written by | February 18, 2022

How to get started with Amazon Franchise in India

Currently, the entire world is facing a covid pandemic. This has affected many jobs in India as well. Many of us have lost jobs, but not to worry. If you are planning to get into business. There are opportunities available with minimum investments. In recent times E-commerce business has spread across the world. Online websites are increasing and people prefer to shop online rather than going to shops. These websites give you varieties of products and with on-time and immediate delivery options. Amazon is one of the biggest e-commerce operators. Amazon has given a big opportunity to become an Amazon Delivery Service Partner.

Did you know?

Amazon has nearly 6,000 dogs at AmazonHQ in Seattle, USA. It’s an approach to lower employee stress and boosts morale.

About Amazon India

Amazon entered the Indian market in 2013, and by 2018, it had taken the crown as the biggest e-commerce website in India. Amazon has captured 30% of the Indian E-commerce market share and is aiming to capture 35% by 2023. Amazon.in is already found across the country but they're aiming to expand even further and create 1 million jobs in India. Anyone would want to be part of the Amazon Franchise, given their massive fame and growth potential. Are you one of those people? Do you have what it takes to become a part of Amazon Distributorship? Then keep reading to learn more about  Amazon Franchise cost in India and How to get  Amazon delivery franchise in India

Facts about Amazon

Jeff Bezos founded Amazon. inc in 1994 under the name of Cadabra in Bellevue, Washington, USA. Much like all other giants, Amazon started from the garage and revolutionised the e-commerce market and is still expanding. 

  • Currently, Amazon owns 41 subsidiaries and brands
  • You can't buy cigarettes on Amazon. 
  • Apps like Netflix, Airbnb, Lyft and Spotify run on Amazon Web Services (AWS). 
  • Amazon saw a massive spike during the lockdown period making it a recession-proof industry and a good idea to invest in Amazon Franchise. 
  • Amazon in India delivers more than 4 lakhs of products every day! 
  • Amazon logistics has created more than 300 entrepreneurs in various cities of India. It has significantly helped people who lost their jobs or were facing business difficulties. Amazon has provided strong support in setting up businesses for all demand-side platforms (DSPs). 
  • Amazon initiated vaccination drives for all delivery associates. 

Now let's check more about the Amazon Delivery Franchise and other necessary information. 

Also read: Smart Franchise business opportunities in India

Why Choose Amazon  India Franchise?

There's a high demand for Amazon dealership, hence it is an excellent opportunity for aspiring entrepreneurs. Also, getting started with the Amazon Logistics Franchise isn't too tricky. 

 Below we've mentioned a few reasons why the Amazon Franchise is an excellent opportunity for entrepreneurs looking to make it big.  

1. Amazon Warehouse Franchise requires no relevant experience

The significant advantage of this business opportunity is that anyone can apply for this franchise even if they have no experience. Amazon has gained a lot of experience in technology, processes, logistics in more than 20 years. Hence, Amazon will provide the necessary training to run your business.

2. Strong support by Amazon

Amazon will be there to provide its Franchisee support at every stage and help them run the Amazon Dealership smoothly. 

3. Costs involved

There are no franchise costs or deposits involved. You can start your business with an amount of ₹1.5 lacs. You need to have liquid assets of ₹6-8 lacs

4. People management

Since no focus on sales is required, you only need to focus on your employees. Team building, encouraging behaviour, and establishing a healthy culture will help your business grow in a flow.

5. Customer satisfaction

Amazon is the most customer-centric company on earth. Hence, they expect their employees to deliver the parcel with a smile. Thus establishing a healthy culture among employees is the heart of your business.

6. Benefits other than monetary terms

It brings out entrepreneurial skills in you. You build your team. The core success of this business lies in customer satisfaction. Your focus should be on encouraging and motivating your employees. Strong interpersonal and communication skills will help you become a successful owner.

Amazon Franchise Cost in India

Amazon Franchise can be a low-cost investment if you can offer a 200-300 sq.ft area in any prime location. But the basic Amazon Franchise fee can range from ₹1.5 lacs to ₹5 lacs, respectively. One must note that this does not include charges for–

  1. Electricity bill.
  2. Employee Salary. 
  3. Office Rent (If rented). 
  4. Vehicle expenses. 

With all that included, one might require anywhere from ₹6 lacs to ₹8 lacs liquid assets

Documents and registration required

You'll require certain documentation and registrations while applying for Amazon Distributorship and those include:

  • GST registration and GST number.
  • ID proof.
  • Bank accounts details and passbook. 
  • Various Financial documents like balance sheet and profit/ loss sheet to prove your business skills. 
  • Passport-sized photograph.

Requirements to Start Amazon Franchise

 Below are the requirements for starting Amazon Franchise-  

  • Minimum 20 Delivery Vans and 40 Bikes. Vans should have more than 120 cubic feet of space and necessary health certifications. 
  • Delivery associates between 40 to 100. All drivers should wear the necessary identity cards and high visibility jackets Amazon provides. 
  • You need to deliver 24*7. Thus you need to have rotational shifts in your office. 
  • There is no high investment in technology. You have to invest in basic technology devices such as laptops, printers, scanners, the internet and routers. 
  • In India, you will need to get GST registration. You will need to fulfil GST-related compliances in your respective state. It will include invoicing, periodic payment, and filing of returns.  
  • Once selected as DSP, you will get an opportunity to visit the existing Delivery stations of Amazon. You can communicate with existing DSPs to know more about the business.

Also read: Complete Guide To Starting A Barbeque Nation Franchise

Amazon Franchise Cost breakdown and responsibilities

 Below is the complete Amazon Franchise Cost and Responsibilities every Amazon Franchisee must uphold-

  • Start-up costs – as low as 1.5 lacs (as discussed above)
  • Annual potential revenue- 1.8 Crores to 3.6 Crores( Depends upon deliveries in your area)
  • Annual profit potential- 19.2 lacs to 38.5 lacs

Thus we can expect approximately a 10.67% net profit ratio per annum.

If you can manage cost reduction and cost control techniques effectively, this can increase profit ratios.

Your responsibilities

Amazon Support

Need to set up a business

Provide you with insurance and other service-related assistance to set up your business

Need to build a strong and enthusiastic team 

Provide two-week training. One week of online training includes an introduction with the amazon family and another one week includes sharing experience and techniques of business by existing DSPs of amazon.

Deliver parcels and serve customers with a smile

Provides tools and technology to maintain standards

Establish and maintain a team culture

Support when needed.

Customer satisfaction is a priority

Sharing logistics experience

What is involved in Start-up cost?

Entity formation

You need to form a sole proprietorship or partnership firm or form a company.

Legal Services

Once done with formation, you need to comply with all the legal requirements of the entity.

Taxation and accounting services

You need to keep records of transactions, deliveries, invoices raised. For this, you will need book-keeping services. As mentioned earlier, you need to comply with various taxation laws such as GST, TDS, and other income tax-related provisions. For this, you need to hire a tax consultant.

Amazon has dealt with third-party business management service providers. This deal lowers your initial cost to 1.5 lacs. You can avail of these services associated with amazon.                

Ongoing Operation costs

  • Salaries and wages
  • Conveyance
  • Stationery
  • Repairs and maintenance of vehicles
  • Fuel expenses (Fluctuations in prices are unpredictable in India)
  • Administration cost
  • Rent, taxes, electricity (If you have an office or vehicles hired on rent)
  • Internet expenses
  • Payroll, Insurance expenses
  • Traveling cost for training etc

Support Expected

 Below is the support offered by Amazon India to its Franchise partners after becoming an Amazon Logistics partner.  

Week 1

Introduction to amazon and starting of business.

  1. Amazon’s customer satisfaction oriented culture
  2. Advice and suggestions from experts for setting up a business and running it effectively
  3. Amazon deals that you can profitably avail
  4. Assistance and guidance on recruitment, training, and retaining of employees
  5. Do’s and Don'ts of business

Week 2

Practical insight into becoming a successful Amazon Delivery Service Partner

  1. Observation of processes carried out at amazon delivery stations
  2. Assist in various activities involved at the delivery station
  3. Work with existing DSP owners and discuss various activities that need to be carried out daily
  4. Understand the tools used by amazon
  5. Become familiar with delivery station personnel
  6. How to resolve or assist drivers who may get into trouble in between roads
  7. How to improve quality, speed, and maintain safety for delivery associates

Steps Apply for Amazon India Franchise

To become a franchise owner, you need to follow the below steps

      1. Create an account 

Sign in and create an account on the Amazon DSP portal.

      2. Fill out the application form

This will require details of your entity. Bank Account details. It will include hiring information on your employees such as recruitment procedure payment details for employees.

       3. Application review and Final interview

Your entire formal application will be reviewed and a final interview will be conducted.

       4. Two weeks of training will be given

Once you are selected as DSP a two-week training will be provided by Amazon. 

       5. Set up your business

You need to set up business as per the standards required. 

       6. Start Delivering

Select the business name from the drop-down menu, select address, add adequate delivery instructions and click save. Once you have everything set up, you can start with the delivery process. 

Currently, Amazon is looking for delivery partners in Mumbai, Delhi-NCR, Bangalore, and Hyderabad. If you are from any location other than mentioned above, still you can make an application. If the Amazon team finds it appropriate and necessary after verification of demand in your region, then your application can be selected.

Also read: What’s the Cost of Opening a Burger King Franchise in India?

Bonus: How to build a strong team

  • Hire highly motivated and swift delivery associates

As a team owner, you must first assess what behaviour you need in your team-mates. A person with enthusiasm and having a learning attitude is a preferred candidate. The delivery associate should manage multiple deliveries when there are many parcels to deliver within the same duration.

  • Reward points and appreciation

The work of Delivery associates who perform exceptionally well should be appreciated. You can give them reward points; for example, rewards can be given for delivering on time. This keeps them motivated to work more efficiently. If your employees are happy and motivated, they will provide service to the end consumer in the same way.

  • Customer grievances policy

You should establish a customer grievance process. If a customer writes any feedback, you must be able to find the root cause and find a suitable measure accordingly to resolve those queries swiftly. Customer feedback is a critical success factor for any business. If there are any undelivered packets, you should have a process to find the correct owner and deliver the packet.

  • Tracking system in vehicles

A tracking system in the vehicles would help the delivery associates to find suitable routes to deliver the items. You can also keep track of the daily deliveries being done through this approach. 

  • Assistance from Amazon

Amazon assists you in any queries and assistance needed to carry your business smoothly. Thus, if you are unable to find solutions to any situation, you are free to ask for help. Periodic training will be provided by Amazon to delivery associates. The behaviour of delivery associates matters the most in this business, as they are going to cater to the end customer.

  • Daily meetings with teams

Daily meetings with the team will help you to know the work allocation. You can review the previous day’s work. You will be able to plan the next day’s work accordingly.

  • Safety and Security of employees

You have to take care of the safety of your employees. You have to be ready if any unfortunate event happens while making the delivery. Insurance, keeping your vehicles maintained, etc. are some of those safety measures.

Conclusion

Amazon is a massive e-commerce marketplace with solid growth potential. This makes it a promising opportunity for entrepreneurs looking for a full-time business opportunity. With the right method (that we've mentioned here), you'll be able to make a fantastic income. We hope you found this article interesting.

Follow Khatabook for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting.

FAQs

Q: Does Amazon provide vehicles for this program?

Ans:

No,Amazon does not provide vehicles to its franchise partners. Partners must have their own vehicles for Amazon Franchise.  

Q: Are there any resources provided?

Ans:

Yes, Amazon.in provides periodic training to its Franchise partners to help them stay up-to-date. 

Q: How long does the selection process take?

Ans:

Amazon Logistics Partner program selection will take about 2 to 6 weeks. 

Q: Who is eligible for Amazon Logistics Franchise?

Ans:

This opportunity is meant for people looking to run a full-time business.

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.