Using Amazon Relay to Strengthen Your Freight Operations
Amazon Relay is changing the way the e-commerce industry collaborates with carriers and manages deliveries, making operations faster and more efficient.
A recent survey on online purchasing habits revealed that 50.6% of shoppers expect free shipping, and 30.4% want their orders delivered the next day. Speedy delivery has become one of the top perks of Amazon Prime membership, making fast shipping essential.
To handle this demand, Amazon relies on a vast logistics network supported by advanced technology. One key tool in this network is Amazon Relay, which connects the company with freight carriers, including trucking businesses and logistics providers.
What is Amazon Relay?
Amazon Relay is a digital solution that broadens Amazon’s delivery network by partnering with different freight carriers.
This platform allows trucking companies, independent drivers, and third-party logistics (3PL) providers to browse and manage loads through a mobile app. These carriers can book, track, and complete deliveries, simplifying logistics so customers receive their orders promptly.
By offering a centralized platform, Amazon Relay helps streamline deliveries and reduce inefficiencies in the transportation process.
Benefits of Amazon Relay
Amazon Relay delivers multiple benefits to its carrier partners. Here’s a look at some of its main advantages:
Flexible load options: Carriers can choose from a variety of load sizes, including less-than-truckload (LTL) shipments, reducing travel time and expenses while ensuring timely deliveries.
Streamlined deliveries: The platform’s automated scheduling and delivery management features remove the burden of administrative tasks, allowing drivers to focus solely on transportation.
Earning potential: Carriers can participate in a rewards program that offers cash bonuses and other incentives for consistent, high-quality service.
Support for small carriers: Amazon Relay creates opportunities for smaller, locally owned transportation companies, including those operated by women, veterans, and minority entrepreneurs.
Business growth: By providing steady delivery opportunities, Amazon Relay helps carriers reduce downtime, increase productivity, and grow their operations.
Safety focus: Amazon enforces strict safety standards for its carrier program. These requirements ensure drivers work in safer conditions and that shipments arrive without issues.
Amazon Relay Requirements
Amazon Relay operates beyond a typical carrier partnership program. To join, transportation businesses must meet specific operational, insurance, and safety criteria.
Insurance Coverage
To participate, carriers must maintain the following insurance policies:
- Automobile liability: $1,000,000 per incident
- Commercial general liability: $1,000,000 per occurrence
- Workers’ compensation: As per local laws in the carrier’s operational areas
- Cargo (freight) coverage: Minimum of $100,000
- Employer liability: At least $100,000 per incident
Carriers must ensure that their insurance policies remain active and renew them on time. Drivers must also provide proof of coverage for every delivery. Amazon may revise these requirements, and failing to comply could lead to removal from the program.
Fleet Standards
Amazon Relay requires its carriers to have:
- An active DOT number
- A satisfactory safety rating
In addition, carriers must maintain BASIC (Behavior Analysis and Safety Improvement Categories) scores below certain thresholds:
- Vehicle maintenance: Under 75%
- Dangerous driving: Below 60%
- Controlled substances/alcohol: Under 75%
Vehicle Specifications
Amazon Relay accommodates various vehicle types to support different shipping needs, but certain standards must be met. Acceptable vehicles include:
- Sleeper cabs
- Day cabs
- 28-foot trailers
- 26-foot box trucks
- Refrigerated (reefer) units
- 53-foot dry vans
Special vehicle categories, like refrigerated trucks, must comply with relevant health and safety regulations such as FDA guidelines.
Technology Requirements for Amazon Relay
While Amazon Relay offers many digital tools to boost efficiency and safety, carriers need to meet essential technology requirements before joining the platform.
Amazon Relay App
The Amazon Relay mobile app is a vital tool for participating carriers, offering several features to enhance delivery management and security. Key features include:
- Navigation tools: Truck-friendly route recommendations that consider bridge heights, weight limits, and other hazards.
- Weather alerts: Real-time notifications about changing weather conditions.
- Check-in process: Simplified procedures and clear delivery instructions to reduce delays.
Monitoring & Performance Tracking
Amazon Relay provides carriers with a delivery performance dashboard that tracks routes, shipments, and driver metrics. Each driver receives a rating based on their performance.
This dashboard helps carriers identify operational improvements and achieve higher scores, which can unlock rewards and additional delivery opportunities.
Integration with Third-Party Tools
For carriers using other logistics management software, Amazon Relay can integrate with third-party systems. These tools can assist with route optimization and delivery scheduling.
However, it’s crucial to ensure all software integrates smoothly, as conflicting data or technical glitches could disrupt delivery operations. Carriers should regularly test and evaluate their technology stack for compatibility and reliability. Tips for Getting the Most Out of Amazon Relay
Amazon Relay is designed to make freight operations smoother, but carriers can further optimize their business with a few practical strategies.
Route Optimization
Effective route planning is essential for reducing costs and maximizing efficiency. This involves minimizing empty miles and shortening delivery times.
This platform offers automated route suggestions with real-time updates, avoiding restricted roads and residential areas. However, carriers should review suggested routes for practicality and make adjustments if necessary.
Smart Load Selection
While Amazon Relay includes features like “Post a Truck” to match available loads with suitable vehicles, carriers should still be strategic in selecting deliveries.
Most carriers earn based on mileage rates, typically ranging from $2.50 to $4 per mile. However, overall profitability depends on factors like route distance, load size, and the possibility of combining multiple deliveries to limit empty miles.
Maintain Strong Performance Metrics
It uses performance metrics and scorecards to evaluate drivers and carriers. Higher scores lead to more job opportunities, including access to urgent and high-paying loads.
Metrics such as on-time performance, load acceptance rates, uninterrupted deliveries, and consistent app use all contribute to maintaining a strong reputation. Declining loads or failing to meet deadlines can negatively affect scores and reduce future opportunities.
Enhance Your Business with Amazon Relay
With fast shipping now a standard expectation in online shopping, Amazon continues to innovate its logistics processes. Amazon Relay plays a crucial role in this effort by connecting Amazon with a wide network of carriers nationwide.
The platform benefits Amazon, its customers, and participating carriers by ensuring reliable, fast, and secure deliveries while offering financial incentives and growth opportunities.
For carriers and delivery companies, this program is a promising tool for business expansion. Meanwhile, Amazon sellers can streamline their fulfillment process through Fulfillment by Amazon (FBA) and other strategies to enhance their overall e-commerce operations.
If you’re an Amazon seller looking to improve your business performance, consider working with a professional e-commerce consulting service to help optimize your operations and drive growth.
