Invest $10k Make $4.5 MILLION? Amazon Partner Update

Amazon claims that a low investment of $10k can generate 4.5 million a year with their DSP (Delivery Service Partner) program. Is it true? We follow up after three years to see what has been learned about their Driver/Partner Opportunity.

Three years ago when the Amazon DSP program was relatively new we did a video warning about some of the potential issues that could face owners of this business. How accurate were we with our concerns, and have people been earning the millions of dollars suggested they could with the Amazon DSP opportunity?

If you follow the channel you know we do a lot of "reality check" videos on franchise and business opportunities outlining potential negatives. Inexperienced entrepreneurs often take offence suggesting we are being negative, which we are not, facts and statistics are neither negative nor positive. There are negatives and positives to every opportunity you need to be aware of both. Amazon covers the positives of their DSP or Delivery Partner Service Program on their website. Low investment at around $10k, with the potential for revenue over 4 million dollars a year, a profit potential up to $300k and you don't even need experience.

So it sounds great, $10k down 4.5 million a year. But as we scroll down the page we see that you wont be sunning on the beach or in your yacht as you are directly responsible for "recruitment, hiring and coaching a team of 40-100 high-performing, hourly employees and managing a fleet of 20-40 vans on average" and you will be open 361 days a year. Have you ever been in charge of hiring and managing people? Especially in a high stress environment like this that will always have very high turnover. Now think about managing 100 employees and 50 trucks. Especially trucks that apparently still often smell like Urine.

To be clear, some owners are happy with their business. They enjoy the fast paced environment and they appreciate the opportunity Amazon gave them. They are making money. But for many owners they are facing exactly the problems we pointed out in 2019. One of the biggest issues is that having Amazon as your sole contract puts you at enormous risk. Amazon can, and has just taken routes away from multiple owners leaving them with massive debts. A recent Vice piece interviewed several DSP owners one who was given two weeks notice despite having delivered 3 million packages the year before and having a clean service record. Vice goes on the say: "Jim is now facing bankruptcy, a destroyed credit score because he can’t make payments, and losing his house.

Three other owners in multiple states claim "Amazon’s delivery service partner program had depleted their life savings during the pandemic, and thrown them into tens, or in some cases, hundreds of thousands of dollars worth of debt.
There is a 15 million dollar lawsuit pending that claims Portland owners “were losing money and employees trying to satisfy Amazon and their constant changes.” The lawsuit alleged that Amazon "controlled nearly every aspect" of two Portland delivery companies' businesses.

A 62 year old African American veteran who was forced to exit the DSP program in 2021 after only a year in business stated it was virtually impossible to make money. The process bleeds you dry. After losing money in the business Angela discovered she still owed $64,465 in damages on 20 of the company trucks. Would you be comfortable entrusting complete strangers to drive trucks you are responsible for? That was another issue we covered on the original video, how long until a driver hurts a pedestrian and it didn't take long for that to happen.

But why don't we hear about this story on front page news? Well, mostly because Amazon is very thorough in making sure all owners leaving the DSP program signs an NDA, a non-disclosure Agreement. Meaning you cant say anything bad about your business or talk about it in any way no matter how bad your experience was or Amazon will sue you for damages. And you don't want to get sued by Amazon.

So is the Amazon DSP a "good" opportunity? It can be and there are happy owners who made it work. But also many owners, and we will probably never know how many because they all signed a gag order, have faced financial disaster taking on all the risks for Amazon.

#franchisecity #amazonopportunity

[MrOrange]

Wanna know how to run a successful business? Do the groundwork and work as a driver to understand what we actually go through. Then become a dispatcher and lead a team, then become an owner and build your team. Just gotta WANT it and not lose confidence.

[CoralMan]

people will always find a reason to complain thanks for cutting the bs and being open and honest. I find it helpful as a new business owner learning from others.

[hassanbazzi]

I remember when I signed my name for a potential part owner with Amazon and did a bit of research and sounded so good. Also few months later you came out with the video explaining the trouble. I am so glad you posted it because that changed my mind to continue the process. Well explained and really love all your videos. Thank you for sharing

[Pernection]

At least Federal Express routes can be sold.

[Jason-mpyj]

I work for a DSP and the #1 factor that affects every aspect of the business is hiring quality you hire irresponsible drivers who don't give a f... about the job then you can expect to have nothing but problems

[tnaseer]

Really eye opening video, helps ppl to jump in to the business without knowing the dark side and trying to make their means.

[humanflag]

Wow, glad I did more research and decided against this “opportunity”! Thank you for this update video

[geams]

Why would Amazon outsource a profitable enterprise?
Exactly, they don't.

[Joel]

Ive done Amazon flex and i barely made any profit after fuel and wear tear. DSP gotta be rigged up to loose as well.

[Tendertroll]

I got to the second interview but ultimately was not selected. Doors have been closing in my face these past few years . Hopefully something eventually comes around. Trying to keep my chin up.

[josep]

I do Amazon delivery all I can say is that to me all DSPs are all in for the money they don’t help their drivers the way they supposed to and almost all dispatchers the think they are the owners of the DSPs they work for I do delivery for Amazon because I need the pay not because I like it but if DSPs treat their driver better maybe drivers would work better

[shantanu]

this channel is very informative and useful for potential and naive franchisee owners like me

[ASD-DAD]

Former restaurant franchisee here. My uncle owned multi unit Domino's franchises in Sydney until retiring during COVID. Overall, based on our personal experiences: Franchising benefits only the franchisor, I can even call it a legalized "scam". What kills a franchisee is the royalties. When you have extreme thin profit margins and the franchisor yet takes another 6, 7% of your sales, you are basically working to put money into the franchisor pockets. I would never recommend anyone to franchise anything unless is a multi million dollar brand like McDonalds, Popeye's, Taco Bell, and even then, there's always a huge risk. Stay away from franchise unless you 100% know and have extensive business experience and capital.

[lizjlewis]

Everyone has different results I’m staying positive!

[danielschein]

The moment anyone offers you a business opportunity with just one customer you need to run. Your entire investment is at the whim of that 1 customer. You might as well pay to be their employee.

[algarcia]

Love your content. I also remember your original video, was very eye opening.

[ctobin]

It’s almost like owning a 711 franchise where you don’t own anything. But difference is in 711 people make tons of money without driving around town like a maniac

[zlord]

Sounds like you’re an employee of Amazon then being an business owner. It seems risky knowing Amazon can cut you off at any moment and leave you in debt and upset employees.

[devanc]

Love the knucklehead who tattooed the fast food logos on his or her knuckles. Pretty creative. I hope the proper license fees were paid. LOL.

[tankprohp]

Seem like the NDAs are part of the scam Force the owner into debt Make him sign an NDA and pay them to sign it so they can't say anything sounds pretty scammy to me