The global e-commerce market is on the rise. Last year, overall e-commerce retail sales reached a staggering four trillion dollars. It’s expected to reach seven trillion dollars by 2025, making it one of the fastest-growing industries in the world.
Other industries are growing alongside the rise of e-commerce. One of these industries is courier services.
Courier Services Market
Courier services are responsible for delivering parcels and other items from one person or business to another. This industry has seen a significant increase in recent years due to the growth of e-commerce.
Currently, the market is valued at over $140 billion. However, it’s expected to grow by 4% in the coming future as more and more enter the industry. Moreover, as different sub-sectors of e-commerce start to grow, such as dropshipping, the faster courier services will also increase.
There are plenty of opportunities for those who want to start their courier service. However, there are a few things you need to take into account before getting started. Here are five essentials when starting a courier service:
The Cost of Starting Up
One of the most important considerations when starting any business is the cost. This is especially true for courier services, as many factors can affect the overall cost.
The first thing you need to consider is the cost of vehicles. You’ll need at least one car to get started, but you may want to consider more depending on the size and scope of your operation. If you want to save on your company vehicle, consider using your vehicle for the job.
Another significant cost is insurance, as it’s required by law in most states. You’ll also need to factor in the cost of fuel, maintenance, and salaries for employees. Generally, it’ll cost you over $180,000 in the budget to start a ten-man start-up, but you won’t need this much money because of how flexible courier services are.
You can start a courier service yourself, drastically reducing overall start-up costs. From your hard work, you can then build a courier service from the ground up.
Since courier services work with smaller packages, you won’t need that much heavy equipment, but having some is still essential. For example, having some chain slings to help you carry boxes of parcels can increase your overall efficiency. A robust four-leg chain sling can do wonders if you’re transferring heavy boxes around to your vehicle. Furthermore, they’re great once you can invest in a warehouse.
You can get a portable crane to compliment your chain sling. The portable crane can be used for multiple purposes, such as unloading merchandise from trucks and lifting heavy boxes. It’s an excellent investment as it can speed up your workflow and make things much easier for you and your employees.
The last essential piece of equipment is a GPS. It will be vital for giving accurate delivery times to your customers. Furthermore, if there are any traffic delays, you can quickly re-route yourself to ensure that the customer gets their parcel on time.
The Right Technology
Courier services have been around for centuries, but that doesn’t mean they haven’t evolved. On the contrary, technology has drastically changed how courier services operate and has even created new opportunities within the industry.
One of the most significant changes technology has brought real-time tracking. Thanks to GPS and other tracking devices, businesses and customers can track their packages in real-time. In addition, it increases transparency and builds trust between the customer and the industry.
Another great piece of technology for courier services is an app. Having a well-designed app can make a big difference for your business. It’ll allow customers to track their orders, schedule pickups easily, and even make payments.
The software you use for your business is just as essential as the hardware. Consider investing in a good management system that can automate some more tedious tasks, such as bookkeeping and scheduling.
It will free up your time to focus on more critical aspects of the business, such as acquiring new customers and growing your operation.
Lastly, you’ll need to focus on marketing your business to potential customers. The most common type of marketing for courier services is B2B, or business-to-business.
This involves targeting other businesses that might need your services. For example, you could target companies in the e-commerce industry that need a reliable way to ship their products.
The best way to do this is to network. Attend industry events, trade shows, and meetups. Get your name out there and let people know what you do. You can also use online marketing tactics like SEO and content marketing. It will help you reach a wider audience and attract more customers to your business.
These are just a few of the essentials when starting a courier service. By following these tips, you can start a courier service that’s efficient and profitable in the coming future.