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Amazon franchise cost in India

Amazon franchise cost in India
By ishant
Published on February 5, 2024

Amazon is an e-commerce brand headquartered in Seattle, Washington, United States. Revenue from sales in India makes about 13 percent of International revenue. By the following year, this is expected to increase to 35 percent.

Since the pandemic, companies such as Amazon have been booming. The company is said to focus more on being an eCommerce brand where affordability is the focus.

Amazon began its presence in India in the year 2013. By 2018 the e-commerce brand has grown rapidly. Even to date, it is the same.

Amazon Delivery Franchise should have a space of 200 to 300 sq feet area. Amazon has about 10 percent of sales. Amazon Delivery Franchise income currently stands at 2,00,000, and it is said to increase in the next few months.

The Return on Investment is approximately 25 percent. The Amazon Franchise may get the return in about 6 to 8 months. The Franchise may require 30 to 40 vans with well hourly trained employees.

Amazon supports the franchise in mentoring their teams. If the operational plan is perfect, one may be able to run the company seven days a week.

Who is the Amazon Franchise for?

Anyone who has the manpower of drivers and operations can apply. The main factor is also one who is a good leaderThe space or an office, either rented or owned, is needed.

Customer obsession is the attitude that a franchiser is expected to have. This is because Amazon is customer-centric.

1.Why Choose Amazon Indian Franchise?

Amazon India Franchise is for someone who can run a fleet of 30 vans and has an excellent operational plan. The team should consist of 100 employees who are high-performing.

Amazon helps its franchise become better over time. This is a high-demand franchise as the Amazon presence in India is said to increase in the coming months.

Since the pandemic, the number of people buying online has increased. Leadership skills are very crucial. If one is a great leader, they may feel this job is a great way to run your business.

2.What is the cost of the Amazon Franchise?

If you are to become an Amazon Franchise in India, it is important to consider the following requirements. Office space of 200 to 300 sq ft area. The fee for Amazon Franchise can be about 1.5 to 5 lakh rupees. The liquid assets requirement is up to 8 lakhs.

The following are other costs involved:

  • Fuel expenses

  • Van fleet maintenance 

  • Salary of the Employees

  • Rent of the Office

  • Electricity

  • Administrative

  • Internet expenses

  • Payroll, insurance expenses

  • Insurance

  • Background checks and job posting

  • Professional services

  • Ongoing training

3. What are the documents and registration requirements?

The following are the documents that are required for applying for Amazon Franchise.

  • Passport size photographs
  • The Passbook and Bank account details.
  • Identity proof
  • Financial statements such as balance sheet 
  • The GST registration and number

4. What are the major requirements to start up an Amazon Franchise?

There are multiple requirements for becoming an Amazon Franchise. The list is as clockfollows:

  • The franchise's core work is to deliver products securely and timely. They should have 20 vans and about 40 bikes. The parking of these vans should have 120 cubic feet of space. They should have health certifications for the same.

  • There should be a team of 100 employees who are high-performing. They should wear high-visibility jackets at all times along with their identity cards.

  • Rotational shift workers are a must. This is because Amazon delivers 24/7 around the .The important requirement has GST requirements. GST compliance is another need for proper periodic payment, invoicing, and filing of returns.

  • A chosen Delivery Service Personel you would get access to Delivery Stations of Amazon.

The following are the other requirements for becoming an Amazon Franchise:

  • No experience requirement :Amazon requires no Experience. It is just about having the vans and human capital. The training is something that the company takes care of. The person should have good leadership skills.

    The company has even the relevant technology to mentor and train the employees on the operational plan.
  • Amazon Franchise support: Amazon provides the support for running the franchise as smoothly as possible. Any difficulty during the everyday operations. Amazon is at the doorstep to help the franchise to be able to run smoothly.

    A happy customer is the very core objective of Amazon. They tend to make sure that everything is done perfectly.
  • Cost Involved: The cost involved in starting the franchise is about 1.5 lakh rupees. But the liquid asset requirement is 8 to 6 lakhs. This is the average cost of being an Amazon Franchise.
  • Management: Managing is something very crucial for any company. The employee's performance is the core of running a successful business. If a franchise does not have a satisfied workforce, this may directly affect the smooth functioning of the business.

    A great workforce feels encouraged to work in the right environment. The employee's situation in the company directly reflects their work. It is crucial to have a high-performing and happy team of employees.

5.Amazon Franchise and responsibilities:

  • The first and most important responsibility of a Franchise is putting up schedules.
  • They set up routes as an Amazon Franchise.
  • Setting up tasks for each member of the team.
  • Hiring and vetting of employees as one requires highly trained personnel.
  • Making priorities of key business services and executing them in a timely and efficient manner.
  • Work with business advisors and legal teams regarding the delivery service.
  • Amazon preaches to exceed the expectations of customers at every single delivery made.
  • They should have good leadership capabilities.

6. Profits expected are as follows:

Amazon Delivery system considers having a team of 10 employees who would work under the operations outlet. This is art from the 10 to 20 van drivers. They should all take up the two weeks training program to qualify.

The profits may be from 50,000 rupees to 2 lakh rupees. The rate of return is 20 percent within a period of 4 to 6 months.

7.Steps to apply for Amazon India Franchise:

  1. Sign up for the Amazon DSP Portal 

  2. Fill out the details in the application form. The common details to be filled out are Bank account details, employee recruitment procedures, and payment details for employees.

  3. The application submitted would be reviewed, followed by an interview process.

  4. Once the selection is m ade, the employees must take the two weeks training provided by Amazon India.

  5. Set up business as per the rules, and then work begins

  6. Start delivering by selecting the business, address, and delivery instructions and save the Amazon India Franchise.

  7. The amazon team would move forward if they find the necessary demand in your region appropriate.

Types of Amazon Franchise :

  • Amazon Logistics Franchise: Amazon delivery services which include shipment, come under this franchise. There are options of 5 days or same-day delivery. 
  • Amazon Flex Services:  This helps people earn an amount of Rs 150 to 200 an hour. How is the money made? This is through delivery by individuals. People above the age of 18 years are eligible for this role.

Advantages of starting up a Franchise with Amazon

  • It involves very little cost. The franchise costs about 1..5 lakhs. Along with this, 6 to 8 lakhs are the liquid assets needed.
    They want to make sure the delivery is made with a smile. The products are safely delivered.

  • Using the training and processes to run the business. No requirement for experience. The employees could take two weeks of training to perform at the company.

  • The focus is on having high customer satisfaction. The high satisfaction they have, the better the company would get in sales. Happy customers are what amazon wants, and it expects the same from its franchisers.

  • For the operations to run smoothly, the company also provides support apart from its training. The company focuses on the free flow of delivery. It considers itself a customer-centric business.

What are the various actions Amazon does as part of the Franchise?

  • Get You Started
  • Amazon gives its Franchise exclusive deals for insurance.
  • Training 
  • Hands-on training for two weeks is followed by one week of online training. One week of on-field training. Along with already existing franchise employees. The company has about 20 years of experience in the field of Logistics.
  • Toolkit
  • To keep the company running smoothly, a toolkit is given smooth running of the business.

What is expected from the franchisers?

  • Setting up the Business.

    The franchise can make use of the suite of Amazon-exclusive deals. The franchisers are expected to take the in-class service providers to keep it rolling.
  • Building a high performing team:

    the franchiser is expected to maintain well-trained employees. The drivers should be well trained and should be able to handle crises. They should also have a team of ten who does the operational activities in the organisation.

    The training is provided for all employees of Amazon.
  • Delivery:

    The customers could undertake 70 routes per day. About thousands of customers are delivered every day. The team should cooperate to ensure their free flow of deliveries.

    The company maintains a customer-obsessed culture. All the franchisers are expected to maintain the same goal as part of the Amazon team.

What are the goals which are to be followed?

Have good leadership skills which inspire those in the company. Make sure that the franchiser makes the right decisions. Customer obsession should be part of the goal. Delivery should be beyond expectations.

The attitude that inspires labour intensive work. Amazon franchise is about door to door delivery, and this is crucial to deliver with a smile.

Conclusion

Amazon entered the Indian market in the year 2013. The revenue for the company has been drastic in the past few years. The tempting deals from the company have been making it more attractive than any other company.

The company requires delivery to be fast and smooth to make their customers happy. Being a drop shipping business, these are the priorities. The DSP is in demand for the next few years. The revenue may increase over the years.

The Franchise of Amazon may likely make profits and be able to cover costs. There is always 24/7 work with all 361 days. The profits are on the rise. The application process and selection are quite easy as compared to other methods.

This franchise is for people who are customer-obsessed and are great leaders. Customer satisfaction instead of profit-making is the priority at Amazon. Amazon is a customer-oriented company, so the same is expected of franchisers.

Frequently Asked Questions (FAQs)

Q1. Is the Amazon Franchise profitable in India?

Amazon is a company headquartered in Seattle. The eCommerce brand is highly successful in the Indian market. The company gives tempting discounts for most of its products.

This makes irresistible purchases by many in India. Also, since the Pandemic, the company has earned high profits. As people need goods to be delivered to their doorstep, the need for amazon delivery service has spiked in the past two years.

Q2. How much does an Amazon Franchise Cost In India?

An Amazon Franchise cost is about 1.5 lakh rupees. But the entity applying should have a fleet of vans and bikes. A 200 sq ft space with a health certificate.

A 10-employee operational team. Also, there should be capital available for repair and maintenance, salary, rent, electricity, internet charges, etc.

Q3. How much does the Amazon Franchise make?

Amazon Franchises make 50,000 to 2,00,000 lakh rupees profit. The return on investment can be covered within a time of 6 months. The costs involve a space, vans, bikes, employees, electricity etc.  Apart from that, a 10 per cent commission on sales is allocated to the franchisers.

The annual revenue potential is 1.8 crores to 3.6 crore rupees.

The annual profit potential stands at 19.2 lakhs to 13.5 lakhs.

Q4. Does Amazon do Franchising?

Amazon does delivery franchising. Delivery is the key to the business of amazon. This is taken care of by making companies deliver the product in time with great care the products—the company franchises in multiple countries around the world and India.

ishant

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About the Author

Currently working as an Editor in Chief with Ankuraggarwal.in, he is managing all the ins and outs of the content management process and editorial operations. Having an experience of 8 years in the publishing/ e-solution industry, he manages a small freelancing team of fellow editors and has worked with several domains including academics, healthcare, lifestyle and technical writings. He is a stickler for accuracy and loves to read noir-fiction and binge-watch anthologies.

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