Anyone can start a trucking business with Amazon. You can become a freight partner with the eCommerce company.
Here are the 9 steps you can take to get started on building your very own trucking business with Amazon.
9 Steps to Launching a New Trucking Business with Amazon
1. Name Your Trucking Business with Amazon
Give your trucking business with Amazon an identity so people will think of it as a well-known and respected brand. You can take the name of your trucking business with Amazon from your industry, focus on a geographical location, or use your own name among other options.
The main goal for naming your trucking business with Amazon is to make it sound appealing and trustworthy so that people will want to do business with you.
2. Determine Your Trucking Business with Amazon Business Model
There are several possible types of business models for a trucking business with Amazon including:
- Truckload carrier
- Less-than-truckload (LTL) carrier
- Dedicated contract carriage
- Intermodal drayage
- Freight broker
No matter which model you choose, make sure that it aligns with your business goals and the services you offer.
3. Choose a Legal Form for Your Business
By incorporating your trucking business with Amazon, you will limit your liability. You can incorporate as a Limited Liability Company (LLC), a C Corporation (C-Corp), or an S Corporation (S-Corp). Or you can operate as a sole proprietorship.
The business structure you choose for your trucking business with Amazon will determine the amount of taxes you pay and which state or federal tax forms you need to file.
Read our article comparing the most common trucking business with Amazon structures.
4. Write a Trucking Business with Amazon Business Plan
All trucking business owners with Amazon should develop a business plan.
A business plan is a document that outlines the goals, strategies, and operations of a business. It can be used to secure funding from investors or lenders, as well as to guide the day-to-day operations of the business. The business plan should include information on the company’s products or services, market analysis, financial projections, and management team among other things.
Read our article about how to write a trucking business with Amazon business plan.
5. Apply for the Necessary Permits and Licenses
There may be required licenses and permits you need to obtain before launching your trucking business with Amazon.
For example, if you’re hauling hazardous materials, you’ll need to get a Hazardous Materials Transportation License from the Department of Transportation.
You must also register your trucking business with Amazon as a legal entity with the state where you plan to do business. You can simply file an online form through your Secretary of State website.
Registering with the federal government is also essential so you can properly pay taxes for your business. You will also need an Employer Identification Number (EIN), which you can apply for at the IRS website, if you plan to hire employees.
6. Determine Your Budget & Apply for Funding as Needed
In developing your trucking business with Amazon business plan, you will figure out how much funding you need to start and grow your business.
If you have your own funds to invest in your trucking business with Amazon, you may consider taking advantage of that. In addition to your personal funds, other forms of potential funding for your trucking business with Amazon include traditional bank loans, SBA loans, credit cards, angel investors and family and friends.
Read our article about the costs associated with starting a trucking business with Amazon to help you determine if funding is needed.
Read our article about how to fund your trucking business with Amazon.
7. Get the Technology & Software Needed to Run Your Business Efficiently
When you start your trucking business with Amazon, it’s essential to have the right technology in place to maximize efficiency. You definitely need a computer with Internet access, and accounting software for tracking expenses and revenues.
You may also want to invest in…
8. Market Your Trucking Business with Amazon to Potential Clients
Before you start selling your services, you have to let the world know you exist. The first step is to create a website so people can learn more about your services and how they benefit them.
After you launch your website, start promoting it through social media channels like Facebook, LinkedIn, and Twitter. Also consider networking with other people in the trucking business with Amazon industry through social media and blogs so they can help share your business.
You also need to start gathering the materials needed to execute on your promotions strategy, which is your strategy for attracting new customers. Trucking businesses that partner with Amazon should consider the following promotional strategies for which you should start getting prepared:
- Create a promotional video
- Design business cards, flyers, and other marketing materials
- Develop an email marketing campaign
- Start a blog and write articles related to your industry
- Attend trade shows and conferences related to your industry
A marketing plan helps you grow your business if you decide to branch out from Amazon.
Read our article about how to market your trucking business with Amazon for more tips.
9. Get New Clients & Grow Your Business
When you promote your services, you’ll start to get interest from potential clients.
Make sure you’re ready to serve these clients. Also, be sure to establish systems to ensure consistency and reduce costs. And be sure to find and train the right people to help you grow your trucking business with Amazon.
Read our article about how to effectively grow your trucking business with Amazon to learn more.
Starting a Trucking Business with Amazon FAQs
Why Start a Trucking Business with Amazon?
In general, businesses that are the most successful are those that solve a problem. That’s what trucking businesses that partner with Amazon do. They provide a solution to the problem of how to transport goods from one place to another.
In addition, there is a growing demand for trucking services with Amazon. E-commerce sales are expected to grow from $1.3 trillion in 2014 to $4.5 trillion in 2021. This means more and more businesses will need to find ways to get their products to consumers.
Not only is there a growing demand for trucking services, but there is also a shortage of truck drivers. The American Trucking Association estimates that the industry is short by about 50,000 drivers. This creates an opportunity for those who are looking to start a trucking business with Amazon.
Amazon is searching for freight brokers. Plus, they'll provide training even if you have no experience.
What is Needed to Start a Successful Trucking Business with Amazon?
If you're wondering how to start a trucking business with Amazon, there are a few key things you'll need:
A truck or trucks: You'll need a truck or multiple trucks to transport goods.
Drivers: You'll need drivers to operate your trucks.
Insurance: You'll need insurance to protect yourself and your business in case of accidents.
A business license: You'll need a license to operate your business in most states.
What are Some Tips for Starting a Trucking Business with Amazon?
Here are some tips for starting a trucking business with Amazon:
- Research the market and create a business plan.
- Obtain the necessary license and purchase insurance.
- Start figuring out if you want to lease or buy trucks and hire drivers.
- Put together your marketing plan.
- Manage your business online by purchasing software and a CRM.
Where Can I Find a Simple Checklist for Starting a Trucking Business with Amazon?
A simple checklist to use when starting a trucking business with Amazon is as follows:
- Name Your Trucking Business with Amazon: This should be done with care, as your brand is important for attracting the right customers. A simple, memorable name will go a long way.
- Choose a Legal Form for Your Business: Whether you choose to become a sole proprietorship, partnership, LLC, corporation or another option will depend on your business. Ensure that you are aware of all the implications of each type.
- Determine Your Trucking Business with Amazon Business Model: Determine how your business will make money. Will you sell products, services, or a combination of both?
- Write a Trucking Business with Amazon Business Plan: Your business plan will also help you determine what your start-up costs will be and will provide a roadmap with which you can launch and grow.
- Apply for the Necessary Permits and Licenses: In most locations you will be required to apply for a business license and/or permits before you can begin operations.
- Determine Your Budget & Apply for Funding as Needed: You will need to know how much money you have to spend on all of your business-related expenses before opening any doors. If needed, apply for a small business loan or other funding options.
- Get the Technology & Software Needed to Run Your Business Efficiently: You need to have the right tools in place to succeed. Implement software that will help you manage your time, contacts, and business operations in general.
- Market Your Trucking Business with Amazon to Potential Clients/Customers: A solid marketing plan will be crucial to your success. It should focus on attracting the right customers so that you can provide them with the services they truly need.
- Get Clients & Grow Your Business: Once you have a solid marketing plan, it's time to actively pursue and secure those who could benefit the most from your services.
Starting a trucking business with Amazon requires organization, but if you take it step by step, you’ll be on your way to success. The most important part is choosing the right legal form for your business and writing a business plan. After that, make sure you apply for the necessary permits and licenses, get the technology and software you need, and market your business to potential clients.