Are you interested in starting an ecommerce business but don’t want to sell anything? Start a delivery business! Between 2018 and 2023, the delivery industry grew by 5.9% yearly.
The Amazon Delivery Service Partner (DSP) program exemplifies how Amazon can offer one-day and even overnight shipping.
Customers worldwide rely on Amazon to receive their favorite products quickly. Since Amazon must keep up with the fast shipping demands, they created many delivery options to expedite more orders. One such option is Amazon DSP.
The Amazon Delivery Service Partner (DSP) program exemplifies how Amazon can offer one-day and even overnight shipping.
Amazon has over 3,000 DSPs worldwide, and businesses can access many benefits when starting or expanding a delivery company. That’s why starting a delivery business is easy when you use the Amazon DSP program.
What Is the Amazon DSP Program?
The amazon delivery service partner program lets you start a business by delivering Amazon packages.
Amazon launched this program in 2018, and it is still growing. While Amazon has its own fulfillment providers, vehicles, and employed drivers, the DSP program has allowed Amazon to fill delivery gaps and expedite orders even more.
Since Amazon delivers over 10 million packages daily, there’s no shortage of work for you. Amazon estimates DSP owners can make between $75K-$300K annually.
Since you’ll own an Amazon delivery business, you’ll deliver their packages but own a fleet of vehicles and hire your delivery drivers. You’ll also access additional support, such as a legal team, insurance, and discounts on recruiting and payroll and accounting software.
Benefits of the Amazon DSP Program
There are many perks to starting a delivery business with the Amazon DSP program. These include:
- Low startup costs. You don’t need to invest as much money into an Amazon DSP business as another delivery company. Amazon estimates your expenses will only be $10,000.
- Reliable work. The demand for fast deliveries ensures that you’ll have regular work and a steady revenue stream.
- Hands-on training. Even if you never worked in delivery, Amazon offers two-week training and on-demand support.
- Discounts. Amazon offers discounts on the assets and software you need to run your business, such as vehicle leases.
- Easy to start. It’s simple to establish your DSP business, hire drivers, and access the right tools and technology.
Challenges of Owning an Amazon DSP Business
It’s common to face certain challenges as an Amazon DSP business owner. For example, you may struggle to recruit and retain drivers.
Delivering packages is a more strenuous job than many expect. Drivers work long hours and have tight deadlines, and this can hurt an employee’s job satisfaction.
There are ways to have a strong team, though. Offering a competitive wage and plenty of benefits is one strategy. Another is to create a positive work environment, which is sure to retain drivers.
Also, maintain your vehicles and install the latest routing software so your drivers don’t experience problems.
Things to Know About the Amazon DSP Program
There are many advantages to starting a delivery business with the Amazon DSP program. But before you get started, there are some facts about the DSP program that you should know.
Who Will Benefit From This Program?
The Amazon DSP program is the perfect solution for someone who wants to start a delivery business and manage a team of drivers.
But there are situations when this program isn’t the right fit for you. The Amazon DSP program isn’t a side hustle–it’s a full-fledged business where you’ll manage multiple delivery fleets. If you want a part-time side gig, it’s best to be a delivery driver instead of a DSP owner.
Since you’ll manage delivery fleets in your area, you’ll need knowledge of the local community, including neighborhoods and streets. If you recently moved or don’t get around that much, you may not have the required knowledge to fulfill the job.
What if you already have a delivery company and want to partner with Amazon? If you already partner with competitors, such as UPS or FedEx, Amazon will likely reject your application.
Eligibility
Amazon will require DSP owners to have at least five vehicles, a clean driving record, a steady work history, and the ability to pass a credit and background check. While Amazon says you only need $10,000 in startup costs, they do require at least $30,000 in liquid assets.
Before starting your business, you must fill out an application, and Amazon can deny your request. To increase your chances of acceptance, include any skills that you’ll use to run your DSP business.
Examples include past business ownership, experience leading teams, community engagement, and even being a 3PL Partner.
How Much Can You Earn?
As stated previously, Amazon estimates DSP owners can make anywhere between $75K-$300K. If you own a larger fleet, the earnings potential is even more.
That said, various factors can affect your revenue. These include the number of vehicles in your fleet, your region, the number of delivery routes completed, the number of packages you deliver, and the number of drivers.
Don’t forget that you’ll have business expenses that can impact your take-home pay. This includes your vehicle expenses and software for routing, payroll, and accounting/taxes.
Delivery Vehicles
As a DSP, you’ll need to own a fleet of vehicles to complete the deliveries. You’ll also be responsible for additional expenses, such as maintenance and fuel.
To simplify this process, Amazon can help you acquire vehicles through their third-party fleet partners. This is beneficial since your drivers will use Amazon-branded vehicles, and you can purchase them at a discounted price.
You can use your own vehicles, but they must meet Amazon’s fleet requirements. Amazon lists these specifications on its website.
Where to Use the Amazon DSP Program
While the Amazon DSP program is available in numerous countries, you must ensure you’re located in a qualifying region.
Here are the active countries in the Amazon DSP program:
- United States
- United Kingdom
- Canada
- Germany
- Spain
- Ireland
- Italy
- India
- Brazil
Amazon is always expanding its DSP program. If your country doesn’t qualify now, check their website when they update their list.
How to Enroll in the Amazon DSP Program
Did you decide that the Amazon DSP program is right for you? First, you must know the process of establishing your business so you can be prepared. Here’s an overview of how to become an Amazon DSP owner.
Step 1: Apply
The first step in setting up your DSP business is applying on the Amazon website. In the application, you’ll answer questions regarding your availability, work experience, and finances.
Specific questions Amazon will ask include how much time you can commit to business ownership, your experience leading teams, confirmation that you have $30,000 in liquid assets, a strong credit history, and whether you’ve owned a business in the past.
You’ll also need to submit a resume that details your work experience and community involvement. In addition to the application, this is where you’ll complete a background and credit check, and where you’ll submit your driving history.
Step 2: Interview
If Amazon approves your initial application, you’ll begin the interview process. The interview will occur at a nearby Amazon fulfillment center or another station. Note that there will likely be multiple interviews.
During these interviews, Amazon will ask questions pertaining to your initial application and other questions to get to know you and your management or business ownership background.
Step 3: Receive an Offer
If Amazon approves every interview, you’ll receive an invitation to join the program. You’ll receive a formal contract.
The contract will detail certain aspects of the business, such as route length, number of vehicles, and package volume. These terms vary, depending on your region.
Step 4: Complete Training
Once you sign the contract, the training will begin. Training usually lasts two weeks. During the first week, you’ll watch webinars in a virtual classroom to get a feel for the business and the processes.
The second week of training will be more hands-on. You’ll complete this training at a nearby delivery station, where you’ll meet other DSP partners.
Once you complete training, you’ll receive a toolkit that includes an operations manual and roadside assistance information. You will also be assigned a business coach to help you navigate challenges, such as expanding your fleet.
Step 5: Hire Delivery Drivers
From here, it’s time to hire drivers. If this is your first time hiring drivers, you’ll want to look for delivery or logistics experience to avoid shipping delays.
Some soft skills to look for include great communication, attention to detail, a positive attitude, and the ability to work in a fast-paced environment. Amazon also has certain employment programs, such as one for veterans.
Instead of hiring employees, you can also onboard Amazon Flex drivers. These are independent contractors who can complete your deliveries.
Most new DSP owners start with a fleet of five vehicles and drivers, but you can always expand your team when you’re ready.
Gain Success With the Amazon DSP Program
The Amazon DSP program allows individual business owners to own a fleet of vehicles and hire drivers, creating their own delivery business to deliver packages.
But what if the DSP program isn’t right for you? If you’re intimidated by ecommerce, we make owning an online store easy. You’ll work with an expert team to get your store up and profit in a short amount of time.
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Author
Stephanie Jensen has been writing e-commerce content for seven years, and her copy has helped numerous stores rank on Amazon. Follow her on LinkedIn for more insight into freelance writing and creating high-quality content.
