Many small businesses have long been dependent on Amazon’s platform and delivery pipeline to promote their business.
ByMae Anderson AP Business Writer
FILE – The Amazon logo is displayed on September 6, 2012 in Santa Monica, California. Amazon’s profitable cloud business will invest about $7.8 billion in Ohio through the end of 2029 to expand its central data center operations, state leaders announced Monday, June 26, 2023 — positioning itself as the technology hub of the Midwest. To further the efforts of the state to establish as (AP Photo/Reid Saxon, File)
The Associated Press
Many small businesses have long been dependent on Amazon’s platform and delivery pipeline to promote their business. Now, Amazon wants to enlist them to help with deliveries as well.
The e-commerce giant on Monday officially launched a program it has been running since 2020 that pays small business owners to deliver packages during the “last mile” of delivery to customers’ doorsteps. Axios first reported the launch.
Amazon has long been working on finding new ways to deliver packages faster and more efficiently, including partnering with third-party delivery companies, increasing its warehouse space and taking other steps.
The program, called Amazon Hub Delivery, will operate in 23 states and focus on rural areas and large, dense cities, including Seattle, New York, Los Angeles, Boston and Hoboken, New Jersey.
Small businesses do not need to have delivery experience to apply for the program. But Amazon said businesses should be able to make daily deliveries, deliver packages with existing staff and vehicles, receive packages daily and store them in a secure area until delivery.
Exact pay hasn’t been disclosed, but Amazon estimates that a small business delivery person can earn up to $27,000 per year. If a company delivers 30 packages a day — as Amazon says they’ll receive on average — including weekends but excluding major holidays, that works out to about $2.50 per package.
Amazon said it is interested in partnering with flower vendors, coffee shops, clothing boutiques, gas stations, plumbers and hair salons, but it will also consider other businesses.
For the time being the program will be small. Amazon is looking to partner with 2,500 small businesses by the end of 2023. According to the Small Business Administration, there are over 33 million small businesses in the US. Interested small businesses can apply at amazon.com/hubdelivery.
