Is your small business looking to make additional cash? If so, the new Amazon Hub Delivery Program could be a good fit. This opportunity from the online retailing giant can help you generate additional revenue, while gaining maximum value from your time and employees.

However, there are some considerations to weigh before you apply. The Amazon Hub Program could become a distraction in the wrong circumstances. To see if the partnership makes sense for your small business, use this article to learn more about the benefits and downsides.

What is the Amazon Hub Delivery program?

In recent years, Amazon has expanded its proprietary delivery networking. The strategy allows the Jeff Bezos-founded retailer to bypass large carriers like the U.S. Postal Service, UPS and FedEx. Instead, the company can bring customers' orders directly to their door.

This effort has seen multiple steps over the years. Initiatives have included Amazon-employed delivery personnel and gig workers operating through the Amazon Flex program.

Amazon Hub is an extension of this effort. The program brings the gig strategy to small businesses. Rather than recruit individuals to spend part of their day delivering packages, the new program connects with small businesses.

Under Amazon Hub, small businesses are brought into the retailer's delivery network. Partners in the program devote some of their resources (in the form of employee time and possibly use of company vehicles) to deliver packages for Amazon.

Under Amazon Hub, small businesses are brought into the retailer's delivery network. Partners in the program devote some of their resources (in the form of employee time and possibly use of company vehicles) to deliver packages for Amazon.

How does Amazon Hub work?

Amazon piloted the program in 2022 and is now looking to expand to 2,500 partners by the end of 2023. The company especially noted the usefulness of the program in regions it describes as "super rural areas" — places where other delivery networks might be sparse or expensive to serve.

At the same time, the retailing giant also pointed to large, dense cities as potential sources for partners. These metropolises, like New York City, offer businesses the chance to leverage their connection to particular neighborhoods.

To look at how the partnership works in practice, let's start by diving into Amazon's description, as laid out in its announcement of the program. Here’s the summary the company provided:

"Amazon Hub Delivery partners receive packages each morning and have the flexibility to make each day’s deliveries when it works best, based on their business’ operating schedule and leveraging their existing staff."

So, if you joined the program, you'd receive a set of packages each day. The total number averages around 30 a day, according to Amazon. These arrive seven days a week, excluding certain major holidays. Once the packages are dropped off, you are responsible to bring each to its final recipient.

Who should consider applying to become an Amazon Hub partner?

To determine whether Amazon Hub makes sense for you, look at your current operations and financial situation. A close review of these conditions will show you how well you can fit Amazon deliveries into your overall business structure.

According to Amazon, the program offers annual revenues of up to $27,000 a year. For some firms, this would represent a critical addition to the top line. However, in some circumstances, the increased cash would not be worth the burden involved.

Here are a few factors that could potentially make your business a strong fit for Amazon Hub:

• You already make deliveries, and the Hub program can slide seamlessly into these operations.
• Your employees travel throughout your neighborhood/region as a normal part of their jobs.
• You are small enough that $27,000 in annual revenue would make a difference.
• You have lulls during the day — for instance, you have a rush of business in the morning and little going on in the afternoon.
• You have excess capacity — employees who have slow points in their daily schedules.

None of these factors will likely be decisive on its own. However, the right combination of conditions could make Hub an excellent opportunity for you. As Amazon explains: "For example, a hair salon owner, with clients in the morning and evening, might find Amazon Hub Delivery is a good way to fill the gaps in their schedule during the day."

Along with hair salons, Amazon noted other potential small operations as good candidates for the program. The company specifically listed candidates like florists, coffee shops, clothing boutiques, gas stations, plumbers, and dry cleaners.

Benefits of the Amazon Hub Program

As you review the Amazon Hub Program, it's important to weigh the pros and cons. Let's start by looking at the potential upsides. Here are some benefits your small business could enjoy by signing up for the partnership:

Extra revenue

As noted above, the Amazon Hub Program could lead to additional revenue of up to $27,000 a year. As long as you can perform the delivery operations efficiently (or leverage resources you are already paying for), this could lead to a meaningful boost to your bottom line.

It's true this amount of revenue is unlikely to supercharge your growth. Still, it could provide the additional support necessary to bridge the gap to the next stage of development. Or the cash generated through the Hub program could prop up your operation during the fragile startup period.

Maximizing your resources

Do you have access capacity? Are there full-time employees who have a few hours to spare each day? If so, you might be a good candidate for the Amazon Hub program.

This partnership offers a chance to get the most out of your current resources. If you have dead spots in your day, working with Amazon lets you capitalize on that spare capacity. You can turn a liability into a chance to earn extra cash.

Flexibility

You have significant freedom of action when it comes to the Amazon Hub Program. Yes, there are deadlines to meet. But, generally speaking, you have wide latitude in deciding when (and how) to deliver the daily set of packages. This structure makes it easier to integrate this side hustle into your routine.

Downsides of the Amazon Hub Program

As we've seen, becoming an Amazon Hub partner can give you a nice injection of revenue. That said, you shouldn't see it as a source of free funds. There are potential downsides to consider as well. Here are a few of the drawbacks you should keep in mind:

Potential disruptions to your business

Yes, Amazon offers some flexibility in how you deliver the packages in your care. However, the program still represents an obligation. You'll need to plan around it and devote enough time and energy to get the deliveries done on a day-to-day basis.

If you aren't organized about the process, this could create some headaches. You'll need to think hard about how to schedule around the deliveries, while still maintaining momentum in your main business.

Opportunity costs

Be careful that you don't concentrate too much on your Amazon Hub duties. Invest too much in the program and you won't have sufficient resources to grow your main business. The endeavor should be a source of cash you can use as a stepping stone — don't let it become a detour.

Added responsibility

While Amazon grants its partners flexibility in terms of the time of day packages are delivered, signing up for the program still comes with obligations. Amazon expects deliveries to be made seven days a week (major holidays excepted). Depending on your operations, this could represent a significant burden.

Limited availability (for now)

While Amazon plans to expand the program in the future, currently the footprint is relatively small. The current program is only available in limited geographies, touching just 23 states. If outside these areas, you might not be eligible to participate.

Here are the states that are currently part of the program:

• Alabama
• Alaska
• Arkansas
• California
• Florida
• Illinois
• Indiana
• Iowa
• Massachusetts
• Michigan
• Minnesota
• Mississippi
• Missouri
• Nebraska
• New Jersey
• New York
• North Carolina
• North Dakota
• Ohio
• Oklahoma
• South Dakota
• Washington
• Wisconsin

Deciding whether to join the Amazon Hub Delivery Program

The new Amazon Hub Delivery Program offers an opportunity for your small business to earn extra cash. This could give you an important boost as you look to establish your operation or as you seek to fund an expansion.

However, there are drawbacks to consider. The added delivery responsibilities could pose a significant distraction, raising the risk that your current business could suffer or that you could alienate customers for your core operations. Use this article to improve your understanding of this program, and help you determine if joining the program is right for your company.