Short for Delivery Service Partner, DSPs are owner-operators that run their own package delivery business. In simple words, they deliver third party packages, acting as their logistics partners. Amazon recently launched a DSP program that allows truckers and logistics operators to start their own delivery service business and work as Amazon’s DSP.
The delivery service partner program has just kicked off and there’s still a long way to go before Amazon closes its doors on letting any more DSPs in, if ever. This means there’s a MASSIVE potential in the industry for newcomers to get started and grow their successful package delivery business at a fraction of cost. The benefits for this include:
- Low costs for start-up
- Availability of demand because of Amazon
- Advanced logistics technology by Amazon
- Support from Amazon including hands-on training
- Access to a community of DSPs
Since Amazon is offering all tools and technology required for order fulfilment, order processing, package tracking, customer support, team monitoring and so on, you don’t have to get anything. Plus, you get hands-on training to quickly get a grip on how this business works and scale it further.
The best part is, the demand is already there as millions of people order items from amazon that need to be delivered. So you don’t have to shell out thousands of dollars on marketing and networking.
How to Get Started With DSP?
As the owner of your package delivery business, you’ll be responsible for hiring drivers, building a team and providing necessary training to ensure they are capable of delivering thousands of packages to your local Amazon customers. Here are the things you need to do once your application gets accepted:
- Set Up The Business: You can get a set of deals with Amazon that can help you acquire all the assets necessary for running your business. These include the tools for recruiting, managing payroll, taxes and handling accounting. You can also get legal-support, logistics and business insurance, and many other services through Amazon to set up your business.
- Create a Team: Next, hire drivers, support staff and other operators to build your team. You’ll need 40-100 delivery associates to operate 20-40 vans a day. You can start small as well and scale with time.
- Start Delivering: Once the business is launched, team is built and training is done, start getting orders from Amazon and fulfil them on time and with great care. The more you deliver, the more your business grows.
Wrapping Up:
Once your business is up and running, you will have to take measures to protect it in case there’s a mishap like an accident with one of your vans or loss of package etc. This can be done by purchasing a parcel delivery insurance.
We at Paradiso offer top-class insurance for package delivery businesses, feel free to reach out to us at (860) 684-5270 and we’ll be more than happy to help you get the best insurance coverage for your business’s specific needs.