Amazon Last Mile Program. Delivery Service Partners

 

The program called Amazon Delivery Service Partners has been tested for nearly half a year before its release. Amazon cooperated with a small batch of chosen partners and after achieving success, they decided to make this program official. In fact, the Delivery Service Partners program is going to help in solving the last mile delivery issue. Any carrier (small or large) can apply to open a delivery service for the world’s best marketplace.

 

What Is Amazon’s Delivery Service Partners?

First of all, let’s note the last mile problem that was mentioned above. Amazon has been always experiencing this issue. Still, this problem appeared after Amazon started delivering fresh foods. The Delivery Service Partners program is another Amazon’s attempt to fix that issue. A similar project called Flex was launched in late 2015 with the difference that Flex is like Uber for the Amazon marketplace. It is not very stable while Amazon Delivery Service Partners is.

The main goal of this kind of AMZ shipping is making sure that the customer gets his order quickly. What’s more, last mile delivery is often very expensive and, so traditional carriers as FedEx or UPS won’t suit. USPS has lower prices, but there can be delays which hurt Amazon’s reputation. Amazon logistics can’t allow a fresh product to come to the consumer late.

That’s why the company introduced this program for Amazon shipping partners - everything should be under Amazon’s control now. They have their own truck fleet and even planes.

 

How Much Does It Cost?

According to Amazon, the Delivery Service Partners program will be financially stable. Sales on Amazon continue increasing and their Prime service is becoming more popular among users. Core logistics providers can’t cope with so many urgent orders, that’s why Amazon felt a strong need for new opportunities. They are happy with their third-party carriers-partners, but at the same time, Amazon wants to keep control over all the processes connected with order fulfilment and delivery.

 

Shipping costs grown by nearly 2 times in the last two years. Sure, Amazon assumes these costs will increase. So, they introduced the Delivery Service Partners program to leverage their logistics partner network and involve third-party providers to have better costs control. Sure, all this helps them increase the quality of customer service - as you remember, this is the main Amazon’s mission.

 

How Does This Service Work?

The Delivery Service Partners program allows business persons use up to 40 vans for providing logistics services for Amazon. These vehicles will be leased from the company and marked with the Prime logo. Drives are hired by business owners and they need to wear a special branded uniform with Amazon logos.

Business owners will be responsible for control over all operations.

Usually, vans start working from special Amazon’s delivery stations (there are around 100 of them) and spend the whole day delivering orders to customers’ homes.

 

How to Become Amazon’s Delivery Partner?

If you are interested in participating in this program, you can apply for becoming Amazon driver, visit their special landing page and sign up.

You should pass several stages and get an Amazon’s approval to start working:

  1. Submit your basic information.
  2. Fill in an application form - they say it’s just formality.
  3. Determine if that is a right fit for you.
  4. Complete 3 weeks of practical training.
  5. Create your small delivery business, you can even assemble a team.
  6. Start delivering orders for Amazon!

 

In general, Amazon is searching for inspired team leaders with the background in building teams, strong credit history and enough budget for signing the Delivery Service Partners contract with Amazon. These people must be confident in what they do and provide exceptional quality of services. Amazon prefers cooperating with people who already had an own business before.

Amazon provides approved business persons with a brochure which contain all the necessary information for further participation in the Delivery Service Partners program. Here are some of its contents:

  • Buying handheld devices;
  • Car insurance;
  • Getting fuel cards;
  • Uniforms;
  • Requirements for drivers.

 

Amazon states that $10.000 will be enough for the start. They also claim that usually, their partners are capable of earning $300.000 per year. We can say that the turnover depends on the city and overall business costs. The larger a city is, the higher earnings are.

 

Closing Thoughts

Amazon’s Delivery Service Partners program is a great opportunity to start a business in the partnership with one of the most powerful world’s companies. Still, keep in mind that Amazon has all the control over this program and YOUR business.

It is something similar to being an FBA seller on Amazon. You can create your online-shop on Amazon, but you have to follow plenty of rules. The Delivery Service Partners program has an extensive set of rules too, so be ready to comply with them.

What’s more, participating in the program makes you strongly tied to Amazon, so there will be strict limits for scaling your business.