Most people have heard of independent contractor positions available through companies like Uber, DoorDash, and Lyft.
Now, Amazon, the famous multi-corporation technology company run by Jeff Bezos, offers independent contractor positions of their own.
Independent contractor positions are great for people who need extra money and a flexible schedule.
If these working conditions sound great for you, you may be wondering, what is an Amazon independent contractor?
What are the requirements if I want to work as an independent contractor for Amazon?
This article will answer all your questions about working for Amazon as an independent contractor.
Read on for all you need to know about this position!
- What is an Independent Contractor?
- Does Amazon Use Independent Contractors?
- What Amazon Jobs Are for Independent Contractors?
- Do Amazon Contractors Make Money?
- Amazon Independent Contractor Requirements
- Frequently Asked Questions
What is an Independent Contractor?
An independent contractor is essentially a person or entity who is self-employed.
In other words, they do work or provide services to another entity as a non-employee.
They are not a company worker in a traditional sense, and in pop culture, they are called gig workers.
An independent contractor’s contract outlines the details of the service they provide to the entity and provides information about payment and terms and conditions.
Independent Contractor vs Employee
There are several fundamental differences between working as an independent contractor for a company and an employee.
Technically, independent contractors are not employed by the company they work for.
Instead, they provide the company with services until the company no longer needs their services.
An employee, on the other hand, is long-term, on an entity’s payroll, and is not hired for specific reasons.
The difference between an independent contractor and a company employee also falls within labor laws and tax laws.
For example, there is no workers’ compensation available for independent contractors.
A company will withhold income tax, Social Security, and Medicare for an employed worker.
For an independent contractor, the company does not withhold tax.
Instead, they are subject to a self-employment tax and must fill out a schedule c tax form come tax season.
Does Amazon Use Independent Contractors?
Yes, as of right now, Amazon does use independent contractors through the Amazon Delivery Service Partner Program (Amazon DSP).
They are hiring Delivery Associates which are independent Amazon delivery drivers.
The Amazon DSP website lists cities where Amazon is currently offering independent contract positions.
Additionally, Amazon is using independent contractors as gig workers through their Amazon flex position and program.
What Amazon Jobs Are for Independent Contractors?
Amazon uses independent contractors for Amazon Flex, Amazon delivery, and Amazon DSP.
Remember, an independent contractor is not an Amazon employee.
Instead, these jobs make delivery contractors that are independent.
1. Amazon Flex Driver
Amazon Flex drivers use their own means of transportation to deliver packages for Amazon.
There is an Amazon Flex app where contractors may reserve a delivery block if there are any available in the area.
While working a delivery block, a contractor will go to an Amazon location to pick up packages.
The Amazon flex app acts as a navigator for each package.
2. Amazon DSP Driver
An Amazon DSP driver acts as a delivery associate for an Amazon delivery partner.
Amazon provides these workers with an Amazon van and permits individuals to invest and become independent businesses as Amazon delivery partners.
DSPs offer wages and benefits.
Since Amazon DSP drivers have access to benefits, schedules are less flexible.
Instead of choosing your own delivery block like an Amazon flex driver, you will have to be available for shifts.
An Amazon DSP driver will not be the owner of the independent business and they will not have to invest any money.
Instead, they will work as a delivery associate for a DSP.
3. Amazon Logistics Driver
Amazon logistics drivers work for Amazon Transportation Services (ATS).
Amazon logistics functions similarly to other gig-oriented platforms like TaskRabbit.
Amazon uses a variety of delivery services For Amazon Logistics, walkers, bicyclists, and even airplanes.
Do Amazon Contractors Make Money?
Amazon Contractors definitely make money.
Wages vary based on location and position.
Additionally, Amazon business partners make money despite an initial investment.
Amazon DSP and Amazon Logistics workers have access to competitive compensation starting at a minimum of 20 dollars an hour in certain locations.
DSPs must provide their DSP drivers with paid time off benefits and health insurance like full-time employees.
As of right now, some DSP locations are offering sign-on bonuses ranging from one thousand dollars to three thousand dollars for Amazon DSP and Logistics drivers.
As a DSP business partner acting as an independent business that partners with Amazon, you can expect to make an annual salary for your investment.
Depending on where you live and the Amazon route your purchase, you can make between 40,000 thousand and 80, thousand dollars a year.
Amazon Flex is less stable compared to the other two contractor jobs.
Like Uber, DoorDash, and other jobs available in the gig economy, your hourly rate depends on your location and the jobs available.
According to the Amazon website, most drivers make between 18-and 25 dollars an hour.
Amazon Independent Contractor Requirements
Each position requires unique requirements in order to qualify as an Amazon Independent contractor.
Keep reading to make sure you qualify for the job you wish to work.
Amazon Flex Requirements
Amazon Flex requires prospective workers to be at least 21 years old, and have a valid driver’s license, and social security number.
Additionally, most deliveries require flex drivers to have a 4 door vehicle.
Generally, amazon flex vehicles are mid-sized 4-door sedans, SUVs, or even trucks.
Lastly, amazon flex drivers must have a smartphone, whether it be made by Apple or Android.
This is important because work is picked through delivery blocks only accessible by the Amazon Flex app.
Read more: Amazon Flex requirements
Amazon DSP Requirements
Like Amazon flex drivers, Amazon DSP drivers must be at least 21 years old.
Additionally, they must have a valid driver’s license within the state of employment and be able to lift packages up to 50 pounds.
This position does not require a smartphone or for you to use your own vehicle.
Generally, these drivers deliver at least 200 packages and must be able to work 4-5 days a week.
Some shifts require these workers to work up to 10 hours.
Shifts are available in the morning and afternoon and on weekdays and weekends.
Amazon Logistics Requirements
Amazon Logistics requirements are the same for Amazon DSP drivers.
However, if you wish to become an Amazon Logistics partner, you can invest 10,000 dollars to become one.
As a partner, you have access to Amazon technology and logistics expertise.
Amazon will work to train you in logistics and provide an adequate start-up for you and your new business.
You will also run your own Amazon delivery business and be responsible for obtaining contractors.
Frequently Asked Questions
Check out the following frequently asked questions about Amazon Independent Contractor Positions!
Do Amazon drivers buy their trucks?
No, Amazon drivers do not buy their trucks.
An Amazon Flex driver will use their own vehicle to do deliveries.
An Amazon DSP driver or Logistics driver will use an Amazon van provided by the business partner they work for.
How much does it cost to buy an Amazon route?
An Amazon route may be purchased for 10,000 dollars.
However, once an Amazon route is purchased, it cannot be sold.