An Amazon Prime Delivery Route can be a great way to start your own business. From purchasing from Amazon or a current route owner, you can find your way into a profitable business backed by one of the largest names in last-mile delivery.
But these routes can also be sold or reassigned if you already own one. There are some key differences between an Amazon Prime Delivery Route and how this process is handled. Here are some facts you need to know.
Purchasing an Amazon Prime Delivery Route
There are two ways to purchase an Amazon Prime Delivery Route: you can purchase directly from Amazon when a new route in your area becomes available, or you can purchase from an existing route owner.
- Purchasing from Amazon is cheaper at the outset. You’ll have to have a certain amount of money in the bank, but you can purchase the route itself at a low cost of entry and you can lease trucks directly through an Amazon program. This program allows you to start a last-mile delivery business as long as you meet certain company requirements.
- Purchasing from a current owner still requires you to pass some Amazon training, background and credit checks, and a driving record check. However, even though the route will cost you more in the short term, you know that you are purchasing a profitable business that is already established.
The final difference between the two is that if you purchase through Amazon, you have to wait until there is a route available in your area. If you purchase from an individual, the route already exists, and there is no waiting period for it to be established.
Either way, it’s a good idea to consult with a route broker. They can tell you what routes are available, how long you might have to wait in your area for Amazon to create a route, and more. They’ll know about financing options and can help you every step of the way through the purchase process.
Selling to a New or Existing Route Owner
On the flip side, if you already own an Amazon Prime Delivery Route, you can sell it to a new or existing owner. Again, there are a couple of pros and cons to each.
- If you sell your route to an existing owner who wants to expand their business for whatever reason, you know they are already in the Amazon system and approved. In this way, you can choose to sell your entire Prime Delivery business or you can break off individual routes (we’ll talk about that in the next section). There’s generally no waiting period to sell to an existing owner other than the typical financing and due diligence periods.
- If you sell to someone new to the Amazon Prime Delivery business, there can be a little bit of a waiting period while they go through the process of being approved by Amazon. However, you are also getting a motivated buyer who might struggle to get a route through other means, especially if their area is saturated. This can not only speed up the process but help you get the price you are looking for as well.
Selling an Amazon Prime Delivery business is just like selling any other business. You’ll need to have your financial statements like your profit and loss, banking, and tax information prepared. But once your buyer does their due diligence, the process can be a relatively simple one. This is especially true if you have used a route broker who can help you navigate any pitfalls you might find along the way.
Reassigning Your Amazon Prime Delivery Route
If you have a route that is part of your business but you want to reassign it to another owner, you can do that as well. There are a couple of ways to go about it, and you might want to do this for a variety of reasons.
You may want routes all the same geographic area, or that are adjacent to each other. To get that, you can trade routes with someone else who might be looking for the same ways to improve their business.
You also may find yourself overwhelmed and wish to offload one of your routes. You can do that through reassignment as well, almost like a sale of part of your business. A route broker can help with that process as well.
An Amazon Prime Delivery Route can be a great small business, one that is profitable, flexible, and sustainable. But whether you are looking to buy, sell, or reassign routes, there are options for you. When you’re ready, contact us here at Route Advisors. We’ll be with you every step of the way.