Nowadays, almost everyone is wishing to associate his business with a good brand, and most online traders are willing to tie up business with Amazon.
But apart from selling your products on Amazon, there is another business opportunity with amazon by which you can build up your own business model.
Yes, and that business model is the Amazon Delivery Service Partner Program, where you work on behalf of Amazon to deliver the couriers to amazon’s customers.
In simple words, it’s an Amazon delivery franchise business, in which you can join and scale up a profitable business model anywhere in India with a minimum of investment.
In this article, you are going to learn how to get Amazon franchise, what are the requirements, formalities, and investment required.
If you already have applied, or you want to know how to take the Amazon franchise before applying, in both cases, this article is very helpful for you.
Benefits of Starting an Amazon Logistics Franchise Business
First of all, let me tell you what the Amazon delivery franchise business is, so you can recognize the benefits more clearly.
The working model of Amazon is to collect the ordered products from the supplier and deliver them to the customers.
Now, thousands of products are ordered and supposed to be delivered to the customers in a day, and many of them must be delivered on the same day due to the prime membership.
So, Amazon needs lots of modules in the country, where it can distribute the delivery system to small vendors by paying some commission, and you can become that vendor who will be delivering the items to Amazon’s customers.
Now, there are some very legit benefits of doing an amazon courier franchise business and that is the reason that you should start an amazon logistics business.
- Low Risk Business
- Minimal Investment
- No Inventory Management
- Few Manpower
- A Few Formalities and Documentation Process
- Commission Based Business
- Bidding Strategy
- Can Get Extra Bonus According to Performance
In the Amazon service partner program, you just need to deliver the products of Amazon to the customers of Amazon, and the company will provide you the commission, and it is your revenue.
How to Get Amazon Franchise in India
Many people are interested in getting the amazon courier franchise in India, but they are experiencing challenges while processing due to the lack of knowledge.
Sometimes it happens that you apply for Amazon franchise business, and your application does not get approved, because you miss something.
This happens because you are not having the correct and complete guide, and somewhere you become blank, and can not conclude what to do ahead, and you withdraw your name from that business.
So, to not let this happen to you, in this article, we are going to explore how to take the amazon delivery franchise with a detailed guide step by step.
In this article, all the details are going to be covered about getting the amazon delivery service partner program as,
- How much does an amazon franchise cost
- What is the process to get amazon delivery franchise
- What are the documents required
- What’s the profit margin
- Revenue model and Business mode of Amazon delivery partner program
- How to Apply for amazon courier service franchise business
- Requirements to be fulfilled by you.
So, without wasting time, let’s explore what are the amazon delivery partner requirements, and how you can get the franchise of the amazon courier delivery business.
Types of Amazon Franchise Business
You have two options to execute the delivery of products from amazon to the customers.
The first one is that you need to collect the products from the amazon warehouse from the allocated area to you and make them delivered to the customers.
In this process, after collecting the products from the warehouse, you need to bring them to your location, and then after you make them delivered to the customers by the delivery boys.
This business model is quite a big level business, and you may need more investment. If you are not willing to invest too much money, you should go for the next one.
There are many locations where the vendors of Amazon are already available, and they will deliver the products to your warehouse, and then you will have to deliver the products to the customers in the given Pincode areas to you.
If you want to start the amazon logistics franchise business with low investment, you should go the second business model.
Requirements to Start Amazon Delivery Partner Business
Amazon is the world’s largest and biggest e-commerce company and offers you your separate business model. And there are some basic requirements and criteria that you have to fulfill to take the amazon logistics franchise.
Before handing over the franchise, verify your details, schedule an interview and if everything sounds good, then you are offered to get the franchise of amazon delivery service.
If you want to get the franchise of Amazon delivery service, you must have the space of 400 to 500 sq. ft space. This is the minimum area requirement.
The space that you need will depend on how big an area you are allocated to provide the service.
For example, you are living in a metro city, and Amazon allocated you an area of 20 kilometers to deliver the items to the customers.
You can assume, how many numbers of customers can be in the radius of 20 kilometers in a metro city, and how many deliveries you are going to get, right?
The space that you are going to final, should contain two partitions.
- Warehouse space to manage the deliveries
- Small Office setup
This is not mandatory from Amazon, this is our recommendation because you will not require only the delivery boys, you will require an office staff also after getting the amazon delivery franchise.
The reason is that if you get 500-700 deliveries per day, you alone will not be able to manage with a single hand, you will need a team to manage the whole business.
You will need two vehicles to start an amazon courier franchise business, one is VAN, and the second one is Bike.
Because you will have to pick up the products that arrive at the centralized stations of Amazon in your area and bring them to your warehouse, and that’s why you will need a VAN.
Once you bring the products to your location, you will need bikes to deliver them to the customers.
The bike is mandatory if you are going to deliver the products yourself to the customers, and if you are having the delivery boys, then you can approach them to come with their bikes.
The VAN which you are going to buy must have space of more than 120 cubic feet, so you can opt for Omni, ECO, TATA ACE, etc…
It’s quite understood that you will require the delivery boys to deliver the products to the customers’ location, right?
If you get a wide serviceable area then you will need more delivery boys and if you get a small serviceable area then you will need less.
So, you should observe the other amazon delivery partners and take advice that how many deliveries you may require for your area, and they can guide you properly.
Office Set up
Office setup is not mandatory if you start the business of an amazon franchise on a small scale, and you are allocated with a very small area.
But if you have been allocated for a wide area, then you should vacant some small space for an office set up in your warehouse.
You’ll have to set up some basic furniture, racks, and tables to arrange the equipment like scanner, laptop, and other important documents as well.
In order to get a franchise of Amazon, some equipment is mandatory to have with you.
- Internet Connection
- VAN – Bike
Investment to Start Amazon Logistics Franchise Business in India
There is a very common question in people’s minds that how much does an amazon franchise cost, or what is the fee for taking Amazon’s franchise.
The Answer is Zero!
Yes, Amazon does not charge you anything for providing the delivery service franchise. But you should have a minimum of Rs 2,00,000 as working capital.
This investment is not static, it depends upon the location allocated to you, if you are going to have a wide location, then you will have to hire more delivery boys, and you may also keep more than one computer, scanner and printer as well.
Profit Margin of Amazon Franchise Business
Amazon does not work on the profit margin system for the franchise business model, it works on the commission-based model.
It gives you the commission per delivery, and it is up to Rs 40/-. Rs 40/- is not a fixed amount, it depends on many aspects such as the size of products, the product is prepaid or postpaid, and some other aspects which you can explore by visiting the nearest amazon center point.
- Aadhar Card
- PAN Card
- Bank Account
- Electricity Bill of Location
- Driving License
How to Apply Online For Amazon Delivery Franchise Business
You need to visit the official website of amazon logistics and click on the start now button.
moving forward this step, you need to fill in all the details asked on the portal, and then submit the application.
You will be asked to create the amazon logistic account as well before processing, which is very simple.
After submitting the application, the team from Amazon will contact you and will schedule the interview.
If you succeed in an interview, you will be provided training to run the Amazon franchise business, and your delivery boys as well.
Conclusion on Starting Amazon Delivery Franchise Business
After reading this full article, you might be clear with the process of getting the amazon logistics franchise.
The biggest benefit of doing business with Amazon is that you will opt for a risk-free business because Amazon is worldwide one of the most trusted companies.
I suggest that after reading this article, and before applying for a franchise of Amazon business, you should communicate with a person who is already running this business.
By doing this, you will come to know the actual practical aspects of the amazon courier franchise business.