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Amazon Helps Employees Launch Small Businesses

Amazon Delivery Service Partner
Amazon Helps Employees Launch Small Businesses

Amazon is giving employees a financial incentive to launch a small business – but not as online sellers. It’s giving US employees up to $10,000 and 3 months’ salary to build a package delivery business through its Delivery Service Partner (DSP) program.

Since launching in June 2018, Amazon’s DSP program has helped create more than 200 small businesses, who have hired and created jobs for thousands of people nationwide, a spokesperson told EcommerceBytes today. “As part of Amazon’s commitment to empowering employees to achieve their career advancement goals, the company will support employees-turned-entrepreneurs with consistent delivery volume, technology support, hands-on training, and discounts on various tools and services, including Amazon-branded vans, branded uniforms and comprehensive insurance,” she said.

Press release follows:

Amazon announced today the expansion of its Delivery Service Partner program in the US with a new incentive for current Amazon employees to start a small business owning and operating a package delivery company. The new incentive will fund the startup costs, up to $10,000, as well as the equivalent of three months of the former employee’s last gross salary so employees-turned-business-owners can more easily get their package delivery companies off the ground.

“We received overwhelming interest from tens of thousands of individuals who applied to be part of the Delivery Service Partner program, including many employees,” said Dave Clark, senior vice president of worldwide operations. “We’ve heard from associates that they want to participate in the program but struggled with the transition. Now we have a path for those associates with an appetite for opportunities to own their own businesses.”

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Amazon will take an active role in helping interested employees launch their own package delivery businesses. An employee will leave their role at Amazon to build their business knowing they will have consistent delivery volume from Amazon, access to the company’s sophisticated delivery technology, hands-on training, and discounts on a suite of assets and services, including Amazon-branded vans customized for delivery, branded uniforms and comprehensive insurance.

Amazon’s new incentive will fund the startup costs, up to $10,000, for its employees-turned-small business-owners in the US who want to build their own delivery companies. Amazon will also provide financial support with a payment equal to three months of the former employee’s last gross salary while they build their new package delivery business.

This program is the latest example of Amazon initiatives aimed at encouraging employees to develop and advance their careers. Across the US, more than 12,000 people have already taken part in Amazon’s Career Choice program where Amazon pre-pays up to 95% of tuition for courses related to in-demand fields, up to $12,000, regardless of whether the skills are relevant to a career at Amazon.

Since the launch of the Delivery Service Partner program in June 2018, Amazon has enabled the creation of more than 200 new small businesses that have hired thousands of local drivers to deliver packages to Amazon customers. This year, the company plans to add hundreds more new businesses, starting with employees-turned-business-owners. Additionally, this program offering has expanded to employees in the UK and Spain. For those interested in starting their own business delivering Amazon packages, visit logistics.amazon.com to learn more.

Small Business Support

The 2019 Amazon SMB Impact Report revealed there are more than 1.9 million businesses working with Amazon in the U.S. – selling in our stores, operating a delivery service provider, using Amazon Web Services, running an Alexa Skill, or publishing via Kindle Direct Publishing. Since 2011, Amazon has invested tens of billions to help small and medium-sized businesses (SMBs) succeed, and SMBs have created 1.6 million jobs worldwide to support their sales in Amazon’s stores. The company recently launched Build Your Business with Amazon to help businesses interested in working with Amazon get started.

SOURCE: Amazon Press Release

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Ina Steiner
Ina Steiner
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com.

One thought on “Amazon Helps Employees Launch Small Businesses”

  1. If it was an attractive opportunity, Bezosbub wouldn’t be offering it to employees. This is actually a way to skirt unemployment/severance. Step 1, get them to become contractors. Step 2, deprive them of delivery business. Step 3, let them fend for themselves collecting unemployment or finding another job.

    Better still if the $10K comes in the form of an “education” loan that can’t be discharged in the inevitable bankruptcy filing. Oh, they’ll get an education alright, just not the one they were expecting…

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