Amazon is a huge e-commerce platform for buying and selling products. Currently, It is a leading company in the e-commerce industry. Do you know the number of packages amazon ships per day? 1.6 million packages per day! Yes, that’s incredible. This brings down to 66 thousand orders per hour.
But how does Amazon ship so many orders? Does it own thousands of vehicles? No! Here is the answer.
In 2015, Amazon came up with a concept called ’Amazon Logistics’. Under the concept of Amazon logistics, Amazon works on a contractual basis with other shipping service providers.
Let’s understand this in more detail.
In simple words, Amazon Logistics is a delivery service provided to customers. Amazon uses third-party services to deliver products. Amazon Logistics was launched for two reasons, first, it can reduce the time of delivery, and second is the ultimate goal i.e.customer satisfaction.
The contractual people, who are providing services are termed as ‘Delivery Service Providers(DSPs).
Make a note that DSPs are NOT Amazon employees. They work under a contract but more flexibly. Amazon uses its logistics like buses, trucks, motorbikes, etc. to make this happen.
Also, there are certain terms and conditions that DSPs have to adhere to like insurance of vehicles, licensing, training, and many more.
Advantages of Amazon Logistics
If you work for Amazon logistics. Here are the points you will be benefited with:
- Minimal Investment – Not much of an investment will be required for Amazon logistics. All the tools, customers, data, and tracking software will be provided to you by amazon. The only investment required will be logistics. And some of the drivers that will be hired by you. That’s it
- Huge Volume – As mentioned before, Amazon ships more than a million pf parcels. So, if you are capable enough, you can deliver the maximum parcels in your area and build your reputation. The more number of parcels you deliver, the more Amazon will demand you.
- Scope of earning – The scope of earnings in Amazon logistics is vast. Amazon provides a good percentage of its DSPs that can help you grow your business.It also provides various rewards to those who perform exceptionally well in the given period of time.
Impact of Amazon logistics on Sellers
One of the disadvantages of Amazon logistics is that the sellers of the product have no role in choosing the delivery provider. In case the product is damaged or gets mishandled during the shipping, it may lead to a bad reputation for the seller.
The sellers do not carry any control over delivery partners. They have no right to give any suggestions to the delivery partners.
In a nutshell, in case there is some mishandling of products, the sellers are the ones who will be affected and not the providers.
‘Amazon logistics’ can become a prime source of your earnings. But how do you apply for that? Here are the steps. Read more on how you can increase sales in Amazon
Steps To apply for Amazon Logistics
Step 1 – First create your Amazon Account, where you will have to create an email ID and password. You have to necessarily remember the password as this will be the communication center.
Step 2 – After creating an account. You are required to fill out an application form where details like financial information, education, and much more will be asked. It may take a couple of hours to fill-up the form. This step is implemented to check the eligibility of the delivery provider for the program.
Step 3 – Your application is then reviewed by the Amazon team. Then accordingly, they reach out to you and explain the further steps to be executed. It may take a while to get back.
So now you know the steps ahead for applying in Amazon Logistics
Requirements for Amazon Logistics
- Trained Drivers – The drivers hired for delivery must be trained professionally. Amazon policy includes training for drivers. Safety must be the top priority. So do hire trained drivers.
- Insurance – You must have at least 40 vans. But all the vehicles must be licensed. Each vehicle should have insurance worth 50 lakhs.
These are the basic requirements of Amazon. The requirements change with time.
Now, let’s understand some interesting Amazon logistics Tips. These tips are important because the DSPs are rewarded on the basis of their performance and customer ratings. So if you want to grab all the rewards. Here are some tips for you.
Tips For Amazon Logistics
1. Get in touch with the Customer – Once the customer places the order, do get in touch with the customer. Show them heartfelt gratitude, thank them, and let them know that you are working on their order. Assure them that their product will be delivered safely on time.
3. Feedback – Once the order is safely delivered to the customer, ask them for feedback. You can also create your own feedback form and ask them to rate you. Let them tell you what improvements can be made.
4. Locate your Vehicles – There must be an area that you would have promised to cover. So do locate your vehicles in a certain way that you are able to deliver fast. The faster you deliver products, the better is your reputation. So try to deliver as fast as possible.
These were some small yet important tips to be taken care of while working. Do work on them and enjoy your customer’s appreciation and the rewards from Amazon.
The purpose of Amazon logistics is to provide faster deliveries so that customers can be satisfied. The primary purpose of any e-commerce player is customer satisfaction.
To sum up, Amazon’s logistics program is benefiting all, it can be tried as a career too.
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