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Starting a Delivery Business: Choosing Your Customer Niche

Outlining essential strategies for prospective delivery business owners, emphasizing the significant impact of identifying a customer niche on business success and growth.

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Identifying Your Customer Niche: A Key to Delivery Business Success

You’ve also heard the statistic that 80 percent of companies collapse within the first five years of operation. We also assume this is due to the fact that “starting a company is difficult.” This is right, but it is not the answer. People fail because they fail to prepare, and as a result, they plan to fail.

Do you really want to do that? You want to be prosperous. This article is part of a series aimed at assisting aspiring delivery business owners in their endeavours. This article will concentrate on the consumer niche. This one role appears to be minor, but it has a major effect. Continue reading to find out more!

Table of Contents

  • The Delivery Business is Growing
  • How to Build a Delivery Business
  • Types of Delivery Service Businesses
  • How to Find your Customer Niche
  • Frequently Asked Questions (FAQs)
  • Final Thoughts

The Delivery Business is Growing

In recent years, the delivery service industry has seen a massive increase. When we consider how we interact with our surroundings, we can see how this is true: the food and restaurant industry, the proliferation of cell phones, mobile apps, the app environment, and the mighty food delivery app. Digital ordering and delivery have risen 300 percent faster than dine-in traffic since 2014, according to NRN.

This pattern is evident in other industries; we know that consumers have begun to place orders and have deliveries made directly to their homes for a variety of services. We understand the needs of a wide range of industries, including retail, clothes, supplies, home health care, and grocery delivery. In terms of a mobile customer base, small businesses now have a range of options. These shifting consumer tastes have been visible in groceries as well as all other products.

With the introduction of Covid-19, the trend was intensified. For ease and convenience, it appears that every business now needs to service its customers through delivery or a mobile service alternative. Customers now have different expectations when it comes to delivery and facilities. They need hands-free assistance, which often necessitates the use of an app.

It is a sanitary and safe distribution age, as well as a modern mobile app era. This new reality is forcing every logistics distribution company to adapt.

How to Build a Delivery Business

Finding out how to start or develop your distribution company or services is the difficult part. Some people want to start a new errands or delivery service company. Established companies must adjust to the new reality by providing distribution services in order to sell their current goods. You must be familiar with the specifics of the business model or structure. The emphasis of this article will be on a new small business that wants to start a delivery or courier service. Many of the measures outlined below, however, are also beneficial to current business owners who want to improve their distribution services.

The number of steps needed to start a delivery service company is summarized below:

Research

The first step is to become familiar with your profession. If it’s a grocery delivery service, postal service, food delivery service, or other delivery service, the first move is to figure out who is taking orders, what their business strategy is, how they satisfy demand, and everything else about their operations (equipment or vehicle, team, staff, pricing, etc.). Customer discovery and competitive analysis are also included in this process. This will give you an idea of what the distribution industry’s customers expect.

Legal and Admin

You’ll also need to fulfill a number of administrative and legal obligations. For example, obtaining business insurance, a business bank account, and a credit card.

Business Planning

The second step is to create a business plan for your new delivery service. Whether you’re running a service company, using an app, or selling directly to consumers, having a business plan with funding options and other information worked out would be beneficial. You can also include a breakdown of your startup costs as well as a list of other necessary things, such as office space.

Operations

Determine can “app stack” you’ll require; note that an app stack is each form of app required for a specific feature. For example, to schedule your deliveries and manage your delivery fleet, you’ll need a route planning app. The route planning app will assist you in eliminating the element of guesswork from your delivery schedule.

Sales and Marketing

Now it’s time to get out there! Create a name for your delivery service, branding, social media sites, and a company website, get some business cards and an email address, and start talking to customers (to turn them into repeat customers!).

Types of Delivery Service Businesses

There are several different forms of distribution service companies. The number of home delivery companies available is roughly equal to the number of different types of goods, products, and services available in our society. We’ve compiled a list of seven of them for you in this article:

Meals and Food

Food and meals come to mind when we think of delivery. This distribution industry is so lucrative in and of itself that it has spawned a slew of large corporations dedicated solely to this niche. This is a priority for large software and app firms. Uber Eats, GrubHub, DoorDash, and a slew of others come to mind. In this article aimed at restaurants, we’ve covered a wide range of applications. Although one of these applications can be used, there are several other local options. A potential business owner could choose to start such a delivery service on a local level. Food in bulk or pre-prepared meals are two other examples. We have a number of clients who work in these fields.

Retail and Clothing

Any apparel or retail business may partner with anyone who wants to do deliveries. Many of our clients have set up small companies to assist with the shipping of items from clothing and retail stores. Two retailers who collaborate with a small business are one example. They have 100 deliveries to make every day, with two drivers and two cars. Customers receive their clothes in less than two days.

Alcohol

Alcohol is a major business where it is allowed, even if it is illegal in certain countries and parts of the world. In certain cases, shipping it is also prohibited. There are exceptions to this rule. One can, for example, deliver to restaurants and other businesses. And there are several locations where liquor stores will sell a single bottle. This is something you can double-check in your city or world.

Flowers

Who doesn’t appreciate the beauty of flowers? Flowers are lovely, vibrant, and inspiring, and they can make anyone’s day better. Flowers only last a short time (which adds to their allure)! People expect them to arrive quickly! They are issued throughout the year, with course spikes around those holidays (Valentine’s Day, Mother’s Day, etc.).

Pharmaceutical

Many people are unable to leave their homes because they are ill. These same people also need medicine to be shipped to their homes. This vital service is available in almost every country and is a must-have.

Couriers

There are a variety of courier services available, ranging from large corporations such as UPS to small, local businesses. There are several ways for the “David” to compete against the goliaths, as we’ve discussed in this post. It’s all about identifying a sector or region that is underserved.

Pickup of Important Documents and Iitems

The business of shipping valuable products, packages, and documents is the final niche we’ll discuss. These services are frequently provided by couriers. It’s important to remember, however, that there are some special requirements here, such as confidentiality, promptness, and dependability.

Laundry delivery, HVAC repair, furniture delivery, and lawn maintenance are some of the other common businesses. A distribution company must decide who its target customer is (or customer niche). This is what we’ll talk about in the following segment.

How to Find your Customer Niche

Choosing a niche entails a number of moves. We’ve broken it down into manageable chunks.

Step 1: Market Research

The first step is to conduct market research, which is the foundation of every business. What exactly does this imply? It’s all about being curious and looking into all of the service options available in your city, as well as the types of businesses that already exist, in order to get a good sense of the delivery industry. Talk to people in the delivery industry about your business ideas. This section necessitates extensive googling, analysis, and interviews. All should be written down in a journal for review (see step 2). This move entails what is known as competitive analysis.

Step 2: Find Problems and Gaps in the Marketplace

After conducting comprehensive market research, you will begin to recognize some of the most common issues that people face as well as service gaps. This is more of a research phase for your distribution business concepts.

It is suggested that you begin by identifying some common themes or gaps for this move. Ideally, you can create a separate document that flows from the market research or competitive analysis document you created in phase 1.

Step 3: Create Customer Personas

Creating a customer avatar is a successful next move from here. In a nutshell, a customer avatar is a “guess” or “hypothesis” about what the customer wants. It contains information such as:

  • Name
  • Age
  • Occupation
  • Salary
  • Likes
  • Dislikes
  • Wants / Desires
  • Problems

Here’s a link to some information on creating a customer persona.

Step 4: Talk to Customers

In a nutshell, the goal is to get out of your mind, away from the theoretical, and into the real world. In this step, you’ll speak with people and test your avatar’s assumptions to see if they’re right.

The aim of this stage is to discover the facts. You want to be curious once more!

Step 5: Update your Customer Personas

When you converse with others, you will undoubtedly be mistaken about a number of assumptions. That’s fantastic! You’re rising and learning. So, go ahead and update your customer avatars, and keep talking as you gain more knowledge!

Step 6: Choose your Customer Niche

Finally, after you’ve had enough discussions, you’ll be able to determine where you should concentrate your efforts! Congratulations on your achievement! You’ve discovered your target market! Also, congrats because you’ve significantly increased your chances of being successful in business!

Frequently Asked Questions (FAQs)

Can I make money from a delivery business?

It is undeniably profitable to run a delivery service. In most sectors and in most countries, there is a high demand for distribution services. Entrepreneurs must conduct research, understand demand, prepare accordingly, find buyers, and provide excellent service, just as they would in any other sector. All of these factors must be considered by the business owner.

What kinds of delivery businesses are there?

In the distribution sector, there are several different forms of delivery systems. Grocery delivery, online order delivery, postal service, and logistics, food delivery service, delivery partner, and many more are all options for business owners.

Final Thoughts

The bottom line is that starting a company is difficult. You do, however, have some power over some stuff. It’s important to keep these variables under control. Similarly, it’s important to recognize the factors that you don’t have control over. In short, we want to see an increase in your chances of success and a decrease in your chances of failure and despair. We hope you will find this series of articles helpful in this regard. Let us know if there’s anything else we can do for you, and until then, happy route planning with EasyRoutes!

About Roundtrip

Roundtrip's mission is to equip every business with the software tools they need to deliver products to their customers in a delightful way. Thousands of Shopify merchants worldwide choose EasyRoutes to power their local deliveries across dozens of product categories, from meal kits and groceries to coffee, cupcakes, kibble, and so much more. Our easy-to-use route planning and delivery optimization app is certified Built for Shopify, a two-time Shopify staff pick, and the top rated local delivery app on the Shopify App Store.

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