After having kids, many Moms are ready to return back to the workforce. But in some cases, they want to find something different than their previous job. They want something that gives them the chance to build equity in something. Like starting their own business, with real assets and employees
The Amazon Delivery Service Partner offers one such opportunity, allowing Moms to create their very own brick and mortar business.
Wait, did I just suggest a delivery service as an opportunity for Moms? Yes, and for very good reason.
What is the Amazon Delivery Service Partner Program?
Amazon is looking for hundreds of would-be entrepreneurs across the United States to launch their own package delivery business. The idea is that successful applicants will be responsible for hiring a team of drivers and running the day-today operations. Partners would build up a small fleet of 20-40 vans that will be out delivering parcels for Amazon.
Once you build your business, it’s estimated that you will be in charge of at least 40 employees. That number could increase up to 100, depending on how successful your business becomes.
Just like with most franchise-style businesses, there is an up-front investment requirement. But at just $10,000, it is significantly smaller than many other similar opportunities. And in return, you get to share a slice of the profits generated by the most valuable company in the world.
Why Has Amazon Created This Opportunity?
Amazon has long had the same problem that other retailers also suffer from. The so-called “last mile” of delivery. Packages can be quickly distributed around the country using their best-in-class supply chain of planes and semi trucks. But the last leg, from the local depot to a customer’s home, is still causing them problems.
Others retailers have taken a stab at trying to solve this issue in the past without much success. For example, Walmart tried by asking employees to deliver packages before and after their shifts. This was quickly scrapped as it seemed employees weren’t thrilled about picking up an additional courier shift after a 9-hour stint on the shop floor.
But not only is Amazon trying to solve the “last mile” conundrum, they’re making increasingly difficult service promises to their customers. What started as 2-day guaranteed delivery has quickly become a one-day turnaround, and in some areas they even offer same day delivery.
This has begun the shift towards stocking local warehouses with key products so they can be shipped in a matter of minutes following an online order. Amazon has decided to look for entrepreneurs to run these local depots as their own businesses, with Amazon footing the bill for their services.
What Are the Program Requirements?
If you’re interested in this program, you might want to know what it takes to get an application started.
First, the capital requirement is an initial $10,000. That may seem a lot to some of you, but to put that in perspective, to open a McDonalds you’d have to shell out a $45,000 franchise fee. And then you’d need $750,000 in liquid assets, and expect to invest up to $2.2 million over the life of your ownership.
As with other outsourced models, Amazon does expect you to have some liquid assets. But at an amount of closer to $25,000, it’s significantly less than most other good franchise opportunities. This liquidity is to fund costs such as van leases, hiring employees, payroll, legal fees for forming your company, and all of the necessary insurances.
The liquid assets requirement is much lower than other similar opportunities because you can start getting your first payments from Amazon within a month of starting. These payments should cover the majority of your operating costs, and you can scale to profitability from there.
What Are the Responsibilities of an Owner?
You are responsible for the day-today operation of the business. Make no mistake, you will be rolling up your sleeves and getting hands on with this business. This is certainly not a passive or semi-passive investment.
As outlined in Amazon’s brochure, you will start each day by scheduling your drivers and their routes, before meeting them for a morning inspirational huddle and sending them off on their way.
Next, you will track your drivers’ progress and handle any on-the-road issues, either using your own knowledge or by receiving help from the Amazon support team. Finally, it’s your responsibility to debrief the team once they return, refuel the vehicles, and lock up at the end of the night.
As you can see, this business will not be suited to all moms. However, there may be opportunities to structure your day so that you can head home for lunch, or do the school pick up/drop off.
How is this Program Different from Amazon Flex?
This is very different from Amazon flex. This is an opportunity to set up your own fully fledged business. Amazon flex is a part-time opportunity where you have the ability to become a delivery driver for a few hours a day.
Amazon Flex may be a better opportunity for mothers who wish to spend as much time with their kids as possible while still earning an income. However, that income won’t be anywhere near the same level you could achieve if you decided to start your own business with the Amazon Delivery Service Program. But it could still help ease the pressure of household bills nonetheless.
How Much Can You Make as an Amazon Delivery Service Partner?
Obviously, there isn’t going to be a set number that business owners are guaranteed to make. It is heavily dependent on how well you can scale your business, manage your teams and satisfy your customers.
You are paid in three ways as a business. First, Amazon pays you a set monthly fee based on how many vehicles (routes) you are running as an Amazon operator. Second, you will receive a predefined route rate based on how long your routes are. Finally, Amazon will pay you a per-package rate based on the amount of successfully delivered packages.
As an owner, you will start with five delivery routes. Amazon expects you to have grown to 20 routes within 12 weeks of starting, and 40 routes within a year for the most successful depots. Based on 40 routes, Amazon estimates owners will have a business with a revenue of between $1 million and $4.5 million, and a profit of between $75,000 to $300,000.
This is serious take-home money, in return for running a serious business.
I know for many, the start of starting your own business can be quite intimidating. Even for those more entrepeneurial types, a $35,000 investment might be too much. But if you have the means, this is one unique opportunity that won’t be around forever. You’d be starting your own business under the umbrella of the biggest brands on the planet. You can’t buy that kind of market potential.
Make no mistake, this is a competitive opportunity, and most applications are likely to be turned down. So, think about how you can stand out from the crowd.
If you’re a Mom who’s ready to take on the world, and you think you’ve got what it takes, why not apply here.