How To Become A Subcontractor For Amazon

Amazon's delivery network is vast, and becoming a subcontractor could be your entry into a booming industry. Here’s your fast-track guide to navigating the process.

Subcontracting with Amazon presents a lucrative opportunity for entrepreneurs. This guide outlines the essential steps to secure a delivery service partnership (DSP) or other subcontracting roles, focusing on immediate action.

Understanding the Opportunities

Amazon primarily uses two main subcontracting models: Delivery Service Partners (DSPs) and independent contractor roles via Amazon Flex.

DSPs involve managing a fleet of vans and drivers. Amazon Flex allows individuals to deliver packages using their own vehicles.

Delivery Service Partner (DSP) Program: The Steps

1. Initial Application and Assessment

Visit the Amazon DSP website to begin your application.

You'll need to meet basic requirements, including a background check and financial review.

2. Financial Requirements and Investment

Be prepared for an initial investment of approximately $10,000. According to Amazon, this covers setup costs, including legal and accounting fees.

You'll need sufficient capital to cover operational expenses before generating revenue.

3. Training and Onboarding

Successful applicants undergo a comprehensive training program provided by Amazon.

This includes operational procedures, safety protocols, and leadership development.

4. Vehicle Acquisition and Fleet Management

Amazon offers leasing options for branded vans, or you can source your own vehicles that meet their specifications.

Effective fleet management is crucial for maintaining service levels and profitability. Amazon assists in this process.

5. Hiring and Managing Drivers

You are responsible for recruiting, hiring, and training your delivery drivers.

Amazon provides resources and guidance on driver management best practices.

6. Operational Launch and Ongoing Support

Once onboarded, you'll launch your delivery operations in a designated territory.

Amazon provides ongoing support, including route optimization and performance monitoring.

Amazon Flex: Independent Contractor Route

1. Sign Up Through the Amazon Flex App

Download the Amazon Flex app to register as a delivery driver.

You'll need a valid driver's license, insurance, and a suitable vehicle.

2. Background Check and Approval

Amazon conducts a background check before approving your application.

Approval times vary depending on location and demand.

3. Scheduling Blocks and Delivering Packages

Once approved, you can schedule delivery blocks through the app.

Packages are picked up from designated Amazon facilities and delivered according to assigned routes.

Key Considerations and Requirements

Location matters. Demand varies by region, impacting earning potential.

Compliance with Amazon's standards is critical.

Maintaining a high-performance rating is essential for continued partnership.

Earnings Potential

DSP owners can earn between $75,000 and $300,000 annually, according to Amazon's DSP website, although this depends on factors like fleet size and operational efficiency.

Amazon Flex drivers typically earn $18-$25 per hour, but earnings are subject to change based on location, time of day, and tips.