How Much Do Amazon Delivery Drivers Really Make? A Deep Dive into the Numbers

As an entrepreneurship consultant, I‘m often asked how viable and profitable it is to become an Amazon delivery driver. There‘s no doubt that delivering packages for Amazon can be a lucrative side hustle or full-time job. But to determine just how much you can earn, we need to dig deeper into the numbers.

In this comprehensive guide, I‘ll share insights from my experience helping entrepreneurs maximize their earnings potential with Amazon delivery. You‘ll learn:

  • Realistic salary ranges based on experience and hours worked
  • Startup costs new drivers face
  • The impact of expenses like gas, insurance, and vehicle wear
  • How driver tips and bonuses boost earnings
  • Pros and cons of being an Amazon delivery driver

Let‘s take a data-driven look at what drivers can expect to earn after costs.

Average Hourly and Annual Salaries for Amazon Drivers

The average Amazon driver earns between $18 and $25 per hour, which translates to $30,000 to $45,000 annually for full-time drivers working 40 hours per week.

However, there is significant variation around this average:

  • Entry-level drivers working part-time earn approximately $15 per hour or $20,000 annually
  • Experienced drivers can earn up to $27 per hour or $50,000+ annually

According to a 2021 survey by FinanceBuzz, the reported hourly earnings of drivers broke down as follows:

  • 13% earn less than $15 per hour
  • 25% earn $15 – $20 per hour
  • 34% earn $20 – $25 per hour
  • 28% earn over $25 per hour

So while six-figure salaries are possible for highly dedicated full-time drivers, it‘s more realistic to expect $30,000 – $45,000 in annual earnings depending on your hours and efficiency.

Understanding Startup Costs

Before earning your first paycheck, new Amazon drivers face some startup costs:

  • Reliable Vehicle: Cars, trucks or vans all work, but avoid high-mileage vehicles prone to breakdowns. Expect to spend $10,000 to $15,000 for a used, fuel-efficient vehicle.
  • Insurance: Commercial auto insurance will run $150 to $300 per month. Regular auto insurance may not cover delivery driving.
  • Registration & Inspection: Basic DMV fees which vary by state, around $100-$300.
  • Gas & Maintenance: With frequent driving, plan for higher gas, oil change and tire replacement costs. Budget $150 – $300 per month.
  • Supplier Access: You‘ll need an active Amazon seller account ($40 per month).
  • Uniforms & Gear: Expect around $150 for Amazon branded shirts, jackets, phone mount, etc.

Altogether, startup costs typically range from $1,500 – $3,000. These are one-time expenses that allow you to start earning. But don‘t forget about ongoing costs.

Factoring In Expenses

To determine actual take-home pay, you need to account for these common expenses:

  • Gas: Depending on your vehicle‘s MPG and miles driven, this may cost $200 – $400 monthly.
  • Vehicle Maintenance: Oil changes, new tires, brakes, etc. likely add up to $150 – $300 monthly.
  • Insurance: Budget $150 – $300 per month for commercial coverage.
  • Cell Phone: Expect a $40 – $60 monthly bill for staying connected to the Flex app.
  • Accounting Apps: Apps like MileIQ ($60/year) track miles for tax deductions.
  • Self-employment Taxes: As a contractor you‘ll owe 15.3% of earnings, or about 30% after deductions.

Factoring in these costs, full-time drivers likely take home 60% – 70% of their gross earnings.

For example, on an annual salary of $40,000 you would take home about $28,000 after expenses and taxes.

How Bonuses & Tips Can Increase Earnings

In addition to their hourly rate, drivers can amplify earnings through bonuses, tips and overtime:

  • Bonuses: Amazon offers periodic bonuses of $50 – $300 for meeting delivery goals during peak periods.
  • Tips: Though not guaranteed, drivers report average monthly tips of $100 – $200. Top performers earn more through excellent service.
  • Overtime: Full-time employees may qualify for 1.5x regular pay when exceeding 40 hours per week.
  • Referral Bonuses: Earn up to $1500 for referring new drivers to Amazon.

Factoring in bonuses and tips, it‘s possible to exceed $35 per hour as a top-tier driver.

Pros of Being an Amazon Delivery Driver

Before jumping in, weigh the advantages and disadvantages of being a driver:

Pros

  • Earn $18 – $25 per hour with potential to make more
  • No special license required – just a clean driving record
  • Be your own boss – set your availability and schedule
  • Get paid quickly via direct deposit after completing routes
  • Work alone and avoid prolonged office interactions
  • Stay active and drive around your city
  • Expand skills in logistics, customer service, and app usage

Cons

  • Must provide your own reliable vehicle and insurance
  • No health insurance or retirement benefits
  • Acceptance not guaranteed – approval process is competitive
  • Must meet delivery quotas and efficiency requirements
  • High expenses for gas, maintenance, and taxes
  • Potential for injuries from lifting packages and driving frequently

Analyzing all the data points, being an Amazon driver offers significant earning potential but also comes with costs and risks to consider. With preparation and dedication, top performers can earn $40,000+ annually. But it requires working long hours and operating efficiently.

Is Being an Amazon Delivery Driver Right For You?

At the end of the day, an Amazon delivery job provides flexible self-employment on your own terms. If you‘re seeking freedom from a 9 to 5 schedule, it may be the perfect fit.

To maximize your success and earnings, I recommend:

  • Tracking expenses diligently so you understand your net income
  • Working weekends, evenings, and holidays to catch bonus opportunities
  • Staying safe and avoiding injuries that could derail you
  • Providing 5-star customer service to increase tips
  • Reviewing your metrics to find efficiencies that increase deliveries per hour

With some grit and hustle, you can earn an impressive income delivering for Amazon. Just be sure to make decisions based on realistic earning potential minus expenses.

Need assistance analyzing the ins and outs of becoming a driver? As an entrepreneurship consultant, I‘m happy to help anytime. Reach out today to get started maximizing your income potential.

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