By Saksham Arora Amazon was founded in 1994 in the United States and has become one of the world’s largest e-commerce and logistics brands. In India, Amazon operates across online retail, logistics, delivery services, and local-store partnerships. Because of its massive reach, many entrepreneurs look for “Amazon franchise” opportunities — usually through delivery service programs, warehouse partnerships or small-store integrations.
This article explains the actual franchise options Amazon offers in India, along with investment cost, profit potential, risks and whether it is the right business for you.
About the Amazon Brand
Amazon provides e-commerce shopping, delivery logistics, cloud services, offline retail partnerships, and local-store integrations. Its Indian customer base spans metros to small towns, creating continuous demand for delivery, logistics and last-mile services. Franchise-style opportunities with Amazon generally revolve around logistics operations rather than retail stores.
Is Amazon a Franchise or Company-Owned Model in India?
Amazon does not offer a traditional retail franchise.
Instead, it provides three main partnership models in India:
- Amazon Delivery Service Partner (DSP) – Runs last-mile delivery operations
- Amazon IHS / Logistics Partner (Larger Operations) – Manages bigger logistics hubs
- Amazon Easy Store – Small stores that help customers buy online
Each model has different investment levels and requirements.
Total Amazon Franchise Cost in India
Investment varies depending on the chosen program:
- Amazon Delivery Service Partner (DSP): ₹1.5–3 lakh
- Amazon Easy Store: ₹3–6 lakh
- Amazon IHS / Logistics Partner: ₹10–20 lakh
For most people, the Delivery Service Partner model is the most accessible.
Amazon DSP (Delivery Partner) Cost Breakdown
- Registration & Setup Cost: ₹25,000–₹50,000
- Delivery Station Setup (basic furniture, systems): ₹20,000–₹50,000
- Bags, uniforms, accessories: ₹20,000–₹30,000
- Mobile devices & software setup: ₹15,000–₹25,000
- Hiring Delivery Staff (2–5 persons initially): monthly staffing cost varies
- Working Capital for 1–2 months: ₹50,000–₹1 lakh
Total investment comes to ₹1.5–3 lakh for most DSP partners.
Amazon Easy Store Cost Breakdown
- Store Interiors & Branding: ₹1–2 lakh
- Computer, Printer & Basic Setup: ₹40,000–₹70,000
- Amazon Software Integration: minimal cost
- Inventory (only if selling extra items): optional
- Working Capital: ₹50,000–₹1 lakh
A typical store costs ₹3–6 lakh to start.
Amazon Logistics Partner (IHS) Cost Breakdown
- Larger facility setup
- Staff hiring (10–20 people)
- Systems, storage racks & basic logistics equipment
- Monthly operational buffer
The full setup usually ranges ₹10–20 lakh, depending on city and scale.
Space & Location Requirements
Requirements vary by program:
- DSP: Small office or room, 100–200 sq ft
- Amazon Easy Store: 150–300 sq ft shop in a residential or market area
- Amazon Logistics Partner: 1,000–3,000 sq ft warehouse space
DSP partners often operate from home or a small rented room.
Amazon Franchise Profit Margin & ROI
Profit depends heavily on volume and type of partnership.
1. DSP Earnings:
- Monthly Revenue: based on number of deliveries handled
- Average Profit: ₹20,000–₹60,000 per month depending on workload
- ROI: 4–8 months for most small setups
2. Amazon Easy Store Earnings:
- Commission per order placed by customers
- Earnings grow based on local footfall and upselling
- ROI: around 12 months
3. Logistics Partner Earnings:
- Larger contracts, higher volume
- Potential profits: ₹1–2 lakh+ per month depending on city
- ROI: 12–24 months
Royalty & Ongoing Charges
Amazon does not charge traditional franchise royalty.
However, partners must handle:
- Staff salaries (delivery associates or store staff)
- Rent and utility bills
- Maintenance and supplies
- Operational expenses related to volume
- Compliance and reporting standards
Amazon pays partners based on performance, service levels and handled volume.
Support Provided by Amazon
Partners get:
- Training on delivery, operations and software
- Access to Amazon logistics systems
- Branding and operational guidelines
- Continuous order flow depending on region
- Performance monitoring and support for scaling
This makes it easier even for first-time entrepreneurs to run logistics or support stores.
Who Should Invest in an Amazon Franchise Model?
Good fit for:
- Individuals with limited capital (₹1.5–3 lakh for DSP)
- People interested in logistics or last-mile delivery
- Local shop owners wanting extra income through Amazon Easy
- Entrepreneurs comfortable managing staff and daily operations
Not ideal for those wanting passive income or large retail stores.
Risks & Challenges
- Income depends on delivery volume and seasonal peaks
- Staff management is critical
- Fuel prices and local conditions may affect expenses
- Logistics business is demanding and daily-operations heavy
- High responsibility for meeting Amazon’s strict service-level standards
Consistent performance and good manpower handling reduce most risks.
How to Apply for Amazon Partnership Programs
- Submit online application for DSP, Easy Store or Logistics model
- Share location, identification and financial details
- Attend orientation or call with Amazon team
- Undergo verification and approval
- Complete setup, hire staff and integrate systems
- Begin operations with Amazon’s support
Conclusion
Amazon does not offer a traditional retail franchise, but it provides accessible partnership models like DSP, Easy Store and logistics operations. With investment ranging from ₹1.5 lakh to ₹20 lakh, Amazon offers scalable options for small and medium entrepreneurs. Success depends on performance, manpower efficiency and daily operational discipline. For those looking to enter the logistics sector with a reliable brand, Amazon’s partnership models are strong, practical opportunities.