Business

Amazon is about to launch Amazon Logistics in Brazil: Tecnoblog

Amazon Delivery Service Partners program wants to create a network of small independent delivery companies that take care of shipping orders on behalf of Amazon

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  • According to Amazon, the program demands low startup costs (about BRL 45,000 to begin the business) abs provides built-in demand, and access to Amazon’s technology and logistics experience;
  • The so-called DSP program is already available in the US, Canada, UK, Spain, Germany and Italy.

Amazon is about to launch its own logistics service in Brazil to compete with Correios, Loggi and others, first reported Tecnoblog.

The e-commerce giant has opened an application program to recruit small delivery companies in four major cities in Brazil. It has also opened more warehouses to speed up deliveries in several regions.

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According to Amazon, with low startup costs (about BRL 45,000 to begin the business), built-in demand, and access to Amazon’s technology and logistics experience, Amazon Delivery Service Partners program wants to create a network of small independent delivery companies that take care of shipping orders on behalf of Amazon. It is looking for delivery service providers in São Paulo, Rio de Janeiro, Belo Horizonte and Brasília.

According to Amazon, the BRL 45,000 amount to begin the business is not a fee paid to Amazon, but represents its estimate of what it will cost to cover key startup costs including legal entity formation and licensing, professional services like accountant and lawyer fees, set up supplies such as a laptop and timekeeping software, recruiting costs such as job postings, drug tests, and driver training, and the entrepreneur’s travel for training.

“Upfront costs for delivery vehicles are excluded from our estimate as there is no upfront cost for delivery vehicles procured through the delivery vehicle leasing program negotiated by Amazon,” it said.

The so-called DSP program is already available in the US, Canada, UK, Spain, Germany and Italy.

READ ALSO: Amazon says sellers racked up $4.8 billion in global sales over holiday weekend

According to Amazon, estimate revenue projections for owners operating with up to 20-40 vans may reach a monthly revenue potential of BRL 150,000 to BRL 350,000 and a monthly profit potential of BRL 12,000 to BRL 22,000.

Currently, in Brazil, Amazon delivers through Correios, Total Express, Sequoia, Loggi, Jadlog, Shippify, OnTime, Diálogo, Dominalog and TLOG (Venkon).

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Amazon is also hiring software developers in Brazil, product and program managers and designers to be part of the logistics service.

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