How To Set Up An Amazon Dsp Program Business
Owing to the fact that the DSP program is not yet available in all cities, you have to first check if the program is available in your city. Go to started. After verifying the availability, you can proceed to the following
- If you have the time to commit wholeheartedly to the business
- If you have any business experience or youve ever headed a team or been in charge of recruitment.
- If you have available liquid assets of at least $30000
- If you have a strong credit history
The Future Delivery Service Partner program is simply a pool of possible DSPs. It provides access to online training and DSPs will be chosen from the best candidates as slots become available. It is imperative to note that being a Future DSP does not guarantee a slot in the DSP program.
What Is The Delivery Service Partner Program
It takes a lot of effort and resources to deliver billions of packages every year, which is why the Amazon logistics department is constantly evolving its end-to-end supply chain, trying to come up with innovative solutions that would make it possible for customers to receive their orders sooner.
In 2015, Amazon launched an urban delivery program called Flex, aiming to bolster its late mile delivery business and simultaneously decrease its reliance on third-party delivery companies such as FedEx, UPS, and DHL. According to Amazon logistics boss Dave Clark, the Delivery Service Partner program is the next big building block of the companys logistics infrastructure.
This program is essentially a meal kit that allows anyone to start their own delivery business using Amazons tools and technology. Amazon DSP owners can then enjoy access to a steady delivery volume, hands-on training, and discounts on many assets and services, most notably vehicle leases.
If this sounds too good to be true, thats because we have yet to discuss the reality of owning an . Delivering Amazon packages as a Delivery Service Partner requires substantial commitment and many of the same skills all small business owners needregardless of whether they deliver packages or sell handmade goods.
Which Countries Have The Amazon Dsp Program
The DSP Program is fully operational across the United States, giving plenty of opportunities for American delivery partners.
But what if you arent located in the U.S.?
The DSP Program is active in a number of other countries, including:
You can check for a list of active countries . The DSP Program is continually expanding. If it isnt available in your area at the moment, its worth checking back.
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Find Out More About The Amazon Delivery Franchise And Running Your Own Van
What Our Franchisees Say
Its been our dream to build a business together and make a positive impact on our community at the same time. We enjoy finding new ways to help inspire our drivers and deliver the best experience possible to customers.Aiden and Chantel, Amazon DSP Owners, Doncaster
Our military experience gave us problem solving and leadership skills, but the task of launching a business is complicated and we really didnt know where to start. Amazon provided the expertise, technology and pre-negotiated deals on vehicles, insurance, and devices, to make starting our business both financially and operationally possible.Jamie and Jimmy Amazon DSP Owners, Preston
Anyone who has ever worked in logistics knows how challenging it is to start a business from procuring a fleet of vans to getting insurance. The deals negotiated by Amazon helped lower the barrier for entry. Its what made this opportunity a reality for me.Roger, Amazon DSP Owner Hemel Hempstead
Why Choose Us
Leverage Amazon’s 20 years of logistics experience and technology to build and grow your own successful business
Join one of the fastest growing industries. Hire a team, grow your business and let Amazon worry about the rest.
Built-in, guaranteed demand. Your business grows with ours.
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Top Tips For Getting Started With The Amazon Delivery Service Partner Program
Amazon delivery partners are in charge of their own success. Everything you do finding the right location, building your team, interviewing a driver, choosing from a pool of administrative candidates will have a direct impact on your success, and amount of profit.
There are additional factors that affect your success, such as your own level of logistics experience and your affinity for hard work.
Here are some tips for success:
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Who Is The Amazon Delivery Service Partner Program Good For
The Amazon DSP Program is meant for those who want to run a full-time business and have the ability to lead and coach a team. Are you comfortable in a fast-paced environment and willing to roll up your sleeves to get the work done? If not, then its probably not a good fit.
It wont be a good fit if youre just trying to pick up a side hustle or a part-time delivery gig, either.
In fact, as a DSP, you may end up managing a fleet of anywhere from 20 to 40 delivery vehicles and 40 to 100 employees. Its hard work and not a passive form of income by any means.
In other words, its a full-time job!
Note that the DSP Program is community-centered. You should be ready and willing to commit to a defined service area not trying to deliver across multiple locations. Also, you likely wont be eligible to become a DSP partner if you work with competing delivery companies like FedEx or UPS.
Owning An Amazon Delivery Business
Amazon DSP business owners will build and manage a team of 40 to 100 of their own employees, with fleets of 20 to 40 vans delivering packages seven days a week, 365 days a year, serving thousands of customers.
The company describes the job in a day in the life of an owner timeline in its Delivery Service Partner application materials. Daily duties will include scheduling drivers, setting up routes, rallying the team in a morning huddle, tracking progress throughout the day, working with Amazon to troubleshoot problems, debriefing drivers upon their return, and making sure vans are properly fueled and parked at the end of the day.
But first comes the nitty-gritty work of building and launching the business: securing the required licenses vetting and hiring employees lining up key business services setting up a pay structure and benefits working with legal and corporate advisers building a customer-obsessed culture and coaching your team to exceed expectations on every delivery.
All of this will sound familiar to anyone who knows the companys legendary leadership principles. Amazon says a key trait of successful delivery partners will be resilience and the ability to handle the ambiguity of a fast-paced, ever-changing business, while delivering results with a can-do attitude.
Serving thousands of customers daily isnt easy, but the smiles are incredibly rewarding, the company says in its application materials.
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How Much Does A Delivery Driver Make At Amazon Dsp In The United States
Average Amazon DSP Delivery Driver hourly pay in the United States is approximately $18.59, which is 15% above the national average.
Salary information comes from 40,229 data points collected directly from employees, users, and past and present job advertisements on Indeed in the past 36 months.
Please note that all salary figures are approximations based upon third party submissions to Indeed. These figures are given to the Indeed users for the purpose of generalized comparison only. Minimum wage may differ by jurisdiction and you should consult the employer for actual salary figures.
The Reality Of Owning Amazon Delivery Business
Owning an Amazon delivery business isnt a shortcut from rags to riches. Instead, its one of the most attractive business opportunities in the logistics industry because it doesnt require virtually any previous experience or startup capital. What it does require, however, is the ability to develop a team of hardworking drivers and its day-to-day activities in a high-speed and ever-changing environment.
Delivery business owners who start working with Amazon receive three weeks of hands-on training and access to a comprehensive toolkit containing everything they could possibly need to keep their operation running smoothly by scheduling drivers, setting up team routes, leading morning huddles, tracking drivers, reviewing fleet metrics, and so on.
Each Amazon DSP owner can operate up to 40 trucks and earn as much as $300,000 a year, or $7,500 per route per year. This number doesnt take into account ongoing operational costs, which include driver costs, vehicle costs, administrative costs, and other asset costs. Thats because Amazons payment structure is based on the number of vehicles, route length, and the number of successful deliveries.
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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.
Its 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
Do You Need Your Own Delivery Vehicles For An Amazon Dsp Business
It should go without saying that one of the biggest expenses for any delivery business is transportation. As a DSP partner, its up to you to get your own vehicles for your business. Youll also be responsible for fuel costs and maintenance.
What if you dont have your own vehicles?
The good news is that Amazon can help through its partnership with a third-party fleet management company. This gives you the chance to lease Amazon-branded vehicles at a discounted rate.
What if you already have your own vehicles?
No worries: Youre allowed to use your own vehicles as long as they meet Amazons fleet requirements. Vehicle specification needs are regularly updated and shared later in the application process.
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Advantages Of Being An Amazon Dsp Business Owner
- DSP owners undergo a 3-week intensive hands-on training and access to tools and technology. From how to choose employees, setting up team routes, scheduling drivers to track drivers, reviewing fleet metrics, etc. The training teaches you everything you need to know to create a successful business.
- The liaison with Amazon will ensure that there is a constant stream of packages to deliver which in turn means that the income will be somewhat steady.
- The average cost of starting a Delivery Service Partner Business excluding the technical and technological help you will get from Amazon is $10000, which is relatively compared to other similar delivery businesses
Complete And Pass The Amazon Dsp Program
An Amazon Delivery business owner will have 3 weeks of hands-on training in classroom and warehouse settings, gaining logistics experience. That initial period is followed by 2 weeks of instruction in the field working with other delivery business owners.
As youre waiting for routes to become open, take part in the Future Delivery Service Partner Program. People who are involved and active in that program are most likely to be tapped for a route when it becomes available.
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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 Amazons on-demand support, youll 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 around415 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.
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.
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Establishing Your Team And Launching Your Business
Before they can launch their businesses, new DSP owners must first set up their business and hire a team.
Establishing Your Business
The first step is to set up your business. This includes:
- Choosing a name
- Choosing an entity type
Amazon provides deals on tools to help with some of the back-of-house tasks, like tax and accounting, payroll, insurance, legal support and more.
As a DSP owner, you will need to obtain your motor carrier operating authority and ensure that your leased vans are adequately insured.
Establishing Your Team
Most owners start off with just five vans, so you will need to hire five drivers and lease five vans right from the get-go.
Amazon offers discounts on recruiting tools to help you find qualified drivers.
Owners are expected to maintain Amazons reputation, so its important to hire drivers who will interact positively with customers. Timely deliveries and customer satisfaction are two metrics that you will need to focus on.
How Much Do Dsp Location Owners Make
Amazon does not provide exact figures on how much a median owner would make, reemphasizing the need for business owners to create their own models. However, the following graphic contains some information that Amazon shares.
Amazon notes that these figures are for a 5 vans business whereas the typical owner has between 20-40 vans.
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How Do I Become A Dsp For Amazon
It lists the qualifications you need, which include:
Set Up Your Amazon Delivery Service Partners Business Program And Employ Staff
Newbies to the program typically start with 5 vans. That means youll need to lease 5 vehicles and youll need 5 drivers, right from the start.
How do you choose from the pool of candidates? Look for people who have experience working for delivery companies. You also want to see a steady work history and logistics experience. You may choose to employ drivers. An Amazon flex driver is a self-employed subcontractor.
What else? One of Amazons strengths as a company is its customer service. You may find applicants who have the ability to deliver packages, but not interact positively with customers. In the delivery business, disgruntled customers can ruin the reputation of a business.
Candidates should have a strong work ethic, the ability to pick up from a delivery station and complete a route, all while remaining focused on keeping customers happy. Your role as the owner is to maintain the reputation of the program, with timely deliveries and satisfied customers.
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Can Owner Operators Get Amazon Trucking Contracts
What if youre an owner operator who wants to work with Amazon but doesnt want to be a DSP driver? Can you get a contract with Amazon?
Unfortunately, Amazon does not have trucking contracts with owner operators. The Amazon Relay program allows carriers to sign short-term contracts and access the companys load board. In order to be considered, other truckers say you must have at least three trucks in your fleet.
Fill Our The Application To Start Your Own Amazon Delivery Business
If you want you to start the application, Amazon recommends that you open up a new account, which is dedicated to this application. Alternatively, you can apply with your existing Amazon account. However, if you are already a DSP associate or an Amazon flex delivery partner, youll need to open a new account.
The basic application screen has more information about becoming a delivery service partner.
It lists the qualifications you need, which include:
- Experience of hiring and developing great teams.
- A willingness to commit to being a hands-on DSP owner full-time.
- Liquid assets of at least $30,000.
- A strong credit history.
- Ideally, previous business ownership is preferred, but this isnt a requirement.
This basic application asks for straightforward information such as:
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