Amazon Tempts Employees with $10K to Step into Entrepreneurship

Amazon’s relentless pursuit of disrupting industries continues as the company sets its sights on the courier services sector, offering lucrative opportunities in the short term.

Recently, Amazon unveiled an expansion of its Delivery Service Partner program, which encourages existing Amazon employees to leave their jobs and establish their own package-delivery businesses. In an effort to incentivize this transition, Amazon is prepared to finance the startup costs, providing $10,000 along with three months of the employee’s current wages.

Dave Clark, Amazon’s Senior Vice President of Worldwide Operations, expressed enthusiasm for this program, stating that it offers an avenue for employees with an ambition for business ownership.

According to Greg Zakowicz, an e-commerce analyst for Oracle Bronto, this program represents a strategic move by Amazon, benefiting both the customers and the company itself. Amazon has found a way to fill a gap in the package delivery market that other couriers, such as the U.S. Postal Service and FedEx, are unable to meet.

However, the question remains whether this opportunity truly benefits entrepreneurs.

Zakowicz acknowledges that it is still a mystery, as this program represents a new and untested model. Embarking on such a venture entails being a trailblazer and there are inherent risks involved. Nonetheless, the potential for success and growth cannot be denied, particularly in an industry ripe for disruption.

Empower Your Business with Amazon: A Comprehensive Guide to Becoming a Delivery Service Partner

Amazon’s partnership program, which was launched in June 2018, is open to individuals in the United States, United Kingdom, and Spain. The program aims to attract delivery-savvy workers to establish their own full-time package delivery businesses in collaboration with Amazon. While Amazon provides basic training and guidance, partners are responsible for hiring employees and leasing delivery vehicles.

The recent expansion of the program specifically targets current Amazon employees, offering them up to $10,000 along with three months of their current wages if they choose to quit their Amazon jobs and join the program.

To begin the application process, individuals can visit Amazon’s Logistics web page. However, it may take around six months to complete the application. Accepted applicants undergo three weeks of intensive training, which includes travel to Seattle.

To be eligible for startup funds, applicants must be current Amazon employees based in the United States. Amazon tends to favor applicants with experience in hiring and developing employees, a minimum of $30,000 in liquid assets, previous business-ownership history, and experience delivering packages. Amazon has published a brochure that provides a comprehensive training schedule and additional details about the business plan.

The expansion of the partnership program is a response to the increased demand for couriers, considering the shift in Amazon Prime’s delivery time from two days to one.

However, Greg Zakowicz, an expert in the e-commerce industry, cautions against considering this business model as a get-rich-quick scheme, emphasizing that it requires careful consideration and should not be seen as an instant path to significant wealth.

Revolutionize Your Income: Tapping into the Countless Moneymaking Potential of Amazon’s Influence

Amazon has earned a reputation for disrupting and transforming various industries including retail, e-commerce, and courier services, creating numerous side-gig and career opportunities along the way.

The exciting aspect is that there are multiple avenues available within Amazon that do not necessitate individuals purchasing an entire fleet of delivery vans. This opens up a range of possibilities for those interested in joining the Amazon ecosystem and exploring the opportunities it provides, both as a side-gig or as a full-fledged career option.

Affiliate Marketing

If you are looking to monetize your website or blog, leveraging Amazon Associates, Amazon’s affiliate marketing program, can prove to be a lucrative opportunity.

With Amazon Associates, you earn money by incorporating links to Amazon products within your website or blog. When your readers click on those links and make a purchase, you are eligible to earn a commission. This form of marketing is commonly referred to as affiliate marketing.

Here’s an example to illustrate how it works: Let’s say you have a cooking blog and you recently obtained a new kitchen gadget that you are eager to review. In your product review, you include an affiliate link to the gadget on Amazon. If one of your readers decides to make a purchase through that link, you can earn a commission of up to 10% of the purchase price.

Realistically, the earnings through the Amazon Associates affiliate program may not be astronomical. However, one key advantage is that joining the program is entirely free. Therefore, there is no downside to incorporating affiliate links into the posts you are already creating and sharing.

It is important to note that not all product categories within the program earn a 10% commission rate. For instance, beauty products are eligible for the full 10% commission. On the other hand, home improvement, furniture, kitchen, pantry, and gardening supplies offer an 8% commission rate. Some other product categories may offer lower commission rates or may not be eligible for the program at all.

It is advisable to review the commission rates associated with each product category to better understand the earning potential. While the earnings may vary, participating in the Amazon Associates program can still be a worthwhile endeavor, particularly when the links are seamlessly incorporated into your existing content.

By participating in the Amazon Associates program, you have the opportunity to generate additional income by directing your audience to relevant products on Amazon and earning commissions through their purchases.

Amazon Flex

As an Amazon Flex delivery partner, you will have the opportunity to deliver a wide range of goods to customers through platforms such as Amazon.com, Prime Now, AmazonFresh, and Amazon Restaurants.

Amazon Flex states that earnings can range from $18 to $25 per hour, although the exact amount will depend on the volume of deliveries you are able to complete. Payment processing occurs on Tuesdays and Fridays, with funds deposited directly into your bank account, typically resulting in seeing your money on Wednesdays, Saturdays, or both.

To qualify for the program, you will need a smartphone with the Flex app installed and a vehicle. If you are delivering Prime Now orders, any car will suffice. However, for deliveries from Amazon.com, you will need a four-door midsize sedan or a larger vehicle. In certain areas, bikes may also be acceptable as a mode of transportation.

Pro Tip: Becoming an Amazon Flex driver can serve as a valuable way to build experience in package delivery and enhance your application to become a Delivery Service Partner.

Recruitment for Amazon Flex occurs in various areas across the country based on demand. If your specific city is not listed when you attempt to sign up, you can join the waitlist for updates and notification when positions become available.

Book Publishing

Amazon offers a range of options for authors, including publishing their work in Kindle, print, or audiobook formats.

Publishing a book on Kindle is a free process, and your book will be available on the Kindle store within 24 to 48 hours. Through Kindle Direct Publishing, you can earn up to a 70% royalty on book sales. Additionally, you retain the rights to your book and have the flexibility to set your own list prices. It’s also possible to make changes to your book even after it has been published.

For authors looking to publish in print, Amazon offers a print-on-demand service at no cost. With this service, you have the ability to create, publish, and distribute your book within a few days. You maintain full ownership of the copyright and have control over setting the list price. Royalties of up to 60% can be earned through Amazon’s print-on-demand service.

Furthermore, authors can publish audiobooks and distribute them through Audible, Amazon, and iTunes using Amazon’s Audiobook Creation Exchange. There are multiple royalty rate options available for audiobooks.

With these options, Amazon provides authors with various avenues for publishing and distributing their work, allowing for potential earning opportunities and reaching a wide audience across different formats.

Mechanical Turk

Mechanical Turk, also known as MTurk or Turk, is a crowd-sourced marketplace operated by Amazon. This platform allows individuals or businesses to post various simple tasks that users can complete for an agreed-upon rate, with Amazon taking a percentage as a fee, similar to other freelance websites.

Each task on MTurk is known as a Human Intelligence Task (HIT). These HITs can be completed from the comfort of your own home and on your own schedule. Common types of HITs include participating in opinion surveys, performing transcriptions, and carrying out data entry tasks.

The amount of money you can earn on MTurk will depend on the specific tasks you accept and the time they take to complete. Before starting a task, you will see a pay estimate, which allows you to determine if the task is worth your time and effort.

To apply for MTurk, you can either create a new account or sync your existing Amazon account. Afterward, you will need to complete a questionnaire. Screening and approval of your application can take up to 48 hours. Upon approval, you will enter a probationary period during which you must complete at least one HIT every 10 days. After the probationary period, there are no limitations on the number of HITs you can complete on the platform.

Online Selling

According to a study by NPR, a significant 44% of online shoppers now initiate their search on Amazon, making it a prime marketplace for sellers. To tap into this vast market, you must first register as a third-party vendor and choose between two seller plans: the Individual Seller Plan or the Professional Seller Plan.

Individual seller accounts are free of charge and come with a selling limit of up to 40 items per month. When an item is sold, Amazon deducts a 99-cent fee from the sale. This means that there are no upfront costs for listing your items under this plan.

On the other hand, professional sellers are required to pay a monthly subscription fee of $39.99, granting them access to an unlimited selling capacity without being subjected to the 99-cent fee per sale.

Both types of accounts, regardless of the plan chosen, are subject to additional selling fees, which vary between 3% to 45% of the sale price depending on the category of the item being sold.

For sellers who prefer not to handle packaging, shipping, or storing the items themselves, Amazon offers the Fulfillment by Amazon (FBA) service. With FBA, Amazon takes care of these aspects, as well as customer service and returns. However, it is important to note that utilizing the FBA service incurs additional costs.

By leveraging the reach and scale of the Amazon platform, sellers have the opportunity to reach a vast audience of online shoppers while benefiting from the convenience and support provided through programs like the Individual and Professional Seller plans, as well as Fulfillment by Amazon.

The Profound Influence of Amazon’s Disruption

Despite Amazon’s bold foray into delivery and entrepreneurship, one entity that has struggled as a result is the United States Postal Service (USPS). The USPS has been grappling with significant financial losses, amounting to billions of dollars each year. To mitigate this issue, the postal service formed a partnership with Amazon in 2013, with the USPS dedicating Sundays exclusively to delivering Amazon packages.

The introduction of Amazon’s new delivery service program may potentially serve as a way to phase out the USPS partnership, as suggested by Zakowicz. However, this transition is not without its challenges for the new partners involved.

Given the current structure and dynamics of the delivery service program, it appears that the profit margins may not provide much leeway for participants to take a passive approach compared to other jobs influenced by Amazon’s disruptive impact. In fact, the partners entering into this program are likely to face demanding workloads and rigorous demands.

As Zakowicz aptly puts it, “These individuals will truly have to work incredibly hard to succeed in this venture.”