In July, Amazon announced the launch of its new Delivery Service Partners program. The program is designed to empower entrepreneurs to start up and operate local delivery companies that exclusively work with Amazon’s package delivery service. Think of it like a McDonalds franchise, except instead of exclusively selling McDonalds burgers, entrepreneurs within the program exclusively deliver Amazon packages.
For Amazon, the program is a brilliant move. As Amazon’s online retail presence continues to explode, its reliance on delivery partners like FedEx and UPS becomes more unstable if any of those partners decide to renegotiate their shipping terms. Amazon recognizes this, and hopes that its Delivery Service Partners program becomes the “crowdsourced” small business solution.
For entrepreneurs, the program has the potential to be an amazing opportunity as well. The program has few minimum requirements, and potential partners don’t necessarily need to have prior experience in the delivery industry. Most attractive of all is Amazon’s claim that you can become a partner for as little as $10,000 in start-up capital.
According to the pamphlet Amazon has provided to the public, a large portion of startup costs go towards attending Amazon’s three-week training program in Seattle, Washington. Other costs associated with recruiting and hiring initial employees are factored in as well. But one of the main start-up costs are the legal fees associated with setting up and operating as a partner delivery company.
As with any small business, setting up an LLC or corporation (which Amazon requires you to do before you become a program partner) costs money. You will also need an attorney to review the partnership agreement with Amazon to become a formal licensee. And once you get the business going, having an attorney who can negotiate vendor agreements, prepare your employee handbook, and make sure that your business stays in compliance with all applicable local and state laws is essential.
That’s where AltView Law Group can help. Our flat fee business entity formation package lets you set up an LLC, customize an operating agreement, obtain a Tax ID number, and open your business bank account for a reasonable one-time fee. Plus, we can assist with employee handbooks, vendor contracts, and other small business legal services at affordable hourly rates.
If you have any questions about our small business legal services, or want to get started setting up your next business venture, call us at (310) 230-5580 for a free consultation.