Amazon DSP Cost: What You Pay to Run a Delivery Service Provider
If you’re thinking about joining Amazon’s Delivery Service Provider (DSP) program, the first question on your mind is probably the cost. Running a DSP means handling Amazon packages, but you also need to cover vehicles, drivers, insurance, and Amazon’s fees. Below we break down the main expenses so you can see if the numbers add up for you.
Key Cost Components
Amazon charges a base delivery fee per package, which varies by market and service level (standard, two‑day, etc.). On top of that you’ll pay a vehicle lease or purchase payment – most DSPs lease a 26‑foot box truck for about £2,200 a month. Drivers earn a wage (usually £9‑£11 per hour) plus overtime, and you must provide payroll taxes and benefits.
Insurance is another big line item. Commercial vehicle insurance for a fleet can run £1,500‑£2,500 per truck each year, plus workers’ compensation for the staff. Fuel costs depend on mileage; a typical DSP route burns around 12‑15 mpg, so expect £800‑£1,200 a month per truck when fuel prices are high.
Amazon also takes a “DSP fee” that covers technology, routing software, and support. This fee is usually a flat rate of about £300‑£400 per truck per month, plus a small percentage of each delivery (around 3‑5 pence per package). Finally, there are miscellaneous costs like maintenance, tolls, and driver uniforms.
Tips to Keep Costs Low
Start with a realistic delivery volume. A fully loaded truck can handle 150‑200 packages a day, and the more you deliver, the lower your cost per package. Optimize routes using Amazon’s routing app – it reduces mileage and fuel use.
Consider buying a used truck instead of leasing if you have cash on hand; depreciation can be cheaper in the long run. Group drivers for shared shifts to cut overtime and keep payroll steady.
Negotiate insurance rates by bundling all trucks under one policy and maintaining a clean claim record. Small improvements like regular tire pressure checks can shave a few percent off fuel consumption.
Finally, track every expense in a simple spreadsheet. Compare total monthly outlay against delivery revenue from Amazon’s dashboard. When you see a positive net margin for three consecutive months, you know the model works for you.
Running an Amazon DSP isn’t cheap, but clear cost breakdowns and smart management can make it profitable. If you map out each expense and keep an eye on performance, you’ll know exactly how much you need to earn to stay in the green.
May 9, 2025
Evelyn Wescott
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Ever wondered what it actually takes to start Amazon logistics? This article breaks down the real costs, points out often-missed expenses, and shares practical tips for getting started. Whether you’re curious about how Amazon’s DSP program works, or if you’re ready to dive in, you’ll find up-to-date numbers, potential earnings, and honest facts from 2025. We’ll also flag common pitfalls and smart ways to save. Think of this as your realistic guide to launching an Amazon logistics business.
