In this post, I’m going to share what I know about the Amazon business opportunity. Let’s see if this service business is right for you.
But first, let’s start with a little Dylan.
“The answer, my friend, is blowin’ in the wind,
The answer is blowin’ in the wind.”
Stay with me. I’m going to try to give you an answer. This delivery service partner business opportunity may be a good one for you to partner with Amazon…as a business owner servicing Amazon routes.
Amazon. Bezos. $$$$.
The list of businesses goes on. And Mr. Bezos isn’t done.
Is The Amazon Delivery Service Partner Business Right For You?
According to an article I read, (which was written by the CEO of a franchise company) Amazon is offering a $10,000, “Amazon Franchise for Delivery” business opportunity. A franchise for Amazon?
After I read the article, I clicked over to the Amazon Delivery Service Partner (DSP) website. The information I found about this low startup cost business was very impressive.
Note: This is not an Amazon business review. It’s way too early for that.
That said, for startup costs as low as $10,000, you’ll receive three weeks of hands-on training, along with two weeks in the field. And according to their website, you can “Join a community of Amazon Delivery Service Partners in one of the fastest-growing industries in the world.”
Moreover, you’ll get tools and technology designed to keep your Amazon business operation running smoothly.
Finally, ongoing Amazon corporate support for you and your delivery drivers is included, along with a detailed operations manual, driver assistance for on-road issues while delivering products on Amazon routes, plus you get your own personal account manager. Sounds like a good franchise opportunity. And the numbers?
From Amazon Logistics
Annual revenue potential* for an Amazon DSP
Annual profit potential*
*Figures are projections for owners operating Amazon routes with
20-40 delivery vehicles.
Specifically, “The revenue range is based on companies of various fleet sizes (between 20 and 40 vans) and the figures are annualized over a full year. As a result, a delivery company may not achieve the revenue figures in the range until it operates a fleet size of 20-40 vans for a full year, if ever.”
So, is the Amazon business a good investment?
Read on to find out what I discovered.
Amazon Is NOT Offering Delivery Franchise
But if you read the article that was just penned by someone who “knows” franchising, you would think you could. Maybe that’s why it was written?
Buying A Franchise Is A Big Deal
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Here’s the headline:
Should You Buy An Amazon Franchise?
What Their Takeover Means For Franchisors Like Us
Forget the “takeover” part. It’s not worth discussing.
But correct me if I’m wrong here.
It does read “Amazon Franchise,” right?
As in, Amazon is offering package delivery franchises.
Which they’re not.
The lesson I’m “delivering” here…the lesson for anyone thinking about buying a franchise is this:
Don’t believe everything you read online. Especially when it’s about a company as big and influential as Amazon.
One more thing: Would you like proof that the Amazon DSP program is not a franchise?
If so, all you have to do is look at their online brochure.
Nowhere does it state that the Amazon program is a franchise for Amazon. The word “franchise” does not appear on the document. Why not?
Because you’re a partner. You’re buying a business opportunity with extremely low startup costs.You’re not buying a franchise.
That said, can you imagine how it would feel to have a fleet of Amazon branded vans delivering packages 12 hours a day, 7 days a week?
Conversely, would you like to take a stab at how owners of the independent delivery companies in your area will feel when their routes are populated with an army of Amazon vans seriving Amazon routes? Maybe your vans?
No. Amazon does not offer franchises. They offer a Delivery Service Partner (DSP) business opportunity.
You can start an Amazon Delivery Service Partner business for as little as $10,000.
According to Amazon, the revenue potential for an Amazon Delivery business ranges from $1.4-$4.5M. Your profit can be anywhere from $75K-$300K.
Like all investments, solid due diligence is needed. You must weigh the pros and cons, along with your risk level before investing in any business opportunity.
– Blowin’ in the Wind lyrics ©Bob Dylan, Audiam, Inc
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