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How to Start an Amazon Delivery Franchise

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Key Takeaways

  • Amazon Delivery Franchise empowers entrepreneurs to start delivery businesses with Amazon’s support.
  • Requires active management and coordination of delivery teams and vehicles.
  • Offers training, resources, and exclusive deals for startup and operational success.
  • Potential annual revenue ranges from $1–$4.5 million with profits of $75,000–$300,000.

Launching an independent delivery business can be challenging, even if you’ve worked in logistics in some capacity before. Fortunately, the Amazon Delivery Franchise can provide the tools and training to get started.

Working as one of Amazon’s Delivery Service Partners can set you up for thriving entrepreneurship as you deliver bundles of joy within your community.

What Is an Amazon Delivery Franchise?

Amazon Delivery Franchise, also known as the Amazon Delivery Service Partner Program, is a scheme designed to empower entrepreneurs who want to launch and run their delivery businesses.

If you have the desire and motivation to coordinate teams to handle the planning and management of day-to-day deliveries, the Amazon Delivery Franchise is right for you.

Even if you don’t have working experience in logistics management or a similar field, you can still be an Amazon Delivery Service Partner.

Working with Amazon gives you access to the e-commerce giant’s vast network of customers and technology, which you can leverage to make your delivery business successful.

Who Is an Amazon Delivery Service Partner?

An Amazon Delivery Service Partner (DSP) is an entrepreneur who manages and coordinates a team to deliver packages from Amazon delivery stations directly to customers.

As a DSP, you’ll be responsible for providing last-mile delivery services to Amazon customers, using Amazon assets, technologies, and resources to boost your delivery business.

What Can You Expect as an Amazon Delivery Service Partner?

As a DSP, you can expect:

1. Hands-On Business Ownership

The Amazon DSP Program is more than a passive business opportunity. It requires total effort and commitment to oversee all delivery business aspects.

So you should be ready for the challenge of being actively involved in the day-to-day operations of your delivery business.

2. An Opportunity to Lead

You have an opportunity to lead your team to success through efficient people management while putting smiles on customers’ faces.

Your decisions will go a long way in shaping your company culture and mode of operation, ultimately determining your delivery business’s success.

3. A Working Partnership

Working as a DSP offers you the chance to associate your delivery business with Amazon’s customer success culture and cutting-edge technology.

Amazon provides you with resources, exclusive deals, and business mentorship. This helps your delivery associates enjoy a safer work environment, and you can always leverage Amazon innovations to evolve your business.

What Do Delivery Service Partners Do?

As an Amazon DSP, here are some of what you’re responsible for:

1. Team Hiring

Running a package delivery service is hard work, so you’re responsible for hiring, training, developing, and retaining your team of delivery associates.

2. Asset Management

You’ll manage the delivery vehicles fleet, including handing out equipment to your delivery associates. You’ll also have to check in on equipment and oversee vehicle loadout regularly.

At the end of each work day, you’ll check that all delivery vehicles are refueled and parked away, with maintenance scheduled if necessary.

3. Employee Performance Management

Your job is to inspire, motivate, and get everyone in your package delivery business in the right mindset for success.

Part of that is to lead a daily morning huddle with your delivery drivers once everyone has loaded their vehicles and before they set out from the delivery station.

The team meeting may include safety reminders and daily updates.

You’ll track the progress of your delivery drivers and manage issues potentially arising, including drivers running behind, flat tires, or general logistics inquiries.

You’ll also welcome back your helpers and drivers to the delivery station at the end of the day, troubleshoot undelivered packages, and conduct route debriefs.

4. Leverage Amazon Support

Amazon provides support to its DSPs, and it’s crucial to leverage available resources and the expertise of your dedicated business coach to help your delivery business succeed.

You can consult your dedicated area manager, on-road assistance team, and Amazon delivery station personnel for any questions regarding routes or packages.

How to Become an Amazon Delivery Service Partner

Here’s how you can apply for an Amazon Delivery Franchise:

The Application Process

If you’re looking to start a package delivery business as an Amazon DSP, the first step is to apply online.

To apply, you need first to prepare these documents:

  • An up-to-date resume with your complete work history, including dates of employment, education, and military service if applicable
  • Personal finance information, including proof of $30,000 in liquid assets such as money market, personal checking, savings, or brokerage accounts

Completing the application typically takes you up to three hours. Part of the application collects personal information that Amazon uses to conduct background, motor vehicle, and credit checks.

You’ll also have to provide information about your history in successfully hiring and leading teams, community contributions, and working with customers.

Note: When applying, ensure that you use an email address that hasn’t been used for Amazon Shopper Panel or Amazon Flex and isn’t associated with a current Amazon DSP profile.

Post Application

Applying to begin an Amazon franchise business can take time, as the program is highly competitive, with limited openings.

After submitting your application, it may take months before you get feedback. During the waiting period, Amazon advises that you research its delivery partner program and prepare questions to ask interviewers.

You can check the application portal frequently to see the status of your application. You’ll be contacted via the email you registered with when feedback is ready.

Future DSP Program

If you’re accepted to be an Amazon DSP but your preferred location isn’t available, you’ll be invited to join the Future DSP Program.

Here, you’ll learn more about the logistics industry, leading teams, and the day-to-day demands of being a business owner.

You’ll also regularly meet with your business development manager and current DSPs for advice on succeeding in your package delivery business.

Note: Being invited to join the Future DSP Program is no guarantee that you’ll get an offer, but it prepares you ahead of when the opportunity arises.

Getting Started as an Amazon DSP

Once you’ve been cleared to work in Amazon’s DSP program, you’ll begin the Owner Training Program.

This program involves two weeks of comprehensive training on how to run a successful delivery business and ensure that customers receive their packages.

In the first week, you’ll discover Amazon’s customer-obsessed culture and master the best staff hiring and training practices. You’ll also explore all the exclusive deals that Amazon has negotiated for you to maximize the business opportunity.

In the second week, you observe the daily processes at an Amazon delivery station and work alongside existing DSPs to watch their dispatch and on-road management in action.

Startup Costs and Amazon’s Exclusive Deals

Your key startup costs for becoming an owner include the services and assets you’ll need to launch your business officially. They include:

  • Business entity formation and licensing
  • Setup supplies, such as laptops and timekeeping software
  • Recruiting costs, such as driver training, background and drug tests, and job postings
  • Professional services, such as accounting and lawyer fees

You can expect these operational costs after your business is up and running:

  • Employee costs, such as benefits, ongoing training, insurance, and wages
  • Vehicle costs, such as routine maintenance and delivery vehicle leases
  • Administrative costs
  • Professional services

Leveraging Amazon’s deals streamlines the startup process. Amazon has negotiated exclusive deals on ongoing business management services and startup assets with high-level third-party service providers to get your business started.

Amazon DSP owners can look forward to exclusive deals on:

  • Amazon-branded vehicles customized for delivery
  • Vehicle maintenance and insurance
  • Professional uniforms
  • Fuel programs
  • Industrial-grade handheld devices
  • DOT compliance services
  • Recruitment tool discounts
  • Tax, payroll, and accounting services
  • Health benefits and employee services
  • Legal support
  • Dedicated account manager/business coach

What It Takes to Start Your Business

Here are the steps to starting your delivery business as an Amazon partner:

  1. Create your business identity
  2. Order your delivery vehicles through recommended vendors at Amazon-negotiated rates
  3. Set up your team hiring and management services
  4. Set up your account in your DSP portal
  5. Start interviewing your first drivers and helpers
  6. Set up your team’s area within your local delivery station
  7. Train your team and have weekly check-ins on performance with Amazon representatives and your business coach

What if You Don’t Have the Resources to Be an Amazon DSP?

If you don’t have the resources or leadership skills to start an Amazon delivery business, you can still work in the Delivery Service Partner Program as a driver.

You can find work as an Amazon DSP delivery driver or driver helper and earn an average starting pay of $20 per hour, depending on your location.

Working as a Driver Helper

This is pretty much similar to working as a UPS driver helper. As an Amazon driver helper, you’ll work 4–5 times a week and up to 10 hours daily with shifts available seven days a week.

You’ll help deliver 200 or more packages ranging from envelopes to small boxes up to 50lb.

As this isn’t a driver position, you don’t need any delivery experience or a driver’s license.

Some benefits of working as an Amazon DSP in this capacity include:

  • On-the-job training and opportunities for career advancement
  • Paid time off (PTO) and healthcare benefits for full-time employees
  • Competitive wages plus overtime and holiday pay opportunities

Working as a Delivery Driver

As a delivery driver, you’ll drive an Amazon-branded bus or truck and be part of a motivated team that delivers Amazon packages to customers in your community.

You’ll work 3–5 days per week, up to 10 hours daily, with shifts available seven days a week. You can apply for a part-time or full-time role.

To work as an Amazon delivery driver:

  • You must be at least 21 years old
  • You must have a valid driver’s license in your resident state
  • You must maintain a safe driving record and obey all applicable traffic laws

Wrapping Up

Setting up your Amazon delivery franchise isn’t a way to earn passive income, such as being an Amazon Flex driver.

Instead, it’s a way to leverage Amazon’s technology, assets, and services to grow your delivery business.

Successful business owners have an annual revenue potential of $1–$4.5 million and an annual profit potential of $75,000–$300,000.

Therefore, you can earn a lot from this Amazon program if you have an entrepreneurial spirit and are keen on delivering packages (and smiles) to customers.

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