As you’re searching for a truck dealer in Oklahoma City, you may be contemplating on getting that $10,000 Amazon delivery business opportunity. The bold text states that with a startup cost of as low as $10K, you can potentially earn around $1M-4.5M in annual revenue and $75K-300K in annual profit.
But what’s the catch?
Any businessman will be wise enough to thoroughly look into the details of this or any offer in order to have realistic expectations.
You can find Amazon’s Delivery Service Partner (DSP) program here. We’ll also be enumerating some of the pros and cons of this deal in this article.
The Advantages
- Be a part of Amazon, a company known to be the most customer-centric organization in the world
- Access to Amazon’s procedures, technology and more than two decades of logistics experience
- Amazon is one of the major ecommerce companies, so you can be sure that you can keep your delivery business running with the packages they’re providing
- Access to Amazon’s business support services including hands-on training, on-demand assistance, legal assistance, insurance options, and software and recruitment tool discounts
- A Diversity Grant of $10,000 is offered to each qualified Native American, Black and Latino entrepreneur to start their business in the US
- The DSP program handles the procurement of delivery vehicles for the business through a flexible lease option
- You can also use your existing fleet of vans if they meet the vehicle specification requirements. This means that you can procure your commercial fleet with the help of your trusted local box truck dealer
The Disadvantages
- When they say that you can start the business with as little as $10K, this is essentially only based on the first five vans. This cost also includes all the necessary tools and services that Amazon can provide to help you launch the business.
- The projected annual profit and revenue are actually based on fully ramped DSPs with 20 to 40 vans.
- When applying, you’ll need to submit documentation demonstrating that you have access to a $30,000 liquid asset, which is said to cover the $10k startup cost as well as the personal expenses you’ll incur while training and launching your business. This basically means that there are additional and bigger costs to consider.
- The information on the DSP is essentially telling you that you’ll recruit and manage your own employees, versus contracting third-party drivers. In short, you’ll be dealing with another set of massive business expenses, specifically those related to employees such as workers compensation, employment taxes and liability insurance, among others.
- The DSP program is a full-time business, and thus, it’s not advisable for those who’re simply looking for passive income or part-time work.
- The program is currently not designed for delivery businesses in multiple locations or regions. It works for those with a single delivery station managing an average fleet of 20-40 commercial vehicles a year.
The Bottom Line
If you want to run a business and be a part of a global company like Amazon, then perhaps the DSP program is for you. However, like what any wise businessman will do, it’s best to thoroughly look into the financials with realistic expectations to ensure profitability and success in this endeavor.
For many people, on the other hand, being a solo delivery driver or an independent delivery contractor using their own vehicle from their trusted box truck dealer are often more lucrative and profitable than actually running their own delivery businesses.
Truck-N-Trailer is your dependable truck dealer in Oklahoma City offering a massive range of new and used commercial vehicles including step vans, cut-away box trucks, cargo vans and dock high straight trucks.
