As a delivery service business, are you planning to partner with Amazon in their relay program?
Is this your next business strategy to improve revenue? If it is, you have made a wise and profitable choice. According to industry stats, Amazon now holds over 21% of the US logistics market share. Despite not starting as a logistics company, this growth in industry domination surpassing other companies like FedEx (16%) is what you must keep an eye on.
As businesses crank up their delivery services, there needs to be a stable way to carry on these load fulfillments that Amazon is burdened with. The Amazon Relay program bridges your business and better profitability in the fleet services industry.
In this article, you will understand what Amazon Relay is truly about, Amazon Relay requirements, the benefits of joining Amazon relay, and a software that can 10x your Amazon profit.
Table of Content
What is Amazon Relay?
Amazon Relay is an exciting program beneficial for fleet services and delivery business owners. Moreover, Amazon is one of the largest competitors in the market today, following long-time players like FedEx and UPS.
Amazon Relay is a service by Amazon that allows businesses, truck owners, and freight services to carry and efficiently deliver goods from Amazon. This novel idea by Amazon has brought more profitability to most of its partnering businesses.
The great thing about this program is that service businesses in the delivery industry get to grow along with Amazon.
Companies with the vehicular capacity to transport heavy volumes of Amazon load can join the Relay program. This collaboration between fleet services and Amazon has led to a highly fruitful collaboration, ensuring an outlet for growth in the business of service owners.
How Does Amazon Relay Work?
Amazon Relay is a program that allows you to join the Amazon Load Board. It is a network of Amazon load postings available with all transparency. For truck contractors, you can easily book weeks’ worth of trucking schedules ahead of time.
The Relay Load Board is where the ‘work’ is posted. Instead of Amazon assigning loads or planning each route, it is posted on the Amazon Relay service that registered users can then view. This service is also absolutely free for any business to register.
Organizations with large volumes of deliverable load can also post them on the portal. Fleet owners and truck services can then easily select the ones that fall under their schedule and run these routes.
Amazon Relay ensures service owners consistency in load delivery work throughout the year. In addition, the important thing to understand is that Amazon alone cannot run the billions of load fulfillment they receive.
This is where service partners like fleet services play an important role. Amazon ensures the smooth and timely delivery of goods by partnering up with local fleet services like yours.
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Amazon Relay Requirements
Amazon requires that carriers ensure a safety rating of satisfactory, abide by required insurance policies plus Amazon Relay insurance coverage requirements, use recommended equipment types, and follow a lot more.
Let’s clearly understand all the requirements to join Amazon Relay in detail.
1. Amazon Relay requirements for fleet owners
For owners that own small or large fleets, Amazon requires:
- DOT identification in active status, that is active DOT number.
- Valid MC number (Interstate Authority).
- Federal Motor Carrier Safety Administration (FMCSA) safety rating is required.
- Amazon demands acceptable Federal Motor Carrier Safety Administration (FMCSA) safety rating of “Satisfactory”, “None”, or “Not rated”.
- “Carrier” entity type Authorized for Property and Hire.
Apart from requirements like an active DOT number, valid MC number from interstate authority, and more, some other additional requirements are vehicle maintenance, HOS compliance, driving score, etc. Amazon requires these scores to be at least 60% and above to be approved by Amazon.
2. Amazon Relay insurance requirements
Besides these above documents, fleet service owners must also discuss Amazon Relay insurance requirements with an insurance company as mentioned on the official Amazon website.
Amazon Relay insurance requirements include:
- Commercial General Liability of a minimum $1,000,000 per occurrence is one of the first Amazon Relay insurance requirements. In aggregate, this equates to $2,000,000. Commercial general liability covers typical body injury or property damage caused by your services, for instance.
- Auto Liability includes $2,000,000 in the aggregate Auto Liability and not less than $1,000,000 per occurrence, with $50,000 trailer replacement coverage. This entails commercial vehicle insurance. All damages caused by vehicular accidents come under this insurance.
- Commercial Auto Insurance is applicable if you use a truck or van for commercial purposes. Commercial insurance coverage includes damages or injuries caused by accidents.
- Cargo coverage of a minimum of $100,000. This insurance deals with all damages to goods while in transit.
- Workers’ Compensation insurance covers all areas where your company operates from. All employees under your company will have mandatory workers’ compensation insurance.
- Employer Liability of a minimum of $100,000 per occurrence. Lastly, employer liability protects against employment issues ranging from discrimination to wrongful termination.
3. Box truck requirements
Amazon Relay allows fleet services to use trailers, dry van trailers, box trucks, day cabs, sleeper cabs, reefers, etc.
The size requirement for the Amazon Relay box truck is as follows:
- Tractor: Day cab, Sleeper cab, Box Truck.
- Trailer: Reefer, 53’ Dry van, 28’ Trailer.
4. Additional Amazon Relay requirements
A few other requirements relate to the Amazon Relay app that service operators like vehicle drivers need to use. The app helps truck drivers reach their destination with additional information like delivery time, gate information, and more.
Ensure that your iPhone operates with iOS 11 and Android devices are at least version Android 7 or more.
These are just device requirements to ensure running the app smoothly on your mobile device.
Why Should You Join the Relay Program?
Amazon logistics delivered around 4.2 billion packages in 2020. During the pandemic, the surge in delivery skyrocketed. As transportation companies, now is the perfect opportunity to jump into the delivery industry, and the best way to do that is through the Amazon Relay program.
Joining the Amazon Relay program is a great way to boost the profit of your trucking company and the trucking industry in general. It also leads to great credibility in the industry. Partnering with Amazon is a great step toward very good business growth.
From a service business standpoint, the Relay program is a great strategy to reach more customers and find new prospects that turn into loyal and long-term customers.
Benefits of Joining the Amazon Relay Program
Some benefits of joining the Amazon Relay service are stated below.
- The biggest benefit is that there is no shortage of load delivery with Amazon.
- Getting paid through the Amazon Relay program is a relatively easy endeavor.
- Choosing short-term contracts is beneficial for many businesses, and advanced booking is a service feature.
- Simple and modern driver application that is simple and gets the job done.
- With its advanced technological tools, Amazon is a great platform to improve your trucking business.
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Want to Drive for Amazon? Find the Best Routes on Upper Route Planner
Now that you may be interested in joining the Relay program, you might wonder if there is a way to get better at transporting large Amazon loads as Relay partners.
Using smart software that automates and manages major aspects of your delivery process makes this a possibility. One such software that you need to keep an eye on is Upper route planning and optimization software.
1. Route optimization
The need for an optimized delivery route is as important as ever. See, your deliveries can be delayed without optimized routes due to road accidents, unexpected traffic blocks, rush hour traffic, and more. This makes it difficult for your drivers to fulfill the daily delivery without delay and angry customers. Upper route optimization can save you from this unwanted chaos.
2. Simple and effective route planning
With Upper, business owners can skip manual route planning and optimization.
You can now automate the entire route planning and optimization process—find the quickest and safest route and send it to your truck drivers, who can then run the deliveries in the fastest time possible.
Better yet, you can just upload an XLS or CSV file of all stops to be made, and the algorithm selects the best order and route for you.
3. Seamless integration
Now you may wonder how to integrate Upper and Amazon Relay app into your daily delivery workflow. This can be done quite simply:
- Choose a load delivery from the Amazon Relay app.
- Plan this route by using Upper’s route planning and optimization feature.
- Dispatch your drivers with this optimized route to deliver faster with a simple notification.
- Track driver and vehicle in real-time to ensure a streamlined delivery process.
All this efficiency will actually equip you to run twice as many Amazon deliveries as you would normally be capable of running.
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According to Amazon Relay, the process to be approved takes around 3-4 business days. Since it is a relatively smooth process, the time for approval can sometimes be quite short as well, sometimes in less than 2 days.
Using a complementary software along with the Amazon Relay app is the best way to go about it. Upper’s route planning and optimization software is a perfect accompaniment to the Relay app. Investing in affordable route solutions like Upper ensures better revenue for your business in the long run.
Amazon Relay works on a weekly payout cycle. Work completed by the end of Saturday is considered for the payout on the following Friday. The structure of payment runs a Sunday to Saturday cycle. Rest assured, you’ll receive guaranteed revenue and save money by minimizing empty trips.
Average Amazon Relay salary is $62963 a year or around $30 an hour. (Ziprecruiter) Amazon Relay drivers are estimated to make $15-25 an hour, that is $1.21 to $3.09 per mile as per Pretty Motors.
Getting your fleet service up and running is a huge feat on its own. Thanks to modern technological solutions, it is now much easier to run your business even during tough times.
The Amazon Relay technology is one solution that every fleet service owner can leverage to offer your services to a wider clientele.
Trucking companies may find it overwhelming to plan multiple multi-stop efficient routes. This can lead to poor scheduling, miscommunication, and negative customer reviews. To avoid such a disastrous outcome, implementing a route planning and optimization software like Upper is essential for better planning and execution.
You can easily sign up for a 7-day free trial with Upper to improve delivery efficiency and increase profits.