THE “PRIME” TIME TO GROW YOUR DELIVERY BUSINESS

The “Prime” Opportunity

We’re living in a world where convenience, technology, and consumerism are converging to create “the perfect storm” for entrepreneurial-minded business people. With online shoppers only one-click away from purchasing products, there are plenty of opportunities to start a delivery business, especially with the amount of Amazon packages ordered daily. With Amazon shipping approximately 1.6 million packages per day – an average of 608 million per year – the online retail giant no longer wants to rely on UPS and FedEx to deliver packages; rather, they’re looking to cut costs and take over the shipping process themselves.

This strategy has led to Amazon requesting “Delivery Service Partners” or DSPs, which is the company’s new initiative inviting entrepreneurs to set up a business and work for the online retailer moving packages from fulfillment centers to doorsteps. Amazon made this announcement in July 2018 and the response was overwhelming. Dave Clark, Amazon’s SVP of worldwide operations, told CNNMoney, “We expected a lot of interest but the sheer volume – the tens of thousands of people who actually went all the way through the process to make themselves eligible for the program – has been really humbling.”

The influx of applications pushed Amazon to accelerate and expand its plans. The company ordered 20,000 Sprinter vans from Mercedes-Benz, each painted dark blue and bearing the signature Prime arrow logo. Amazon hopes to see 100 small delivery businesses with thousands of vans up and running by the end of the year, reported CNNTech.

Is this right for you?

Becoming a DSP isn’t for everyone, though; there’s a lot of criteria to consider. According to Amazon, “If you’re a customer-obsessed people person who loves coaching teams in a high speed, ever-changing environment, becoming an Amazon Delivery Service Partner is an ideal opportunity for you.” Amazon expects DSP owners to operate a fleet of 20-40 vans and manage 40-100 employees. Plus, DSP companies will be responsible for ensuring the successful delivery of packages in a 7 days/week, 365 days/year operation.

Amazon is looking for leaders to hire, train, and manage a high-performing team. You’ll need to focus on the following to be successful:

• Have a Customer Obsession
• Demonstrate Leadership
• Deliver Results
•  Possess Resilience

What’s the earning potential?

With a fleet of 20-40 vans, Amazon projects a business owner can get off the ground for as little as $10,000, can potentially generate annual revenue of $1 – $4.5 million and turn an annual profit of $75,000 – $300,000.

The potential for small business owners is plentiful, much like the array of products being sold and shipped daily. Plus, the trajectory of online shopping doesn’t seem to be slowing down; in fact, online sales are projected to surpass 603.4 billion US dollars by 2021.

Getting Started

Want to get in on the action with a fleet of your own? Oakmont Capital helps clients finance commercial vehicles for FedEx Ground, Pepperidge Farm, Herr’s, Snyder’s and all delivery routes. We work with established companies and upstarts alike! Contact Oakmont Capital Services today to speak with an experienced financing professional at info@oakmontfinance.com or (877) 701-2391.