Amazon launches Delivery Service Partner program

Amazon launches Delivery Service Partner program

The announcement follows public criticism of Amazon by President Donald Trump over the company's arrangement with the US Postal Service. But as it's helping entrepreneurs, Amazon is also helping itself gain greater control over its own logistics network.

"You could see this coming from Amazon for a long time". That's a lot of revenue, but also a lot of deliveries. Amazon also now lets individual drivers use their personal vehicles for deliveries through its "Flex" program, which has been criticized recently. So far the threat hasn't hurt Amazon stock, but there is the worry that it might.

Amazon hasannounced a program to help entrepreneurs build theirown delivery fleets, taking internet economy opportunities to a new level for aspiring small business owners.

"Delivery service partners" need $10,000 to start their business. Start-up costs for a DSP business are as low as $10,000, and military veterans can apply to have their start-up costs reimbursed.

The business owners will be able to make as much as $300,000 a year in profit running a full-sized fleet of 40 vans and managing 100 employees, according to Amazon. He said the new delivery program will help meet the growth in e-commerce.

Amazon said it plans to eventually hire hundreds of business owners into the program who would employ tens of thousands of drivers across the US.

The company expanded its Amazon Key service in April, allowing delivery people to leave packages in someone's parked auto, as long as the vehicle is parked in a publicly accessible place.

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Amazon has been looking for ways to cut costs on the "last mile" of deliveries, which is often the most expensive part of the fulfillment process.

At the moment, that step is mostly handled by one of the many third-parties the company works with, such as FedEx, United Parcel Service, the USPS and individual on-demand workers who use their personal cars as part of the "Flex" program.

Competition for online shoppers is heating up as Walmart Inc (NYSE:WMT) continues to boost its web presence.

Amazon is offering new incentives to anyone who wants to open and run a courier business delivering packages for the e-commerce behemoth.

Nichols believes FedEx's customer profile is so diverse that Amazon's new program will not be a major hit to its operation-especially since Amazon admits it will still use FedEx and UPS to ship packages around the world.

Clark said Amazon has "great relationships" with its external delivery partners.

The delivery wars are heating up, and this time Amazon is recruiting small businesses to assist in battle.

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