Jeff Bezos started Amazon in 1994 and now, he is one of the wealthiest men in the world. It initially started as an online bookstore, but now you can buy almost anything from the Amazon website. It has also ventured into technology with initiatives such as Amazon Web Services, Smart speakers, Satellite internet, Live streaming services, Book publishing, etc. As the retailing arm of the company grew bigger, this meant more traffic on the website, which meant more orders were made every day, which meant more deliveries had to be done every day. Know more about How Much Does An Amazon DSP Owner Make?
How much does an Amazon DSP owner make?
To start an Amazon DSP business, you will need a starting amount of about $10,000 and about 5 delivery vans and drivers. As with every successful business, the larger the business, the more the profits. Although the expenses also increase, the profit margin also increases which makes it a successful business. DSP business owners with 20-40 delivery trucks make from $1- $4.5 million annually. When you remove expenses, the net profit is usually up to $300000 a year. The expenses usually include staff wages, vehicle lease and maintenance, uniforms, insurance, etc.
What is Amazon DSP?
To reduce the reliance on third-party delivery companies and also increase delivery efficiency, Amazon introduced the Delivery Service Partner (DSP) program in 2018. With the DSP program, Amazon employs and trains entrepreneurs to start a package delivery business solely to deliver products ordered on Amazon.
Who is an Amazon DSP owner?
An Amazon DSP owner is simply someone in the Amazon DSP program. He is an entrepreneur that is recognized by Amazon and is allowed to deliver products to consumers on behalf of Amazon. A payment rate will have been agreed upon and payment will be done monthly. The DSP owner will have a fleet of trucks, truck drivers, and administration staff depending on how large the business is.
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
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
- The first thing you need to do is fill out an online application. You will have to answer some simple questions. Everything will be vetted later so you should not lie about any detail.
- If you have the time to commit wholeheartedly to the business
- If you have any business experience or you’ve 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 next thing is to undergo a screening process. Applicants must submit their resumes and background checks will be done to check criminal records. It is advisable to update your CV to include community involvement because Amazon will be interested in knowing how you can affect the community around you.
- Part of the screening process will be an in-person interview. After passing one, you would be invited to another one until you get to the final stage where you would be invited to join the Future Delivery Service Partner Program.
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.
- The next stage involves receiving an offer from Amazon. The offer will contain the rate at which you will be paid. It can be:
- A monthly payment depending on the number of trucks you own.
- Payment is based on the route given and its length
- Payment is based on the number of packages delivered where there is a fixed rate for each package.
- The next thing is for you to complete the three weeks hands-on programs. After which, you can start playing your route with your trucks and truck drivers
Conclusion:
The success of the business depends on the business owner. Amazon is there to offer help. Help is available to any DSP business owner anytime and anywhere. There are a lot of other factors in play to build a successful business, such as choosing the right location, employing the right employees, etc. The Amazon DSP business, if done correctly is a very lucrative small-scale business and Amazon has made things relatively easy.
Frequently Asked Questions
- How long do my workers have to work?
Amazon packages are delivered all days of the week. So the DSP owner should know how to plan the shifts and pay his workers.
- Is Amazon DSP available Worldwide?
No. Amazon DSP program is currently only available largely in the United States and select states in the following countries: Canada, the UK, Spain, Germany, Italy, Ireland, Brazil, and India
For further questions, visit the Amazon faq page.
