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How to Start an Amazon DSP Business

How to Start an Amazon DSP Business
Written by publishing team

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If you’ve ever wanted to start and run your own package delivery business, an Amazon Delivery Partner could be your answer.

Entrepreneurs have launched their business as Amazon Delivery Partner since 2018. Many success stories start with DSP.

With the pandemic fueling the trend toward online ordering, there’s no time like now for you to become part of the Amazon Delivery Service Partner Program.



What is Amazon DSP?

First, it’s not a privilege. It is a business opportunity for an entrepreneur.

The Amazon Delivery Partner Program connects a need — Amazon has a gazillion package to deliver — with someone who wants to be a business owner. An entrepreneur who becomes an Amazon Delivery Partner gets the benefits of integrating with Amazon’s logistics business expertise.

You will need about $10,000 in startup costs. In short, you operate a fleet of Amazon rental delivery trucks. Drivers pick up packages from an Amazon warehouse and delivery route.

How will your day be? Remember that work 7 days a week, 361 days a year.

On a daily basis, you’ll schedule drivers, create routes, track progress during the day, resolve any issues, talk to workers at the end of the day, make sure the fleet is parked and full of fuel, and ready to go the next day.

Amazon DSP Overview

Your first step is to find out if a Delivery Service Partner Program is available near you. Go to http://www.logistics.amazon.com/marketing/getting-started.

Delivery service partners typically require around $10,000 in start-up costs. DSP owner starts with up to 5 trucks and delivery drivers.

Amazon offers complete training to cover everything you need to know to run a delivery business. In the DSP program, you will train with other DSP owners.

Basically, drivers pick up packages at Amazon warehouse and delivery routes. Roads must be delivered 7 days a week, 361 days a year.

You rent trucks, which is common in the delivery business. Vehicles display the Amazon Prime logo and your employees wear the Amazon uniform.

Since Amazon started its DSP delivery partner in 2018, the majority of business owners have grown to operate 20-40 delivery vehicles, and 40-100 employees.

What is the average salary for an Amazon DSP owner?

DSP holder salaries vary. As with typical delivery companies, overall revenue is reduced through costs, especially delivery vehicles and costs associated with manpower.

The $10,000 start-up costs come from the cost of licensing the business, professional services (accounting and legal), computer equipment and software, your travel to training, and staff recruitment and training.

Once launched, the revenue potential is very good. Annually, owners with 20-40 delivery vehicles see total revenue from 1 to 4.5 million dollars.

Of course, expenses eat up the total revenue but the potential for profit is great. Expenses include vehicle rental and maintenance, administrative and professional services, uniforms, employee wages, benefits, and insurance. The net profit realized by delivery business owners after these expenses range from $75,000 to $300,000.

Delivery companies are very competitive. One of the biggest advantages of being an Amazon DSP delivery partner is that you are not alone.

Extensive Amazon training. Through Amazon, you can choose to get help with legal issues, as well as payroll, tax, and accounting services. You’ll also get a dedicated Amazon Business Coach.

Why Entrepreneurs Should Consider Starting an Amazon Delivery Partner Business

  1. Compared to the cost of starting a similar delivery business, the cost to start up is low at $10,000.
  2. By connecting to Amazon, the ongoing workload of packages to be delivered is constant
  3. DSP owners have access to Amazon technology, logistics, and training.
  4. DSP owners are the bosses of their delivery companies. Owners prepare the hiring process for their drivers. Delivery partners decide how to pay drivers and what kind of benefits they get.
  5. You will be partnering with a giant in the field of competitive delivery. The parcel delivery business is growing.

How to set up Amazon DSP work

Once you know if Amazon delivery service partners are available in your area or not, you can start the process.

7 main steps

1. Fill out the online application

The online application is the first step, and it is fast. There is a series of yes – no questions.

Here’s what Amazon wants to know about you:

  • If you have experience hiring and developing teams of workers.
  • If you’re ready to commit to being a working, full-time DSP owner.
  • If you have available liquid assets of at least $30,000.
  • If you have a strong credit history.
  • If you have owned a company before. This is not required but is preferred.

2. Pass the Amazon DSP Inspection Process

The first step in the screening process is the second application. The second application is more in-depth.

You may want to update your resume to include hobbies or activities that are not normally included on a resume. Amazon highly values ​​community involvement. Did you coach the community team? Have you joined the local committees that prove your community involvement? How can you engage your community members to help you hire people?

As with any job opportunity, you will be screened for:

  • You will need an updated CV that proves a stable work history
  • Your driving record should be clean, especially the mobility offenses.
  • You will undergo a security screening, which will include a criminal records check and a credit check.

3. Go to the interview

Personal interviews are conducted at Amazon Inquiry locations, subject to availability, and at locations closest to you.

To find out where these sites are, go to this link: https://www.logistics.amazon.com/marketing/faq.

The interview process, from the quick initial application and through the in-person interview process can take months. There will be more than one interview.

Applicants who successfully pass the interview process will receive advance notice of such admission. They can then join the Future Delivery Service Partner Program. In fact, it’s a great move.

Competition is fierce among those striving to enter the Delivery Service Partner Program. The Future DSP provides access to continuous online practical training. Those who actively participate in the Future Delivery Service Partner program go to the top of the line.

4. Receive an offer and a price tag for your business

The numbers on offers and price tags can vary by country and route region. The rates are:

  • Fixed monthly payment based on the number of trucks
  • Path rate depends on the length of the route.
  • The rate per package depends on the number of packages delivered.

5. Complete and pass Amazon DSP

An Amazon Delivery business owner will get 3 weeks of hands-on training in classroom and warehouse settings, and gain logistical experience. This initial period is followed by two weeks of teaching in the field – working with other delivery business owners.

While you wait for roads to open, participate in the Future Delivery Service Partner Program. People involved and active in this program will likely be pressured into a path when it becomes available.

By utilizing all the instructions provided, you will become more comfortable and educated on all developments in the logistics industry.

6. Set up an Amazon Delivery Service Partner Work Program and hire employees

Newbies to the program usually start with 5 trucks. This means that you will need to rent 5 vehicles and you will need 5 drivers from the start.

How do you choose among the pool of candidates? Look for people who have experience working in delivery companies. You also want to see consistent business history and logistical experience. You can choose to use Amazon Flex drivers. Amazon Flex Driver is a self-employed subcontractor.

What then? One of Amazon’s strengths as a company is customer service. You may find applicants who have the ability to deliver packages, but do not interact positively with customers. In the field of delivery, disgruntled customers can spoil the reputation of the company.

Candidates must have a strong work ethic, ability to pick up from the delivery station and complete the route, while still focusing on keeping customers happy. Your role as the owner is to maintain the software’s reputation, with timely delivery and satisfied customers.

7. Start your new profitable business

Once you have ordered and received delivery trucks, e-delivery software hardware, fuel cards and uniforms, you are ready for pickup at the delivery stations.

You will need an Auto Carrier Operating Authority and rental vehicle insurance. Amazon recommended sellers and negotiated program prices.

Once you start your business, you will be eligible for many different types of rewards.

Top tips for getting started with the Amazon Delivery Service Partner Program

Amazon delivery partners are responsible for their success. Everything you do – finding the right location, building your team, interviewing a driver, choosing from a pool of management candidates – will have a direct impact on your success and the amount of profit.

There are additional factors that affect your success, such as your level of logistical experience and your affinity for hard work.

Here are some tips for success:

  1. Banish startup costs by accessing a diversity grant. Amazon offers $10,000 grants to black, Latino, or American Indian applicants.
  2. Learn about the job market and your region. What is the state of the workforce in your location Will you be able to access quality workers? Take advantage of your access to Amazon’s guidance and education on how to hire and train people, and build a team.
  3. If you do not have extensive logistical experience, take advantage of the support that Amazon offers. Amazon offers 24/7 support to DSP partners.
  4. Business owners must be comfortable in leadership roles in the company and the know-how to build a good team. Leadership is the key to success in any company.

Is Amazon DSP profitable?

Newbies start business with 5 trucks. Most add more within the first two months.

It is up to you how profitable your company is. Owners with 20-40 delivery vehicles earn profits ranging from $75,000 to $300,000.

How much does Amazon DSP pay per track?

Pay per route varies per route. You will know the price in advance. Amazon will offer a price tag for a route. The rates are:

  1. Fixed monthly payment based on the number of delivery vehicles.
  2. The path rate depends on the path length.
  3. The price per package depends on the number of deliveries.

Is Amazon DSP a good opportunity?

Is Connecting the Amazon Logo Your Success? Many success stories start with Amazon.

With Amazon, you’ll have access to support for everything you need to manage every part of the business – like payroll, taxes, accounting, and insurances. You will be part of a team – on a huge global scale – and yet be the leader of your team.

For entrepreneurs, Amazon’s business services can be a huge bonus.

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