If you are looking to expand your Amazon Delivery Service Partner Business, you might wonder if it is the best idea for you. There are all kinds of reasons to expand any business, but it’s a good idea to evaluate your “why” before you dive right in.
In the case of an Amazon Delivery Service Partner business, there are at least five reasons you should consider expanding your business and taking on new routes and territory. Here are some things you need to know.
Increased Revenue Potential
The first reason to expand your route is the increased potential for revenue. You can expand your profits and the overall amount of money your business earns by simply adding new routes and customers. In this case, this will mean purchasing new routes, either from another Amazon Delivery Service partner or waiting for an expansion route to become available through Amazon’s system.
But this increase in delivery volume almost always results in increased profits, and while your percentage of ROI may remain close to the same, it can also improve as you add efficiency to your existing fleet, staff, and routing. This increase may allow you to make vehicle improvements, increase payroll expenditures to keep good drivers and employees and offer you more peace of mind as a business owner.
Expand Your Amazon Delivery Service Partner Business to be Recession Proof
It may seem counterintuitive to purchase more routes during a recession, but that is exactly where many route owners find success. Having a wide variety of customers you serve means that even if overall delivery volume suffers, you can still weather any downturn simply by serving a wider and more diverse population.
The shift to at-home shopping and delivery means that even in slower economic times, households are still ordering online. This is often because online shopping is cheaper and faster than buying from a local retailer, and it doesn’t require them to spend valuable time and gas money to leave the house.
Last-mile delivery has become a pretty stable business investment since the pandemic opened the door to new delivery possibilities and will likely stay that way for a long time to come.
Create New Opportunities for Others
Expanding your Amazon Delivery Service Partner Business also impacts your ability to help others. You’ll need to hire drivers and potentially other team members, and you can make a difference by offering them market-level pay and hours, providing jobs for those in the industry who need them most.
Your business also impacts others who work for Amazon, both in the shipping terminal, in the warehouse and beyond. This can make you feel good in not only improving your own situation but that of others as well.
Expand Your Amazon Delivery Service Partner Business to Impact Your Local Economy
Others who work for Amazon are not the only ones expanding your business impacts. It makes a difference to your local economy as well.
- Your drivers and employees spend money with local businesses
- You’ll need repairs and maintenance services from other local service people, and in turn, they spend money in the local economy
- Your purchase of fuel and other items also impacts the businesses you shop with.
This is especially true if you make a conscious effort to “shop small” and work primarily with small, local entrepreneurs like you.
Better Distribute Risk
Finally, choosing to expand your Amazon Delivery Service Partner business means you better distribute your risk as a route owner. Similar to making your route recession-proof, expansion means you are not dependent on the economic status of only a single area in your region, but you are protected by diversity.
This also means you have more drivers and employees to cover routes if someone is out sick, more trucks to use if one is in need of repairs or maintenance, and the ability to leverage the size of your business.
For example, you can use gas point cards to save money on fuel, and other rewards company cards that can earn you cash back, and at a greater scale, those things can really add up, offering you a cushion you might not have otherwise.
Every entrepreneur wants to lower their risk wherever possible, and business expansion is often a great way to do just that.
Whether you are new to the Amazon Delivery Service Partner experience or you are looking to expand what you are already doing, contact us today at Route Advisors. We’d love to help you find the right business or additional routes for you, and we’ll be with you every step of the way.