Are you looking for starting Amazon Delivery Franchise at your location in India? If Yes, then please read this post.
Amazon is the largest E-commerce company in most of the 20 countries it operates in, marking the company as a cloud computing giant.
The E-commerce multinational started its venture as an online bookstore and gradually included a lot of products along with launching its own products with Artificial Intelligence that brought out the company as the Marvel of modern businesses.
Amazon is constantly expanding. It has launched several other categories in online trading like Amazon Prime, Amazon’s original venture that provides streaming service, one day delivery on purchases, and a lot of other benefits. Amazon Pay, an online money transaction portal. Amazon Pantry, delivering groceries and fresh veggies, Amazon Music, and a lot more along with products like Kindle, Alexa the virtual assistant, Amazon Echo, etc.
In an exception to the expansion of the E-Commerce site, Amazon in 2017 alone had acquired about 10 startups.
In the prospect of dealing on a B2C basis, Amazon has established commendable inventory, customer service, and logistics or its delivery Empire.
Amazon had been sticking with the traditional way of making deliveries of its products by outsourcing the service from some of the leading logistic firms in the country like FedEx, DTDC, etc.
With 10,000+ deliveries made in a single day, outsourcing the delivery service has not really been in favor of the company.
To keep the expansion running and to inculcate trusted coordinators for maintenance of warehouses and doorstep deliveries, the company launched a franchise deal that works under Amazon’s title as a partner.
History of the Amazon
The company that started as an online book store in Bezos’ parent’s garage as a budding idea of the CEO. Bezos’ parents invested $250,000 in 1994 when the now e-commerce giant was founded. In 1998 Bezos started selling music videos along with books and as the company started gaining attention the company started trading in electronic products, home décor, clothing, health and beauty products, and Artificial Intelligence.
What the world knows today as Amazon started with the name of Cadabra. Later the name was changed to Amazon. If you notice the logo of the e-commerce giant, you see what it indicates. The arrow that is right under the name connects letter A to letter Z which symbolizes how Amazon is an outlet to buy anything and everything from A to Z.
Why associate with Amazon Delivery Franchise in India?
Amazon is one of the largest companies in the world that is constantly climbing the profit revenue with relationship establishment with millions of new customers every year. Amazon is the mega-company that believes in taking its partners along with them moving up on the charts.
- Fame – While Amazon does not require any introduction, the company is the most trusted company in the world as per several surveys and statistics. Amazon offers the franchise owner an already established brand value that took over a decade to build and now stands at the topmost position in the business world.
- Affordable prices – People around the world have a reliable bond of trust with Amazon with its affordably priced goods and supreme quality of products. This has flourished the business over more than 15 years. The pricing chart enrolls hundreds and hundreds of customers every month and rather than walking out to the store, people now prefer the product reaching their doorstep with Amazon’s trust.
- Largest retail store – Enough said already, Amazon is the largest e-commerce store with humongous warehouses around the world. In the USA, Amazon’s warehouse is the largest in the entire country. The stats say that Amazon holds 4% of all the retail sales in the USA and about 44% of the sale in E-commerce in the US alone.
- Steady income and work assurance – While millions of orders are placed in a single city in just a month’s time, millions of orders are also delivered. The franchise owner or the workers would not have to reach out to the clients, present their pitch, mark the scheme of sales, or maintain a customer relationship plan, or any business working model. The work is simple and constant that only requires finding the address and making deliveries to get a huge smile on the customer’s face as a reward.
What is Amazon Delivery Franchise?
Rather than going to courier service companies like FedEx and Blue Dart, Amazon started giving franchise for its delivery service that had to be established differently in every different city and region to cover each and every part of the city. Amazon calls these packaging delivery franchise owners Delivery Service Partners (DSP).
The delivery service franchise establishment works on several rules but with the freedom of running your own business in association with Amazon, the online retail giant.
The delivery company owner will be responsible for hiring the employees, delivery men, and the drivers working for him. The employee base should be between 40 – 100 employees depending on the region being covered. The franchise is supposed to be working 365 days a week. And the owner is the one managing the employee basis as well as the delivery coordination.
Do not worry; you won’t have to work on the establishment of your franchise business entirely alone as Amazon will be constantly guiding you and teaching you regarding how to perform daily tasks and how to manage every day delivery business. Every DSP is also assigned with an account manager for constant help.
Amazon also makes sure that the risk inculcated in the business is into going to waste and assures you of the earning radius of the business.
Cost of the establishment of the Amazon Franchise?
To make a count, a franchise partner would need a minimum sum of 2 lakh rupees in hand to start off the business. What comes in expensive are the assets of the business. To start the delivery franchise, delivery vans are a must that the owner can either buy right in the start or lease for first and own gradually as the business grows and times go by.
The establishment also requires a minimum of 5M cubic space for vehicles and storage for delivering goods in the warehouse. The place should be in the industrial area and completely outside the resident region of the city. The owner of the franchise can avail the place by leasing it or owning it.
For in-office mandatory assets are 2 perfectly working computers, a blazing internet connection, a printer, a MICR device, and a bar code reader.
Apart from this, there is a list of mandatory insurances that the business requires like theft insurance, any physical injuries to the driver, insurance for damaged vehicles, insurance for damaged goods, etc.
Yes, the amount of investment is a major deal. Do not negotiate on including your time and efforts as an investment too because the standing and running of the business will need extremes of hard work and a lot of time to be invested.
Of course, with time, there will be a complete recovery of investment and hard work as well.
Working on an Amazon Delivery Franchise
Source: Dan Croitor
The major focus of the work may be logistics but the secondary and the most important aspect of business with Amazon is leadership. To make your business run with Amazon, you have to make sure you are portraying the right image of a people’s person as you will be solely responsible for managing a huge team of employees carrying out daily tasks.
This is how a simple day at an Amazon logistic facility flows.
- Make a list of the drivers for delivery routes.
- Fix up the route for the day’s delivery, allot equipment required to the drivers, and make sure the vehicles are working perfectly.
- Give the drivers an orientation and motivate them and let them know their set targets for the day.
- Track your drivers throughout the day and solve their troubles and issues.
- If any issue is found, contact your account manager and Amazon support for any consultation on the issue.
- Make sure your team is making progress and is motivated to strive higher. Also, make sure to highlight the best talents in the team.
- Let the drivers brief you about the issues they faced through the day for packages or routes.
- Check on the fuel tanks of the vehicles and get them enlisted for maintenance if needed.
- Check on the new technologies on a constant basis to improve work without hustle.
How to start an Amazon Delivery Franchise in India?
If you have read this far, we believe that the idea has settled in your mind and you are ready for the final go. The establishment is not the first step. The first step is to get the franchise and yes it is a task.
Just like any other brand, before allotting a business owner a franchise, Amazon runs a complete background check on the owner, including the financial status, the capacity of investing necessary capital, the credibility of experience and skills and few other points that will make you the right partner for the logistics of the company.
Another aspect is the territory or the region you have pitched for. It is vital for the company to have an opportunity for the region. As the company has already activated the franchise deal for a bit now, most of the major regions are already allotted to the DSPs. If you would still want to get the role you would have to wait for the opportunity to open again.
The procedure of starting a business of Amazon Delivery Franchise has these 5 steps to follow.
- Information gathering.
- Filling the formal application.
- Training the employees by Amazon.
- Setting up business
Visit the Amazon Logistic site and check if the location you wish to apply for is available or not. Now fill out the application. This will require you to create an account on the site which will ask for some of your necessary information. Feed-in the information and check the status of your application.
After submitting the application, Amazon will ask for information regarding your experience in leadership and logistics and your interest in the franchise. Remember – Amazon is primarily looking for leadership qualities and the ability to lead a team to fulfill the goals in their DSP.
Filling the formal application
Once you have retrieved the information from Amazon you will have to fill in a formal application that is more detailed. The information asked for in this application will entirely focus on your financial status for the business, leadership abilities, experience, and commitment towards the role.
Training the employees by Amazon
To start up the business the DSP will have to undergo training conducted by Amazon to understand the working. Amazon will completely educate the DSP about the running of the business, daily schedule and work procedure, establishment of business and about the role of a DSP.
The DSP will then be responsible for training the employees hired for the business. The drivers will have to go under online training before the board on to their role.
Setting up business
After the training is completed, as per the guidelines of Amazon, you will have to establish your business. This procedure also includes the hiring process which will be entirely conducted by the DSP. This process can take 1 month to 6 months entirely depending on the hiring process and employees available to come on board for the role.
After all the procedures are done with the best training you could give to the employees, you are finally ready to launch. For the first few days, the business will be rough and there will be quite too many issues but it will all come to peace as you learn to solve the issues.
Amazon is more than just a store or “Apni Dukan” as they call it. It is a multi-dollar giant that is only growing every single day.
In the US, 43% of every dollar spent in the market lands in Amazon’s account and Amazon’s market in India is quite the same too.
Recently in India with the company becoming the tech giant, Amazon has invested a whopping amount of INR 1,380 crore in cloud computing, data storage, and data protection solutions. With it, Amazon is ready to take on the future with ultimate Artificial Intelligence and E-Commerce.