Some interesting pieces of information suggest that Amazon could hand over the delivery of customer packages to small companies. Well, the company has been testing this strategy for quite some time now. Amazon is allowing companies to deliver the product to consumers.
Previously, the company initiated a similar project under the name “I Have Space.” The initiative worked and made its way to the Japanese market. The company also tried testing the new strategy in America back in 2020. However, it was not as successful as other markets. For this reason, the company shifted its focus to rural areas.
Amazon will allow small companies to deliver customer packages
The new project is named Amazon Hub Delivery. It is believed to be operational on a huge scale. The company has initiated the new project in some major cities like New York, Boston, and Los Angeles. With time, the project will be introduced in other markets as well.
Well, the project will work in a simpler manner. The company will collaborate with a few small firms in the selected regions. The company has not specified any conditions for business types that could be targeted. However, small companies are required to have large storage spaces in order to keep the packages safe and damage-free.
There will be some other requirements for small businesses as well to be eligible for the Amazon Hub Delivery. If the packages are damaged in any way while being transported to their destination, both Amazon and the small business will suffer. The small company will then deliver the package to the intended client. The businesses will handle the last part of the delivery, and Amazon will let its couriers go on to other deliveries.
Furthermore, the small businesses will benefit as well. As per the estimates by Axio, the companies could earn $2.50 per package. Of course, it is a small amount but adding it up with several deliveries can end up in $27,000 a year for the small company. As of now, the company is spreading the project. The company will reportedly collaborate with at least 2,500 businesses by the end of 2023. There is no certainty whether the project expands to other locations by then or not. Well, there are some chances for this as well.
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