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AMazon Delivery Service Partner CONCERNS & Alternatives

Here’s the deal: we are not recommending Amazon routes.

WHY NOT?

1. Advertised Amazon DSP Profit Margins Are Not As Lucrative as FedEx Routes

Amazon DSP financials

These financials come directly from Amazon's DSP website and our own industry insights into profit margins for healthy FedEx businesses. 

2. Amazon requires DSP Owners to carry their own DOT number

This is a game changer for the type of insurance contractors must have—it's more expensive and risky than being under someone else's DOT number. This will undoubtedly cut into Amazon DSP profit margins and it represents a barrier to entry.

3. Amazon DSP Owners will need to be hands-on 7 days a week

Amazon DSP businesses will likely need a Monday through Friday staff and then a Saturday/Sunday part-time staff. Owners of these businesses have a tall order to fill: manage a fleet of 20-40 vehicles and staff 40-100 employees each week of the year.  


What NOw?

Stick with less risky, more profitable FedEx route investments for the time being.

We will keep our eye on the route industry and will update investors if/when Amazon DSP routes become appealing opportunities. For the time being, they require a heavy input with significantly smaller profit margins than other route opportunities. 

We recommend that investors stick with routes that have a long history of profit.

 

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Our Route Consultant team has actual contracting experience in Home Delivery, Ground, and Linehaul delivery routes for FedEx. We have experience across the United States managing a fleet of over 250 trucks and a staff of over 200 drivers! So we know a thing or two about routes.

We specialize in FedEx routes, but we are (of course) keeping track of the recently announced Amazon Delivery Service Partner routes.