How to Make Up to $300,000 a Year Delivering Packages for Amazon as a Delivery Service Partner
Becoming an entrepreneur in our modern age is a very inviting prospect especially with the internet. The ability to blog and sell items online is a very profitable work for several people but is not workable for everyone. Amazon is beckoning in a new way to make money by being an entrepreneur: creating your own business by delivering packages to people locally after picking them up from one of their 75 delivery stations. In other words: delivering packages for Amazon as a delivery service partner. This blog post will help you figure out if this business model is a good fit for you, and, if it is, how to get there.
We talk about applying the 2% Rule to your finances and part of this is finding ways to earn extra income. Most of what we share are side hustles and ideas that you can do as a stay at home parent or as a side hustle to current jobs you have. You can read more about the 2% Rule in our new book. But this one is going to be a little different. It’s an opportunity to replace your current income entirely to potentially increase your income greatly!
Amazon really has made multiple ways of generating income with side hustles to full-time, even multi-million dollar endeavors. We are currently working on a post that shares the MANY ways to make money with Amazon, but this idea is a new one and one that is unique as an Amazon affiliated money making opportunity as a delivery service partner.
In fact, it could be a really good gig for some people. So let’s talk about delivering packages for Amazon in more depth.
What is a delivery service partner through Amazon?
Have you considered being a delivery truck driver? What about owning your own delivery business? It seems like it’s too expensive and too complicated of a business to start, with too many variables. Besides, there are already a number of package delivery businesses out there, so you would be competing with quite a pool of companies. Plus the cost of marketing and trucks… oh my! Too much to think about!
Well, what if I told you that most of those concerns can be taken away and you have a nearly guaranteed successful package delivery business, would you be interested?
What if I said that the investment required is relatively very little for a business of this nature? Or what if I told you that some can even create the business for free?
Now what if I told you that you also have the #1 package delivery company as your client and their package delivery demands are increasing exponentially year over year?
You might be thinking this all sounds too good to be true and it probably is most of the time, except when you mention the word Amazon – those “too good to be true” ideas all of the sudden seem more like a reality.
I think it is safe to say that this next business idea is a truly good to be true because Amazon is involved. But how is delivering packages for Amazon going to exactly help me? Read on!
The specifics of a delivery business under Amazon’s care
The idea is that you are in charge of one group of 40 trucks, you hire drivers, and make the business decisions. Basically, I would put it as you are running your own last-mile delivery Amazon branch. You do not need to make your own software as you are using Amazon’s. You also do not need to push advertising or sales, as they are sending you packages to deliver, so you are pretty much doing this one thing: delivering packages for Amazon.
Your group is ran out of one of their 75 warehouses, so you need to be able to travel there every day. You are going to be purchasing supplies, hiring people, and running the business. They pay you per truck, length of route, and per package successfully delivered.
This is a map that Amazon listed as the warehouses, but the application shows many more locations (like in Idaho – our home state). So don’t base the availability off of this map.
Amazon is basically handing you a delivery business and they will be your client (which is the best client to have with this business), while holding your hand through the whole process.
Amazon will be hiring a few hundred in the next few months – but ultimately, they want to grow to 10,000 business owners.
How much does it cost to start a delivery business with Amazon as a Delivery Service Partner and start delivering packages for Amazon?
The all important question that looms and plagues hopeful individuals is…”How much does it cost?”
The good news is that delivering packages for Amazon is quite a low investment for any business, but especially this business. The investment through Amazon is a fraction of what it would be anywhere else.
The startup cost is as low as $10,000. It can be this low if you use the discounts to third-party sellers and suppliers that they recommend for business supplies. Amazon has set up special relationships with other companies that are needed to run a delivery business successfully.
For example, you will need uniforms. Sure, you can get the needed uniforms from any source, but Amazon has already gotten a discount supplier in place. So if you follow their recommendations throughout the whole process, this business could be started for the low investment of $10,000.
There are going to be purchases you need to make throughout your running the business, but if you run it successfully, the business can start paying for itself very quickly.
How much can you make as a Delivery Service Partner with Amazon?
Amazon makes this so plainly simple, yet the potential income is outstanding. Amazon states that, depending on your efforts, you can make between $75,000 – $300,000 PROFIT each year. This is after generating well over a million in revenue. That is not a bad payday!
Who is good for this business of delivering packages for Amazon?
As you need to be there every day, you need to be able to dedicate yourself to this every day as your day job. This is not a side hustle, it will be all of your work. $10,000 minimum for starting costs is needed, but Amazon recommends that you have at least $30,000 in liquid assets, and you need to be able to hire people and find people you can trust, as hiring is completely in your hands. It also greatly benefits people to have business experience. However, on the delivery and day-to-day operations, you do not need to have experience with starting your own software, as Amazon handles that. You need to be a people person to manage everyone, as that is your main responsibility. Basically you just need the ability and understanding to run a successful business and keep it going – with perhaps a bit of passion too. Amazon holds your hand through the rest.
Benefits of this business
One of the main (and obvious) benefits is being your own boss. Although there are going to be Amazon associates that check up on you sometimes, you are the one making the business decisions and you are the one hiring, purchasing, and running. You get to benefit from the ecommerce business by using them. If you run it correctly, it can also be an extremely profitable business, adding up to being another pro.
You will also have Amazon’s backing as you grow your business. Amazon will hold your hand and guide you through the whole process. They want you to be successful because it helps them too. This is a major benefit of starting a business like this – having the leading ecommerce company on your side!
You can also grow at the rate you are comfortable with.
For the $10,000, this is approximately enough to start leasing 5 trucks (with other costs also figured into the initial $10,000). You will lease Amazon branded trucks and eventually get to at least 20 trucks. Then at any point, you can keep adding trucks total 40 trucks. But you can grow at a comfortable pace. So it will probably be a business that you can start paying yourself close to the start!
In addition, you are not limited to Amazon’s packages only. You can also have other delivery clients. The only catch is that you will be leasing Amazon branded trucks, so any non-Amazon deliveries will require a different truck that you will be responsible for getting. But regardless, the good news is that you can continue to grow beyond the maximum 40 Amazon branded trucks.
Cons of this business
You need to be able to make this your full time job. It is not like you actually are going to be able to run this from home like many online-based businesses. Especially at the beginning, you are going to be spending a lot of time to actually get the business on its feet. You are going to be there all day and be dedicated and focused. If you do want to make extra money as a side gig, here are 100 extra ways to make money. Also, subscribe to our newsletter because we are sending out a dozen extra ways to make money.
They have about 75 centers all over the country, and if you are not extremely close to where you are and yet you still want to make this your business, you need to keep in mind that you are traveling there every day, and that you need to choose if you are willing to be able to commute to the warehouse each day.
Though this is not necessarily a full-out con, you do need to save up for the first $10,000 (they recommend you have at least $30,000 in liquid assets) and you need to go through the process that will last 1-6 months, but will not be a real problem for those who are truly dedicated to the business of delivering packages for Amazon.
Why is Amazon even doing this in the first place?
Currently, Amazon spends well over 20 BILLION annually in shipping costs across all shipping carriers. That is a huge chunk of change! And it’s only going to increase more and more each year.
So it’s a money move for them, while at the same time, trying to leverage their business to also provide better customer satisfaction and have more control of the shipping operations. Even as I write this, my family is waiting on a delayed delivery from an Amazon order that is being sent by a third party. But the third party has now delayed it by 48 hours. We were really counting on that package being here 2 days ago.
As customers, we pay our Prime membership to get our orders in 2-days, not 4. So being able to have just a bit more control is one major customer satisfaction effort.
How do I begin my business?
You have to apply to be a Delivery Service Partner. We will talk about that more in a minute, but once this is approved and accepted, then you begin the process and then you are further on your merry way to delivering packages for Amazon!
You begin the process by spending as little as $10,000 for necessary business costs such as:
- Travel to Training
- Truck Leasing (for 5 trucks)
- Office Supplies
- Benefits Programs
Training will last three weeks, and you will learn all you need to know to start your business to start delivering for Amazon. It is located in Seattle, WA and the travel expenses are not paid for, as listed above.
It will only be $10,000 starting fee if you use their recommended third-party suppliers for business supplies with their pre-negotiated discounts. As said before, you do not need to find your own facility, as you will be working out of one of theirs.
For the application process to be a Delivery Service Partner with Amazon, you will need to send in your basic information here to receive more info of how it all works in a deeper sense, and then you send in your formal application. Amazon will be choosing who they think will be the best fit for this type of business model, and after that you will go to the 3-week training in Seattle. Once training is complete, you will be able to set up your business and hire your team. And then: BRAVO! The fun of it all begins and you get to begin delivering packages for Amazon! (Or should I say: the actual business. But is there really a difference? 😉 )
What are your chances?
Your chances are based on how well Amazon believes that you are able to handle this type of business. During the application process, they ask you several questions on how well you would be able to handle such a business model as this. You are not promised a spot to be a leader of one of these organizations, but you can apply and Amazon will choose who they think is the best for this position. So be mindful and passionate as you are filling out the application.
Free for Veterans
If all of this wasn’t “too good to be true” enough, it gets better. It gets better for our veterans.
Amazon has a $1 million fund for veterans who qualify for the ability to start a new business for free. If you do qualify, then you will be given $10,000 to start your Amazon business. It will ask you on the application form if you are a veteran or not, and you will have to follow the steps after that.
I hope this article has helped you decide whether this business is a good fit for you, and if it is, how to get there. If you have any questions, please put them in the comments below and we will try to answer them as well as we can.
If you want to investigate more in the business of delivering packages for Amazon click here.
Please note: the images from this article are from the Amazon Delivery Service Partner brochure, where you can find even more information. Find more information from CNN Tech and CNBC.