Amazon is not only the world’s largest online retailer, but also a leader in logistics and delivery. The company has been investing heavily in its own delivery network, which includes thousands of trucks, planes, warehouses, and delivery partners. One of the key components of this network is the Delivery Service Partners (DSP) program, which allows entrepreneurs to start their own delivery businesses with Amazon’s support and guidance. This program has been a huge win for Amazon’s growing retail business, as it helps the company meet the increasing demand for fast and reliable delivery, while also creating opportunities for small business owners and job seekers.
What is the DSP program?
The DSP program was launched in 2018, as part of Amazon’s efforts to expand its delivery capacity and reduce its reliance on third-party carriers. The program offers aspiring entrepreneurs the opportunity to start their own delivery companies with low startup costs and access to Amazon’s technology, training, and resources. Amazon provides the delivery vehicles, uniforms, fuel, insurance, and customer service, while the DSP owners manage the day-to-day operations and hire their own drivers. The DSP owners can earn up to $300,000 in annual profits, according to Amazon, and they are expected to deliver between 20 and 40 packages per hour, depending on the route and the season.
The DSP program is open to anyone who has a strong leadership background, a desire to run their own business, and a commitment to customer service. Amazon also prioritizes applicants who are military veterans, as part of its pledge to hire 25,000 veterans and military spouses by 2021. The program currently operates in the US, UK, Canada, Spain, and Germany, and Amazon plans to launch it in more countries in the future.
How does the DSP program benefit Amazon?
The DSP program is a strategic move for Amazon, as it helps the company achieve several goals. First, it enables Amazon to increase its delivery speed and reliability, which are crucial factors for customer satisfaction and loyalty. By having its own delivery network, Amazon can control the quality and efficiency of the service, and offer more options and flexibility to its customers, such as same-day, next-day, and two-hour delivery. Amazon can also reduce its shipping costs and avoid the surcharges and delays that often occur with third-party carriers, especially during peak seasons.
Second, the DSP program supports Amazon’s growth and expansion in the e-commerce market, which has been accelerated by the Covid-19 pandemic. According to Forbes, Amazon is expected to seize 50% of the entire e-commerce retail market this year, and its net sales reached $386 billion in 2020, up from $280 billion in 2019. The DSP program allows Amazon to meet the surging demand for online shopping and delivery, and to reach more customers in more areas, especially in rural and suburban regions where delivery options are limited.
Third, the DSP program creates a positive social impact for Amazon, which has faced criticism for its labor practices and environmental footprint. The DSP program generates thousands of jobs and business opportunities for local communities, and empowers entrepreneurs to achieve their dreams. Amazon claims that the DSP program has created more than 85,000 jobs and more than 1,300 small businesses in the US alone. The program also supports Amazon’s sustainability goals, as the company is adding more electric and hybrid vehicles to its delivery fleet, and aims to achieve net-zero carbon emissions by 2040.
How does the DSP program compare to other delivery services?
The DSP program is not the only delivery service that Amazon offers or partners with. The company also has its own fleet of trucks and planes, which handle the long-distance and bulk transportation of goods. Amazon also works with other delivery providers, such as UPS, FedEx, USPS, and DHL, to supplement its delivery capacity and reach. Additionally, Amazon has other delivery programs, such as Amazon Flex, which allows independent contractors to deliver packages using their own vehicles, and Amazon Prime Air, which is developing drones to deliver packages in 30 minutes or less.
The DSP program differs from these other delivery services in several ways. First, the DSP program is more focused on the last-mile delivery, which is the final and most challenging step of the delivery process, where the packages are delivered to the customers’ doorsteps.
The DSP program aims to optimize this step by using local and dedicated delivery partners who know the area and the customers well. Second, the DSP program is more exclusive and selective, as it requires the applicants to meet certain criteria and undergo a rigorous screening and training process. The DSP program also offers more benefits and support to the delivery partners, such as providing the vehicles and equipment, covering the operational costs, and offering discounts and incentives. Third, the DSP program is more aligned with Amazon’s long-term vision and strategy, as it helps the company build its own delivery network and brand, and enhance its customer service and loyalty.
Amazon’s Delivery Service Partners program is a smart and innovative way for the company to leverage its logistics and delivery capabilities, and to boost its retail business. The program benefits both Amazon and the delivery partners, as well as the customers and the communities. The program also gives Amazon a competitive edge in the e-commerce market, and positions it as a leader in the delivery industry.
