The Ultimate Guide to Delivery Partner Programs for Entrepreneurs

Are you ready to start your delivery business without relying on traditional companies? Delivery Partner Programs give you the ability to start a delivery business, control and develop delivery routes and hence your business. Learn how you can get into this growing industry through programs such as FedEx ISP, DHL Service Point Partner Program, and even Amazon DSP Program.

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What are Delivery Partner Programs?

A delivery partner program is a profitable enterprise for starting a package delivery business. It offers the benefits of being an independent entrepreneur and using a large organization’s platform.

The following are the main benefits:

Built-In Client Base

Most independently run small ventures will need to advertise to get clients instead of being part of a larger organization with built-in customers. Since in the delivery partner program, delivery volumes come through the major organization; you have no new customer acquisition headaches. Simply run your operations and manage the employees.

Business Services Support

Most delivery partner programs are logically designed to work in teams with third-party vendors. Such affiliations offer fantastic possibilities for providing the best services, such as exclusive discounts and offers. They would make your business more friendly and operational. The program may include services like business training, coaching, logistic technologies, and support.

Potential Revenue

Delivery partners can earn a lot of money. Examples of revenue potential include annual revenues from $1 million to $4.5 million. In such a case, profit would range from $75,000 to $300,000. Such amounts are commensurate with income amounts given in payments, usually determined by the number of packages delivered, thus making income predictable and scalable.

5 Top Delivery Partner Programs

1. FedEx Ground Independent Service Provider (ISP) Program

FedEx ISP, or Independent Service Provider, is this type of program where route owners transition from a Contracted Service Provider, or CSP, to that of an Independent Service Provider. Such an agreement requires contractors to have five routes or perform at least 500 daily deliveries.

Benefits of FedEx ISP

Increased productivity through the applicability of home delivery and ground overlap.
Route optimization and management with clearly defined territory.
Improved safety through fleet upgrades and background checks.
Potentially a richer revenue stream with improved vehicle and personnel utilization.
With faster and more reliable service to consumers.

Challenges of FedEx ISP

Higher entry barriers for individual route owners.
Complicated transition taking 9-24 months to complete.
Financial burden on new route owners to meet standards minimum.
The ISP model is similar to subcontracting, giving FedEx greater control over workers without direct employment.

2. DHL Service Point Partner Program

Joining as a DHL Service Point Partner can take your business to a higher level by getting new customers and flushing itself with every package sent or collected through the company. In addition to being a part of DHL’s worldwide logistics network, you may offer processing for your customers the mailing, collecting, and returning parcel services to more than 220 countries and territories.

Benefits of Becoming a DHL Service Point Partner

Receive Commission: Earn commissions while sending or collecting parcels.
Attract New Customers: By bringing on board a new customer, you increase your opportunities with new businesses.
Fully Supported with Zero Costs: All point of sale, marketing, training, and support from DHL would come free.
Partnership with DHL: Partner with one of the most trusted global logistic leaders.
Increased Customer Satisfaction: More services for customers are at a convenient location and time.
Free Business Listing Marketing: Importing more online visibility from Google, Bing, Apple, and among other directories.

Requirements to Become a DHL Service Point Partner

A retail storefront with a customer counter, within which parcels can be processed.
An area for flat-packed packaging, suitable at approximately 140cm x 120cm x 70cm.
A dedicated space for storing parcels belonging to customers.
Open regularly on weekdays, with some weekend hours.
A computer with a connection to the internet and a printer.

3. UPS Store Franchise

UPS Store Franchise is a retail service business that offers receipt mail and parcels, packaging, and shipping services in the US. Franchisees mainly promote additional services such as notary, printing, copying, office supplies, and communication. Normally, The UPS Store franchise is open to businesses of all sizes, from very small office/home office workers to time-saving services for customers. The UPS Store Rural Program has over 5,000 locations worldwide for markets in small towns.

Benefits of UPS Store Franchise

Reputation and Brand Established: The UPS Store has about 5,000 franchises across the globe and is an arm of UPS.
Multilevel Training Program: A comprehensive training program with web-based training, in-store courses, and print service training that caters to the multi-stage training of franchisees.
Traditional or Non-traditional Locations: It has locations for both traditional and non-traditional markets such as colleges, military campuses, and airports.
Initial Equipment Financing Up To $75,000: Financing available for new locations may begin at a potential $75,000 in initial equipment and come with additional funding opportunities for purchase or build-out of other locations.
Supportive Programs: Franchisees will be provided with contact to marketing, technology, and training programs specifically designed for their success.

Challenges of UPS Store Franchise

Heavy Initial Investment: The initial investment covers a range from approximately $168,560 to $495,945.
Charges: Franchisees must pay a 5% royalty on their gross sales as well as a 1% marketing fee and a national advertisement fee of two and a half percent.
Limited Exclusive Territory: No clause offering exclusive territory is guaranteed to the franchisee. So, the possibility of competition from the other UPS Store outlets exists.
Operational Requirements: There should be a primary operator designated to manage the operations within the store, including the fact that the primary operator should undergo complete training before qualifying.
Financial Responsibility: Apart from leasehold improvements, insurance, and start-up supplies, the franchisee must demonstrate the financial criteria, including minimum net worth and liquid cash requirements.

4. Uber Direct

Uber Direct is the holy grail for companies in terms of offering last-mile delivery solutions. It has been rolled out in a way that lets them quickly get local delivery through their own selling channels. Customers can order from the business directly on their website, app, or by phone, but ordering placement will be fulfilled using Uber’s courier network.

Benefits of Uber Direct

Fast and Sure: Just-in-time deliveries ensure customers get their goods as soon as possible.
Affordable: Just payment of delivery. Alternatively, make beneficial decisions such as leaving them as your business decisions for customers.
Integration made Simple: Connect to legacy POS, OMS, or other platforms through the Uber Direct dashboard, or integrate with Uber’s APIs.
Flexible Delivery Options: Within two hours, on the same day, or within two weeks before the scheduled delivery date, including evenings and weekends.

Challenges of Uber Direct

Transparent Pricing: Each delivery has an associated delivery charge and any applicable extra charges, including those processed via a third-party platform at a cost.
Integration Technical Requirements: API, platform partners, or dashboard, businesses may have a different level of technical setup.
Does Not Support Fleet Management: Uber Direct does not provide a platform for you to dispatch orders to your personal fleet. You can just use the white-label customer side for your customers. It’s suitable for shops and stores.

5. Amazon DSP Program

The Amazon Delivery Service Partner (DSP) Program enables entrepreneurs to establish and manage their own delivery businesses, utilizing Amazon-branded vehicles to distribute packages.

With an initial investment starting at approximately $10,000, participants receive comprehensive support from Amazon, including training, access to logistics tools, and ongoing assistance.

You can visit our blog post about starting an Amazon DSP business, for a detailed, step-by-step guide including insights into the application process, benefits, challenges, and operational expectations.

Conclusion

It is necessary to be involved in a delivery business with suitable delivery partner programs so that you can have independent delivery. But if you want to launch your own brand and don’t want to have a dependency on a delivery partner program, you should have a last-mile delivery software like Onro, which helps you plan and track your deliveries. This application can make managing everything very easy and win against fires as a businessman. Get a free demo of Onro and take command of your delivery operations right away!