business plan for amazon dsp

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Starting an amazon dsp business.

Table of Contents

How to Start an Amazon DSP Business

Whether you’re just starting out or you are a seasoned business owner, starting an Amazon DSP business can be a rewarding experience. For many, the question is how? We are going to take you step by step through how to start your DSP business with Amazon.

Step 1: Complete your employment application.

Step 2: fill out amazon’s dsp application..

If you make it to the next stage, you must fill out a more detailed application that delves into your background, capabilities, and why you’d be a great fit for Amazon DSP. It is imperative that they know that they are hiring quality as well as qualified individuals to represent the Amazon name. Amazon will review this form and provide you with a response within 4-8 weeks.

Step 3: Attend an interview.

Step 4: complete amazon’s formal training..

During your 3-week training, the first week will provide an introduction to Amazon. You will learn about their policies and procedures, as well as gain an understanding of the customer service standards they require.

Step 5: Start your business.

First things first, you will need to recruit and hire your team. The right people working for you can make all the difference between success and failure. You will need to consider accounting software for hiring, setting up payroll, and an HR department, as well as scheduling shifts for your new drivers. One of the most important things you will need to do is to provide training to your team before they hit the roads on their delivery routes.

What Is the Amazon DSP Program?

The Amazon DSP is also a demand-side platform that enables advertisers to programmatically buy display, video, and audio ads on and off Amazon. With the Amazon DSP, you can create campaigns with our Demand Side Platform and benefit from the growing online advertising market.

How Does the Amazon Delivery Service Program Work?

Here’s an indispensable Amazon DSP delivery business paperwork hack by The Awesome S’witty Kiwi Show you’ll want to check out after reading.

Using Amazon DSP to Grow Your Delivery Business

In the burgeoning world of e-commerce, delivery remains a pivotal component. Amazon, a giant in the industry, offers an opportunity for entrepreneurs to grow their delivery businesses through its Amazon Delivery Service Partner (DSP) program.

In-Depth Financial Analysis

Understanding costs and revenue streams.

Starting an Amazon DSP business involves several financial considerations. Prospective owners should be aware of not only the initial startup costs, which are around $10,000, but also ongoing operational expenses.

Financial Planning Strategies

Who can start an amazon delivery service partner program business.

Only one person may apply in a given application to become a Delivery Service Partner (DSP) owner. Amazon will not accept applications from companies or groups and may disqualify applicants who indicate they have relationships with persons or entities that pose conflicts of interest.

Amazon DSP Owner Requirements

Amazon provides many opportunities for business owners to take advantage of to grow and thrive. By making sure that owners succeed Amazon’s own company is stronger and runs more smoothly. Amazon has a few requirements that must be met before they will be approved. Let’s check them out.

Management and Team Building

With this, Amazon will review your financial information as part of their approval process so that they can be sure that you will have the necessary funds to take care of both the expected startup expenses for your business, which total up to $10,000, as well as cover your own personal costs as you are training and launching it.

Solid Credit History

Clean background check, benefits of starting an amazon dsp business, how much does it cost to start an amazon dsp business.

Exactly how much does it cost to start a business with Amazon DSP? You can get your business up and running for around $10,000 if you choose to take advantage of the many deals that Amazon has negotiated through third-party providers.

How Much Do Amazon DSP Owners Make?

Understanding potential profit margins.

Of course, it’s important to interpret these figures with some critical insight: These projected numbers are based on a business operating with 20-40 vans, and these calculations are made from Amazon’s own internal research. They don’t reflect the actual earnings of existing DSP businesses, and Amazon explicitly states that these results are not guaranteed.

Tips for Starting a Successful Amazon Delivery Service Partner

Regional demand and opportunities.

The demand for delivery services varies by region. In urban areas, the volume of deliveries is typically higher, offering more opportunities for DSP owners. However, these areas also might have more competition and operational challenges like traffic. In contrast, rural areas might have less competition but also fewer deliveries, impacting revenue potential.

Operational Challenges and Solutions

Building local brand presence, leveraging amazon’s technology, compliance and insurance.

DSP owners must comply with all legal and regulatory requirements, including vehicle regulations, employment laws, and insurance requirements. Proper legal guidance and insurance coverage are essential to protect the business from potential liabilities.

Exploring Growth Avenues

Is it difficult to become an amazon dsp, is amazon dsp profitable.

Now that you know it’s fairly simple to start a DSP business, the next question is will it be profitable? The answer is yes. It is advantageous for DSP owners to cash in on Amazon’s immense presence in eCommerce.

Do you need your own delivery vehicles for an Amazon DSP business?

Which countries have the amazon dsp program.

The Amazon DSP program is currently operational in various countries across different continents, providing numerous delivery partners with lucrative opportunities. These countries include:

How much are Amazon delivery service partners paid per route?

Is dsp worth it.

The tremendous presence of Amazon in e-commerce presents a great opportunity for businesses to take advantage of its platform and use it to their benefit. By keeping customers happy and making sure that their delivery is on time, DSPs can make a good living.

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Delivering on startup dreams: start a delivery service partner business delivering for amazon.

The Amazon Delivery Service Partner program allows entrepreneurial-minded leaders to start their own delivery business for low startup costs.

If you’re looking for a new business opportunity with low startup costs, you might consider becoming a Delivery Service Partner (DSP). You can take advantage of low startup costs, built-in demand and access to Amazon's technology and logistics experience to feed your passion for hiring and coaching great teams.

What is the Delivery Service Partner Program?

Amazon is offering hands-on leaders the opportunity to become an owner-operator and grow a successful package delivery business. You can join a community of DSPs and become part of one of the world’s fastest-growing industries.

There are countless advantages to joining this program, and with so much current demand for safe, fast home delivery, there's never been a better time to take the leap into the logistics field. As a Delivery Service Partner, you'll get:

1. Small business, big impact.

Logistics experience is not required to join the program. Amazon offers access to its technology, processes and years of logistics experience to help Delivery Service Partners set up and run their delivery business to make a positive impact in their community.

2. The ability to be a hands-on leader.

Amazon's packages keep your business growing, so you can focus on building a great team and developing your people, not sales.

3. Support from Amazon.

Amazon is there to help its Delivery Service Partners. From hands-on training to on-demand support, the company is committed to helping you ensure your operation runs smoothly.

4. The chance to deliver smiles.

Known for its customer-centric approach, Amazon gives its DSPs the opportunity to delight thousands of customers every day.

As a DSP, you'll recruit and retain a solid team to enable your operation’s ongoing success.

What do Delivery Service Partners do?

A Delivery Service Partner delivers packages and essential goods to their community. As an owner-operator, you will be hiring, training, developing and retaining a team of delivery associates, who will deliver thousands of packages to Amazon customers in your area. Once your application is accepted, these are the steps you'll take to launch your successful delivery business:

• Set up your business. Amazon offers an exclusive suite of deals to acquire the assets you need to start your business, including discounts on recruiting tools, payroll, tax and accounting software, legal support and insurance options through its network of top-in-class service providers.
• Build your team. As a DSP, you'll recruit and retain a solid team to enable your operation’s ongoing success. You'll hire 40 to 100 high-performing, safety-focused delivery associates to operate 20 to 40 vehicles per day.
• Create your team culture. Leaders who thrive in this opportunity have a "can-do" attitude that reflects Amazon’s high standards and customer-obsessed culture. Through coaching and development, you’ll motivate your team to exceed expectations on every delivery.
• Deliver results. Deliver a great customer experience to create more hiring opportunities, deliver even more packages and keep your business thriving.

How Amazon helps its DSPs

Here's what you can expect from Amazon when you become a Delivery Service Partner:

• The tools and equipment for startup success. Offer deals on Amazon-branded vans, comprehensive insurance, industrial-grade handheld devices and other services help kickstart your delivery business.
• Two weeks of in-depth training. Week one is virtual-classroom-based training on business management, and week two is a hybrid (virtual and in person) station operations experience training.
• A comprehensive toolkit. Amazon provides all the tools and technology their DSPs need to run their business, including daily processes designed for success.
• On-demand support. Owners receive ongoing support from Amazon. This includes a comprehensive operations manual, Delivery Associate assistance for on-road issues and a dedicated account manager.

A great opportunity for diverse entrepreneurs

Through its Delivery Service Partner program, Amazon is offering diverse entrepreneurs and their families an excellent opportunity to start their own business.

The company recently launched a new diversity grant designed help reduce the barriers to entry for Black, Latinx and Native American entrepreneurs. Amazon has made a $1 million commitment toward funding startup costs for these aspiring owner-operators, offering $10,000 for each qualified candidate to build their own businesses in the U.S. Ready to take the next step toward your future as a Delivery Service Partner? Visit Delivery Service Partner to begin the application process.

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Guide To Starting An Amazon DSP Business

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If you’ve ever wanted to start and run your own package delivery business, the Amazon Delivery Service Partner may be your answer. Entrepreneurs have been launching the businesses as an Amazon Delivery Service Partner since 2018. Many success stories start with DSP.

With the pandemic-fueled trend towards online ordering, there’s no time like the present for you to become part of the Amazon delivery service partner program.

A Step-By-Step Guide to Starting An Amazon DSP Business

First, it’s not a franchise. It’s a business opportunity for an entrepreneur.

The Amazon delivery service partner program connects a needy – Amazon has gazillion packages to deliver – with someone who wants to be a business owner. An entrepreneur who becomes an Amazon delivery service partner gets the advantages of integration with Amazon logistics business expertise.

You’ll need about $10,000 in startup costs. In a nutshell, you run a fleet of leased Amazon delivery vans. Your drivers pick up packages at an Amazon warehouse and delivery routes.

What would your day be like?

Remember that the work is 7 days a week, 361 days a year.

On a daily basis, you’ll be scheduling drivers, setting up routes, tracking progress during the day, fixing any problems, talking to workers at the end of the day, and making sure the fleet is parked and full of gas, ready to go the next day.

Your first step is to find out if the delivery service partner program is available near you.

Delivery service partners typically need about $10,000 in startup costs. A DSP owner starts with up to 5 vans and delivery drivers. Amazon offers complete training to cover all you need to know to run a delivery business. In the DSP program, you’ll train with other DSP owners.

Basically, your drivers pick up packages at an Amazon warehouse and delivery routes. Routes must be delivered 7 days a week, 361 days a year.

You lease the vans, which is common in the delivery business. The vehicles display the Amazon Prime logo and your employees wear Amazon uniforms.

Since Amazon started the delivery service partner DSP in 2018, the majority of business owners have grown to run from 20 to 40 delivery vehicles, and 40-100 employees.

The DSP program owner’s salaries vary. As with typical delivery companies, the gross proceeds are reduced by costs, mainly delivery vehicles and costs associated with the workforce.

The 10,000 startup costs come from the cost of business licensing, professional services (accounting, legal), computer equipment and software, your travel to training, and employee hiring and training.

Once you’re up and running, the revenue potential is very good. Annually, owners with 20-40 delivery vehicles are seeing gross revenue of $1 to $4.5 million.

Of course, expenses eat into the gross revenue but the profit potential is great. Expenses include vehicle leases and maintenance, administration and professional services, uniforms, and employee wages, benefits, and insurance. The net profit realized by delivery business owners after those expenses range from $75,000 to $300,000.

Delivery businesses are highly competitive. One of the biggest benefits of being a delivery service partner DSP for Amazon is that you’re not alone.

The Amazon training is extensive. Through Amazon, you can choose to get assistance with legal issues, as well as payroll, tax, and accounting services. You’ll also get an Amazon dedicated business coach.

Compared to the cost of starting a similar delivery business, the start-up cost is low at $10,000.

Through the connection with Amazon, the constant workload of packages to deliver is steady DSP owners have access to Amazon technology, logistics, and training.

DSP owners are the bosses of their delivery companies. Owners set up the hiring process for their drivers. Delivery service partners decide how drivers are paid and what type of benefits they receive.

You’ll be partnered with a giant in the competitive delivery business. The package delivery business is growing.

In case if you miss this: Profitable Health Care Business Ideas .

Once you’ve learned whether or not Amazon delivery service partners are available in your area, you can begin the process.

1. Fill in the Online Application

The online application is the first step, and it is quick. There are a series of yes-no questions.

Here’s what Amazon wants to learn about you:

• If you have experience hiring and developing teams of workers.
• If you’re ready to commit to being a hands-on, full-time DSP owner.
• If you have available liquid assets of at least $30,000.
• If you have a strong credit history.
• If you have previously owned a business. That’s not required but it is preferred.

2. Pass the Amazon DSP Program Screening Process

The first step of the screening process is a second application. The second application is more in-depth.

You may want to update your resume to include hobbies or activities that aren’t typically included on a resume. Amazon highly values community involvement. Have you coached a community team? Have you been on local committees, which prove your community involvement? How would you engage members of your community to help you hire people?

As with any employment opportunity, you’ll be vetted:

• You’ll need an up to date resume that proves a steady work history
• Your driving record should be clean, especially of moving violations.
• You’ll undergo a background check, which will include a criminal record check and credit check.

3. Go for an Interview

In-person interviews take place at Amazon fulfillment locations, as available, and at locations nearest to you.

To learn where those locations are, go through the Amazon DSP FAQs

The interview process, from the initial quick application and through the in-person interview process can take months. There will be more than one in-person interview.

Applicants who have successfully gotten through the interview process will get advance notice of that acceptance. They can then join the Future Delivery Service Partner Program. In fact, it’s a great move.

Competition is fierce between those striving to get into the delivery service partner program. The Future DSP Program provides access to continued online and hands-on training. Those who are actively engaged in the Future Delivery Service Partner program go to the head of the line.

4. Receive an Offer and Rate Card for Your Business

The numbers on offers and rate cards can vary by area of the country and route. The rates are:

A fixed monthly payment based on the number of vans

A route rate is based on the length of a route.

A per-package rate is based on the number of packages delivered.

5. Complete and Pass the Amazon DSP Program

An Amazon Delivery business owner will have 3 weeks of hands-on training in classroom and warehouse settings, gaining logistics experience. That initial period is followed by 2 weeks of instruction in the field – working with other delivery business owners.

As you’re waiting for routes to become open, take part in the Future Delivery Service Partner Program. People who are involved and active in that program are most likely to be tapped for a route when it becomes available.

By taking advantage of all the instruction that’s offered, you’ll become more comfortable and educated on all the developments in the logistics industry.

6. Set Up Your Amazon Delivery Service Partners Business Program and Employ Staff

Newbies to the program typically start with 5 vans. That means you’ll need to lease 5 vehicles and you’ll need 5 drivers, right from the start.

How do you choose from the pool of candidates? Look for people who have experience working for delivery companies. You also want to see a steady work history and logistics experience. You may choose to employ Amazon Flex drivers. An Amazon flex driver is a self-employed subcontractor.

What else? One of Amazon’s strengths as a company is its customer service. You may find applicants who have the ability to deliver packages, but not interact positively with customers. In the delivery business, disgruntled customers can ruin the reputation of a business.

Candidates should have a strong work ethic, the ability to pick up from a delivery station and complete a route, all while remaining focused on keeping customers happy. Your role as the owner is to maintain the reputation of the program, with timely deliveries and satisfied customers.

7. Get Started with Your New Profitable Business

Once you’ve ordered and received your delivery vans, electronic delivery program devices, fuel cards, and uniforms, you’re ready to pick up at delivery stations.

You’ll need “motor carrier operating authority” and insurance for the leased vehicles. Amazon has recommended vendors and has negotiated rates for the program.

Once you’ve started your business, you’ll be eligible for many different types of rewards.

How about this: Online Business Ideas For Beginners .

Amazon delivery partners are in charge of their own success. Everything you do – finding the right location, building your team, interviewing a driver, choosing from a pool of administrative candidates – will have a direct impact on your success, and amount of profit.

There are additional factors that affect your success, such as your own level of logistics experience and your affinity for hard work.

Here are some tips for success:

• Negate the startup costs with access to a Diversity Grant. Amazon is offering $10,00 grants to applicants who are Black, Latinx, or American Indian.
• Know your jobs market and area. What’s the status of the workforce in your location Will you have access to good workers? Take advantage of your access to Amazon company guidelines and teaching on how to hire and train people, and build a team.
• If you don’t have extensive logistics experience, take advantage of the support offered by Amazon. Amazon offers support to DSP partners 24/7.
• Business owners should be comfortable in leadership roles in a company and know-how to build a good team. Leadership is a key to success in any company.

You may also check this: Ideas To Make Money In India .

Newbies start work with 5 vans. Most add more within the first couple of months.

How profitably your company becomes is up to you. Owners with 20-40 delivery vehicles earn profits from $75,000 to $300,000.

Per route pay per route varies. You’ll know the rate upfront. Amazon will supply an offer with a rate card for a route. The rates are:

• A fixed monthly payment based on the number of delivery vehicles.
• A route rate is based on the length of the route.
• A per-package rate is based on the number of deliveries.

Is connection to the Amazon logo your success? Many a success story starts with the Amazon company.

With Amazon, you’ll have access to support for everything you need to run each part of a business – such as payroll, taxes, accounting, insurances. You’ll be part of a team – on a huge, worldwide scale – yet be the leader of your team.

For entrepreneurs, the business services offered by Amazon can be a huge bonus.

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How to Start an Amazon Delivery Business + Startup Checklist

• The DSP program allows you to start a delivery business for as little as $10K .
• No logistics experience is required to get started, but there are financial requirements.
• Being a DSP owner is a full-time job and requires your total commitment . 
• A high driver turnover rate is a big concern for DSPs.
• Annual profits of $75,000 to $300,000 are possible, but only once your fleet grows to 20-40 vehicles.

What if you could make a living running a package delivery business for one of the biggest retailers on the planet?

That’s exactly what the Amazon Delivery Service Partner (DSP ) program aims to offer aspiring entrepreneurs who want to start a new business.

While there are plenty of advantages of running an Amazon delivery business, there are some downsides that need to be considered before signing on.

What is the Amazon Delivery Service Partner Program?

Through Amazon’s Delivery Service Partner (DSP) program, you can start your own small business delivering Amazon packages . 

Essentially, you lease a fleet of Amazon-branded trucks, hire drivers, and deliver packages to customers on the retailer’s behalf. Drivers wear high-quality, branded uniforms and drive branded trucks.

You’re not buying into a franchise, but it certainly looks and feels like you are.

The goal of the DSP program is to help the e-commerce giant fill the gaps in its logistics infrastructure . And since its launch in 2018, more than 3,000 DSPs have built their own businesses. 

DSP owners leverage Amazon logistics to help keep their fleets running smoothly, and the day-to-day is very hands-on.

How does it work? Here’s what you need to know

Amazon makes it relatively simple and straightforward to join their DSP. The process starts with a simple online form, which also includes a credit check and background check.

But as you may have guessed, it’s not as easy as registering an account and getting started.

Amazon wants to know that you’re capable of running a full-time business and can lead or coach a team. They’ll assess these qualities before welcoming you into their program.

How do they determine if you’re a good fit? According to the DSP website , you’ll need to show:

• A complete and updated resume with a full work history, education, and military service (if applicable).
• Proof of $30,000 in liquid assets (cryptocurrency and business accounts excluded).

After your financial assessment, the next step is to schedule an interview . If you’re a good fit, you can start your business as a DSP owner.

Just be prepared to wait for a decision. It may take a few months for Amazon to get back to you about your application.

If you’re approved, you can expect to receive ongoing support from Amazon to get up and running.

How Amazon supports DSP owners

Amazon says that you don’t need any logistics experience to get started . That’s because they provide ample support to DSP owners, including:

• Training : This includes an introduction to Amazon and time in a delivery station environment to learn from other DSPs.
• Business coach services to help you launch and grow your business.
• Logistics expertise: DSPs get access to Amazon’s logistics tools, providers, and technology to get things up and running.
• Benefits and services , including special deals on startup assets, business services, handheld devices, uniforms, and insurance.
• On-demand support if your drivers are facing delivery issues or you need assistance with the back end of things. 

Amazon is a leader in the logistics industry, so having access to their system will give you an advantage. 

What to expect day-to-day as a DSP 

So, what does a DSP owner do? Amazon gives a breakdown of what happens in a typical day :

• Review and assign routes . 
• Check in on your team and coach delivery associates.
• Inspect delivery vehicles and equipment.
• Lead a team meeting covering safety reminders and updates.
• Monitor your delivery drivers and provide assistance when needed.
• Review business metrics to ensure you’re meeting performance goals.

Of course, you’ll also be in charge of managing the financial and administrative side of things. 

Being a DSP is a full-time job, and it does require a serious commitment. 

If you’re ready to take on that responsibility, the next question is: How much do you need to get started ?

How much does it cost to start an Amazon delivery business?

Amazon says you can start your DSP business for as little as $10,000 .

In the United States, a diversity grant is also available for black, Native American, and Latinx entrepreneurs to help with startup costs.

The $10K startup figure supposes that you’re starting with five delivery vehicles. Depending on your location, there may also be room to scale . Some DSPs have dozens of vehicles.

How profitable is the Amazon delivery business?

The profitability of a DSP business depends on a wide variety of factors, but Amazon says high-performing DSPs can make an annual profit of $75K to $300K . 

Read the small print, though! Compensation rates vary depending on your location, fleet size, and delivery area. Amazon’s own financial notes say:

“The annual revenue and profit potential ranges are estimates for companies performing standard or rural delivery services operating 20 to 40 delivery vehicles”.

So the startup cost is based on five vehicles — but the reported profit range is based on 20-40 vehicles. You will need to grow your business substantially to reach these kids of profits.

How much you earn will also depend on your metrics . That’s right — Amazon measures your performance. 

And how you perform is critical to your DSP scorecard , which impacts your compensation.

If you can maintain a Fantastic or Fantastic Plus ranking , you will earn additional compensation per package. Some sources say a Fantastic ranking will get you 7 cents more per package, while Fantastic Plus will bump that up to 15 cents per package.

The pros and cons of starting an Amazon DSP business

The DSP program offers business opportunities to entrepreneurs with the leadership experience and financial liquidity to succeed.

But, like with any other business venture, there are pros and cons to consider.

The advantages of becoming an Amazon DSP

• Startup costs are low . The biggest hurdle for new small business owners is having the capital to get the business off the ground. Starting a logistics business for as little as $10K is certainly a perk. 
• Reliable business . Amazon.com, Inc., is one of the biggest retailers on the planet. You’ll have a steady stream of business that most delivery companies could only dream of.
• Hands-on training and coaching . Amazon provides its DSPs with training and business coaching. 

Disadvantages of being an Amazon DSP

• Amazon claims that DSPs can make up to $300k in annual profits. But there’s no guarantee that you’ll make this much — or any profit at all. Some would argue that you may make more working as a delivery driver for FedEx or the Flex program.
• You’ll be required to follow Amazon’s rules , including having to hire your drivers as employees instead of independent contractors. Hiring employees isn’t a bad thing, but it will add to your costs. 
• Driver turnover rates are high . One driver told CNN in 2021 that turnover is so high at their terminal that they must train 150-200 new drivers monthly. Others say the average turnover rate is 90 days.
• You have no control over your routes . Amazon plans them, and you assign them. Unfortunately, if you look at the buzz in online forums like Reddit, Amazon’s routes are notoriously bad .

💡If you want more control over your business, you might prefer to start your own delivery service . That will give you the freedom to choose your own tools, including route optimization software like Routific to help you slash your cost per delivery and reach profitability faster. 

How to start an Amazon delivery business: Your step-by-step checklist

You’ve weighed the pros and cons of the DSP program, and you’ve decided that it’s the right choice for you.

How do you get started? Here’s a breakdown of each step in the process.

1. Apply online

The first step to becoming a DSP is to fill out an online application . Give yourself plenty of time for this step. Amazon says the process can take 2-3 hours.

They’ll ask some personal questions and also some questions about your ability to lead and hire a team.

Your credit score will matter when applying, so you may want to consider improving your score (if necessary) before you start the application process.

Remember — you’ll need to prove that you have $30,000 in liquid assets , too.

2. Attend an interview 

Once you complete the initial phase, the next step is to attend an interview at a local fulfillment center. You may be asked to attend several interviews.

If all goes well, you’ll receive a formal offer .

3. Attend training

After receiving your formal offer, you’ll need to complete the training program . 

Training includes a week of virtual instruction (webinars, etc.), plus in-person training at an actual delivery station.

You’ll also receive an operations manual that explains how to provide on-road assistance to your team and how to process and track orders. A business coach will be assigned, and you can reach out to them for help with issues you may be facing.

4. Lease your trucks and hire employees

Before you can hit the ground running, you’ll need to lease trucks and hire a team .

A beginner DSP can start with five delivery vehicles and a team of five drivers. 

To ensure a positive subscriber and customer experience, look for drivers with:

• Experience in logistics or delivering packages
• Excellent communication skills
• Great people skills

Once you have your trucks and team in place, the only thing left to do is start delivering packages. 

Final thoughts

The Amazon DSP program offers you an opportunity to start your own small business and gain access to valuable support and resources that will set you up for success. 

But in exchange, you give up a great deal of control over your operations and, initially, will face an income ceiling (you can only start with five trucks).

The DSP program isn’t for everyone, but if you’re committed and go into the venture with realistic expectations, you have the opportunity to build a successful and sustainable business.

Frequently Asked Questions

Which countries have the amazon dsp program.

The DSP program is available in the U.S. and the following countries:

• Netherlands
• Saudi Arabia

Amazon is continually expanding its program, so it may be available in other countries in the future. Check their FAQ page for updated details.

Amazon DSP vs Amazon Flex: What’s the difference?

Amazon’s DSP and Flex programs both offer entrepreneurs a chance to start their own delivery business but in different ways.

• As a DSP owner, your job is to manage a fleet of vehicles and employ a team of drivers.
• As a Flex driver, you’re the one delivering the packages using your own vehicle.

The Flex Program offers a little more freedom and flexibility in terms of how you run your business, but DSP owners generally earn more. The bigger your fleet, the higher your revenue potential.

Related articles

Liked this article? See below for more recommended reading!

Starting Your Own Delivery Business In 2024: Insider Tips

How to Hire Delivery Drivers: Tips To Find & Keep The Best

Last Mile Delivery Costs — Challenges and Solutions

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An update on Amazon’s Delivery Service Partner (DSP) program

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Get started with amazon business., how to write a business plan, why write a business plan.

The dream that I had as a four year old of changing the world with a lemonade stand is what drove the growth of the company. But what actually provided the backbone in the foundation for that dream was the fact that we had a business plan for each stage of our company's growth. And that's one of the many reasons you want to make a business plan. A clear business plan informs other parties, whether that's your internal team, your friends and family, potential investors, or strategic partners, about your company. It also sets clear goals for the future and allows you to dream like a kid, just as I did as a four year old in Austin. A study reports that you're 42% more likely to accomplish the goals that you write down.* A business plan is essentially a way of listing your goals and backing it up with data and research. You also include your current team key factors about your business, and the industry as a whole. It establishes a roadmap for your business.

Key Reasons to Write a Business Plan

• Helps you understand key factors of business and industry
• Establishes roadmap for business
• Provides information for other parties such as potential investors, internal teams, friends & family
• Sets clear goals for the future and allows you to dream like a kid
• Make you 42 % more likely to accomplish the goals you write down*

Key Aspects of a Business Plan

• Industry overview - a general market analysis
• Company and business overview - introduces your business
• Business strategy - clarifies what your strategy is for conducting business
• Mission and vision - how your business is going to impact others in the world
• Management and key personnel
• Capitalization structure - how you fund and raise capital
• Growth and goals?
• What's next for your brand
• Risks and mitigation - potential elements that could negatively impact your business and how you will mitigate those

Company & Business

This section provides an overview and introduction to your business as a whole. Here's where you want to tell your founder's story, what's unique about your company, and what big problem your company solves. You want to list what your company structure is - are you an LLC or are you incorporated? Where are your principal offices located? Is it virtual or in person? And who are the management personnel? But not too much into the matter of personnel because there's another section for that. In this section, you want to include your business strategy, opportunities, and the target market.

• The story behind founding your company
• What's unique about your company
• The big problem your company solves.
• Company structure i.e. are you an LLC or are you incorporated?
• Location of principal offices - is a virtual is it in person?
• Management personnel - who are they? - but not too much into the matter of personnel because there's another section for that.
• Business strategy - what is the opportunity and the target market?

Mission & Vision

I came across my vision and mission statement actually as an accident. I was four and a half years old. I got stung by two bees in one week. It was extremely painful and I was terrified of them. My parents said, ‘okay, how about you do some research?’ I learned that without the bees, our food supply would collapse. And I also learned that one out of every three bites of the food we eat comes from bee-pollinated plants. This definitely sparked an interest and I wanted to help protect them based on learning that the populations were dying at an alarming rate. So I decided, “Hey, I just got a cookbook from my great granny Helen (she wrote her favorite recipe for a flaxseed lemonade.) What if I took this recipe and add my own twist? What if I added mint? What if I sweetened it with honey, which I had just learned that bees made? And what if I donated a portion to organizations that would seem to bees?” That’s how my mission orginated. I wanted to create lemonade that tastes good and does good. I wanted to make a measurable impact on saving bee populations. While that's what it started as, it has since grown into something more. Yes, it saved bees, but it's also teaching and encouraging social entrepreneurship. Mission and vision may sound the same, but they're pretty different and they're both equally as important. Your vision statement is your reason for being. It's who you are at your core. It can be inspirational and emotional. The goal is getting others to see your vision and believe in it, to garner hearts, attention and interest. Your vision statement should attract and engage passionate individuals both within and outside of your organization.

Vision Statement

A vision statement is your reason for being - who you are at your core.

• Can be Inspirational - getting others to see your vision and BEE-lieve in it
• Can be emotional - to get hearts, attention and interest
• Should be a short statement

Mission Statement

The mission statement is where you want to clarify what the scope of your work is. What you do, how do you do it, and for whom. This is where you help people understand how you achieve the vision that you already mentioned.

Industry Overview

In the Industry Overview section, you want to list what differentiates you from your competition. State your business's economic sector on a local, regional and national level. You want to list who the current leaders and trendsetters are in your industry; you could do this through a side by side competitor analysis. You want to forecast where your industry is headed to in the future. Industry Overview Highlights

• What differentiates you from the competition?
• Local level
• Regional level
• National level
• Side-by-side competitor analysis
• Describe sectors growth
• Opportunities for your business to expand
• Overall goal is to determine your target market and what separates you

Management and Key Personnel “Your Hive”

The next section is the “Your Hive” section or Management and Key Personnel. Here's where you want to outline your business's management structure and their qualifications. This could be owners, key personnel board, etc. You don't need to have a large team. You just want to emphasize what proficiencies, personalities and skill sets your team has. So whether you're a solopreneur or you're listing people who you go to for help that as my hive. In general, you want to emphasize the capacity of your team through a variety of skill sets and identify key functions that are required to help achieve the vision for your business. One challenge that we had as a small business was that it was hard to bring on full time employees. I was the founder and CEO of Queen Bee. I brought on my parents as Chief Operating Bee and Chief Marketing Bee, but we still needed help. And so we realized that by listing what skills our current team had in our management and personnel section, we were able to understand the skills that we need to outsource. We eventually went to outsourcing specific team members such as brokers, accountants, manufacturers and just finding people who can wear multiple hats to help us run the day-to-day. The great thing about your hive is that it's not just people who work for your company. As I grew my business, there were so many people who wanted to be part of my hive.

Management and Personnel Highlights

• Key personnel
• Identify key functions required to help achieve vision for business (and timing)
• Emphasize the capacity of your team through a variety of skillsets
• Proficiency & Personality

Capitalization

The next section of your business plan is Capitalization. How are you going to fund this idea, this company, and where will that money go in the future? This is where you want to list what your initial funding will be, whether it's friends and family, angel investors, venture capitalist or your local bank. You also want to set forth the capitalization of the company on a pro forma basis. So how much capital is needed to pursue the next steps of your business strategy and what form of capital is that going to be in? Are you going to have equity based investments, loans, line of credits, etc.? One of the challenges that we had as a small business was that there were opportunities to scale, but we were unable to take advantage of them. When we looked at our capitalization structure, we realized in order to launch into these retailers or in order to go into these states, we needed freight, we needed higher manufacturing abilities, and we didn't have those items at the item. We realized we needed capitalization. We established exactly what sources we were going to get that capital from. Then, we were able to create a convincing pitch and slide deck to attract potential investors. And so that's what led us to going on That led us to Shark Tank in 2016 and landing a deal with Mr. Daymond John. Also in 2018, we got investments from around ten NFL players. Even today, where we are looking to grow the company and get more rounds of funding.

Capitalization Highlights

• Friends and family
• Angel Investors
• Venture Capitalists
• Set forth capitalization of the company on a pro forma basis

Business Strategy

In the business strategy section., you want to list how your business will earn a profit through creating a value for your customers. What are your value propositions? Is it newness? Is it brand, status. reduced cost, convenience, or customization? What needs of your customers? Is your business going to satisfy you?

Channels List your channels. How are you going to reach your customers? Which channels work best and which channels are most affordable? This is very important.

Revenue Streams List your revenue streams. There are multiple types from subscription based to renting or leasing, licensing, advertising, etc. Once you establish those revenue streams, how are you going to price your product or your service? Is it list price, negotiation based, customer dependent, value dependent, etc.?

Business Model What's your business model? How are you planning on making a profit and whom you are trying to sell to: be the be B2B business, B2C business, etc. A great example of how a business strategy was helpful to Me & the Bees was when we were shifting from just being a lemonade stand to actually being a bottled product. A local pizza shop said, “Hey, if you can find a way to bottle your product, we'll carry it.” Now that we had that opportunity, we had to figure out how our business strategy would change. It changed a lot. Instead of trying to target individual customers, we now had to shift our target to retailers in restaurants and cafes to sell the product. And then we also realized that this meant a different pricing model and different channels that we were trying to reach. Thankfully, we had a very clear business strategy section that helped us throughout that transition. Business Strategy Highlights

• Value propositions (ex: newness, brand/status, reduced cost, convenience/usability, customization)
• What customer needs are you satisfying? 
• Which channels work best?
• Which are most affordable?

Revenue Streams

• Types: subscription, renting/leasing, licensing, advertising
• Pricing: list price, customer dependent, negotiation, volume dependent

Business model  (how do you plan on making a profit?)

A tool you can use:  Strategyzer.com

Growth & Goals

The growth and goals section is where you can dream like a kid and can be fearless in the possibilities of where your business can go in the future. How are you going to expand your position? This could be increasing velocity at current locations or selling new products or new variations of your current products. Another example - what promotions, marketing or social media campaigns are you going to do? When I started Me & the Bees, all we offered was one flavor. As we grew, based on the growth and goal section, I decided I wanted different flavors. So we have ginger, prickly pear, and black cherry now. I also established that I wanted different products, such as lip balm, skin care, snacks, etc. After growing the company and after getting that lemonade to a nationally distributed point, I decided I want to start a nonprofit so that I can save the bees through research, education and protection. I wanted to publish a book so that I can help inspire the next generation of changemakers. I also wanted to connect with current changemakers around the world, whether it's in Singapore or Cape Town, and figure out how we can make a difference when it comes to saving pollinators, when it comes to increasing the amount of social businesses in the world, and helping inspire others.

Growth & Goals Section Highlights

• Expand where you are – increase velocity at current locations
• Future Promos, marketing, social media
• Sell current products at new locations
• Offer new variations of current product

A Word of Encouragement for Small Business Owners

Dreaming like a kid is where a lot of the passion and excitement for growing my brand originated from. And that passion made it so much easier to overcome many of the challenges that every small business faces. For example, managing and navigating the COVID 19 pandemic, balancing being a student and being an entrepreneur at the same time, and so much more. And so in general, it was the dream of, “Hey, this is where I want my business to go in the future.” And yes, it was the backbone and foundation of that dream through business plan, but it was also the resiliency and the grit that all entrepreneurs have. And so this quote is one that I came up with during one of those times of challenges. And I think that this is applicable to being a small business owner, so entrepreneur, but also so many other parts of life in general. There's going to be things, there's going to be challenges. But I think the most powerful point is when you actually get back up, when you're able to face those challenges and overcome them and then tell stories about it, inspire others in the future.

“Don't be discouraged by life's little stings, get back up and spread your wings.“

— Mikaila Ulmer, Founder & CEO, Me & the Bees

And I think that this is applicable to being a small business owner, so entrepreneur, but also so many other parts of life in general. There's going to be things, there's going to be challenges. But I think the most powerful point is when you actually get back up, when you're able to face those challenges and overcome them and then tell stories about it, inspire others in the future.

About Mikaila Ulmer

Mikaila Ulmer is founder and CEO of Me & the Bees Lemonade. Using her Great Granny Helen’s flaxseed honey lemonade recipe, Mikaila launched her business in 2009, at a youth entrepreneurial event and then sold her lemonade at a stand in front of her home in Austin, Texas. Today, the award-winning lemonade is buzzing off the shelves at retailers in all 50 states. In 2018, Mikaila launched the Healthy Hive Foundation non-profit where a percentage of net profits from the sale of her lemonade goes to saving the bees. Mikaila’s first book, Bee Fearless: Dream Like a Kid , was released by Penguin Random House in 2020.

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What to Buy (and Skip) on Amazon Prime Day 2024

Tommy Tindall is a personal finance writer who joined NerdWallet in 2021, covering consumer debt, practical ways to save money and the gig economy. Before NerdWallet, he worked on the marketing and communications team at Fannie Mae. Today, Tommy strives to make the topic of money approachable for all. His work has appeared in The Washington Post, The Associated Press and on MarketWatch. Tommy is based in Bel Air, Maryland.

Courtney Neidel is an assigning editor for the core personal finance team at NerdWallet. She joined NerdWallet in 2014 and spent six years writing about shopping, budgeting and money-saving strategies before being promoted to editor. Courtney has been interviewed as a retail authority by "Good Morning America," Cheddar and CBSN. Her prior experience includes freelance writing for California newspapers.

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Amazon Prime Day is July 16-17. It’s like Black Friday, but in July and with less burden to buy for others.

Some people may already have holiday gift-buying in mind, but most are likely shopping for themselves, says Jane Boyd Thomas, a professor of marketing at Winthrop University.

More emphasis from retailers on summer deals has shifted trends on Google. “In recent years, searches for ‘deals’ have spiked in mid-July, even surpassing search interest in ‘vacation,’” said Sean Scott, vice president and general manager of consumer shopping at Google, in a blog announcing Google’s enhanced shopping tools. Its updated “deals destination” is intended to make it easier to shop for deals across retailers in one place.

Whether you start on Amazon or Google, the key is to nab deals on planned purchases over impulse buys . Keep this list in mind as you decide what to buy (or skip) on Prime Day.

Buy: Electronics

Thomas says electronics will be the best category for Prime Day deals, which will likely include Apple products. She chuckled when mentioning an Apple Pencil she recently paid full price for ($129.99), only to hear later that it’ll likely be cheaper on Prime Day. In fact, it is $79 on Amazon at the time of this writing, before Prime Day. AirPods Pro (2nd Generation) ear buds were down to $189.99 in late June (Apple’s price is $249, but Amazon regularly sells them for $199), and could go lower during the sale.

Select models of TVs, soundbars, speakers and other headphones should see deep discounts too. Amazon is already touting an invite-only deal of up to 40% off Sony wireless headphones. But be mindful that limited quantities on the hottest products could mean you have to act quickly.

My experience: I dropped the “bar” last Prime Day. I had coveted a particular model of Sony soundbar that normally sells for about $300 all year long. I saved it and waited for the price to drop. On Prime Day, it went down $100. But instead of getting it, I hesitated for a few hours, and when I decided to buy it, it was not only out of stock on Amazon but also at other retailers. I settled for a similarly priced but inferior model.

This year’s sale starts promptly at 12:01 a.m. PDT on July 16 and ends at 11:59 p.m. PDT on July 17. The specific start and end times motivate people to buy on whim for fear of missing out, says Thomas.

But you can prep for Prime Day now , by making a list and checking your budget, to avoid overspending at crunch time.

Buy: Car seats and strollers

Prime Day is likely to bring good deals on baby gear. NerdWallet monitored prices on a handful of popular products during every major sale of 2023. The Graco Extend2Fit Convertible Car Seat we tracked went on sale often, but hit its lowest observed price during last year’s July Prime Day, coming in at $139.99. It’s $199.99 on Amazon at the time of this writing.

Thomas, a new grandmother, needs to get equipped to drive her granddaughter around.

The car seat base she needs typically goes for around $160, she says. “I'm going to put it in my wish list and set alerts, which you can do with Amazon, to let me know when it goes on sale,” she adds.

Strollers, cribs, pack-and-plays and other typically pricey baby products could hit lows during Prime Day. Last year, for example, the Baby Jogger City Mini GT2 All-Terrain Stroller was 40% off during Amazon’s sale.

Buy or skip: Amazon devices

Buying an Amazon device during Amazon’s biggest sale of the year is a no-brainer, but only if you’re in the market for one. Fire tablets and TV sticks, Kindles and Echo devices are all likely to be discounted. And many of the gadgets Amazon makes are pretty well-reviewed.

Of course, you can also wait. The next big Prime sale , which should come in October, is all but certain to bring similar prices on Amazon’s own tech.

My experience. I skipped both the July Prime Day and October Prime Big Deal Days last year and still got a great deal on the latest Echo Show 8 (3rd gen) smart display device, which wasn’t released until late in the year. I ordered mine on Dec. 28, 2023, for $60 off the normal price. It’s a good reminder that products are often refreshed and prices are constantly in flux.

If you are prepared enough to put a gift list together in July and have kids to buy for, sensory-type creative toys can be a good way to go. One of the best Prime Day deals NerdWallet spotted last year was on the Magna-Tiles Classic 100-Piece Set. Kids love them, and the set went down to $82.99 on Prime Day. The same set is $119.50 on Amazon at the time of this writing.

Thomas says Amazon is inclined to mark down already hot sellers to draw people in.

“I would look at things like gifts for children, scooters, Lego sets because those are things that are pretty steady sellers year-round for them,” she says.

Buy or skip: Small appliances

Kitchen gadgets are fair game for deals on Prime Day, but NerdWallet’s research shows Cyber Monday is better for deals on small appliances like air fryers, mixers and coffee makers. And for these items especially, don’t let Amazon be your only stop. Target, Walmart, Best Buy and other retailers will compete.

You could also wait and stumble upon a deal later, if you’re not quite ready to buy.

My experience: While at a friend’s house for dinner late last year, I couldn’t help but notice the side-by-side Instant Vortex Plus 6-quart XL Air Fryers they were using to cook the meal. The food was good, and the stainless look was slick. I got home, opened Amazon and saw the same model going for $74.15, about $55 off the normal price. I nabbed it on Nov. 5, 2023, a random Sunday. Moral of the story: good sales happen throughout the year if you’re not ready to buy now.

Nerdy reminders about online shopping

Doing the necessary product and price research should be second nature by now, but here’s a refresher on how to e-shop smartly.

Know the going rate: If you’re shopping on Amazon, it’s quick and easy to use a price-tracking site like camelcamelcamel to check the price history over time. Paste the Amazon URL in the camelcamelcamel search bar to view lowest-ever, highest-ever, current and average price.

Set your pounce price: Once you know the lowest price and how often the item is discounted, you can use your budget to set a price threshold. Once the price drops below that line, you've given yourself permission to buy.

Save it for later and set alerts: Set alerts to take the effort out of tracking prices. In the Amazon app, you can set deal alerts for items of interest by going to the account section, scrolling down to “message center” and tapping deal alerts.

Google it before you get it, or search “shop deals”: Amazon may be the loudest, but other retailers will quietly compete with Prime Day. A quick Google search of the specific product you’re after will let you compare prices, but you can go deeper with Google’s new “deals destination.” Type the words “shop deals'' into the search bar to view a carousel of products with recent price drops from across the web. Click on the product to view its typical price range based on averages over the past 90 days.

Shopping online is easier than ever, and there are tricks and tools that can definitely help you save. But there's also a time-consuming and inescapable nature of online shopping. As we hit the peak of summer, don't let chasing the best deal keep you from things that matter most. Those things are probably free anyway.

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Mit diesem Plan verteidigt Amazon sich gegen Shein und Temu

Neue rabatt-strategie bei amazon: so will der konzern sich gegen temu und shein durchsetzen.

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Temu und Shein haben Amazon mit ihren ultraniedrigen Preisen einen Strich durch die Rechnung gemacht.

Doch Amazon könnte über einen Plan verfügen, um sie abzuwehren – und startet darum seine eigene Discount-Abteilung.

Das in Seattle ansässiges Unternehmen will eine Reihe von markenfreien Artikeln direkt aus China in die USA liefern.

Der in Seattle ansässige E-Commerce-Riese Amazon plant einen neuen Rabattbereich auf seiner Website. Das berichtete „The Information“ am Mittwoch. Das US-amerikanische Medienunternehmen berufe sich dabei auf Folien, die Amazon chinesischen Verkäufern gezeigt hatte.

Dem Bericht zufolge will Amazon eine Reihe von markenfreien Artikeln direkt aus China in die USA liefern. Die Kunden können damit rechnen, ihre Bestellungen innerhalb von neun bis 11 Tagen zu erhalten.

Steigende Konkurrenz von Temu und Shein

Laut „The Information“ wurde chinesischen Verkäufern in einer kürzlich stattgefundenen Klausurtagung mit Amazon mitgeteilt, dass der neue Marktplatz im Herbst mit der Annahme von Produkten beginnen wird. Der Schritt wird weithin als Reaktion auf die wachsende Konkurrenz von Temu und Shein gewertet, die mit ultraniedrigen Preisen und aggressiven Marketingkampagnen Kunden anlocken.

„Wir sind immer auf der Suche nach neuen Wegen, um mit unseren Vertriebspartnern zusammenzuarbeiten und unsere Kunden mit einer größeren Auswahl, niedrigeren Preisen und mehr Komfort zu erfreuen“, sagte ein Sprecher von Amazon im Gespräch mit „The Information“. Temu und Shein reagierten nicht sofort auf Anfragen von Business Insider, die außerhalb der üblichen Geschäftszeiten gestellt wurden.

Die Gewinnung von Kunden durch wettbewerbsfähige Preise ist seit langem ein Teil von Amazons Spielbuch.

Relevanz der Eigenmarken von Amazon

Im Jahr 2009 startete Amazon sein eigenes Eigenmarkengeschäft, AmazonBasics. Das Unternehmen begann mit dem Verkauf von Elektronikartikeln wie Batterien und Netzkabeln zu einem niedrigeren Preis, bevor es seine Bemühungen auf andere Produktsegmente wie Tiernahrung und Kleidung ausdehnte.

Diese Strategie könnte heute sogar noch relevanter sein, da die amerikanischen Verbraucher in Bezug auf ihre Ausgaben vorsichtiger werden. Im April erklärte Brian Olsavsky, CFO von Amazon, dass seine Kunden „viel mehr Verbrauchsgüter und Dinge des täglichen Bedarfs“ kaufen, die tendenziell billiger sind. „Die Kunden in den USA gehen sehr bedacht mit ihren Ausgaben um“, sagte Olsavsky, „sie suchen nach Angeboten, sie handeln nach unten und suchen nach Produkten mit einem niedrigeren durchschnittlichen Verkaufspreis“ oder sogenannten ASP.

Im Gegensatz zu den meisten Unternehmen , die bei einem Preiskampf in den Ruin getrieben werden könnten, hat Amazon die notwendigen Mittel, um eine solche Krise zu überleben. Am Mittwoch überstieg die Marktkapitalisierung des Unternehmens zum ersten Mal die Marke von zwei Billionen US-Dollar und steht somit neben anderen Tech-Riesen wie Microsoft und Apple .

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How the Teamsters and a Homegrown Union Plan to Take On Amazon

An affiliation agreement between the Amazon Labor Union and the 1.3 million-member Teamsters signals an escalation in challenging the online retailer.

By Noam Scheiber

After years of organizing Amazon workers and pressuring the company to bargain over wages and working conditions, two prominent unions are teaming up to challenge the online retailer.

The partnership was made final after members of the Amazon Labor Union, the only union formally representing Amazon warehouse workers in the United States, overwhelmingly chose to affiliate with the 1.3-million-member International Brotherhood of Teamsters in voting that ended Monday. The vote was overseen by the Amazon union.

The A.L.U. scored a surprise victory in an election at a Staten Island warehouse in 2022. But it has yet to begin bargaining with Amazon, which continues to contest the election outcome. Leaders of both unions said the affiliation agreement would put them in a better position to challenge Amazon and would provide the A.L.U. with more money and staff support.

“The Teamsters and A.L.U. will fight fearlessly to ensure Amazon workers secure the good jobs and safe working conditions they deserve in a union contract,” Sean O’Brien, the Teamsters president, said in a statement early Tuesday.

Amazon declined to comment on the affiliation.

The Teamsters are ramping up their efforts to organize Amazon workers nationwide. The union voted to create an Amazon division in 2021, and Mr. O’Brien was elected that year partly on a platform of making inroads at the company.

The Teamsters told the A.L.U. that they had allocated $8 million to support organizing at Amazon, according to Christian Smalls, the A.L.U. president, and that the larger union was prepared to tap its more than $300 million strike and defense fund to aid in the effort. The Teamsters did not comment on their budget for organizing at Amazon.

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Closings ahead in Walgreens’ 3-year plan

June 28, 2024 at 3:33 a.m.

by COMPILED BY DEMOCRAT-GAZETTE STAFF FROM WIRE REPORTS

Walgreens is finalizing a plan to fix its U.S. business that includes closing stores over the next three years to deal with rising business expenses and competition from Walmart, Amazon and other discount retailers.

Chief Executive Officer Tim Wentworth told analysts Thursday morning that "changes are imminent" for about 25% of the company's stores, which he said were underperforming. The drugstore chain currently runs more than 8,600 stores in the United States.

"We are at a point where the current pharmacy model is not sustainable and the challenges in our operating environment require we approach the market differently," Wentworth said Thursday during the company's quarterly earnings call. "We do not expect an improvement in the U.S. retail environment."

Wentworth said the company's plan could include the closing of a "significant portion" of those roughly 2,100 underperforming stores if they don't improve.

Company leaders said they've already closed 2,000 locations over the past 10 years. Overall, the company operates about 12,500 drugstores worldwide. A listing on the Walgreens website Thursday indicated the company has at least 40 stores in Arkansas.

Walgreens and major competitors such as CVS and Rite Aid -- which is going through a bankruptcy reorganization -- have been closing stores as they adjust to an array of challenges to their businesses. They include include years of tight reimbursement for their prescriptions and rising costs for running their locations.

Plus, analysts say they've also been hit by growing competition over sales of goods sold outside their store pharmacies. Consumers also tend to grow more price conscious when inflation rises, and drugstores generally have higher prices than retail discounters such as Walmart.

"Our customers have become increasingly selective and price sensitive in their purchases," said Wentworth, who joined the company last fall and has been conducting a review of its business.

Retail sales for Walgreens fell 4% in the most recent quarter compared with the same period last year. Overall revenue, including from its United Kingdom pharmacy chain Boots, increased 2.6%. While it's a modest increase, it represents a loss of market share to competitors who grew faster, said Neil Saunders, managing director of GlobalData.

"Walgreens has been losing front-of-store customers for a while now, and this long-established trend has been exacerbated by the cost-of-living crisis, which has seen customers curtailing the volume of products they buy and shopping around more for the best deals and bargains," Saunders said.

Walgreens also has been closing VillageMD primary care clinics it had been installing next to its stores in order to grow its presence as a health care provider. The company started an aggressive expansion of those clinics under previous CEO Rosalind Brewer. But Walgreens said in March that it was reversing course and closing around 160 of the clinics.

Primary care clinics like the ones VillageMD operate tend to lose money their first couple years as they build a patient base. Jefferies analyst Brian Tanquilut has said the new clinics were burning a lot of cash and racking up losses.

Wentworth said Thursday, however, that those clinics were now on a "clearer path to profitability."

The CEO also said his company is talking to pharmacy benefit managers to "ensure that we are paid fairly" and working to grow other parts of its business such as specialty pharmacy. That helps people with complex or chronic medical conditions.

Walgreens Boots Alliance Inc. also reported that it missed earnings expectations and cut its annual forecast.

The company earned $344 million in its fiscal third quarter, with adjusted results totaling 63 cents per share. Revenue rose nearly 3% to $36.35 billion.

Analysts were looking for earnings of 68 cents per share on $35.9 billion in revenue, according to FactSet.

Walgreens now expects adjusted earnings to range from $2.80 to $2.95 for its fiscal year, which ends in August. That's down from a forecast of $3.20 to $3.35 per share that it had narrowed in March.

Analysts expect $3.20 per share.

That guidance cut was not "overly shocking to us as the company now begins the next leg of its turnaround," Leerink Partners analyst Michael Cherny said in a research note.

But the overall results surprised investors. Shares of the Deerfield, Ill., company plunged $3.47, or 22% to close Thursday at $12.19 while the S&P 500 index rose slightly. Walgreens shares have already shed more than half their value so far this year.

Retrenchment has been a long time coming in national pharmacy chains, retail analysts say. A comedown from pandemic-era sales of coronavirus vaccines, at-home test kits and other products hurt profits. The industry also has suffered from increased competition, changing consumer behaviors, retail crime, staffing shortages and underinvestment in stores.

At the same time, chains are seeing dwindling margins on medications resulting in large part from pharmacy benefit managers, which negotiate with insurers, pharmacies and drugmakers over coverage of certain prescriptions, the price of prescriptions and pharmacies' reimbursement rates.

Improvements in the pharmacy chain is another priority for the company, Wentworth said. Pharmacists at the nation's largest chains have been outspoken about the working conditions behind the counter. Hundreds have walked off the job over the past year, alleging that company mandates are putting employees and patients at risk.

Information for this article was contributed by Tom Murphy of The Associated Press and Jaclyn Peiser of The Washington Post.

Upcoming Events

The full list of major US companies slashing staff this year, from Tesla and Lucid Motors to Google and Apple

• Last year's job cuts weren't the end of layoffs . Further reductions have begun in 2024.
• Companies like Tesla, Google, Microsoft, Nike, and Amazon have announced plans for cuts this year.
• See the full list of corporations reducing their worker numbers in 2024.

A slew of companies across the tech, media, finance, and retail industries made significant cuts to staff in 2023. Tech titans like IBM, Google, Microsoft, finance giants like Goldman Sachs, and manufacturers like Dow all announced layoffs.

This year is looking grim too. And it's only May.

Nearly 40% of business leaders surveyed by ResumeBuilder think layoffs are likely at their companies this year, and about half say their companies will implement a hiring freeze. ResumeBuilder talked to about 900 leaders at organizations with more than 10 employees. Half of those surveyed cited concerns about a recession as a reason.

Another major factor is artificial intelligence. Around four in 10 respondents said they'll conduct layoffs as they replace workers with AI . Dropbox, Google, and IBM have already announced job cuts related to AI.

Here are the dozens of companies with job cuts planned or already underway in 2024.

Nike's up-to-$2 billion cost-cutting plan will involve severances.

Nike announced its cost-cutting plans in a December 2023 earnings call, discussing a slow growth in sales. The call subsequently resulted in Nike's stock plunging .

"We are seeing indications of more cautious consumer behavior around the world," Nike Chief Financial Officer Matt Friend said in December.

Google laid off hundreds more workers in 2024.

On January 10, Google laid off hundreds of workers in its central engineering division and members of its hardware teams — including those working on its voice-activated assistant.

In an email to some affected employees, the company encouraged them to consider applying for open positions at Google if they want to remain employed. According to the email, April 9 will be the last day for those unable to secure a new position.

The tech giant laid off thousands throughout 2023, beginning with a 6% reduction of its global workforce (about 12,000 people) last January.

Discord is laying off 170 employees.

Discord employees learned about the layoffs in an all-hands meeting and a memo sent by CEO Jason Citron in early January.

"We grew quickly and expanded our workforce even faster, increasing by 5x since 2020," Citron said in the memo. "As a result, we took on more projects and became less efficient in how we operated."

In August 2023, Discord reduced its headcount by 4%. According to CNBC , the company was valued at $15 billion in 2021 .

Citi will cut 20,000 from its staff as part of its corporate overhaul.

The layoffs announced in January are part of a larger Citigroup initiative to restructure the business and could leave the company with a remaining head count of 180,000 — excluding its Mexico operations.

In an earnings call that month, the bank said that layoffs could save the company up to $2.5 billion after it suffered a "very disappointing" final quarter last year.

Amazon-owned Twitch also announced job cuts.

Twitch announced on January 10 that it would cut 500 jobs, affecting over a third of the employees at the live-streaming company.

CEO Dan Clancy announced the layoffs in a memo, telling staff that while the company has tried to cut costs, the operation is "meaningfully" bigger than necessary.

"As you all know, we have worked hard over the last year to run our business as sustainably as possible," Clancy wrote. "Unfortunately, we still have work to do to rightsize our company and I regret having to share that we are taking the painful step to reduce our headcount by just over 500 people across Twitch."

BlackRock is planning to cut 3% of its staff.

Larry Fink, BlackRock's chief executive , and Rob Kapito, the firm's president, announced in January that the layoffs would affect around 600 people from its workforce of about 20,000.

However, the company has plans to expand in other areas to support growth in its overseas markets.

"As we prepare for 2024 and this very exciting but distinctly different landscape, businesses across the firm have developed plans to reallocate resources," the company leaders said in a memo.

Rent the Runway is slashing 10% of its corporate jobs as part of a restructuring.

In the fashion company's January announcement, COO and president Anushka Salinas said she will also be leaving the firm, Fast Company reported.

Unity Software is eliminating 25% of its workforce.

Around 1,800 jobs at the video game software company will be affected by the layoffs announced, Reuters reported in January.

eBay is cutting 1,000 jobs.

In a January 23 memo, CEO Jamie Iannone told employees that the eBay layoffs will affect about 9% of the company's workforce.

Iannone told employees that layoffs were necessary as the company's "overall headcount and expenses have outpaced the growth of our business."

The company also plans to scale back on contractors.

Microsoft is reducing its headcount by 1,900 at Activision, Xbox, and ZeniMax.

In late January, nearly three months after Microsoft acquired video game firm Activision Blizzard , the company announced layoffs in its gaming divisions. The layoffs mostly affect employees at Activision Blizzard.

"As we move forward in 2024, the leadership of Microsoft Gaming and Activision Blizzard is committed to aligning on a strategy and an execution plan with a sustainable cost structure that will support the whole of our growing business," Microsoft Gaming CEO Phil Spencer said in a memo obtained by The Verge .

The cuts come a year after the tech giant announced it was reducing its workforce by 10,000 employees. It then slashed a further 1,000 roles across sales and customer service teams in July 2023.

Salesforce is cutting 700 employees across the company, The Wall Street Journal reported.

Salesforce announced a round of layoffs that the company says will affect 1% of its global workforce, The Journal reported in late January.

The cuts followed a wave of cuts at the cloud giant last year. In 2023, Marc Benioff's company laid off about 10% of its total workforce — or roughly 7,000 jobs. The CEO said the company over-hired during the pandemic.

Flexport lays off 15% of its workers.

In late January, the US logistics startup laid off 15% of its staff which is around 400 workers.

The move came after Flexport founder and CEO Ryan Petersen initiated a 20% reduction of its workforce of an estimated 2,600 employees in October.

Flexport kicked off 2024 with the announcement that it raised $260 million from Shopify and made "massive progress toward returning Flexport to profitability."

iRobot is laying off around 350 employees and founder Colin Angle will step down as chairman and CEO.

The company behind the Roomba Vacuum announced layoffs in late January around the same time Amazon decided not to go through with its proposed acquisition of the company, the Associated Press reported .

UPS will cut 12,000 jobs in 2024.

The UPS layoffs will affect 14% of the company's 85,000 managers and could save the company $1 billion in 2024, UPS CEO Carol Tomé said during a January earnings call.

Paypal CEO Alex Chriss announced the company would lay off 9% of its workforce.

Announced in late January, this round of layoffs will affect about 2,500 employees at the payment processing company.

"We are doing this to right-size our business, allowing us to move with the speed needed to deliver for our customers and drive profitable growth," CEO Alex Chriss wrote in a January memo . "At the same time, we will continue to invest in areas of the business we believe will create and accelerate growth."

Okta is cutting roughly 7% of its workforce.

The digital-access-management company announced its plans for a "restructuring plan intended to improve operating efficiencies and strengthen the Company's commitment to profitable growth" in an SEC filing in February.

The cuts will impact roughly 400 employees.

Okta CEO Todd McKinnon told staff in a memo that "costs are still too high," CNBC reported .

Snap has announced more layoffs.

The company behind Snapchat announced in February that it's reducing its global workforce by 10%, according to an SEC filing .

Estée Lauder said it will eliminate up to 3,100 positions.

The cosmetics company announced in February that it would be cutting 3% to 5% of its roles as part of a restructuring plan.

Estee Lauder reportedly employed about 62,000 employees around the world as of June 30, 2023.

DocuSign is eliminating roughly 6% of its workforce as part of a restructuring plan.

The electronic signature company said in an SEC filing in February that most of the cuts will be in its sales and marketing divisions.

Zoom is slashing 150 jobs.

The latest reduction announced in February amounts to about 2% of its workforce.

Paramount Global is laying off 800 employees days after record-breaking Super Bowl.

In February, Paramount Global CEO Bob Bakish sent a memo to employees announcing that 800 jobs — about 3% of its workforce — were being cut.

Deadline obtained the memo less than a month after reporting plans for layoffs at Paramount. The announcement comes on the heels of Super Bowl LVIII reaching record-high viewership across CBS, Paramount+, and Nickelodeon, and Univision.

Morgan Stanley is trimming its wealth management division by hundreds of staffers.

Morgan Stanley is laying off several hundred employees in its wealth-management division, the Wall Street Journal reported in February, representing roughly 1% of the team.

The wealth-management division has seen some slowdown in recent months, with net new assets down by about 8% from a year ago. The layoffs mark the first major move by newly-installed CEO Ted Pick, who took the reins from James Gorman on January 1.

Cisco slashes more than 4,000 jobs amid corporate tech sales slowdown.

In February, networking company Cisco announced it was slashing 5% of its workforce, or upwards of 4,000 jobs, Bloomberg reported.

The company said it was restructuring after an industry-wide pullback in corporate tech spending — which execs said they expect to continue through the first half of the year.

Expedia Group is cutting more than 8% of its workforce.

Cutbacks part of an operational review at online travel giant Expedia Group are expected to impact 1,500 roles this year, a company spokesperson told BI.

The company's product and technology division is set to be the worst hit, a report from GeekWire said , citing an internal memo CEO Peter Kern sent to employees in late February.

"While this review will result in the elimination of some roles, it also allows the company to invest in core strategic areas for growth," the spokesperson said.

"Consultation with local employee representatives, where applicable, will occur before making any final decisions," they added.

Sony is laying off 900 workers

The cuts at Sony Interactive Entertainment swept through its game-making teams at PlayStation Studios.

Insomniac Games, which developed the hit Spider-Man video game series, as well as Naughty Dog, the developers behind Sony's flagship 'The Last of Us' video games' were hit by the cuts, the company announced on February 27.

All of PlayStation's London studio will be shuttered, according to the proposal.

"Delivering and sustaining social, online experiences – allowing PlayStation gamers to explore our worlds in different ways – as well as launching games on additional devices such as PC and Mobile, requires a different approach and different resources," PlayStation Studios boss Hermen Hulst wrote.

Hulst added that some games in development will be shut down, though he didn't say which ones.

In early February, Sony said it missed its target for selling PlayStation 5 consoles. The earnings report sent shares tumbling and the company's stock lost about $10 billion in value.

Bumble is slashing 30% of its workforce

On February 27, the dating app company announced that it would be reducing its staff due to "future strategic priorities" for its business, per a statement.

The cuts will impact about 30% of its about 1,200 person workforce or about 350 roles, a representative for Bumble told BI by email.

"We are taking significant and decisive actions that ensure our customers remain at the center of everything we do as we relaunch Bumble App, transform our organization and accelerate our product roadmap," Bumble Inc CEO Lidiane Jones said in a statement.

Electronic Arts is reducing its workforce by 5%

Electronic Arts is laying off about 670 workers, equating to 5% of its workforce, Bloomberg reported in late February. The gaming firm axed two mobile games earlier in February, which it described as a difficult decision in a statement issued to GamesIndustry.biz. CEO Andrew Wilson reportedly told employees in a memo that it would be "moving away from development of future licensed IP that we do not believe will be successful in our changing industry." Wilson also said in the memo that the cuts came as a result of shifting customer needs and a refocusing of the company, Bloomberg reported.

IBM cutting staff in marketing and communications

IBM's chief communications officer Jonathan Adashek told employees on March 12 that it would be cutting staff, CNBC reported, citing a source familiar with the matter. An IBM spokesperson told Business Insider in a statement that the cuts follow a broader workforce action the company announced during its earnings call in January.

"In 4Q earnings earlier this year, IBM disclosed a workforce rebalancing charge that would represent a very low single-digit percentage of IBM's global workforce, and we expect to exit 2024 at roughly the same level of employment as we entered with," they said. IBM has also been clear about the impact of AI on its workforce . Last May, IBM's CEO Arvind Krishna said the company expected to pause hiring on roles that could be replaced by AI, especially in areas like human resources and other non-consumer-facing departments.

"I could easily see 30% of that getting replaced by AI and automation over a five-year period," Krishna told Bloomberg at the time.

Stellantis is slashing 400 white-collar jobs

On March 22, the owner of Jeep and Dodge announced it's laying off employees on its engineering, technology, and software teams in an effort to cut costs, CNBC reported .

Workers learned they were being let go through video calls after the car company ordered them to work remotely for the day. The cuts are set to occur on March 31.

Amazon is laying off hundreds in its cloud division in yet another round of cuts this year

Amazon is cutting hundreds of jobs from its cloud division known as Amazon Web Services , Bloomberg reported on April 3.

The reduction will impact employees on the sales and marketing team and those working on tech for its retail stores, Bloomberg reported.

"We've identified a few targeted areas of the organization we need to streamline in order to continue focusing our efforts on the key strategic areas that we believe will deliver maximum impact," an Amazon spokesperson told Bloomberg.

On March 26, Amazon announced another round of job cuts after the company said it was slashing 'several hundred' jobs at its Prime Video and MGM Studios divisions earlier this year to refocus on more profitable products.

"We've identified opportunities to reduce or discontinue investments in certain areas while increasing our investment and focus on content and product initiatives that deliver the most impact," Mike Hopkins, SVP of Prime Video and Amazon MGM Studios, told employees in January.

This year's cuts follow the largest staff layoff in the company's history. In 2023, the tech giant laid off 18,000 workers.

Apple has cut over 600 employees in California

Apple has slashed its California workforce by more than 600 employees.

The cuts follow Apple's decision to withdraw from its car and smartwatch display projects.

The tech giant filed a series of notices to comply with the Worker Adjustment and Retraining Notification program. One of the addresses was linked to a new display development office, while the others were for the company's EV effort, Bloomberg reported .

Apple officially shut down its decadelong EV project in February. At the time, Bloomberg reported that some employees would move to generative AI, but others would be laid off.

Bloomberg noted that the layoffs were likely an undercount of the full scope of staff cuts, as Apple had staff working on these projects in other locations.

Representatives for Apple did not respond to a request for comment from Business Insider sent outside normal business hours.

Tesla is laying off over 10% of its workforce

Tesla CEO Elon Musk sent a memo to employees Sunday, April 14, at nearly midnight in California, informing them of the company's plan to cut over 10% of its global workforce.

In his companywide memo , Musk cited "duplication of roles and job functions in certain areas" as the reason behind the reductions.

An email sent to terminated employees obtained by BI read: "Effective now, you will not need to perform any further work and therefore will no longer have access to Tesla systems and physical locations."

On April 29, Musk reportedly sent an email stating the need for more layoffs at Tesla . He also announced the departure of two executives and said that their reports would also be let go. Six known Tesla executives have left the company since layoffs began in April.

Grand Theft Auto 6 publisher Take-Two Interactive is reducing its workforce by 5%

Take-Two Interactive, the parent company of Rockstar Games, said on April 16 that it would be "eliminating several projects" and reducing its workforce by about 5%.

The move — a part of its larger "cost reduction program" — will cost the video game publisher up to $200 million. It's expected to be completed by December 31.

As of March 2023, the company said it employed approximately 11,580 full-time workers.

Peloton is reducing its staff by 15% as the CEO steps down as well

Peloton CEO Barry McCarthy is stepping down, the company announced May 2. Along with his departure, the fitness company is also laying off about 400 workers.

McCarthy is leaving his role just two years after replacing John Foley as CEO and president in 2022. Peloton said the changes are expected to reduce annual expenses by over $200 million by the end of fiscal 2025 as part of a larger restructuring plan.

Microsoft-owned Xbox is cutting more jobs

Xbox is offering some employees voluntary severance packages in May after shutting three units and absorbing a fourth earlier in the month. Microsoft had already made cuts to the division at the start of 2024.

According to Bloomberg , the offers were extended to producers, quality assurance testers, and more staff at Xbox-owned ZeniMax. Others across the Xbox organization were told that more cuts are coming.

Xbox president Matt Booty told staff in a May 8 town hall that the studio closures are part of an effort to free up more resources, Bloomberg reported.

Indeed is cutting 1,000 workers after laying off 2,200 a year ago

Careers site Indeed says it will lay off roughly 1,000 employees , or 8% of its workforce, as it looks to simplify its organization.

CEO Chris Hyams took responsibility for "how we got here" in a memo in May but said the company is not yet set up for growth after last year's global hiring slowdown caused multiple quarters of declining sales.

Hyams said the latest cuts will be more concentrated in the US and primarily affect R&D and Go-to-Market teams. That's in contrast to last year's across-the-board reduction of 2,200 workers.

Walmart is axing hundreds of corporate jobs

Retail giant Walmart is cutting hundreds of corporate jobs and asking remote employees to come to work, The Wall Street Journal reported, citing people familiar with the matter.

Workers in smaller offices, such as those in Dallas, Atlanta, and Toronto, are also being asked to move to central locations like Walmart's corporate headquarters in Arkansas or those in New Jersey or California, the Journal reported.

Under Armour is slashing an unspecified number of jobs, incurring $22 million in severance costs

Under Armour confirmed it was conducting layoffs in its quarterly earnings report, which was released May 16.

The company said it will pay out employee severance and benefits expenses of roughly $15 million in cash-related and $7 million in non-cash charges this year related to a restructuring plan, with close to half of that occurring in the current fiscal quarter.

"This is not where I envisaged Under Armour playing at this point in our journey," CEO Kevin Plank told investors on the company's full-year earnings call. "That said, we'll use this turbulence to reconstitute our brand and business, giving athletes, retail customers and shareholders bigger and better reasons to care about and believe in Under Armour's potential."

Pixar cuts about 175 people in pivot back to feature films

Disney's Pixar Animation Studios is cutting 175 people, about 14% of its staff, Reuters reported .

The cuts started on May 21 as the studio returns to its focus on feature-length movies. Former Disney CEO Bob Chapek, who was axed in 2022, had increased staff across studios to create more content for the company's streaming service, Disney+.

Pixar cut 75 jobs last year , Reuters previously reported, part of a larger restructuring across Disney.

Lucid Motors is slashing around 400 jobs.

In a regulatory filing, Lucid Motors said it would lay off about 400 employees as part of a restructuring plan that should be complete by the end of the third quarter.

"I'm confident Lucid will deliver the world's best SUV and dramatically expand our total addressable market, but we aren't generating revenue from the program yet," CEO Peter Rawlinson said in an email to employees obtained by TechCrunch.

The cuts come ahead of Lucid's launch of its first electric SUV later this year. It comes over a year after the California-based company laid off 1,300 employees, TechCrunch previously reported .

Walgreens is planning store closures that could lead to job cuts

Drugstore chain Walgreens is planning to close unprofitable stores over the next three years, according to the Wall Street Journal.

CEO Tim Wentworth told the Journal that Walgreens hoped to limit job cuts by reassigning staff at closing stores to other locations. Walgreens is reviewing about one-quarter of its 8,600 US stores as it decides which to shutter, he said.

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