Amazon DSP Requirements and Costs: What It Takes to Become a Delivery Service Partner

Amazon's Delivery Service Partner (DSP) program lets entrepreneurs build their own delivery companies to deliver Amazon packages. It is pitched as a low-cost way to start a large business without having to find customers, and in some ways it is. It is also a demanding, people-heavy operation that runs seven days a week. This guide summarises the requirements and costs as Amazon describes them in 2026, how DSP economics work, and how to decide whether it fits you. Verify everything on Amazon's official DSP site, because program terms change.

What a DSP owner does

• Forms and owns a delivery company.
• Hires, trains and manages delivery associates (DAs) as employees, plus dispatchers and managers.
• Operates a fleet of vans out of an assigned Amazon delivery station.
• Uses Amazon's delivery technology and follows Amazon's safety and performance standards.
• Uses optional negotiated deals for vehicles, insurance, payroll, uniforms and other services.

Amazon's brochure describes DSPs leading teams of 40 to 100 employees and fleets of 20 to 40 vans on average throughout the year, delivering 7 days a week, 361 days a year.

Requirements (as published by Amazon, 2026)

Amazon also runs programs for current delivery associates and for military veterans who want to become owners.

Startup costs

Amazon says it estimates startup costs as low as $10,000 if you take advantage of all the negotiated third-party deals, based on the first five vehicles and varying by location. That estimate typically covers items like legal entity formation, licensing, accounting and legal fees, and basic equipment. The $30,000 liquid asset requirement exists because the business must fund payroll, fuel and other costs while revenue ramps up.

A realistic personal budget

These are illustrations. Talk to current owners about what they actually needed.

How DSP economics work

Revenue comes from Amazon under its contract structure (route-based payments and other incentives). Your profit depends on how well you manage costs and performance:

Amazon publishes modelled ranges for established DSPs, including annual profit potential of $100,000 to $400,000 and annual revenue potential of $1 million to $4.5 million, based on DSPs operating 12 months or more. Amazon notes these are not guarantees and vary by location and owner decisions.

Worked example: what the numbers imply

Take a mid-sized DSP with $2.5 million in annual revenue. If owner profit is $200,000, the profit margin is 8 percent. That means:

• A 1 percent rise in labour costs relative to revenue can cut owner profit by about $25,000.
• Ten unplanned van repairs at $2,500 each cost $25,000, more than 12 percent of profit.
• Reducing DA turnover so you hire 20 fewer people a year, at an assumed $1,500 each to recruit and train, saves $30,000.

The lesson: DSP profit is about operational discipline on a large cost base. Small improvements in retention, safety and scheduling matter a lot.

Questions to ask current DSP owners

• How long did it take from application to your first delivery day?
• How much personal money did you actually need before the business paid you?
• What does a typical week of hiring look like, and what is your turnover?
• How do scorecards affect your routes and income?
• What are your biggest unexpected costs (vehicle damage, overtime, peak staffing)?
• What would you do differently in your first year?

The application process

1. Read the program, application and financials pages on logistics.amazon.com.
2. Prepare your resume and proof of liquid assets.
3. Submit the application.
4. Complete assessments and interviews if invited.
5. Pass background, credit and motor vehicle record checks.
6. If selected, complete training, form your company, arrange insurance and vehicles (often through program options), hire your first team and ramp up deliveries.

What the first months look like

Owners commonly describe the launch phase as the most intense period: recruiting a first wave of delivery associates, completing training, learning the station's routines and Amazon's technology, and ramping up the number of routes. Expect very early mornings, weekend work, and constant hiring as you find reliable people. Build your management team (dispatchers and operations leads) early, so you are not the single point of failure every day.

DSP vs independent courier

Is it right for you?

A DSP may fit if you:

• Enjoy leading large teams of hourly workers.
• Thrive on operations, metrics and daily problem solving.
• Prefer not to spend your time selling.
• Have the liquid assets and personal financial cushion.

An independent courier may fit better if you:

• Want to start small and grow at your own pace.
• Enjoy building client relationships.
• Want to choose your niche and pricing.
• Prefer not to depend on a single partner.

Before you apply: checklist

• ☐ Read Amazon's official program pages in full
• ☐ Confirm you can document $30,000 in liquid personal assets
• ☐ Check your credit report and driving record
• ☐ Update your resume with team sizes and budget responsibility
• ☐ Talk to at least two current DSP owners and several delivery associates
• ☐ Plan personal finances for a slow ramp-up
• ☐ Compare DSP economics with an independent courier plan

Your next step

Speak with current DSP owners about hiring, peak season, scorecards and vehicle costs, then compare their experience with the independent courier path. Decide which business you want to run every day, not just which one sounds easier to start.

The full guide, Starting a Courier & Last-Mile Delivery Business, includes a full chapter on the DSP program plus niches, vehicles, FMCSA and state rules, insurance, pricing, drivers, dispatch software, B2B sales and a 30/60/90-day plan, for $0.99.