Want to start an Amazon delivery business? What to know

Want to start an Amazon delivery business? What to know

Want to start an Amazon delivery business? What to know

The start-up cost $10 thousand, but it's free to businesses founded by USA military veterans.

Amazon is launching this service because they're basically reaching a delivery tipping point. To help keep startup costs as low as $10,000, entrepreneurs will also have access to a variety of exclusively negotiated discounts on important resources they'll need to operate a delivery business.

Amazon announced on Wednesday (June 27, 2018) that it would provide incentives to attract entrepreneurs to create their own small parcel delivery company as part of Amazon's latest effort to tackle the big problem of shipping goods to customers in one country such as the United States of America.

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Amazon's new "Delivery Service Partners" and their staff members won't be employed by the tech company. And now, the online retail giant is expanding its network of package delivery couriers by allowing the couriers to run their own delivery networks.

The online retailer, which previous year shipped more than 5 billion packages through its Prime program, on Thursday said it is looking for hundreds of entrepreneurs "with little to no logistics experience" to set up their own delivery businesses - complete with Amazon-branded vehicles and uniforms.

Drivers will be full-time workers instead of contractors, and Amazon will require business owners to give them paid time off and other benefits. People have to apply at logistics.amazon.com and be approved by Amazon.

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UPS said by email that it's "confident in its strategies and believes there is tremendous opportunity" in consumer deliveries, though declined to comment on how Amazon's move might affect its business. The deals are available on Amazon-branded vehicles customized for delivery, branded uniforms, fuel, comprehensive insurance coverage, and more. Amazon uses the USPS for an estimated 40% of its last-mile deliveries, paying USPS's standard bulk pricing.

"We have great partners in our traditional carriers and it's exciting to continue to see the logistics industry grow", said Dave Clark, Amazon's senior vice president of worldwide operations.

The company has been building up its own fleet of 7,000 of trucks and 40 airplanes to cover the "middle mile" of delivery.

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Amazon plans to bring on board hundreds of these new small businesses over the next year, according to Clark. The contractor will be responsible for hiring delivery people, and Amazon would be the customer, paying the business to pick up packages from its 75 US delivery centers and dropping them off at shoppers' doorsteps.

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