’re paid based on a fixed monthly payment. This depends on the length of the route and a per package rate.
What will you be responsible for?
You will be responsible for hiring and developing a team of drivers. You will also be responsible for:
- Setting up your Amazon delivery business. You can take advantage of Amazon’s deals to get the assets you need to start your business and also make use of their network to maintain your business.
- Build your Amazon delivery team. You will be a leader who is responsible for encouraging your team to perform at its best. You need to source, recruit and retain dependable drivers to ensure the success of your Amazon delivery franchise.
- Create a strong workforce culture. You need to have leadership skills to encourage and motivate your drivers to ensure that they do their jobs to the highest of standards so that they continue to uphold the customer expectations that have been built up by Amazon.
- Grow your Amazon delivery business. It will be your responsibility to increase the fleet of your drivers to ensure that they are trained properly and they continue to provide the best customer experience. You’ll also need to do additional things, like order vehicles, fuel cards and uniforms through the vendors that Amazon has recommended and negotiated rates for.
You’re expected to meet performance levels set by Amazon and to meet with Amazon’s representatives and your account manager to add a specified number of routes in a week.
What is Amazon responsible for?
- Getting you going. Amazon gives you exclusive deals on insurance, handheld devices, vans and other services so that you can get up and running as quickly and as cheaply as possible.
- Providing training. You will be trained for three weeks to ensure that your business is a success. There will be a one-week introduction to Amazon and the other two weeks will be in the field working with other DSPs and drivers to learn different tips and tricks of how to operate your business.
How does the Amazon delivery business training work?
The first week has to be in Seattle and is focused on learning the culture of Amazon and getting an idea of the different deals that Amazon has negotiated on behalf of its DSPs. Amazon also provides you with additional operational advice, such as best practices when it comes to hiring, training and managing your drivers.
The second week will be to have a look and get a feel for what happens at the delivery station, how parcels are sorted and loaded and also asking questions of the people who work in dispatch.
For the third week, you’ll go over the tools that you need to use in your business with Amazon. You’ll be doing troubleshooting and they will continue to answer any questions you have.
- You’ll receive a comprehensive tool kit. Amazon will give you the technology and the tools required for you to run your delivery franchise successfully. You’ll also have daily processes that will help you to keep your business running as smoothly as possible.
- Providing continuous support. You’ll continue to receive ongoing support from Amazon, which will be in the form of an operations manual, general assistance and driver assistance for issues that happen while on the road. You’ll also have a dedicated account manager to discuss any issues with.
What does a day in the life of an Amazon DSP look like?
As a DSP, you’ll schedule your drivers, set up routes, hand out devices and do equipment checks on a daily basis. You should meet with your team every morning to check on what’s going on throughout the day. You need to provide coaching and motivation to your team as well as monitor success metrics to find out whether you’re hitting your targets. You also have to be focused on providing exceptional customer service at all times.
Now that you know a bit more about the Amazon delivery service partnership, if you would like to pursue this franchise, here are the six steps you need to take.
How to start an Amazon delivery business
Step 1: Starting your Amazon delivery business
Find out more about the opportunity and what it could mean for you by going to this link.
Step 2: Fill our the application to start your own Amazon delivery business
If you want you to start the application, Amazon recommends that you open up a new account, which is dedicated to this application. Alternatively, you can apply with your existing Amazon account. However, if you are already a DSP associate or an Amazon flex delivery partner, you’ll need to open a new account.
The basic application screen has more information about becoming a delivery service partner.
It lists the qualifications you need, which include:
- Experience of hiring and developing great teams.
- A willingness to commit to being a hands-on DSP owner full-time.
- Liquid assets of at least $30,000.
- A strong credit history.
- Ideally, previous business ownership is preferred, but this isn’t a requirement.
This basic application asks for straightforward information such as:
Name
Email address
Address
Preferred locations.
They then go on to ask a series of yes/no questions which include:
– Are you a military veteran?
– Do you have experience building and developing a team?
– Are you ready to commit to being a hands-on DSP owner full-time?
– Have you ever owned and operated your own business?
– Have you or a business you owned ever declared for bankruptcy protection?
– Do you have at least $30,000 available in liquid assets?
Step 3: Fill out the formal Amazon Delivery Partner application
If you’re selected to go further, you’ll need to fill out the formal application which goes into much more depth and detail about your experience, your skills and why you’re suited to becoming an Amazon DSP. When you’ve submitted this formal application, it will be reviewed by Amazon and you should receive a response in around four to eight weeks.
Step 4: Starting an Amazon delivery business requires an interview
Should your application be successful, you’ll need to attend an initial interview where you may be invited to a local delivery station to experience what it will mean to be a DSP. This process will enable you to think about whether the Amazon delivery franchise is for you.
Step 5: Get formal training to start your Amazon delivery business
Congratulations if you’ve been accepted as an Amazon DSP. You’ll then need to attend the three weeks training mentioned above.
Step 6: Start your Amazon delivery business
When you’ve received your training, you’re ready to set up your Amazon franchise business, recruiting and training your team. You should have already started to think about using the best software to recruit the most important people in your business – your drivers.
Consider using modern hiring software, like Fountain, for a smooth and seamless hiring process. With Fountain, you’ll be able to benefit from integrations, like background checking services and electronic signatures, for an easy hiring process.
For example, scheduling interviews for your drivers is quick and there’s no chance that you’ll double book because drivers only have the chance to book interview slots when you’re available. You simply send them a link with the interview details and they can accept or reject it. If it’s accepted, then your calendar gets updated straightaway.
Fountain is designed for hiring employees at scale. It’s used by companies, like Deliveroo and Lime, to hire different workers at one time.This makes it an ideal recruitment platform for new DSPs to source and hire their drivers.
You’ll also need to setup payroll, human resources and use effective shift scheduling software to plan your drivers’ shifts.
You’re expected to show leadership skills to train employees and let them know what’s expected of them.You must also comply with business regulations and requirements for your state.
Additional information about the application process
- Checking on your application’s progress
After you’ve submitted your application, you can log-in to your application portal to find out the status. You also receive an email to let you know when the status of your application has changed.
- Information needed when filling out the application.
You need the following when filling out the application:
- Your personal information and a current resume.
- Details of your full work history, including any dates of unemployment.
- Current income information.
- Full military service information, if applicable.
- Complete educational history, including dates of attendance and GPAs.
- Personal financial information, including all assets and liabilities.
- Can you make edits to your application?
You need to be clear that the information you’ve submitted is 100% accurate because Amazon doesn’t allow you to make changes after you’ve submitted. So, go over your application time and time again before submitting it.
Conclusion: How to start your Amazon delivery business
If it’s your dream to own a franchise with one of the biggest online retailers and indeed businesses in the world, start thinking ahead about current HR technology trends, how you source, recruit and onboard the best staff.
Have a look at the Fountain features to show Amazon that you’re serious about your application and you’ve made enquiries about recruiting the best drivers, fast.
