What is Amazon Delivery Service Partner Program?
The Amazon Delivery Service Partner program offers the opportunity to start your own package delivery business. Through this, you’ll be an Amazon Delivery Service Partner, or DSP, responsible for your team. Your work mainly involves hiring, training, coaching, and developing your delivery associates.
As Amazon claims, you won’t need to worry about running your business’s sales, logistics, and technology aspects. Amazon will take care of those. This way, you can focus on your people and how your business can deliver excellent service through them.
How Much Can You Make With Amazon Delivery?
As a DSP, you can own up to 40 delivery trucks and employ up to 100 employees. With such a massive operation, Amazon projects between $70,000 to $300,000 annual earnings for its Delivery Service Partners.
It’s also worthy to note that Amazon offers the following payment structure to DSP owners:
- Fixed monthly rate depending on the number of your vans operating for Amazon
- A route rate depending on how long your route is
- A per-package rate depending on your number of successful deliveries
How Much Startup Capital is Required for Building Your Amazon Delivery Business?
Amazon claims a startup cost as low as $10,000. This amount covers essential startup expenses, such as:
- Professional services, like lawyer and accountant fees
- Legal entity formation and licensing
- Set up supplies, like computers and time-tracking software
- Recruitment costs, like job postings, driver training, and drug testing
- Travel costs for your owner training
- Five trucks under Amazon’s leasing program
Note that you won’t pay this amount to Amazon. This only represents the startup costs Amazon can negotiate to third-party providers on your behalf.
Additionally, you might need to prepare at least $30,000 liquid asset requirements. Besides the startup costs, this ensures that you have sufficient funds to cover your expenses during training and launching.
Amazon Delivery Business Pros & Cons
Before you can start with this business venture, it makes sense to weigh in the pros and cons:
Amazon Delivery Business Pros
1. You don’t need experience in the logistics industry.
Before, you’d need a background in logistics to start your delivery business. But since Amazon will provide you training, you don’t need any previous experience. You’ll also have access to their technology, processes, and logistics experience to run your business.
2. You can focus on your people, not sales.
As a delivery partner for Amazon packages, you won’t have to worry about looking for other clients and driving sales. There will always be packages for your people to deliver. Because of this, you can focus on your team and how they can provide high-quality services in your locale.
3. You will have access to support when you need it.
Amazon offers on-demand support, which includes:
- A comprehensive manual
- Driver assistance for on-road issues
- A business coach
4. Your growth depends on you.
You choose to grow your business at a rate you’re comfortable with. You can go the fast track and work aggressively to achieve your 40-truck fleet. The lowest startup cost at $10,000 already affords you five Amazon leased trucks. Still, you can work towards acquiring more vans for your business.
Moreover, you can offer your services to other e-commerce, letting you further expand your package delivery business. In such a case, though, you’ll need to lease trucks from third-party providers.
Amazon Delivery Business Cons
1. This is a full-time job.
Running your delivery business is full-time work, and possibly with overtime. You might need to go to the warehouse most times and be ready to help your team around the clock.
2. Getting the hang of it can take some time.
If this is your first business venture, it can take some time to get the hang of it. You have a lot to learn about managing your own business and leading your people. But, if you already have the talent for the latter, you’ll have an easier time adjusting to your new role.
Is Amazon Delivery Franchise a Good Investment?
Considering the pros and cons of the Amazon delivery franchise begs the question: is it a good investment?
From the low startup costs to Amazon’s on-demand support, you’ll have nearly everything to make your delivery business grow. Moreover, Amazon can assure you a steady flow of work, so your Amazon Delivery Service Partner salary is pretty much assured.
Besides the financial gains, being a boss in your business can be fulfilling in other ways. If you have a passion for helping people, your employees will be your first beneficiaries. You can focus on leading and coaching them, investing in their talent to benefit the business in the long run.
Lastly, the recent pandemic has brought people to opt for e-commerce even more. In July of 2020 alone, Amazon shipped around 415 million packages to its massive customer base. You can just imagine the number of people who rely on Amazon for their consumer needs and wants. And, as a DSP, you will have the unique opportunity to meet those demands and ease your customers’ delivery concerns.
So, to answer the original question, an Amazon Delivery Franchise is indeed a good investment.
A Step-by-step Guide to Starting Your Amazon Delivery Business
If you’re ready to work on your ideal life as an entrepreneur, below are the steps to start your Amazon delivery business.
Before starting your online application, first, check if the location you intend to operate your business in accepts applications. If your area is not on the list, you can sign up through the “Learn More” button to receive the updates.
If your location is already on the list, go ahead and start with the first step:
Step 1: Submit the Online Application
First, start your online application. You can choose to create an Amazon account or use an existing one. If you’ve applied or worked as an Amazon Flex before, you’ll need to use a different email address to sign up.
Once you’ve signed in to your Amazon account, the page loads to a list of information you might need to provide in the online application. These include:
- Personal information and updated resume
- Work history, dates of employment, and current salary information
- Military service information, if applicable
- Educational history, with dates of attendance
- Personal financial information, including your assets and liabilities
- Vital information for background and credit checks
Ensure accurate information before submitting, as you won’t be able to edit your application once submitted.
Step 2: Complete the Candidate Screening Process
At this stage, you will undergo further screening through:
- Live webinars with a DSP owner, where you can ask questions
- Final virtual interviews
Amazon gauges applicants based on the following:
- Business acumen
- Recruiting skills
- People management
Application in the DSP program can be highly competitive and, at times, may take months before you get an update. In the meantime, you can search for an Amazon DSP for sale in your target location.
Step 3: Join the Future DSP Program
After successfully passing the final interview, you might receive an offer to join the Future DSP Program. It is an excellent opportunity to acquire onboarding and launching education before Amazon opening or announcing new delivery stations.
By joining this program, you’ll regularly meet an Amazon Business Development Manager to answer your questions and update you on location.
Step 4: Receive a Rate Card and Offer
Once Amazon approves your application, you will receive a rate card. You can also ask questions about stations, routes, and the financial aspects of your business.
Additionally, if it’s not available in your location yet, you’ll receive an offer to open your DSP business once available in your preferred location.
Step 5: Complete 2 Weeks of Training
After accepting the offer, you’ll need to complete a two-week training with Amazon. Here’s what you can expect:
For the first week of training, you’ll discover Amazon’s customer-obsessed culture and learn more about running a business. The training also aims for you to master best practices of hiring, training, and engaging your team.
You’ll also receive valuable advice from industry experts on how to set up your business. Lastly, you’ll get a comprehensive breakdown of the third-party deals Amazon closed for you.
The second week of training aims to expose you to the actual operations of your delivery business. You can think of this stage as on-job training. Here, you’ll observe the daily events in a delivery station and assist in sorting and loading out packages.
You’ll be working alongside other DSP owners so you can see firsthand their dispatch and on-road management. With them, you’ll also have the opportunity to learn about troubleshooting common problems your drivers might face on the road.
Step 6: Set Up Your Business and Build a Team
Amazon will provide you a comprehensive toolkit and assist you in setting up your business. You won’t need to worry about not knowing what to do at any time in this stage since Amazon is ready to answer your questions. Additionally, you’ll receive daily processes Amazon designed to keep your business operating smoothly,
Step 7: Operate Your Business
That’s it! You’re ready to operate your business and get everybody in your team working.
For any business-related concerns, Amazon continues its support through a dedicated Business Coach. For other matters, you can also reach out to their support team by emailing email@example.com.