To become an Amazon Delivery Service Partner (DSP), you need at least $30,000 in liquid assets, pass a multi-step application process, and commit to running a last-mile delivery business with a team of drivers. Amazon estimates the actual startup cost can be as low as $10,000 if you take advantage of pre-negotiated deals, but the financial bar to even apply is higher. Here’s what the full process looks like, from application to running routes.
What a DSP Actually Is
A DSP is an independent business that contracts with Amazon to deliver packages on the final leg of their journey, from a local delivery station to customers’ doors. You’re not an Amazon employee. You form your own company, hire your own drivers, and manage day-to-day operations. Amazon provides the delivery routes, branded vans (through a leasing program), technology, and training. In return, you’re expected to hit specific performance targets around delivery speed, customer satisfaction, and driver safety.
Amazon has pitched this as a path to earning up to $400,000 in annual profit. The company says that roughly 80% of its delivery contractors generated at least $100,000 in annual profit based on a review of 648 DSP businesses. That said, some operators have struggled with rising costs and thin margins, so the financial reality varies depending on your market, team size, and how tightly you manage expenses.
Financial Requirements
Your application must include documentation showing at least $30,000 in liquid assets. This means cash, savings, or easily accessible funds, not equity in a home or retirement account. The actual startup costs are lower than that threshold. Amazon estimates $10,000 to launch if you use its negotiated third-party deals, covering legal entity formation, licensing, accounting and legal fees, and a laptop.
The gap between the $10,000 startup estimate and the $30,000 liquid asset requirement exists because Amazon wants to see that you have a financial cushion. Running a delivery operation means covering payroll, fuel, and other expenses before revenue fully ramps up. Having reserves helps you absorb early-stage cash flow gaps without falling behind.
Amazon has also offered a $10,000 startup grant for qualified Black, Latino, and Native American business owners through a diversity grant program introduced in 2020. If you qualify, that grant can effectively cover your estimated startup costs entirely.
The Application Process
Applications are submitted through Amazon’s logistics website. The process has several stages and typically takes a few months from start to finish.
- Online application: You’ll provide basic personal and financial information, including proof of your liquid assets. Amazon also asks about your management experience, leadership style, and motivation for running a delivery business.
- Interview and assessment: Qualified applicants go through interviews with Amazon’s DSP team. Expect questions about hiring, team management, and how you’d handle operational challenges. Prior logistics experience is helpful but not required. Amazon says it’s looking for entrepreneurial drive and leadership ability.
- Training: Accepted candidates complete a multi-week training program that covers Amazon’s delivery systems, route management, driver coaching, safety protocols, and business operations. This happens before you start delivering.
- Business setup: You’ll need to form a legal entity (typically an LLC), obtain business licenses, set up payroll, and secure the required insurance before launching operations.
Vehicles and Insurance
Most DSP owners lease Amazon-branded vans through the program rather than purchasing their own fleet. Leased vehicles come with specific documentation requirements. You’ll carry both a Master Policy Auto ID card (listing Amazon Logistics as the vehicle owner) and an Auto ID card issued under your company’s own auto policy. Your drivers need to keep both on hand: the company policy card for accidents and the master policy card for traffic stops or registration checks.
Insurance is a significant ongoing cost. Amazon requires DSPs to carry specific coverages and minimum limits. Marsh, Amazon’s insurance partner, has arranged a program with a highly rated carrier designed to meet these requirements. The exact premiums depend on your fleet size, location, and claims history. Some states impose additional uninsured/underinsured motorist coverage minimums that can push costs higher, with required limits ranging from $125,000 to $1,000,000 depending on where you operate.
Hiring and Managing Drivers
A typical DSP employs 20 to 40 drivers, though this varies by market and route volume. Recruiting is one of the biggest ongoing challenges. Experienced DSP owners describe it as a never-ending process: you need enough drivers to cover daily routes, sick days, vacations, peak seasons, and turnover. Falling short on staffing means missed deliveries, which directly hurts your performance scores.
You’re responsible for the full employment cycle. That includes posting job listings, screening applicants, running background checks, onboarding new hires, and managing payroll and benefits. Driver retention matters as much as recruitment. Operators who invest in competitive pay, clear communication, and a positive work culture tend to keep teams more stable.
Performance Metrics and Daily Operations
Amazon tracks DSP performance across several categories, including delivery completion rates, on-time delivery percentages, customer feedback scores, and driver safety metrics. These scores directly affect your standing in the program and can influence the number of routes you’re assigned. Consistently poor performance can lead to losing your contract.
On a daily basis, your job is less about driving and more about managing. You’ll review delivery metrics each morning, assign routes, troubleshoot problems in real time (a van breaks down, a driver calls in sick, a customer reports a missing package), and coach drivers on their individual performance. Successful DSP owners recommend sharing performance data with drivers weekly so everyone knows where they stand relative to the team.
Peak seasons like Prime Day and the holiday stretch from November through January bring significantly higher package volumes. You’ll need extra drivers, longer hours, and tighter coordination during these periods. How well you handle peak season often determines your profitability for the year.
What to Realistically Expect
Running a DSP is a hands-on, operationally demanding business. You’re managing a workforce, maintaining a fleet, hitting daily targets, and dealing with the unpredictability of delivery logistics. The upside is real: six-figure annual profits are achievable and common among established operators. But the work is closer to managing a trucking company than running a passive investment. Owners who treat it like a full-time commitment and stay deeply involved in daily operations tend to perform best.
The startup barrier is relatively low compared to other businesses of similar scale. With $30,000 in documented assets and as little as $10,000 in actual out-of-pocket costs, you can launch a company that employs dozens of people and generates meaningful revenue within months. The trade-off is that Amazon controls the delivery standards, route assignments, and much of the operational framework, so your independence has clear boundaries.