Rising Amazon DSP Costs: Key Operational Insights
To better understand these challenges, Amazon DSPs for Equitable and Fair Treatment (DEFT) conducted a brief, anonymous survey between December 12 and December 19. The data is clear: workloads and costs are increasing while profitability margins are decreasing. As a result, many DSPs are disillusioned and concerned about the future of the program.
Workloads and Costs Are Up While Profitability Margins Are Down
Many Amazon Delivery Service Partners report shrinking profit margins as operational costs continue to rise, highlighting the need for immediate and actionable solutions.
Insurance Premiums on the Rise
- 90% of DSPs confirm higher auto and workers’ compensation insurance rates.
- 68% say costs are “much higher” than the previous year.
Healthcare Costs Burden DSP Teams
- 80% of DSPs have seen health insurance premiums increase.
- 44% say premiums are “somewhat higher,” while 36% say they are “much higher.”
Heavy Workloads Challenge Operational Stability
- More than 90% of DSPs report increased workloads over the past year.
- Three-quarters describe their current workload as “much higher.”
- Strong scheduling tools and regular communication with drivers are essential.
- Flexibility and supportive check-ins can help reduce turnover.
It all starts with small steps. Take the time to review your insurance policies, explore automated reporting tools, and share your experiences with other DSP owners. By working together, we can strengthen not only our individual businesses, but the entire DSP community.
Join DEFT, the independent association of DSP professionals. We unite DSP businesses and strive to make the program the best it can be. Connect with peers, gain access to our anonymous portal, explore the newly launched win/win proposal, and together, let’s improve our DSP business for long-term success.
