The Brian Beers Show, Ep. 292

Title: Don’t Invest in Amazon Delivery Routes Until You Listen This
Host: Brian Beers
Date: October 16, 2025

Episode Overview

In this episode, Brian Beers—entrepreneur and franchising expert—delivers a deep, candid breakdown of the Amazon Delivery Service Partner (DSP) program. He explores whether buying into Amazon delivery routes is the gold mine it appears, or a business laden with hidden pitfalls. The episode is packed with real-world numbers, comparisons to FedEx routes, and actionable advice for would-be investors or business operators.

Key Discussion Points & Insights

1. What is the Amazon DSP Program?

• The DSP program allows individuals to operate Amazon-branded vans for last-mile deliveries.
• It is modeled after FedEx, but with crucial differences:

  “They’ve copied the FedEx model, but with a very important twist that you must understand.” (00:55)

2. The Financials—What the Numbers Say

• Brian surveys four real Amazon delivery businesses up for sale (Central Florida, North Carolina, Arizona, South Florida), pulling data from Biz Buy Sell.
• Averages:
  • Asking Price: $786,000
  • Revenue: ~$5 million
  • Cash Flow: ~$500,000
  • Net Margin: ~10%
• Revenue per truck: $123,000/year; Cash flow per truck: $10,000–$14,000/year.
• Earnings multiples: Surprisingly low—about 1.5× cash flow, versus 3.0×+ for other small businesses.

  “You spend $786,000 and you’re making $500,000 a year. That means in less than two years you made all your money back and more. Sounds like a great deal, right? Like why, why are these available? Why can you get these so cheap?” (03:20)

3. Upsides of the Amazon DSP Model

• No Marketing/Sales Required:

  • Demand is built in—no need to market or find customers; all revenue comes from Amazon deliveries.
  • Predictable and recurring business tied to consumer demand for e-commerce.

• Low Entry Costs:

  • New DSPs can start with as little as $10,000, subsidized by Amazon.
  • Amazon facilitates leasing and onboarding; start-up is streamlined.

• Path to Scale:

  • Opportunity for growth by adding routes and building your operations and team.

  “In theory, all of these businesses were started with basically $10,000 and then they’ve turned them into machines that print, you know, $10,000, $8,000 a week. Pretty impressive.” (07:35)

4. Major Downsides & Risks

• Zero Pricing Power:

  • Amazon sets what it pays you—no opportunity to raise prices or negotiate.

  “You have zero control over that... whatever Amazon decides they need to do, they’re just going to do it.” (09:35)

• Thin Margins, Capped by Design:

  • Margins are intentionally capped close to 10% by Amazon; there’s little upside.
  • As expenses rise (e.g., vehicle maintenance), your profit shrinks.

• You Own No Real Assets:

  • Neither trucks nor routes are actually owned—Amazon owns/leases vans, assigns (does not transfer) routes.

  “You don’t own the trucks. Remember Amazon owns those. They’re like renting them to you. At least in them you don’t own the routes.” (15:02)

• High Operating Complexity:

  • Success hinges on constant recruiting, training, and managing a transient workforce.
  • Route assignments vary based on your performance—routes (and, thus, revenue) can be taken away with little notice.

  “Amazon probably takes and gives, takes and gives, which some of that might be on the operator, some of that could just be the market. Right. Once again, you have no control over this.” (17:32)

• Heavy Maintenance Obligations:

  • Vehicle upkeep is entirely your responsibility; poor maintenance leads to cascading costs.
  • Brian notes, as an owner of 35 auto repair shops, how these vans are frequent, lucrative customers because of their punishing use cycles.

  “They put so many miles on the vehicles, they’re always need tires and brakes and suspension parts ...if you don’t run a really tight operation for maintaining them... that small repair can compound.” (11:49)

• Financing Challenges & Poor Exit Value:

  • No SBA eligibility—banks won’t finance purchases since you don’t own actual assets.
  • Most buyers must bootstrap or use private funds, making scaling harder.

  “Most owners bootstrap it just by reinvesting the profits that they’re making... But financing is going to be a really big challenge for anybody who’s serious about growth.” (21:20)

  • Resale value is low; you can buy some routes for less than 1× earnings!

5. Who Should Consider This Business?

• Good fit for:

  • First-time business owners with minimal capital.
  • Highly operationally-focused individuals skilled at staffing, scheduling, and process management.

  “If I was a new business owner or if I didn’t have, you know, a ton of money to invest... If you are like really good at operations... I think this is an amazing opportunity.” (24:05)

• Not ideal for:

  • Those seeking passive income, asset ownership, or flexible growth.
  • Entrepreneurs seeking strong exit value or easy business financing.

6. Franchising as a Preferred Path

• Brian contrasts DSPs with franchising, highlighting that franchises offer proven systems, asset ownership, easier financing, and greater long-term value and flexibility.

  “If you’re not a first time owner or you’re looking for something that you can really earn freedom of, I would not buy this business. Instead, look at franchising.” (25:55)

• He references his own experience, building a $50M franchise portfolio from two locations.

Notable Quotes & Memorable Moments

• On the illusion of returns:

  “Why can you buy these things for so cheap? ... It’s because you own nothing and it’s really hard to get financing on these.” (22:35)

• On the transient labor pool:

  “The guys who are one week delivering packages, another week are working at a warehouse, the next week they’re power washing.” (18:38)

• On Amazon’s control:

  “Ultimately, you as the owner are going to get tied into this thing because... now, if you don’t meet your standards that Amazon has set for you, they’re just going to take it away.” (19:20)

Timestamps for Key Segments

• 00:00 — Introduction; What is Amazon DSP?
• 02:27 — Real numbers from route businesses for sale
• 06:40 — Pros of Amazon DSP model
• 09:25 — Cons: Lack of pricing power, capped margins
• 11:30 — Vehicle maintenance pitfalls
• 15:00 — You don’t own the trucks or routes; comparison to FedEx
• 17:10 — Route assignment volatility and operator risk
• 21:10 — Financing difficulties, resale value discussion
• 24:00 — Which entrepreneurs are (and aren’t) a fit for DSPs
• 26:00 — Franchising as a superior alternative path

Conclusion

Brian’s take-home:

• The Amazon DSP opportunity is ideal for operators with strong hands-on, people-management, and systems skills who are looking for a low-cost entry point into business ownership.
• For those seeking asset ownership, reliable exit value, and financial leverage, franchising is a far superior path.

“If you want to learn more about building businesses, subscribe below. And I would love to hear what you think about Amazon business in the comments below. I respond to almost everyone and I’ll see you in the next video. Cheers.” (End)