Amazon began as an online bookstore in 1995 but swiftly expanded into diverse industries, evolving into a multi-billion dollar company. In addition to its eCommerce platform (Amazon.com), the company has entered industries such as cloud computing (Amazon Web Services), video streaming (Amazon Prime Video), and parcel delivery services through Amazon Logistics.
Amazon Logistics represents the tech giant’s entry into the domain of package delivery, positioning itself as a capable contender among renowned delivery service providers or courier companies like DHL, FedEx, and UPS.
In this article, we will take a closer look at Amazon Logistics, examining its significance for the broader Amazon fulfillment system, its impact on Amazon sellers, and its connection to the Amazon Delivery Service Partner (DSP) program.
What is Amazon Logistics and How Does it Work?
Amazon handles approximately 1.6 million daily orders, requiring prompt delivery to customers across the globe. Given this significant order volume, the question arises: how does amazon deliver so fast?
To meet the demand for delivering packages to Amazon customers swiftly, Amazon has enhanced and expanded its order fulfillment system in recent years. Among these improvements is the introduction of its package delivery service, appropriately named Amazon Logistics.
In response to the query “What is Amazon Logistics” it can be described as a delivery service provided by Amazon dedicated to delivering packages to customers. All orders shipped by Amazon Logistics are tagged as AMZL_US.
Amazon Logistics includes multiple services and activities that guarantee the effective and dependable delivery of Amazon customer orders.
It mainly offers same-day and 7-day delivery options. It utilizes two types of third-party logistics partners to complete Amazon deliveries: individual drivers under the Amazon Flex program and independent delivery services under the Amazon Delivery Service Partners program.
Some of the essential aspects to remember when discussing Amazon Logistics are elaborated in the following sections.
Amazon Logistics Key Points to Remember
Complementary Shipping Option
Although Amazon manages nearly 70% of its deliveries, it still shares shipments with FedEx, UPS, and USPS to distribute the workload. To further enhance its delivery service and complement popular shipping carriers, Amazon introduced Amazon Logistics, providing customers with a same-day shipping choice.
It is worth noting for sellers that customer experience may vary when using Amazon Logistics, for it is highly dependent on the specific Delivery Service Partner. Consequently, such changing customer experiences lead to mixed reviews from customers.
Delivery Service Partners
Amazon Logistics has opened its doors to third-party Delivery Service Partners (DSPs) responsible for managing the delivery of customer orders. Amazon Logistics empowers leaders who want to launch and operate their own delivery business.
How Does Amazon Logistics Work?
As previously stated, Amazon Logistics functions as a delivery service designed to enhance the last-mile shipping process, ensuring the prompt delivery of packages to customers. Amazon engages with third-party service providers via the Delivery Service Partners program.
To proceed with the delivery, Amazon Delivery Service Partners pick up the packages from specified Amazon warehouses, depending on the city or region. With the help of the Amazon App, the Delivery Service Partner is guided to navigate the traffic to reach the destination efficiently.
In summary, Amazon Logistics is a last-mile delivery service that collaborates with local and regional delivery service partners nationwide to fulfill customer orders. This shipping service should not be confused with other Amazon logistics programs in general.
What is the Amazon Delivery Service Partners Program?
Amazon has been actively expanding its logistics and delivery network through the Amazon Delivery Service Partners (DSP) program. This initiative allows entrepreneurs and business-minded individuals to start their own package-delivery businesses while partnering with Amazon.
Amazon’s decision to open its logistics operations to third-party service providers aims to enhance the efficiency and speed of its order fulfillment and delivery processes. Through Amazon DSP, participants can benefit from Amazon’s extensive infrastructure and resources, including access to Amazon’s delivery technology, training, and operational support.
These DSPs are crucial in delivering packages to Amazon customers, especially during peak seasons and high-demand periods, like Amazon Black Friday or Prime Day. By offering this opportunity, Amazon addresses its logistics and delivery challenges while creating job opportunities.
The program has gained attention as a way for people to enter the logistics and last-mile delivery industry with the backing of a well-established and recognizable brand like Amazon.
Amazon DSP Program Profit Potential
When you participate in Amazon DSP, you can expect a much easier way of starting your business, especially with Amazon’s delivery volume and resources. According to Amazon, the estimated annual revenue potential is around $1-4.5 million, with a yearly profit potential of $75–300 thousand.
How Amazon Assists Their Delivery Service Partners
Amazon offers exclusive deals on delivery vehicles featuring the Amazon brand and extensive insurance coverage. Additionally, Amazon provides access to professional-grade handheld devices and various other services to assist you in establishing and operating your delivery business.
You will also receive essential training from Amazon, which includes an introduction to the company and its services. You’ll also be able to familiarize yourself with the process and gain insights from other Delivery Service Partners (DSPs) by spending time in a delivery station environment.
Amazon will provide you with a comprehensive set of tools and the necessary technology to ensure the seamless operation of your package delivery business.
Being part of Amazon Logistics gives DSPs access to ongoing support from Amazon. It may include but is not limited to a comprehensive operations manual, driver assistance for on-road issues, and a dedicated Business Coach.
Amazon also shares almost three decades of extensive technology and logistics expertise to assist you in expanding your business through Amazon Logistics.
What is Amazon Flex?
Amazon Logistics expands its delivery capabilities by hiring third-party contractors. In addition to engaging Delivery Service Partners, Amazon also utilizes individual drivers through a program called Amazon Flex.
Amazon Flex operates a straightforward system for individual drivers to follow. Drivers select and reserve schedule blocks according to their availability, allowing for advance scheduling to prevent conflicts.
Once a delivery schedule is reserved, drivers can make deliveries during their designated blocks, earning a flat rate for each block they complete. According to Amazon, most Amazon Flex drivers typically earn approximately $18-25 per hour.
Image Source: Amazon
In order to register for Amazon Flex within the United States, you must have a valid driver’s license, have access to a mid-size or larger vehicle, own an iPhone or Android smartphone, and meet the eligibility requirements of being 21 years of age or older and authorized to work in the United States.
Why was Amazon Logistics Launched?
Amazon Logistics was launched to address several key objectives and distinguish itself from other package delivery carriers. The main goal of Amazon for introducing Amazon Logistics in 2015 is to increase customer satisfaction.
Amazon Logistics was launched for the purpose of providing customers with reliable and faster delivery service. Thus, allowing Amazon to meet the growing demand of consumers while outperforming traditional carriers in terms of speed.
Amazon provides the training, equipment, and resources in order to equip delivery partners with the necessary skills and technology to perform their delivery tasks effectively.
How does Amazon Logistics Differ from Other Package Delivery Carriers?
Amazon Logistics sets itself apart from traditional carriers through its distinctive approach to package delivery. While conventional carriers typically deliver packages during regular business hours, Amazon goes the extra mile by providing deliveries on weekends, evenings, and even during holidays.
In contrast to other carriers, whose delivery windows typically span from 5:00 PM to 8:00 PM, Amazon extends its delivery hours from 6:00 AM to 10:00 PM local time.
Regarding delivery attempts, Amazon DSPs make up to three delivery attempts for each package. In the event that the third delivery attempt is unsuccessful, the packages are returned to Amazon for a refund.
Amazon Logistics Pros and Cons | How Does Amazon Logistics Affect Sellers?
Amazon Logistics has its own pros and cons, similar to other Amazon services. To name a few, here are some of the pros and cons of Amazon Logistics that third-party sellers should know.
Advantages of Amazon Logistics
Access to Amazon Programs
A key benefit sellers obtain through Amazon Logistics is the opportunity to tap into Amazon initiatives like Fresh, Lockers, and Prime Air. Leveraging these programs, Amazon sellers can provide expedited shipping, including same-day and, in certain areas, even two-hour delivery options.
Reliability During Peak Season
Amazon Logistics serves as a dependable substitute during busy holiday shopping periods like Christmas, Black Friday, and Amazon Cyber Monday. If you aim to guarantee the timely delivery of packages, Amazon Logistics is a suitable alternative.
Disadvantages of Amazon Logistics
Lack of Control
Since Amazon Logistics depends on third-party service providers, whether individual drivers or DSPs, they may not necessarily share Amazon’s customer-centric vision. Customer orders may face mishandling or delays due to problems unique to each contractor. Because these contractors are not employees of Amazon, the company does not have direct supervision over their activities.
Feedback Score Impact
The effectiveness of these third-party delivery partners can substantially impact the Amazon seller’s performance. Delays or mishandling of packages may result in increased negative seller feedback or lower feedback scores, directly influencing the Amazon seller’s reputation and credibility.
Amazon Logistics Tips & Strategies
Considering the disadvantages of Amazon Logistics mentioned earlier, sellers on Amazon can anticipate how shipping and delivery service can negatively affect their feedback rating. To address this concern proactively, here are some important points to keep in mind:
Upon receiving a customer order, it’s essential to quickly reach out to the customer to confirm that their order is in progress. After the package has been collected, furnish them with a tracking link. Maintaining open communication channels is vital to nurturing a positive customer relationship.
In order to boost your feedback rating further, you should politely request customer feedback. It will motivate them to provide positive comments about your product and overall service.
When faced with problems related to mishandled packages, it is important to adopt a proactive mindset and prioritize resolving the issue over assigning blame. Be accountable for legitimate customer complaints and try to rectify the situation to the extent possible.
When you learn to implement these strategies, you can navigate the intricacies of Amazon Logistics and enhance your customer interactions while decreasing the likelihood of feedback-related issues.
Common Questions About Amazon Logistics (FAQs)
Here are some frequently asked questions about Amazon Logistics. Familiarizing yourself with these inquiries will expand your knowledge and provide valuable insights into Amazon’s delivery services.
Does Amazon Logistics deliver on weekends?
Yes, Amazon Logistics partners conduct weekend deliveries. Nonetheless, it’s imperative to tell customers they must adjust their preferences and choose weekend delivery as their preferred shipping method.
How can I update delivery time to weekends?
To modify the delivery schedule to include the weekend, you simply access your Amazon account and adjust the delivery time within the “Delivery instructions (optional)” section. It can be found under your Amazon accounting settings, under address.
Image Source: Amazon
Where is Amazon DSP available across the U.S.?
The list of places where Amazon DSP is available comprises 42 regions, including 41 states across the United States and the District of Columbia.
District of Columbia
What other countries have an Amazon DSP program?
Amazon Logistics‘ DSP program is also available in other countries, including the following:
Canada – logistics.amazon.ca
UK & Ireland – logistics.amazon.co.uk
Spain – logistics.amazon.es
Germany – logistics.amazon.de
Itay – logistics.amazon.it
Brazil – logistics.amazon.com.br
India – logistics.amazon.in
How can I update customers with their Amazon Logistics shipments?
You can provide customers with an Amazon logistics tracking link to keep them informed about their orders. Additionally, you can recommend that customers enroll in Shipment Updates via Text for swift notifications.
To access this feature, customers must log in to their Amazon account and select “Account” from the dropdown menu located under the customer’s name.
Image Source: Amazon
Once redirected to their account page, they need to scroll down and look for the “Communication and content” section.
Image Source: Amazon
Customers should click “Shipment updates via text” to be redirected to another page.
Image Source: Amazon
Once redirected, customers can now add their mobile number to receive SMS notifications.
Image Source: Amazon
Unlocking Earnings and Improving Shipping Solutions with Amazon Logistics
Apart from selling on Amazon, there are other ways through which you can earn money from Amazon, including participating in Amazon Logistics service through the Amazon DSP program. This Amazon program is designed to help entrepreneurs penetrate the package delivery industry easily.
From a seller’s perspective, Amazon Logistics can be a helpful alternative, especially when Amazon warehouses or delivery stations are overwhelmed with inventories and customer orders during the peak shopping holiday season. This ensures that you maintain your commitment to delivering high-quality service even when facing a surge in order volume.