Amazon Logistics: Detailed Note on Working and Pros & Cons
Amazon Logistics infrastructure was started by Amazon to serve and deliver products to their customers. It was a big challenge to compete against the best providers such as FedEx, UPS, USPS. However, the Amazon Logistics program turns out to be a better investment for Delivery Service Partners.
If you want to learn all the major aspects of Amazon Logistics then you are in the right place. Let’s dive in.
Amazon Logistics
It is an alternative shipping and delivery service that is meant to complement traditional shipping providers such as USPS, FedEx, and UPS. With Amazon logistics, the platform uses their own fleet and employees for fast-delivery of products to customers.
Moreover, this program offers a great investment opportunity for sellers or entrepreneurs to join Delivery Service Partners.
In addition, these benefits are available for third-party sellers too. To participate in the logistics program, you have to be a Prime member. However, non-members of Prime can get perks for an added cost.
Having an intelligent software tool—Asinwiser—for online sellers will assist you to run your business in the right direction. Asinwiser.com is an excellent solution that will help you to target your potential audience with its all-in-one features such as brand story, product research, competitor research, profitability calculator, and so on.
Amazon Logistics Work
Amazon deliveries take place from early mornings to late evenings. In fact, this is the ideal time to deliver packages that need signatures. Here’s the list of basic requirement if you want to become a Delivery Service Partner (DSP)
Investment of $10,000 minimum
Able to manage 100 employees and 40 vans
Could handle responsibility of hiring and develop a team
Ensures that packages get delivered seven days a week per year.
On the other hand, contractors have to meet these criterias:
- Have experienced and skilled drivers with proper documented safety training and policies.
- Obtain license by automotive & Commercial Insurance, Worker Compensation, and Cargo Legal Liability.
- Have their own cargo vehicles and ensure that each truck or van at minimum could hold 200 cu.ft. of products.
Furthermore, for a $10K startup cost, Amazon estimates that these businesses could earn $1 to $4.5 million annually. Also, profits range between $75K and $300K.
Amazon Logistics for Third-Party Sellers
In 2020, the number of delivery stations, warehouses, and drivers that handle Amazon’s shipment got doubled. It helped to speed up the delivery process by keeping low fuel costs. Check how it works for you as a seller:
- Amazon’s logistics shipment appears in tracking as AMZL. In case, the delivery is done within the United States then the tracking appears as AMZL_US.
- With these deliveries designations are sent to sorting centers then DSPs pick packages from nearby facilities. And, deliver them to customers
In this whole process, drivers are provided with mobiles and softwares by Amazon. They can use it for receiving route guidance, planning, and handling customer service.
In addition, the level of service provided may vary from DSP to DSP. On the other hand, customers can expect the standard delivery from providers such as USPS, UPS, and FedEx.
Pros and Cons of Amazon Logistics (For Third-Party Sellers)
Below is the list of pros and cons of Amazon logistics for third-party sellers. Read carefully:
Pros:
- Allows you to get benefits of Amazon’s programs such as Flex, Lockers, Fresh, and Prime Air.
- In some certain geographical areas, it offers a chance for same-day, two-hours shipping too.
- Amazon Logistics have your back when other providers deal with heavy volumes of shipping.
Cons
- If any mismanagement occurs in the delivery process then seller feedback score may get affected.
- Sellers do not have any control on Amazon Logistics. Moreover, they can’t decide which providers they want to use for delivery.
- Both reputation and shipment is on stake as the entire chain is not operated by sellers.
Conclusion
Amazon Logistics is growing every single day. Sellers are adopting new ways to offer fast delivery methods of customers. However, there are still some drawbacks linked to Amazon Logistics and needs improvement. Furthermore, if you want to grow your business successfully with Amazon then you have to analyze all the available options before choosing the method that works for you. Good Luck.
We hope this article will provide you information regarding Amazon’s Logistics and its pros and cons! To make your business a huge success, get in touch with the Asinwiser team today!
Good Luck!
