How do you apply to become part of the program? First, interested entrepreneurs must be audited and approved by Amazon.
In its first online application, Amazon provides five qualifications for the Delivery Service Partner Program:
- "Experience in Hiring and Developing Great Teams"
- "Committed to being DSP Owners Full-Time"
- "Available cash and cash equivalents of at least $ 30,000"
- "Strong credit history"
- "Prior business owners preferred but not required"
In addition to your basic contact information, only a few "Yes or No "Asked questions about your experience, past bankruptcies, and ongoing financial assets. After you have expressed interest (and confirm that you have $ 30,000 in the bank), there is a longer application that Amazon will ask you to fill in, according to the website. Depending on the application, it can take between one month and six months to start as a delivery service partner.
For those who are included in the program, the power of the Amazon brand should not be underestimated, New York University's star School of Business Professor Anindya Ghose tells CNBC Make It.
"Identify with the Amazon brand "Even if you're one of several hundred suppliers, it's extremely powerful," says Ghose. If you set up your own low-cost small business on your own, "then it's just your brand, and it will take forever for everyone to establish their own brand, and I think that's the biggest difference for me." 1
Plus, the branding connection means you're bound to Amazon in some ways, explains Jeremy Kagan, associate professor of marketing at Columbia Business School and managing director of the Eugene Lang Entrepreneurship Center. And that can limit your ability to scale.
"If you go through all the difficulties of starting a business, it will usually be your employees in the later years that you have established yourself. I have your business, that you start to reap the rewards of growth and maybe ultimately for sale, "says Kagan. But in a business that depends on another brand as a primary (or only) customer, "I do not know you have a great ability to grow from there."
Amazon delivery service partners could not be reached instantly for comment
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