In June of 2018, E-business behemoth Amazon announced that they would begin their Delivery Service Partner (DSP) program. The company intended to further expand its service area by outsourcing service for its final mile package delivery segment. Today, largely thanks to innovations like the DSP program, Amazon continues to dominate the e-commerce market; it’s currently on pace to capture 47% of all online sales for this year. However, Amazon’s newest venture came bundled with a few problems, namely the revolving door of service providers.
Amazon’s extended network is beneficial for consumers but has become problematic for many mailrooms. Traditional carriers have had years to establish methods that ensure packages are delivered on time and to the right location. Amazon’s DSP program is composed of thousands of service providers with minimal logistical experience; in fact, logistics and carrier experience isn’t even a requirement for their partners. The inexperience of DSP partners, along with the revolving doors of interchangeable delivery agents, has resulted in mailrooms having to manage carriers who are unfamiliar with their protocol.
While this new venture may be causing chaos in mail hubs, Amazon won’t be ending it any time soon. The company’s growth rate has made it’s DSP network a necessity. According to e-Marketer, Amazon’s E-Commerce business will grow 20.4% to reach $282.52 billion this year. As the company’s delivery model shifts more towards a one-day and same-day delivery platform, they will come to rely more on their extended delivery network to transport packages. Like it or not, Amazon’s DSP program seems to be here to stay.
So what can companies do to prepare for the DSP extended network? Well, one thing they can do is ensure that their receiving protocol is as organized as possible; that way, even if there is an issue with outside carriers, it will only cause a minor disturbance. Companies should also have a contingency plan for lost or misplaced packages that incorporates any reoccurring carrier-specific issues. Lastly, there may be a more impactful solution to their DSP issues. Representatives from universities could band together and collectively approach Amazon with a group proposal for a DSP delivery protocol. It may sound tedious, but any company is more likely to listen to a coalition than just one school.
Have you been experiencing issues with Amazon’s Delivery Service Partner program? How are you navigating this issue? Let us know in the comments section below or by visiting the contact page of our website.