This blog is a guide on how to take Amazon franchise for courier delivery in 2021.
People interested in becoming an entrepreneur have two options. The first option is to start own brand, and the other option is to take a franchise. Franchising is a great way to give wings to entrepreneurial dreams. But many times, people interested in taking a franchise business find it challenging to find the right franchise opportunity. How many times it has happened with us that we liked a franchise opportunity, but our budget was less. Sometimes such a situation left us, if not heart-broken, then disappointed at least. But then who said, becoming an entrepreneur is straight and easy? An essential part of becoming an entrepreneur is to keep looking for the right franchise opportunities within the budget.
In case you are somebody
1) Who has limited means to start a franchise business
2) Association with a reputed name matters.
3) Willingness for complet involvement in managing the franchise business.
Then it would be best if you read further.
Why courier franchise
People interested in taking a franchise business opportunity, which caters to the points mentioned above, need not look any further than the franchise opportunity with a courier delivery company.
A courier franchise opportunity or logistics franchise opportunity is a great way to become an entrepreneur because of the following reasons
Advantages of taking a courier franchise:
(a) Most of the courier franchise opportunities come within INR 10 lacs. Thus, it is the most affordable franchise category.
(b) Majority of the courier brands are well established. Therefore they are a respected brand name to be associate with.
(c) Associating with an established courier brand ensures that the franchisee gets business from day one.
(d) An established courier brand enhances the chance of tie-up for the bulk and corporate courier pick-ups.
(e) Courier business is booming due to the e-commerce business, so many opportunities are available and a lot of potential business for courier franchisees.
(f) Like low setup cost, even the operational costs are not high in courier business.
Today, the courier business comes under essential business. During the lockdown due to COVID19, courier business was among the few businesses that were declared essential services. Hence when other business owners were, unfortunately, struggling at that time, courier franchises were doing brisk business.
Want to know about other courier franchise opportunities? then read, Top 10 courier franchise opportunities of 2021 in india.
Why become Amazon franchise or Amazon delivery service partner
Amazon is not just one of India’s fastest-growing companies. It is also one of the fastest-growing companies across the globe.
Courier, express, and parcel (CEP) industry is one of the fastest-growing industries in the country. So, what could be a better business opportunity than the one that has the combination of one of the fastest-growing companies and the fastest growing industry? Thus, Amazon delivery service partner or Amazon delivery franchise is among India’s best franchise opportunities at this point in time.
The Amazon courier franchise has another significant advantage, in the form of lower setup cost. The Amazon courier franchise’s setup cost is reasonable, to say the least, as it requires limited infrastructure to start. An Amazon courier franchise could quickly begin within five lakh rupees. Thus becoming an Amazon courier partner has a significant advantage of associating with one of the world’s largest brands at a reasonable price.
Finally, the Amazon franchise model scores big on the return on the investment (ROI). Though Amazon has not shared any information on the ROI period, people know that the ROI period is not more than a few months. It is advised to people interested in taking the amazon courier franchise to confirm this with the company during one-on-one meetings and before signing the agreement.
Thus, all the factors mentioned above make the Amazon courier franchise a lucrative and most sought after franchise opportunity.
Amazon is Seattle (USA) based E-commerce company. Jeff Bezos started it in 1994. Amazon began as an online marketplace for the books and then diversified into other products as well. Today Amazon is the largest online marketplace globally as it sells a wide range of products across the globe.
Apart from being e-commerce, Amazon is into other businesses like publishing with Amazon publishing, live streaming with Prime Video, music with Amazon Music, audiobooks with Audible, electronic products with Kindle e-reader, Fire TV, Fire tablets, and other items.
Not many people know that Amazon is among the top 5 Information Technology companies along with Apple, Google, Facebook, and Microsoft. Because of the depth in e-commerce and the other profitable services, today Amazon is among the world’s most valuable company and its founder Jeff Bezos is the richest man in the world.
Though there are many critics of Amazon, none of them can deny the fact that
- E-commerce, which was just some fantasy in the 1980s
- After the e-com bubble burst in the early 2000s, people have given up hope for e-commerce to turn into a reality.
Thus, what Amazon has achieved is incredible, and more remarkable is that it did so across the world.
Amazon entered India in 2013 with the launch of its website www.amazon.in. Experts believe that the Indian e-commerce market would be $ 100 billion by the end of this year, and Amazon would play a critical part. To succeed in the Indian online marketplace, Amazon has made some changes to its stock-keeping and delivery of the orders compared to other developed countries. It is essential to understand the stocking and delivery model of Amazon as it would give us an idea that why it needs delivery partners. Following is broadly the stocking and delivery structure of Amazon in India.
- Fulfillment By Amazon (FBA) centers: Amazon has over 60 fulfillment centers in 15 states of India. Delivery of orders from these fulfillment centers occurs through the combination of Amazon logistics and its delivery partners.
- Amazon sellers deliver the product through Amazon delivery service partners.
- Amazon sellers deliver the product through a third party.
Process of becoming Amazon delivery service partner
The process of becoming an amazon delivery service partner is simple. Following are the steps involved.
- Apply online for Amazon franchise by registering at this link and create your profile. You can also apply for Amazon franchise from an existing Amazon India account (used to order products from Amazon) by clicking this link.
- Once you have registered yourself, the next step is to fill the given application form.
- After the application form is filled then Amazon sends an confirmation email at the given mail id.
- After the mail id is confirmed then Amazon reviews the application. Suppose they have franchise requirements at your given pin code and find your application suitable. In that case, they will call you for only a round of interviews.
- If you pass the interview, then there would be a two-week training.
- Once the training is over, the amazon franchise has to set up the business and recruit a team to deliver the parcels.
- It is the show-time once the Amazon delivery partner finishes the required tasks.
Role of Amazon Delivery Partner
The Amazon franchisee’s role is well defined. Even if somebody with not enough experience becomes a franchisee; then also she/he would know how to move forward without any hiccups.
- The first thing is to identify the location (if already not done) and sets up the business. Simultaneously Amazon delivery partner has to determine the required number of workforce along with the delivery vehicles.
- As timely delivery is the backbone of this trade, hence to succeed it is important that Amazon logistics partner train and retain the delivery persons.
- Amazon expects its franchisees to meet daily delivery targets without failing. As deliveries are in large numbers, hence a Amazon delivery partner needs to have complete control over the business operations.
- Amazon courier partner needs to build the team culture within its team members. This team culture should revolve around Amazon’s high standards and customer-obsessed culture.
- It is expected from Amazon delivery partner to deliver a great customer experience. If they can do so, then they have the opportunity to grow by delivering more parcels.
Role of Amazon as franchisor
Amazon has well-set support functions for a franchisee to succeed, which are as follows
- Amazon provides its franchisee with a comprehensive operational manual and dedicated account manager to help with queries and doubts.
- As mentioned earlier, we know that Amazon provides two weeks of training to its new franchisees. But what is worth noting is that out of the two weeks, one-week training is at their Bangalore office, and another one-week training is in the field with existing franchisees. This gives a new franchisee understanding of all the operational part aspects and learning how a franchise works.
- Amazon shares with its franchisees various tools and apps that help them run their business effectively and in complete control.
- Amazon has tie-up with various agencies to help its franchisees get comprehensive insurance, background check of the recruited employees, and many other services. These initiatives help a new franchisee in starting its business without much hassle. It is worth mentioning that franchisee is free to use any other agency’s assistance to fulfill its startup requirements.
- Amazon shares its experience of more than 20 years with its franchisees in the form of various training material and information mailers. Such training help franchisees remain up to date with the industry’s developments in general and specifically within the company.
Requirements to become Amazon delivery service partner (Amazon Franchise)
Like every company that franchise has its own set of requirements from a franchise, Amazon has its franchisees’ requirements, which are as follows.
1) The most critical requirement is the applicant’s involvement. Amazon does not want franchisees who are only willing to involve in part-time or merely as an investor.
2) Amazon wants to give those people a chance who have experience in the courier and logistics industry.
3) Area required to set up a business – approx 400sqft
4) Amazon franchise cost, approximately: INR 1.5 lakhs-5 lakhs
5) Other requirements include One delivery vehicle, two bikes, a computer with an internet connection, printer, mobile, and bar code reader.
6) Manpower requirement: Minimum 2 delivery boys, but actual need depends on the expected number of deliveries. Amazon has a fixed ratio of a delivery van to delivery boys, which is 1:2. At present, in India, a franchisee can have a maximum of 20 vans and 40 delivery boys.
7) Document required: id-proof, address proof, photograph, GST number, one canceled cheque or passbook copy, property ownership or lease agreement copy, Aadhar card and PAN card
How profitable is the Amazon delivery franchise
Profitability as an amazon delivery service partner largely depends on the number of deliveries a franchisee does in a day. Higher the deliveries, higher the income for the franchisee.
But with one delivery van and two delivery boys, a franchisee can earn up to fifty thousand rupees in a month. The more the number of delivery vehicles and delivery persons more a franchisee would earn.
Frequently Asked Questions on Amazon delivery franchise.
Many questions get frequently asked about the Amazon franchise. Because, the answers is not big enough to be covered under a heading hence they get neglected. Therefore, we will discuss such questions here.
Am I eligible to become an Amazon franchise or Amazon delivery partner?
Amazon looks at many aspects of the applicant like education, work experience, financial information, etc., before considering someone for its franchise.
What matters to Amazon is if the applicant would be involving itself in the business 100% or not. Amazon does not consider people who want to take the amazon franchise for the following reasons
(a) passive income
(c) manage multiple businesses
(d) manage courier delivery business at various locations.
Amazon is categorical about the complete involvement of a franchisee in day-to-day operations. As there are limited franchise opportunities and many applicants hence, the people who fit the profile completely get selected.
How much time does it take to become an Amazon franchise or Amazon delivery partner?
Suppose there is a franchise opportunity at a given pin code. In that case, it may take 2-6 weeks to complete the entire selection process.
Is there an Amazon franchise requirement in my area?
As of now, Amazon is looking for franchisees in Mumbai, Bangalore, Hyderabad, and Delhi-NCR. People from other locations can also apply. When franchise opportunity is available in those places and people who qualify the criteria mentioned earlier, Amazon will only contact them.
Is there any franchise fees or joining fees?
There is no franchise fees or joining fees. All the above mentioned expenses are set up expenditures.
Can a franchisee get multiple locations to deliver Amazon parcels?
To begin with, every franchisee gets only one location for delivery. Suppose any franchise requirement arises in an area. In that case, the performance of an existing franchise (in an adjacent location) and the investment capacity would determine if an existing franchisee will get delivery rights for another place.
If you understand Hindi then you can watch this video on the topic.
In conclusion, we can say that to become an entrepreneur; franchising is an effective route. With the boom in the e-commerce market, a courier franchise is a great option. But, what would be better than taking the franchise of the delivery arm of the country’s leading e-commerce player, I.e., Amazon. Amazon franchise for delivery of parcels is an attractive franchise opportunity. People willing to invest their full time in this business and ready to run the show can apply for it.
In this blog we discussed following topics
Why courier franchise
Why amazon delivery franchise
Process of Becoming Amazon delivery service partner
Role of franchisee
Role of Amazon as franchisor
Requirements to become Amazon delivery service partner (Amazon Franchise)
How profitable is amazon delivery franchise
FAQ on Amazon franchise.
This blog is created solely for informational and educational purpose. Ideas and suggestions given in this blog are not substitute for the guidance under the expert. Readers are advised to do own due diligence before taking action based on this blog. This blog is not warranted for content accuracy. Reader’s discretion is required on courier franchise.