What Is Amazon Dsp
First, its not a franchise. Its a business opportunity for an entrepreneur.
The Amazon delivery service partner program connects a need Amazon has gazillion packages to deliver with someone who wants to be a business owner. An entrepreneur who becomes an Amazon delivery service partner gets the advantages of integration with Amazon logistics business expertise.
Youll need about $10,000 in startup costs. In a nutshell, you run a fleet of leased Amazon delivery vans. Your drivers pick up packages at an Amazon warehouse and delivery routes.
What would your day be like? Remember that the work is 7 days a week, 361 days a year.
On a daily basis, youll be scheduling drivers, setting up routes, tracking progress during the day, fixing any problems, talking to workers at the end of the day, and making sure the fleet is parked and full of gas, ready to go the next day.
How Do I Begin My Business
You have to apply to be a Delivery Service Partner. We will talk about that more in a minute, but once this is approved and accepted, then you begin the process and then you are further on your merry way to delivering packages for Amazon!
You begin the process by spending as little as $10,000 for necessary business costs such as:
- Travel to Training
- Truck Leasing
- Benefits Programs
Training will last three weeks, and you will learn all you need to know to start your business to start delivering for Amazon. It is located in Seattle, WA and the travel expenses are not paid for, as listed above.
It will only be $10,000 starting fee if you use their recommended third-party suppliers for business supplies with their pre-negotiated discounts. As said before, you do not need to find your own facility, as you will be working out of one of theirs.
A Great Opportunity For Diverse Entrepreneurs
Through its Delivery Service Partner program, Amazon is offering diverse entrepreneurs and their families an excellent opportunity to start their own business.
The company recently launched a new diversity grant designed help reduce the barriers to entry for Black, Latinx and Native American entrepreneurs. Amazon has made a $1 million commitment toward funding startup costs for these aspiring owner-operators, offering $10,000 for each qualified candidate to build their own businesses in the U.S. Ready to take the next step toward your future as a Delivery Service Partner? Visit Delivery Service Partner to begin the application process.
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Get Started With Your New Profitable Business
Once youve ordered and received your delivery vans, electronic delivery program devices, fuel cards, and uniforms, youre ready to pick up at delivery stations.
Youll need motor carrier operating authority and insurance for the leased vehicles. Amazon has recommended vendors and has negotiated rates for the program.
Once youve started your business, youll be eligible for many different types of rewards.
What Are The Steps Of Becoming An Amazon Delivery Service Partner
Becoming an Amazon Delivery Service Partner begins with an online application, which asks questions aimed at uncovering your work experience, leadership skills, financial health, community involvement, and geographic preferences. In addition to this application, much like an employment application, you will be expected to pass a credit check, background check, and MVR.
After this initial step, if youre selected to move forward, you will partake in a screening interview. Following the screening interview, you will attend a live webinar with a current Amazon DSP owner, who will answer any questions you hav. Finally, you will move on to the final round of virtual interviews.
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:
Who Should Start Their Own Amazon Delivery Business
According to Amazon, this opportunity is for you, even if you have little or no logistics or delivery experience. Those who already run existing package delivery businesses can also make an application. If you have an existing package delivery business, Amazon has said that you can continue to deliver your packages for other companies.
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Start Your Amazon Delivery Business
When youve received your training, youre ready to set up your Amazon franchise business, recruiting and training your team. You should have already started to think about using the best software to recruit the most important people in your business – your drivers.
Consider using modern hiring software, like Fountain, for a smooth and seamless hiring process. With Fountain, youll be able to benefit from integrations, like background checking services and electronic signatures, for an easy hiring process.
For example, scheduling interviews for your drivers is quick and there’s no chance that youll double book because drivers only have the chance to book interview slots when youre available. You simply send them a link with the interview details and they can accept or reject it. If it’s accepted, then your calendar gets updated straightaway.
Fountain is designed for hiring employees at scale. Its used by companies, like Deliveroo and Lime, to hire different workers at one time.This makes it an ideal recruitment platform for new DSPs to source and hire their drivers.
Youll also need to setup payroll, human resources and use effective shift scheduling software to plan your drivers shifts.
Youre expected to show leadership skills to train employees and let them know whats expected of them.You must also comply with business regulations and requirements for your state.
Additional information about the application process
- Checking on your applications progress
What You Need To Know About Owning Amazon Delivery Business
Owning an Amazon delivery business may sound like a pipe dream, but thats actually not the case at all thanks to the Delivery Service Partner program.
Millions of Americans dream about owning a small business, but only a small fraction of these dreamers turn it into a reality. Why? Because it takes more than just an idea for a small business to succeed, and thats where Amazon comes in.
Since 2018, the Seattle-based giant has been giving entrepreneurs from across the country the opportunity to start their own independent delivery companies using its technology, processes, and logistics experience.
The pitch is certainly attractive enough to catch the attention of all entrepreneursboth aspiring and seasonedwho like the idea of delivering packages for one of the fastest-growing retailers in the world: Amazon DSP owners can earn up to $300,000 a year in profit with startup costs as low as $10,000.
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What Is The Average Amazon Dsp Owner Salary
The DSP program owners salaries vary. As with typical delivery companies, the gross proceeds are reduced by costs, mainly delivery vehicles and costs associated with the workforce.
The 10,000 startup costs come from the cost of business licensing, professional services , computer equipment and software, your travel to training, and employee hiring and training.
Once youre up and running, the revenue potential is very good. Annually, owners with 20-40 delivery vehicles are seeing gross revenue of $1 to $4.5 million.
Of course, expenses eat into the gross revenue but the profit potential is great. Expenses include vehicle leases and maintenance, administration and professional services, uniforms, and employee wages, benefits, and insurance. The net profit realized by delivery business owners after those expenses ranges from $75,000 to $300,000.
Delivery businesses are highly competitive. One of the biggest benefits of being a delivery service partner DSP for Amazon is that youre not alone.
The Amazon training is extensive. Through Amazon, you can choose to get assistance with legal issues, as well as payroll, tax, and accounting services. Youll also get an Amazon dedicated business coach.
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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What Is The Delivery Service Partner Program
Amazon is offering hands-on leaders the opportunity to become an owner-operator and grow a successful package delivery business. You can join a community of DSPs and become part of one of the worlds fastest-growing industries.
There are countless advantages to joining this program, and with so much current demand for safe, fast home delivery, there’s never been a better time to take the leap into the logistics field. As a Delivery Service Partner, you’ll get:
Use Amazons Technology/experience To Boost Logistics Business
If you are trying to become the logistic partner of Amazon, then you are at an advantage. That is because, with the membership of the Amazon logistics program, you will have the access to use Amazon technologies and software.
Lets say that Amazon has done the testing of the drone delivery system and you are providing the drones to Amazon.
You will have an access to use Air traffic control system that Amazon is developing for the drone service.
Like that, Amazon delivery partners have access to the database of Amazon Prime customers so that they can deliver the product on the same day. These are some of the technologies that we are talking about.
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Why Is Amazon Even Doing This In The First Place
Currently, Amazon spends well over 20 BILLION annually in shipping costs across all shipping carriers. That is a huge chunk of change! And its only going to increase more and more each year.
So its a money move for them, while at the same time, trying to leverage their business to also provide better customer satisfaction and have more control of the shipping operations. Even as I write this, my family is waiting on a delayed delivery from an Amazon order that is being sent by a third party. But the third party has now delayed it by 48 hours. We were really counting on that package being here 2 days ago.
As customers, we pay our Prime membership to get our orders in 2-days, not 4. So being able to have just a bit more control is one major customer satisfaction effort.
Get Support From Amazon When Its Needed
Like we said, Amazon has an experienced logistics team that is ready to help you at any time.
For instance, lets say that your driver is delivering the package to the customer but cannot due to the rush hour. Tell that to the Amazon team and they will update the customer about delivery status.
Similarly, if you are trying to expand the covered area, the team will help you in getting the operating license of that area and will help you in setting up the station.
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Do I Have To Supply My Own Vehicles
Yes, delivery partners with Amazon are required to supply their own fleet of vans. Amazon does have specific vehicle specification requirements, and you are expected to meet these qualifications. Amazon also has pre-negotiated flexible lease rates for any startup delivery services who dont currently own a fleet of vans but want to lease Amazon-branded vans to get started.
Amazon Dsp Interview Tips
When you make your application to become an Amazon Delivery Service Partner you will need to answer a number of interview questions. Generally, the interview questions will assess your motivations for wanting to join the Amazon Delivery Service Partner program, your eligibility and suitability, and your commitment to this great opportunity.
Below, we have provided you with four important tips for answering some of the more common questions asked during the Amazon DSP Delivery Service Partner interview to help you prepare effectively and ultimately succeed!
AMAZON DSP INTERVIEW QUESTION TIP #1
Amazon prides itself on its great culture! Afterall, without such a great culture and a team of outstanding Amazonians behind it, it may not have achieved so much success in a relatively short period of time.
When answering this common Amazon DSP interview question, consider that some of the more important culture values include diversity and inclusiveness, opportunity for all, hard work and continuous improvement, a safe working environment, and customer obsession.
AMAZON DSP INTERVIEW QUESTION TIP #2
AMAZON DSP INTERVIEW QUESTION TIP #3
AMAZON DSP INTERVIEW QUESTION TIP #4
This is another common Amazon DSP interview question that is assessing your ability to help the people within your team to improve and develop. You must ensure that you provide an example of when you have encouraged someone to improve, learn or develop.
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What Documents Are Required For Amazon Dsp
In order to start an Amazon delivery partner business, there are certain documents that are needed. These documents depend on the country to the country. However, to give you a sense of an idea, here is what you need:
- Operating licenses of delivery business
- The license of Automotive and Commercial Insurance
- Ownership agreement
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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Requires Low Startup Costs
Starting a delivery business is very expensive. That is because there is hiring, getting fleet management software, obtaining the licenses, and whatnot. Then there are risks in this business.
What Amazon is providing is the solution that covers almost every step of that business and due to that, startup costs become very low.
For instance, Amazon provides a tracking app to your drivers and it also helps you in getting the operating licenses in the area that you are trying to cover. You just have to hire the drivers, verify them and then put them to work.
Who Is Good For This Business Of Delivering Packages For Amazon
As you need to be there every day, you need to be able to dedicate yourself to this every day as your day job. This is not a side hustle, it will be all of your work. $10,000 minimum for starting costs is needed, but Amazon recommends that you have at least $30,000 in liquid assets, and you need to be able to hire people and find people you can trust, as hiring is completely in your hands. It also greatly benefits people to have business experience. However, on the delivery and day-to-day operations, you do not need to have experience with starting your own software, as Amazon handles that. You need to be a people person to manage everyone, as that is your main responsibility. Basically you just need the ability and understanding to run a successful business and keep it going with perhaps a bit of passion too. Amazon holds your hand through the rest.
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Two Years Of Empowering Entrepreneurs With More To Come
In 2018, we launched our Delivery Service Partner program to share our experience in operations and logistics to aspiring entrepreneurs. The program empowered these entrepreneurs to build their own last mile delivery companiesfrom the ground up with the support infrastructure, technology, and a suite of exclusive services, creating thriving small businesses and a safe and motivating environment for their teams. In return, these entrepreneurs have become hands-on leaders who think big and deliver results for customers.
In just two years, these entrepreneurs have experienced remarkable growth, with more than 1,300 DSPs operating across the U.S., Canada, UK, Spain, and Germany who have created nearly 85,000 jobs. The breadth of diversity in the program has been inspiring. Owners include military veterans, former sellers on Amazon.com, educators, city council members and many others who come from a variety of backgrounds. They are great coaches and mentors who have built customer obsessed teams that have delivered more than 1.8 billion packages worldwide, using more than 40,000 Prime branded last mile vehiclesfrom electric vehicles to step vans to delivery vansgenerating over $4.5 billion in revenue for their small businesses.
Learn more about the Delivery Service Partner program, the diversity grant, and application process.