Amazon Relay offers box truck and semi-trailer loads for fleets or owner-operators with short-term contracts, an Amazon load board or their freight network, a check-in and scheduling driver app, and options to post when your truck is empty and available for the next load.
When you start your box truck business with Amazon, you will have access to Amazon technology, processes, and more than 20 years of logistics experience. Amazon’s packages keep your business growing, so you can focus on building a great team and delivering without worrying about driving sales.
Steps on How to Start a Box Truck Business With Amazon
Table of Content
Conduct Market Research
If you are considering starting a box truck business with Amazon, you would need reliable market research to be able to maximize profits from the business. The first step in the market research process for your box truck business with Amazon should be to develop market-based research questions in line with your overall business goal and objective.
In this regard, you should source information that will help you maximize your business, and give you reliable insight into what your potential market will be looking out for from a box truck business with Amazon. It will also help you operate your box truck business with Amazon with less stress and of course, build the business to profitability.
a. Who is the Target Market for Box Truck Business with Amazon?
- E-commerce businesses
- Merchants and Warehouse Operators
- Retailers who would want to move their goods from one location to another
- Manufacturers (furniture manufacturers and home appliances manufacturers et al)
- Households who would want to move from one apartment to another
- Corporate organizations who would want to move from one office to another
- Government agencies who have cause to move light goods and materials from one location to another
b. Is Box Truck Business with Amazon a Profitable Business?
Yes, the box truck business with Amazon is profitable. Available data shows that annual salaries for box truck operators under Amazon are as high as $114,500 and as low as $21,000, the majority of Amazon Relay salaries currently range between $31,500 (25th percentile) to $67,000 (75th percentile) with top earners (90th percentile) making $100,000 annually across the United States.
c. Are There Existing Niches in the Industry?
No, there are no existing niches when it comes to the box truck business with Amazon because the box truck business with Amazon is a subset of the moving and storage industry.
d. Who are the Major Competitors?
- UST Logistical Systems
- INTERWEST UTAH LLC
- Diverse Logistics
- INTERWEST MOVING AND STORAGE INC.
- Coleman Worldwide Moving
- Atlantic Transport Systems
- Peasley Transfer & Storage
- Gulf Coast Air Freight
- Atabala LLC
- Carolina Logistics Inc
- Priority Dispatch, Inc.
- Just Steer Dispatch
- MVSN Trucking
- MVP Dispatching Solutions LLC
- Argo Expedite
- Karco Carrier LLC
- LJC Logistics, LLC
- C2F Freight LLC
- Metro Trans Logistics LLC
e. Are There County or State Regulations or Zoning Laws for Box Truck Business with Amazon?
No, there are no county or state regulations or zoning laws for box truck business with Amazon, but players in this industry are expected to work with the existing regulations governing similar businesses in the county where their business is domiciled.
Please note that trucks are required to stop at motor carrier safety and weight inspection stations when signs direct them to do so. So also, all across the United States, a box truck can be rented by someone without a commercial driver’s license if it has a gross vehicle weight rating (GVWR) of 26,000 pounds or less. Any truck or van with a rating of 26,001 pounds or more requires at least a Class B CDL.
f. Is There a Franchise for the Box Truck Business with Amazon?
No, there are no franchise opportunities for box truck business with Amazon.
g. What Do You Need to Start a Box Truck Business with Amazon?
- A Feasibility Report
- Business and Marketing Plans
- Business Licenses and Permits
- Contract Document with Amazon
- Box Trucks
- Commercial Driver’s License (CDL) (at least a Class B CDL)
- EIN (Employer Identification Number)/Federal Tax ID Number.
- A Corporate Bank Account
- IRP Plates
- Operational Capital (For Ongoing Expenses)
Choose a Memorable Business Name
When looking to start a business, before you can begin to file the necessary documents with the constituted authorities or start your website, it is necessary that you come up with a name that you will be recognized with. It is essential that the name you come up with can easily be pronounced, is unique and easily memorable.
Some of the catchy business name ideas suitable for a box truck business are;
Creative Amazon Box Truck Business Name ideas
- We Move© Box Trucking, Inc.
- Danny Beck® Box Truck, LLC
- Profitable Line© Box Truck Company, Inc.
- Logistics Solutions® Box Truck Company, Inc.
- Transport King™ Box Truck Company, Inc.
- Green Line™ Box Truck Company, LLC.
- Delegates© Box Trucking Company, LLC
- Swift Guys® Box Truck Company, Inc.
- Star Line© Box Truck Company, Inc.
- Cheetah© Box Truck Company, Inc.
- Safe Hands® Box Truck Company, LLC
- Garry Line® Box Truck Company, LLC
- Convoy™ Box Truck Company, LLC
- Tammy Rogers© Box Truck Company, Inc.
- Sun Rise® Box Truck Company, Inc.
- Don Pedro™ Box Truck Company, Inc.
- Speed Link™ Box Truck Company, Inc.
- Pharell Movers© Box Truck Company, Inc.
- Fidelis Martinez® Box Truck Company, LLC
- Eagle Line™ Box Truck Company, Inc.
Register Your Business
a. What Type of Business Structure is Best for Box Truck Business with Amazon?
Even though there are several options such as sole proprietorship, partnership, limited liability company (LLC), and corporation, when it comes to the business structure of a box truck business with Amazon, the one that most players in this line of business consider is an LLC.
It is common to consider an LLC because providers want to protect themselves from lawsuits. Please note that an LLC will need an EIN if it has any employees or if it will be required to file any of the excise tax forms listed below.
b. Steps to Form an LLC
- Choose a Name for Your LLC.
- File Articles of Organization.
- Choose a registered agent.
- Decide on member vs. manager management.
- Create an LLC operating agreement.
- Comply with other tax and regulatory requirements.
- File annual reports.
c. What Type of License is Needed to Open a Box Truck Business with Amazon?
- General Business License
- Commercial Driver’s License (CDL) (at least a Class B CDL)
- IRP Plates
- Zonal Permits
- Signage Permit
- Operational State Facility Inspections for your parking
d. What Type of Certification is Needed to start a Box truck business with Amazon?
You don’t need any certifications to start a box truck business with Amazon.
e. What Documents are Needed to Open a Box Truck Business with Amazon?
- Business and liability insurance
- Federal Tax Payer’s ID
- State Permit and Building Approval (For your parking)
- Certificate of Incorporation
- Commercial Driver’s License (CDL) (at least a Class B CDL)
- IRP Plates
- Business License
- Business Plan
- Employment Agreement (offer letters)
- Operating Agreement for LLCs
- Insurance Policy
- Contract Document
- Company Bylaws
- Memorandum of Understanding (MoU)
f. Do You Need a Trademark, Copyright, or Patent?
If you are considering starting a box truck business with Amazon, usually you may not have any need to file for intellectual property protection or trademark. This is so because the nature of the business makes it possible for you to successfully run the business without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.
Cost Analysis and Budgeting
a. How Much Does It Cost to Start a Box Truck Business with Amazon?
The startup cost for a box truck business with Amazon is not uniform, but starting a box truck business with Amazon can cost as low as $35,000 for owner-operated box truck businesses and as high as over 1$150,000 for fleet operators.
b. What are the Costs Involved in Starting a Box Truck Business with Amazon
- The total fee for registering a business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services total – $1,200.
- The cost for hiring a business consultant (writing of business plans inclusive) – $4,500.
- Insurance (general liability, workers’ compensation, and auto insurance) coverage at a total premium – $12,400.
- The cost of logistics software, accounting software, CRM software, and Payroll Software – $1,500
- The cost for leasing a facility (long-term lease agreement) – $105,600.
- The cost for facility remodeling and installations – $20,000.
- The cost for the purchase of box trucks and vans: $100,000
- Other start-up expenses including stationery – $500
- Phone and utility deposits – ($2,500)
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $50,000
- Miscellaneous – $2,500
c. What Factors Determine the Cost of Opening a Box Truck Business with Amazon?
- The size of the box truck business (number of box trucks to start the business with)
- The choice of location
- The required licenses and permits
- The cost of furnishing and equipping the facility
- The cost of the insurance policy covers
- The cost of registering the business
- Cost of recruiting and training your staff
- The cost for the purchase and customizing of uniforms.
d. Do You Need to Build a Facility? If YES, How Much Will It Cost?
It is not compulsory to build a new facility for your box truck business with Amazon, but if you have the required finance, it will pay you to build your parking facility and administrative office.
e. What are the Ongoing Expenses of a Box Truck Business with Amazon?
- Gas and lubricants
- Utility bills (internet subscriptions, phone bills, signage, and software renewal fees et al)
- Salaries of employees
- Trucks maintenance
- Marketing costs
f. What is the Average Salary of your Staff?
- Chief Operating Officer (Owner) – $68,000 Per Year
- Admin and HR Manager – $48,000 Per Year
- Transport and Logistics Manager $48,000 Per Year
- Marketing and Sales Executive (Business Developer) – $42,000 Per Year
- Accountant $38,000 Per Year
- Box Truck and Van Drivers – $36,800 Per Year
- Material Handlers / Yard Spotters / Forklifts Operators – $28,000 Per Year
- Customer Service Officer (Receptionist) – $26,100 Per Year
- Security Guard -$24,000 Per Year
g. How Do You Get Funding to Start a Box Truck Business with Amazon?
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Sell shares to interested investors
- Applying for a loan from your bank/banks
- Source for soft loans from your family members and friends.
Write a Business Plan
a. Executive Summary
Zealous® Box Truck Company, Inc. is a registered and licensed box truck company that will be based in Seattle, Washington. We are in business to provide local and long-distance transportation for Amazon. Zealous® Box Truck Company, Inc. has been able to secure all relevant licenses and permits to operate throughout the United States and Canada.
We will ensure that we abide by the rules and regulations guiding the Moving and Storage industry and we will only hire experienced and qualified drivers with valid commercial driver’s licenses (CDL) to handle our vans and trucks.
b. Products and Service
- Local and long-distance transportation of goods for Amazon
- Warehousing and storage services
- Process, distribution, and logistics consulting and advisory Services
- Home Moving Services.
- Hauling Services.
- Towing Services.
c. Mission Statement
Our mission is to ensure that we build a successful box truck company that will operate not just in Seattle, Washington but in all locations covered by Amazon.
Our vision is to become one of the preferred choices for Amazon customers all across the United States.
d. Goals and Objectives
The goals and objectives of a box truck business with Amazon are to transport goods within short distances in urban centers without difficulty, making it the ideal option for local freight-hauling jobs under the Amazon load board.
e. Organizational Structure
- Chief Operating Officer (Owner)
- Admin and HR Manager
- Transport and Logistics Manager
- Marketing and Sales Executive (Business Developer)
- Box Truck and Van Drivers
- Material Handlers / Yard Spotters / Forklifts Operators
- Customer Service Officer (Receptionist)
a. SWOT Analysis
- Excellent operational history
- Attention to detail.
- Accurate estimates with no hidden costs.
- Experience and trained professionals.
- Large storage facility.
- Excellent customer testimonials.
- Reliable and efficient box trucks and service.
- Not enough existing clientele to run at full capacity immediately
- The owner is new to large scale marketing
- We will need a loan to build our facility and to purchase box trucks and vans
- The owner is currently running the business solo
- Lack of economies of scale.
- Amazon is a popular and well-accepted brand
- Growing eCommerce activities in the United States.
- Build upon existing clientele
- Online market, new services, new technology, and of course the opening of new markets.
- Increase in the movement of goods from one location to another
- Increase in production activities and warehousing.
- Loans diminish profitability until they are paid off
- First-year will be financially tight while we gain customers and pay off loans
- Competition in the area could increase
- Management of employees requires time, money, and efforts
- The transport department could change its regulatory status and decide to enforce strict regulations that can strangulate new businesses.
b. How Do Box Truck Businesses with Amazon Make Money?
The box truck business with Amazon makes money from contract payments or commissions made by transporting goods for Amazon.
c. Payment Options
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
- Payment via bank draft
d. Sales & Advertising Strategies
- Introduce Your box truck business with Amazon by sending introductory letters alongside our brochure to corporate organizations that are into manufacturing, and key stakeholders in and around your city and state
- Print out fliers and business cards and strategically drop them in offices, libraries, public facilities, train stations et al.
- Use friends and family to spread the word about your business
- Join local chambers of commerce and industry to market your services.
a. How Much Should You Charge for your Product/Service?
Box truck businesses with Amazon charge do not charge their clients, Amazon sets a fee for their loads.
Please note that over a five-year period, Amazon relay benefits surged to 17.2 cents per mile, with total average driver compensation reaching 73 cents per mile.
b. How Much Profit Do Box Truck Business with Amazon Owners Make a Year?
It depends, especially if you operate as an owner box truck operator with Amazon or as a fleet operator. But the available report shows that the salary trajectory of a Box Truck Driver ranges between locations and employers. The salary starts at $56,016 per year and goes up to $93,883 per year for the highest level of seniority.
c. What Factors Determine the Amount of Profit to Be Made?
- The capacity of the box truck business with Amazon (number of box trucks owned)
- The types of related services and product offerings
- The location of the box truck business with Amazon
- The management style of the box truck business with Amazon
- The business approach of the box truck business with Amazon
- The advertising and marketing strategies adopted by the box truck business with Amazon.
- The number of years the box truck business is in business
d. What is the Profit Margin of a Box Truck Business with Amazon Product/Service?
The profit margin of a box truck business with Amazon is not fixed. It will depend on some factors that are unique to your location and what Amazon is willing to pay.
e. What is the Sales Forecast?
Below is the sales forecast for a Box truck business with Amazon. It is based on the location of the business and other factors as it relates to such startups in the United States;
- First Fiscal Year: $320,000
- Second Fiscal Year: $480,000
- Third Fiscal Year: 650,000
Set Up your Shop/Office
a. How Do You Choose a Perfect Location for Box Truck Business with Amazon?
- The demography of the location especially as it relates to eCommerce activities and shipping
- The purchasing power of businesses and the residents of the location
- Accessibility of the location
- The number of owner-operated trucking businesses in the location
- The local laws and regulations in the community/state
- Traffic, parking and security et al
b. What State and City are Best to Open a Box Truck Business with Amazon?
- Seattle, Washington
- Arlington, Virginia
- New York City, New York
- Salt Lake City, Utah
- Port Allen, Louisiana
- Rock Hill, Montana
- Atlanta, Georgia
- West Sacramento, California
- West Chester, Ohio
- Austin, Texas
- Annapolis, Maryland
c. What Equipment is Needed to Operate a Box Truck Business with Amazon?
You should be prepared to purchase a forklift, loaders, pallets, crates et al. So also, you will need computers or laptops, an internet facility, telephone, fax machine and office furniture (chairs, tables, and shelves) amongst others, and all these can be gotten as fairly used.
When it comes to hiring employees for a standard box truck business with Amazon, you should make plans to hire a competent chief executive officer (you can occupy this position), admin and HR manager, transport and logistics manager, marketing and sales executive (business developer), accountant, drivers, material handlers/yard spotters/forklifts operators and customer service officer (receptionist).
Launch the Business Proper
In recent times, no business opens its door without first organizing an opening party to officially launch the business. You can choose to do a soft opening if you are operating on a low budget or you can go for a grand opening party.
With the proper launching of the box truck business with Amazon, you will officially inform people in your city that your box truck business is open for business.
a. What Makes a Box Truck Business with Amazon Successful?
- Choose a good location and reliable box trucks to launch the business
- Hire only competent, hardworking, and trustworthy staff
- Be deliberate with your negotiation approach
b. What Happens During a Typical Day at a Box truck business with Amazon?
- The business is open for the day’s work
- The box trucks are washed, cleaned, and ready for deliveries
- Customer requests via the Amazon load board are taken and they are scheduled or attended to
- Schedule maintenance of box trucks is carried out
- Marketing/website upkeep
- The business is closed for the day.
c. What Skills and Experience Do You Need to Build a Box Truck Business with Amazon?
- Good driving skills
- Customer services skills
- Interpersonal skill
- Logistics and material handling skills
- Business management skills
- Bargaining skill
- Work experience in the transport and logistics industry
- Experience in managing people
- Experience in business administration
- Experience in handling logistics and transportation software.