Amazon is looking to expand its logistics operation and solve for last mile deliveries by giving small businesses turnkey tools to launch delivery companies.
The model behind Amazon's program ties together traditional franchise opportunities, technology and a variable revenue model based on packages delivered. For the e-commerce giant, the effort is worth it if it can expand delivery services.
In theory, Amazon's expansion with small business logistics firms could enhance same-day delivery, fulfillment and customer service.
Amazon has projected that individuals can get rolling with as little as $10,000 in startup capital and earn up to $300,000 in annual profit based on a fleet of 40 delivery vehicles. Amazon is looking to expand its delivery network and reduce its dependence on the U.S. Postal Service, UPS and FedEx. Think of Amazon enabling a bevy of SMB logistics firm in the context of Prime Air,[1] drone delivery[2] and innovative tools[3].
While Amazon's initial release[4] is more of the feel-good job creation variety, there are other facts, figures and projections[5] worth pondering. Here's everything you need to know about Amazon's delivery plans for SMBs.
How much are startup costs?
Amazon says that owner costs are as low as $10,000 largely due to leveraging the company's discounts, technology, logistics network and services. An SMB would be part of Amazon's Delivery Service Partner (DSP) network. The goal for Amazon is to enable its DSPs to grow to have 20 to 40 vans with up to 100 employees to deliver packages. That scale may cost more than $10,000 and Amazon expects a small business to scale quickly.
A DSP will have to spend on licensing, lawyer fees, setup supplies and job posting