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Amazon Now Pays Businesses to Deliver Its Packages
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Amazon recently decided to open the delivery service of its packages to emerging e-commerce businesses and entrepreneurs. Delivery Service Partners is the online giant’s latest move into the logistics space. The program is designed to improve Amazon’s handle on the surging number of online orders that UPS, FedEx, and the postal service may not be able to.
In the past five years, Amazon’s package delivery business has more than doubled, nearly reaching $1.2 billion. This year, nearly 50 percent of all e-commerce purchases will be made on Amazon. “This is all about scaling cost effectively,” said Dave Clark, senior vice president of Amazon Worldwide Operations. He said the new delivery program will help meet the growth in e-commerce. “We are going to have to meet this growth, and it’s outpacing the growth of our core providers.”
The whole concept behind Delivery Service Partners is to keep costs low for the business people who join the program. According to Amazon, an initial investment of $10,000 will allow an entrepreneur to start a business in the U.S., inclusive of drivers and leases of up to 40 vans to deliver packages from warehouses to homes. The couriers will not be official company employees, but they will receive access to Amazon-branded vehicles, uniforms, and more. Delivery units will pick up packages from one of the 75 Amazon delivery stations.
Program members will also be entitled to third-party deals on costs like insurance and mobile phones with data plans. The biggest advantage for these stakeholders is the estimated potential annual profit. Successful Amazon Delivery Service Partner owners could see an annual revenue of anywhere between $75,000 to $300,000.
To become eligible for the program, sellers need to go through a comprehensive background and security check before being approved by Amazon. In its initial application, Amazon lists five qualifications required for the Delivery Service program:
- Experience hiring and developing great teams
- Ready to commit to being a hands-on DSP owner full-time
- Available liquid assets of at least $30,000
- Strong credit history
- Previous business ownership preferred, but not required
The application process is a lengthy one. Besides the routine questions, expect to provide answers about your financial history, including any past bankruptcies and your current financial assets. Once you’ve filled out and submitted your application, it can take up to six months until Amazon approves you as a Delivery Service Partner. Sign up to the program by clicking the link below.
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