In this post, I’m going to share what I know about the Amazon Delivery Service Partner (DSP) business opportunity, and help you figure out if it’s right for you.
But first, let’s start with a little Dylan.
“The answer, my friend, is blowin’ in the wind,
The answer is blowin’ in the wind.”
Stay with me. I’m going to try to give you an answer. The Amazon Delivery Service Partner Program may be a good one for you. It just depends on whether or not you want to partner with Amazon as a business owner. If so, your DSP business would consist of servicing Amazon routes.
Amazon. Bezos. $$$$.
The list of businesses goes on. And Mr. Bezos isn’t done.
Is The Amazon Delivery Truck Business Right For You?
According to an article I read, (which was written by the CEO of a franchise company) Amazon is offering a $10,000, “Amazon Franchise for Delivery” business opportunity. A franchise for Amazon?
After I read the article, I clicked over to the Amazon Delivery Service Partner (DSP) website. The information I found about this low startup cost business was very impressive.
Note: This is not an Amazon Delivery Service Partner business review. It’s way too early for that.
How Much Does It Cost To Become An Amazon Delivery Service Partner?
Startup costs to become an Amazon DSP begin as low as $10,000, and you’ll receive three weeks of hands-on training, along with two weeks in the field.
In addition, according to their website, you can “Join a community of Amazon Delivery Service Partners (DSP’s) in one of the fastest-growing industries in the world.”
Moreover, you’ll get tools and technology designed to keep your Amazon business route operation running smoothly.
Finally, ongoing Amazon corporate support for you and your delivery drivers is included, along with a detailed operations manual, driver assistance for on-road issues while delivering products with Amazon trucks on your Amazon routes, plus you get your own personal account manager. Sounds like the Amazon DSP Business may be a good business opportunity. And the numbers?
From Amazon Logistics
Annual revenue potential* for an Amazon DSP is $1M-4.5M
Annual profit potential* is $75K-300K
*Figures are projections for owners operating Amazon routes with
20-40 delivery vehicles.
Specifically, “The revenue range is based on companies of various fleet sizes (between 20 and 40 vans) and the figures are annualized over a full year. As a result, a delivery company may not achieve the revenue figures in the range until it operates a fleet size of 20-40 vans for a full year, if ever.”
So, is the Amazon business opportunity a good investment?
Read on to find out what I discovered about the Amazon Delivery Service Partner program.
Amazon Is NOT Offering Delivery Franchises
But if you read the article that was just penned by someone who “knows” franchising, you would think you could. Maybe that’s why it was written?
Here’s the headline:
Should You Buy An Amazon Franchise?
What Their Takeover Means For Franchisors Like Us
Forget the “takeover” part. It’s not worth discussing.
But correct me if I’m wrong here.
It does read “Amazon Franchise,” right?
As in, Amazon is offering package delivery franchises.
Which they’re not. They’re offering a business opportunity.
The lesson I’m “delivering” here…the lesson for anyone thinking about buying a franchise is this:
Don’t believe everything you read online. Especially when it’s about a company as big and influential as Amazon.
One more thing: Would you like proof that the Amazon DSP Business program is not a franchise…and is not looking for franchisees to operate their routes and drive their trucks?
If so, all you have to do is look at their online brochure.
Nowhere does it state that the Amazon program is a franchise for Amazon. The word “franchise” does not appear on the document. Why not?
Because you’re a partner. And as I said, you’re buying a business opportunity with extremely low startup costs.You’re not buying a franchise. You won’t be a franchise owner.
That said, can you imagine how it would feel to have a fleet of Amazon trucks delivering packages 12 hours a day, 7 days a week, on local routes near you?
Conversely, would you like to take a stab at how owners of the independent delivery companies in your area will feel when their area is populated with an army of Amazon trucks serving Amazon routes? Maybe your vans?
The Amazon DSP: A Look From The Inside
Here’s an inside look at an Amazon Warehouse that uses Amazon Delivery Service Partners (DSP’s). It comes courtesy of my friends at Small Business Trends.
Update! Amazon Is Being Sued For Treating DSP’s As “Franchisees”
As of 2021, Amazon said there were 2,500 DSP companies employing 150,000 drivers around the world. And according to Geek Wire, many of them deliver packages in Amazon uniforms and dark blue vans with the company’s logo. A branded business.
Furthermore, according to the Amazon Truck Business lawsuit filed by independent owners, Amazon “exercises near complete control” over thousands of independent companies that deliver packages for them. Kinda like a franchise.
Amazon DSP Reviews
What is it like delivering for Amazon?
What are Amazon routes like?
What do employees of DSP’s have to say?
“Not rewarded for hard work, the more you do the more they put on you, not organized and trucks are dirty and damaged. Always pressing more hours and more stops with little to no help. Changing policies every other week. Drama fest. Remember you are just a number.”
It doesn’t get better.
“This is not a career based job, management only cares about completion of the route, with no packages being returned, regardless of the obstacles that you face. They will take you off the schedule for the most simple thing, even if it is out of your control. The part that irks me the most you could be scheduled for that day just to come in and find out that you weren’t supposed to be scheduled, they will not call you ahead of time to save you a trip.”
That doesn’t sound very appealing. But of course those are some of the views from the actual Amazon delivery truck drivers.
More reviews from Amazon DSP drivers can be found here.
To sum things up, I’m starting to wonder if operating a business in which Amazon trucks are delivering Amazon goods to an assigned area is all it’s cracked up to be. What do you think?
Amazon DSP FAQ’s
No. Amazon does not offer franchises. They offer a Delivery Service Partner (DSP) business opportunity.
You can start an Amazon Delivery Service Partner business for as little as $10,000.
According to Amazon, the revenue potential for an Amazon Delivery Service Partner business ranges from $1.4-$4.5M. Your profit can be anywhere from $75K-$300K.
Like all investments, solid due diligence is needed. You must weigh the pros and cons, along with your risk level before investing in any business opportunity.
– Blowin’ in the Wind lyrics ©Bob Dylan, Audiam, Inc