How to start an Amazon franchise in my city? What are the requirements needed?
Most of the people who want to start their delivery business wish to go with taking franchises of a company but they have many questions in their minds that-:
- Which company’s franchise is good?
- Is taking the company’s franchise profitable?
- What are the startup costs ?
- How does the company work?
- What is the process of applying?
So, in this article all the above questions will be solved.
Which company’s franchise is good?
Amazon is a marvel in modern logistics and delivery technology, it delivers its products throughout the nation.
Recently it has launched its new program called “Amazon Logistics” which allows new entrepreneurs to operate their own delivery companies with Amazon delivery Franchises and services.
It has many advantages but the main advantages to which every business person looks for are – Low startup cost and Great profit potential.
Amazon is a marvel in modern logistics and delivery technology, it delivers its products throughout the nation.
Recently it has launched its new program called “Amazon Logistics” which allows new entrepreneurs to operate their own delivery companies with Amazon delivery Franchises and services.
It has many advantages but the main advantages to which every business person looks for are – Low startup cost and Great profit potential.
Now Let’s talk about the next question which is - Is taking the company’s franchise profitable?
What are the investments required?
Before discussing its profitability we should first discuss the startup costs and how much it will cost you while starting the amazon delivery franchise?
Amazon will always guide you to keep your startup costs low. This is the greatest advantage of amazon logistics that they always guide their amazon delivery service partners at every step, so you don’t have to worry about any mistakes. You also do not have to worry about the vehicle lease because amazon is offering many discounts to their delivery service partners.
But still you have to invest some money in the startup. In the company’s website it is stated that you can start with as little as $10,000 but this is not enough you have to invest approx $30,000 including buying the assets.
A question must arise in your mind that What are these assets required for the Amazon delivery franchise?
So, the assets are-:
- Vehicle leases for amazon branded delivery vehicles
- Branded uniforms for employees
- Handy devices for scanning packages
- Fuel cards
- Vehicle insurance
- Licences and permits
- Accounting services and payroll
The above are some costs that you can expect while investing, meanwhile amazon will guide you in this although you can do your independent research too.
Note- Amazon branded vans and branded uniforms are not so important but amazon will give you discounts on these products but if you get these products at a cheaper price than amazon then I prefer you to not buy these products from amazon.
Is taking the company’s franchise profitable?
Now there is enough discussion about the expanses now we will discuss Amazon franchise’s profit potential. According to amazon’s estimation of annual profit potential for a delivery franchise operating 20 to 40 vans to be $75K to $300K.
It sounds like a very huge amount but don’t get excited your situation can be different from this. Keep the couple of points in mind before going with amazon’s delivery franchise.
First, These estimates are based on the previous analysis of franchises but your situation may differ from these but amazon makes no guarantee that your business will be profitable and successful. Amazon provides a lot of guidance but it is still up to you than how you manage your business and employees.
Second, the amount of profit you earn is not fixed. But if you have to do hard work to earn that money. You and your employees have to work 12 hours of a day and 365 days in a year to earn such profit.
Third, this factor will decide whether you should take any company’s franchise or not. This is the number of shoppers of that company in your area, For example, if there are less number of shoppers who shop from amazon are less then your number of deliveries will automatically be less and your profit will be less.
The above mentioned factors are not to discourage you, if you are hardworking and dedicated you can earn comparatively more profit. Remember to have faith in yourself and there is no one to stop you.
What is the process of applying?
If you have decided to start your business with amazon delivery franchises you should know what is the process of starting. So, Let's discuss
1.) Request information
2.) Fill out a formal application
3.) Train at Amazon HQ
4.) Set up your business and train your employees
5.) Launch your business
These are the steps you have to follow. Let’s discuss them in brief.
To start the process you have to fill an application form. To fill out the application form visit the application page on the amazon logistics site, you will have to create an account with some basic information. You will use this account in the entire process of startup.
Once you’ve created the account, Amazon will ask you some basic information about your interest and background in business, leadership quality and experience. Logistics experience is not necessary although it does not help logistics. What you need is a good leadership quality, so that you can handle a large staff.
2.) Fill out a Formal Application:
Once you have created the account and provided the information Amazon will send you information about becoming a delivery service partner, you have to read all the information then you will submit a formal application. This will be much more detailed and will require information on your financial situation, experience, leadership, and commitment to customer service.
3.) Training at Amazon Headquarters:
Assuming that Amazon accepts your application, then you will have to attend a three-week training session at Amazon’s headquarters in Seattle.
During the first week, Amazon will teach you what it takes to run a logistics operation, as well as how to get success in a delivery business. You will also learn all about the culture behind Amazon and how to translate that into the work your franchise will do.
In the second week, you will move from the classroom to the field. You will observe the daily processes at an Amazon delivery station, as well as assist in the sorting and loadout of packages. You will observe an existing Delivery Service Partner to learn how they do their work.
In the third and final week, you will get even more hands-on. You will learn how to use the tools that drivers use to deliver packages, as well as hit the road in a van to perform package deliveries. You’ll also learn how to solve common package delivery issues, and you will debrief with station personnel at the end of each day to get feedback on how you can improve.
3.) Set up your Business and Train your employees:
After the training, you’re ready to start setting up your business and building your team. This process can take anywhere from one to a few months depending on the available labor pool in your area and the amount of time required to get local permits.
You will now need to officially register your business, start hiring your employees and drivers by taking interviews.
Once you’ve hired your team, you will have to train them. This is where your leadership skills will be essential, as you now need to relay everything you learned during your training at Amazon HQ. You will practice loading your vehicles at your delivery station, making sure that the timing is perfect. Also, you will have to be sure that all the
necessary equipment is in place and functioning well.
3.) Launch Your Business
You’ve done all the training you can, and it’s now time to see how your business fares in the real world. There will be some rough patches the first few days you make deliveries, But that’s okay — Amazon expects this, and they have support personnel to help you resolve issues.
Beyond this, it’s up to you to grow your business and make it profitable. Amazon will continue to provide guidance, but the future of such a business is still relatively unknown since the Delivery Service Partner program didn’t launch until recently. You’re the one in control here, so make the most of the opportunity you have.
We have discussed about the different types of questions can arise in someone's mind while starting a delivery franchise, if you have any questions you can ask in comments section.
Thank You!
No comments:
Post a Comment