amazon-logistics-partner

Are you planning to become an official delivery partner of Amazon?

Do you know the conditions of the Amazon logistics partner program?

Amazon has changed the way of delivering orders. Amazon delivery services like Prime delivery or Wholefoods wouldn’t be possible if there was no coordination between warehouses and drivers.

However, Amazon still works with logistics partners such as UPS, FedEx, and others to deliver the products in areas where prime delivery is not available.

And the amazing part is it also allows new logistics companies to deliver through its delivery service program (DSP).

In this blog, we will tell you what Amazon logistics is and what are the advantages of this service. Plus, we have also added details about how to become an official Amazon logistics partner for people who are trying to launch delivery service for Amazon.

Table of Content

Chapter 1: What is Amazon Logistics and how it works?

Chapter 2: Advantages of becoming Amazon Logistics Partner

Chapter 3:  Amazon Logistics Partner: How to become one?

Chapter 4: Requirements for Amazon Logistics Partner Program

Chapter 5: How can Amazon Delivery Partners ensure Effective Delivery?

Chapter 6: FAQs about Amazon Logistics Partner

Chapter 1: What is Amazon Logistics and how it works?

Now, that you have an idea about what this topic is about, let’s talk about what Amazon logistics is and how it is changing the way of delivering orders.

What-is-Amazon-Logistics-and-how-it-works

1. What is Amazon logistics delivery?

Back in the day, we had famous courier services like FedEx or UPS who will deliver your order to your doorstep. However, the issue with those services was that it took around 3 to 5 days to deliver the order.

Amazon has gained a lot of attention due to the fact that it got the title of e-commerce giant in the US. Seeing the demand for it, Amazon launched its own delivery system called Amazon logistics.

The salient feature of Amazon was that it provided a same-day delivery called Amazon Prime. Meaning, you can order the product and it will be delivered to you the very same day.

Seeing this an opportunity, courier services like FedEx and UPS started offering same-day delivery and linked with Amazon to further decrease the shipping time.

Amazon logistics provided a perfect opportunity for delivery businesses to become their delivery partner. Meaning, you don’t have to be a big company to become an Amazon logistics partner.

2. How Amazon Logistics works?

See, the thing is parcels are delivered 365 days/year and that means this procedure is done seven days a week. Let’s take an example that you have 10 cars and you have joined Amazon as a delivery partner.

Your drivers will act as third-party service providers and Amazon will create a contract with you of that service.

How-Amazon-Logistics-works

In this program, everything is depending on you. For instance, you will have to hire the drivers, manage the drivers, track the vehicles, and also, you will invest in the business. Amazon is just a bridge between you and the customer.

To help you understand, basically, you will deliver the orders that Amazon gets from its website.

3 . Technologies used by Amazon Logistics service

Amazon’s logistics program has gained a lot of attention and that is all because Amazon uses state-of-the-art technologies to give a good edge. Here are some of the technologies that Amazon is using in this program.

  • Amazon drone delivery system

The first technology that Amazon is trying to develop is a drone delivery system. Basically, this technology is in the testing phase. However, once it is out of testing, Amazon will be able to deliver the packages in very little time (the average time will be around 30 minutes).

  • Amazon Cargo Airline

The second technology that Amazon is using is its own fleet of airplanes. The idea behind the program is that if you have placed an order from Canada and the seller is from the USA.

Amazon will use its planes to deliver the product from the USA warehouse to the Canada warehouse. Then, it will be delivered to you through a third-party delivery system.

amazon-prime-air

  • Amazon Flex

Amazon Flex is a newly released service that is the same as uber. The service hires drivers on contracts who deliver the products to shoppers and customers that are in the same city as the seller.

  • Air traffic control system

This AI (Artificial Intelligence) technology is in the development phase. The system will help those drones in navigating and Amazon is trying to implement this onto the existing air traffic control system.

  • Underground delivery system

Another cool delivery technology that Amazon is making is the underground delivery system. The company is laying an underground tunnel that will deliver the package to your area.

  • Order through Alexa

Amazon Prime customers have the advantage that they can order alcohol items and other related products using their voice with the help of Alexa.

  • Self-driving vehicles

lastly, Amazon is making self-driving vehicles that will deliver the items to your front step without any driver.

4. Amazon Logistics and third-party sellers: What does it mean?

Self-driving-vehicles

So, what does Amazon logistics mean for third-party sellers? See, the thing is the number of Amazon warehouses, delivery partners and stations have doubled since the last year.

Meaning that Amazon has millions of delivery partners who are delivering items in a very short time.

What we are trying to say is Amazon is completely relying on logistics partners. That means sellers are also depending on those delivery partners.

UPS or FedEx is on the top and is trusted by many buyers. Long story short, if you are a seller, then your ratings are depending on the delivery partner.

Chapter 2: Advantages of becoming Amazon Logistics Partner

Now that we have given you a sense of idea about what Amazon logistics is, let’s talk about whether there are any advantages of becoming an Amazon logistics partner.

Advantages of becoming Amazon Logistics Partner

1. Requires low startup costs

Starting a delivery business is very expensive. That is because there is hiring, getting fleet management software, obtaining the licenses, and whatnot. Then there are risks in this business.

What Amazon is providing is the solution that covers almost every step of that business and due to that, startup costs become very low.

For instance, Amazon provides a tracking app to your drivers and it also helps you in getting the operating licenses in the area that you are trying to cover. You just have to hire the drivers, verify them and then put them to work.

2. No need for any past logistics experience

Another main advantage of becoming an Amazon logistics partner is that there is no need to have past experience in the logistics business. Amazon has an experienced logistics team that will help you in setting up the business.

From your side, you just have to put in the investment and do the initial work. The rest is up to Amazon.

3. Use Amazon’s technology/experience to boost logistics business

If you are trying to become the logistic partner of Amazon, then you are at an advantage. That is because, with the membership of the Amazon logistics program, you will have the access to use Amazon technologies and software.

logistics-experience

Let’s say that Amazon has done the testing of the drone delivery system and you are providing the drones to Amazon.

You will have an access to use Air traffic control system that Amazon is developing for the drone service.

Like that, Amazon delivery partners have access to the database of Amazon Prime customers so that they can deliver the product on the same day. These are some of the technologies that we are talking about.

4. Get support from Amazon when it’s needed

Like we said, Amazon has an experienced logistics team that is ready to help you at any time.

For instance, let’s say that your driver is delivering the package to the customer but cannot due to the rush hour. Tell that to the Amazon team and they will update the customer about delivery status.

Similarly, if you are trying to expand the covered area, the team will help you in getting the operating license of that area and will help you in setting up the station.

5. Focus on your people and let Amazon worry about sales

The last advantage of becoming an Amazon logistics partner is that there is no need to worry about sales. That is because more than one million parcels are delivered by the delivery partner of Amazon in a day and that means Amazon will give you sales.

There is no need to worry about making money. However, to get those sales, you have to handle your own team. Make sure that they are on time and are getting the work done.

Chapter 3:  Amazon Logistics Partner: How to become one?

Amazon-Logistics-Partner-1

If you are planning to become a delivery partner of Amazon at a very low cost, then Amazon DSP (Delivery Service Program) is for you.

With this program, you will have the access to Amazon’s technology and all of its services. However, before going towards that, let’s talk about what the DSP program is.

1. Amazon delivery service partner program

Amazon delivery service program is an opportunity for new delivery business startups to get linked with Amazon. Amazon DSP allows you to become the partner of one of the fastest-growing industries of this world.

With Amazon DSP, you will run your own delivery business and manage all the processes. The team will be created by you and they will report to you. Basically, you will have a delivery business and Amazon will just be a middle man to you and its customer.

2. What is the role of delivery service partners?

As mentioned above, if you start your business with Amazon logistics, then you are your own boss. You have to be a person who will manage all the tasks.

This business will require a lot of hard work and dedication. To help you understand, these are some of the roles of delivery service partners of Amazon.

  • Delivery service partner will have to manage and schedule the drivers and have to tell them the delivery routes.
  • The partner will have to hand over the equipment to the drivers and will have to make sure that the vehicles are working fine.
  • They will have to track the progress of the driver and manage the issues such as flat tire, car heating up, or trouble delivering the packages.
  • Get in contact with the Amazon support manager and tell them the issues regarding the delivery.
  • Ensuring the delivery vehicles are fueled and are ready for work the very next working.
  • Telling the drivers about the issues you or the team faced to keep them updated.
  • Get the review from your delivery station and respond to that accordingly.
  • Motivating the drivers at the start of the day.

Amazon DSP is an active business and requires daily to daily tasks in order to become successful.

3. How Amazon helps delivery service partners in becoming successful?

Amazon is becoming one of the largest businesses, they are giving a chunk of their business to new startups. The same is the case with delivery partners.

delivery-service-partners

Amazon will help you in starting the business from scratch. The company will appoint a manager who will only listen to your queries.

Furthermore, the team will also train you and your employees on how to deliver the package successfully and what to do in times of bad outcomes.

You will have the access to Amazon database where you can find exact delivery addresses. And, Amazon will also provide you with its latest tools and technologies.

4. Amazon Logistics partner: is it worth becoming one?

So, the question arises: is it worth becoming an Amazon delivery partner? Assuming that you have to put a lot of effort. See, the thing is Amazon is a popular e-commerce store and a lot of people order their products from this company.

Amazon is giving all delivery companies a chance, which can help you earn a handsome amount of money without needing that much investment. Amazon will train you and will always be available at your disposal.

So, we will answer, becoming an Amazon delivery and logistics partner is worth it, provided you can invest in this business. We are not saying that there are no risks. Yes, there are, but the risks are low because of Amazon’s support to you.

5. Profit margins of Amazon logistics partner program

Profit margins of Amazon logistics partner program

So, how much can a delivery partner make when doing business with Amazon? Amazon states that you can earn up to $300K profit if you are operating a delivery business that has 40 cars.

However, these numbers should not excite you, because there can be risks and your profits can differ according to the situation. We are not discouraging you. This is just to give you a heads-up about what you can expect in this business.

Chapter 4: Requirements for Amazon Logistics Partner Program

Amazon will help you in setting up the business. However, there are still some things that you need to do from your side. Let’s talk about some of the requirements needed to start this business.

1. The license of Automotive and Commercial Insurance

When we talked about the licenses that Amazon will provide, those were area operating licenses. However, you still need to get licenses related to cars. These licenses are known as the license of automotive and commercial insurance.

Commercial insurance licenses are documents that are needed if you are using commercial vehicles such as semi-trucks. They are basically insurance certificates. They will help you in covering the damage costs of vehicles.

For operating a fleet of vehicles, you need a no-objection certificate. This certificate can state that the vehicles are being used for delivery purposes only and that is what an automotive license is. Both are important for this business.

2. Certified drivers with complete safety training documents

License of Automotive and Commercial Insurance

The second requirement of the Amazon logistics business is you need to have certified drivers.

For instance, if your fleet has semi-trucks, you need to have drivers that have certification in driving semi-trucks. Plus, they should have valid driving licenses and safety training documents.

3. Cargo vehicles with proof of service record

Cargo vehicles are vehicles that have more than 200 feet of cubic storage. These vehicles require special documents known as proof of service records. Those documents state that the vehicles are good for use in the delivery business.

4. Investment of minimum $10,000

If you are looking to start an Amazon delivery partner business, we recommend you to put in an investment of 10,000 dollars.

Investment-of-minimum

This figure is a safe side and will cover the cost of training/hiring of employees, getting permits, and cars.

5. Extra ownership and management papers

This requirement is according to the country that you are trying to operate from. The documents that are included here are proof of ownership, tax information, and related items.

Chapter 5: How can Amazon Delivery Partners ensure Effective Delivery?

We have covered all the important information about the Amazon logistics partner program. Now, let’s talk about how you can improve your delivery business and put a smile on the face of customers of Amazon.

1. Use vans that have minimum 200 cubic feet of space

The first tip to becoming successful in this business is that you should buy and use vehicles that have more than 200 cubic feet of storage. That is because this will help you in managing the deliveries.

Amazon Delivery Partners

200 cubic feet of storage is good for fitting almost 50-60 delivery packages, and it will help your driver in covering the delivery routine effectively. On a side note, it is also the requirement of the Amazon DSP program.

Use vans that have minimum 200 cubic feet of space

2. Use fleet management tools for effective fleet management

Amazon will provide your drivers with an app that will help them in getting the locations and addresses.

However, you can use fleet management tools to further increase efficiency. For example, fleet management software called keep trucking can be used for this purpose.

3. Double-check the delivery documentation

Another important tip is checking the delivery information. Yes, Amazon will give your drivers the tool to track that. However, you should also verify and double-check the delivery addresses so that you can prevent late deliveries.

4. Obtain proper permits

Lastly, the best practice of becoming successful is that you need to obtain proper permits and licenses for this business. This will help you and your driver in case of any technical issues.

5. Include a penalty clause for your drivers

When hiring the driver, include the clause of penalty if the driver is not able to deliver the package due to his own mistakes. This will keep the driver in check and will help you in getting the most of the driver.

Chapter 6: FAQs about Amazon Logistics Partner

FAQs about Amazon Logistics Partner

1. How much do Amazon logistics partners make?

There is no fixed value of how much money does Amazon delivery partners make.

However, Amazon has stated that if you have 40 cars, you can earn up to 300K dollars in profits. However, this depends on the area you are targeting and how efficient you are in this business.

2. Is it worth it to become an Amazon logistics partner?

Becoming an Amazon logistics partner is worth it, because a little investment is needed in this business. Plus, Amazon will help you in starting and will provide assistance to you and your team.

3. How do you become an Amazon logistics partner?

Becoming an Amazon logistics partner is a very easy step. You need to fill in some requirements and investment is needed. When you are ready, apply for the DSP program and the customer support will guide you through the process.

4. Is Amazon delivery service safe?

Amazon delivery service is safe. That is because all the products are insured and if in case of any mishap, the company will refund you the money.

If you are a seller then there is no need to worry about the delivery packages. Amazon will reimburse you if there is an accident.

5. What documents are required for Amazon DSP?

In order to start an Amazon delivery partner business, there are certain documents that are needed. These documents depend on the country to the country. However, to give you a sense of an idea, here is what you need:

  • Operating licenses of delivery business
  • The license of Automotive and Commercial Insurance
  • Ownership agreement
  • Licenses for drivers
  • Safety training documents for your drivers
  • No objection certificates

Conclusion

If you are planning to start a delivery service, then we recommend you to start this business with Amazon. With the use of the latest technologies and tools provided by Amazon, you can start your own business.

The company will help you in setting up the business, training the team, and providing you the assistance.

And the best part is there is no need for any big investment for becoming an Amazon logistics partner. We hope this will help you in creating your own delivery business for Amazon.