Amazon is the dominant retailer of everything. It’s the go-to store for many people, due to its enormous product offering and popular Amazon Prime service. But this only just scrapes the surface of what the colossal company offers and its sheer size and influence. If you’ve ever wondered whether Amazon franchises, this article is for you.
Amazon is a multinational technology company headquartered in Seattle, Washington. It is the world’s largest e-commerce marketplace and cloud computing platform based on revenue and market capitalisation. Amazon began in 1994 as an online bookstore but then diversified into selling video, MP3 and audiobook downloads/streaming, electronics, software, apparel, video games, toys, food, jewellery and much more. The huge brand also owns Amazon publishing, Amazon Studios, a film and TV studio, the Kindle, Fire tablet, Fire TV and Echo smart speakers.
Just to reiterate the scale and power of Amazon, it is the second largest employer in the US after Walmart. It is also one of the “Big Four” technology companies, alongside Google, Facebook and Apple. The Founder, Chairman, CEO and President of Amazon, Jeff Bezos, is the richest man in the world. And there are over 100 million people subscribed to its paid subscription service, Amazon Prime. But is it possible to start your own Amazon franchise?
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Does Amazon franchise in the UK?
Amazon isn’t a franchise. However, entrepreneurs who are keen to be a part of the global brand can choose to operate their own Amazon delivery service.
How to get involved with Amazon
Amazon encourages individuals who are natural team leaders and eager to be their own boss to start their own business as an Amazon Delivery Service Partner (DSP).
If you enjoy interacting with customers and having a positive impact on their day, then this could be a great opportunity for you. You should also be passionate about developing teams of staff in a fast-paced, dynamic environment. When you own your own Amazon delivery business, you will be in control of 20-40 vans and 30-70 drivers.
It will be your responsibility to recruit and develop a group of motivated, hard-working delivery drivers and Amazon will help with getting the business set up and ready to start delivering packages from a delivery station in your chosen city. The brand offers partners low start-up costs, access to Amazon’s efficient technology and logistics, and an existing demand.
- How to become an Amazon Delivery Service Partner: You must be a capable and inspiring leader who can engage a team. Ensuring the successful delivery of thousands of parcels a day takes hard work, dedication and organisation. You can kickstart the process of becoming a DSP here.
- How much you need to invest: You can start your own Amazon delivery service for as little as £10,000, but a total of £25,000 in liquid assets is needed.
- What you get for your investment: Amazon boasts over 20 years of logistics experience and advanced technology and processes. You won’t have to waste time worrying about sales, as the constant flow of customers ordering parcels from Amazon will ensure your business keeps growing, so you can focus on building your business without the fear of losing customers. Amazon’s wealth of experience is there to support you whenever you need it. Therefore, there is training and ongoing support to make sure you feel confident in all aspects of running your business. Amazon prides itself on being the ‘most customer-centric company on Earth’ and is keen for individuals who want to put smiles on customers’ faces to get on board. For successful owners operating 20-40 vans, there is scope to achieve an annual revenue of £900,000 to £1.8 million. The annual profit potential is £50,000 to £150,000.
A global leader Amazon is the world’s largest e-commerce marketplace and cloud computing platform based on revenue and market capitalisation
The courier market in the UK
The courier and express delivery is valued at around £12.6 billion and is predicted to be worth an impressive £13.2 billion next year. As we increasingly opt to shop online, the demand for delivery services is becoming higher than ever. Therefore, it should come as no surprise that 87 percent of the British public sent or received a parcel in 2017.
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Similar franchise opportunities
If you like the sound of the Amazon DSP opportunity, you might also want to consider starting a courier franchise or van-based franchise from our franchise network. Take a look below at our top four.
InXpress is the go-to business for your international shipping needs and has partnerships with world-famous names like DHL, TNT and UKMail. As one of the world’s largest parcel delivery franchises, it has the experience and expertise to help grow new franchise units in a variety of international markets. Its UK network now consists of around 80 franchisees, but there are still plenty of opportunities for savvy entrepreneurs.
- Becoming an InXpress franchisee: The company is looking for individuals who are sales-oriented, business-minded and excellent communicators. All franchisees must be committed to the InXpress brand and understand that the business model should be followed to the letter. Click here to find out more and register your interest.
- How much you need to invest: If you’re considering an InXpress franchise, you can expect to make a total investment of £30,000. Working capital of approximately £15,000 will also be necessary to get your business on its feet. As the franchise can be run from home, business premises are not required, which reduces your overheads.
- What you get for your investment: In return, you can access start-up and refresher courses online to boost your knowledge and expertise, while a dedicated business coach will aid your development. This solid support network has enabled InXpress to be a British Franchise Association-HSBC Brand Innovation award winner and has led franchisees to see a return on investment just 18 months after the launch of their unit.
2. Speedy Freight
Speedy Freight advertises itself as the UK's leading same-day courier service. It offers a unique service that sees packages picked up within an hour of an order being made, and then delivered within 24 hours. This ensures that customers are happy and the business is able to grow.
There are now 30 franchisees providing services to both commercial and domestic customers, and the company encourages business-oriented individuals to apply.
- Becoming a Speedy Frieght franchisee: Franchisees need to be able to commit to growing their business over a sustained period and demonstrate good managerial skills. They’ll also need to be dedicated to the business’ values and providing “speedy” service to each and every customer. Request more information here.
- How much you need to invest: A Speedy Freight franchise unit requires an initial investment of £38,500. As with other franchises, you may be able to borrow up to 70 percent of this figure from an official lender.
- What you get for your investment: Franchisees can look forward to ongoing training and support, and access to its accounts department to help with invoices.
3. World Options
As the name suggests, World Options offers global courier services aimed at commercial customers. Meeting the remarkable demand generated by the online shopping industry, it provides retailers and other businesses with a cost-effective and hassle-free service that saves them time and money.
- Becoming a World Options franchisee: As a World Options franchisee, you can balance your work and personal life while turning a substantial profit. The courier franchise is seeking out individuals who are ambitious, passionate about the World Options project and committed to growing their business by working closely with the franchisor. To learn more and sign up, click here.
- How much you need to invest: A World Options franchise costs around £30,000 +VAT.
- What you get for your investment: Franchisees get access to the entire franchise package and ongoing support from the franchisor’s dedicated management team. Because you’ll join a network of over 70 franchisees, you’ll be part of a large-scale team that you can approach for advice and extra support.
4. Post & Packing
Post & Packing focuses its operations on business customers. It provides them with a range of services, including archiving, PO box rental, parcel delivery and international services. Established in 2012, the business has gone from strength to strength and its UK network now encompasses around 10 franchise units.
- Becoming a Post & Packaging franchisee: Post & Packing is looking for individuals who are committed to the growth of the business. Having experience in postal services is looked on fondly but is not an essential. You can find out more and sign up here.
- How much you need to invest: The initial cost of a Post & Packing franchise unit is estimated to be around £25,000. However, additional working capital will be required to see the business through its early loss-making period. Approximately 70 percent of the initial investment can be borrowed from a major lender, but the remaining 30 percent must be in the form of personal assets.
- What you get for your investment: Unlike other franchises on this list, Post & Packing operates out of physical, brick and mortar stores, ensuring they receive both passing trade and targeted custom. While you set up your store, the Post & Packing franchisor offers a good deal of guidance and support.
Can’t start an Amazon franchise? Start one of our courier franchises instead
We’ve discussed just four exciting delivery business opportunities, but there are even more on our franchise network. See the full list here. And, if you can’t get enough of our ‘Q&A’ article series, you can find out whether Aldi operates a franchise model here.
Becky Martin, Point Franchise ©