Can I Own Amazon Routes?
There is a common misconception that you cannot purchase or assign your Amazon delivery routes.
The truth: You can purchase or reassign routes.
Our team has helped many Amazon DSPs find a new owner over their operating rights of the business. Going through the acquisition process within the Amazon network is similar to becoming a FedEx Ground contractor. There are a few different ways to become an Amazon DSP, similar to becoming a FedEx contractor.
Ways to Own Amazon Routes
There are two ways you can own Amazon Routes:
Purchase from a current Amazon DSP: As stated previously, you can acquire a business from an existing DSP that has a delivery operation in a specific market.
Directly through Amazon: If you want to acquire an operation, you can do so directly through Amazon’s award system. The award system is similar to if you were applying through buildagroundbiz. One of the challenges with taking this approach is that you may not be able to acquire rights in your specific market.
As it stands today, some territories already have a dense portion of operators covering that specific market. Like the FedEx network, you are under an annual operating agreement when you operate for Amazon. From what we see, the Amazon model is identical to the FedEx space meaning the contract renews each year, assuming you are a successful DSP and maintain your contractual requirements with Amazon.
Currently, we do not see contract negotiations happening within the Amazon space. However, on the FedEx side, contractors can negotiate the terms of their contracts each year. Amazon renews the agreement every year and will roll out and release rates accordingly.
You Do Not Own Exclusive Rights
One of the significant differences between Amazon and the FedEx space is that you do not own exclusive delivery rights to a set delivery territory. Instead, you will be assigned general delivery to a market. There is some flexibility within the Amazon network to shift delivery areas within a broader market to accommodate the expanding or changing needs of volume density.
Want to Learn More?
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