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How to Start a Delivery Business: 4 Questions to Ask Yourself

Outlining opportunities in the delivery space, the competitive landscape, types of delivery businesses to consider, and steps for starting a delivery business.

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We live in an ever-changing world. As a result of the Coronavirus pandemic, our societies and corporate processes have had to significantly adjust. One of the most significant changes is in how people buy things: instead of buying things in person, individuals are increasingly electing to have them transported to them. If you’ve been thinking about beginning a delivery service, now is the moment!

This pattern may be found in all kinds of businesses, industries, and countries. For many people, this means a plethora of opportunities. This article looks at some of the factors to think about before starting a delivery business.

Table of Contents

  • What Opportunities are there in the Delivery Space?
  • What is the Competitive Landscape Like?
  • What type of Delivery Business Should you Start?
  • What Steps Do I Need to Take to Start a Delivery Business?
  • Route Optimization and Planning for your Delivery Business

What Opportunities are there in the Delivery Space?

The first thing to keep in mind is that global distribution demand and development are on the rise. Any business that provides delivery services should anticipate growth. This is true for anyone looking to establish a delivery business or any small business dealing with local food or retail.

The last-mile distribution service industry in North America is predicted to increase at a compound annual growth rate of 12.76 percent from 2018 to 2022, according to Logistics News. Global demand for last-mile services could reach $53 billion by 2027, according to the analysis.

Naturally, the Covid-19 outbreak and the consequent stay-at-home orders have increased demand for delivery services. The trend toward digitization, online customer service, and the emergence of the home delivery business was accelerated as a result. The in-person shopping experience is dwindling, while the delivery service business is booming.

This is a worldwide trend, and it means that a growing number of people are beginning their own enterprises, whether it’s delivery services, last-mile retail, or food logistics.

The most current trend is to work for a huge firm. Amazon Prime is the company’s most well-known service, but it also offers Amazon Flex, a platform that lets users to start their own delivery service by delivering solely for Amazon. This post will not discuss Amazon or its services; instead, it will focus on readers interested in starting their own business or courier delivery service.

What is the Competitive Landscape Like?

The delivery service – or courier – industry’s “major players” are well-known. Companies like UPS, FedEx, DHL, Uber, and others are well-known. The relationship between these large corporations and smaller courier firms is less well-known. This will give you more details on the benefits and drawbacks of beginning your own delivery service.

Major Players

A lot of benefits are available to the major players. They are well-known for their brand. One of the top three delivery companies is one we’re all familiar with. Customers that stay with them for a long time benefit them as well. This clientele suggests that they have a consistent stream of repeat business and a consistent cash flow.

Another advantage of large companies is that they have well-defined distribution boundaries as well as the necessary delivery vehicles and equipment.

Finally, they have advanced delivery algorithms, which have led to a great deal of success for them and their customer shipments.

Smaller Players

When starting a business performing deliveries or as a small package delivery company owner, there is still a place for you to compete. As we all know, David eventually defeated Goliath by spotting market openings and creating a new business that caters to a certain niche market. It would be advantageous if you took into account the beginning costs as well.

Smaller courier services benefit from more adaptability and reactivity. Establishing personal and loyal ties with your clients will also help your courier company succeed. Examples include same-day or last-minute delivery (for example, flowers, or delicate and last-minute medical samples that must be sent, or architectural designs that must be transferred, and so on).

Another advantage is that a small courier business may be nimble because its overhead is modest (except for your startup costs). As a result, you will be able to give low-cost courier service to some consumers.

What type of Delivery Business Should you Start?

There are many different types of delivery businesses that you can start. The most popular business concept is to start with a van; however, other vehicles can be employed as well, such as bicycles, motorcycles, mopeds, scooters and even just walking.

A component of your business plan will be dedicated to determining your ideal niche. A few have already been mentioned, but here are some other examples:

  • Engineers, Contractors, and Architects
  • Medical Labs, Pharmaceutical Deliveries, and Hospitals
  • Retail Stores
  • Food and Meal Delivery Services
  • Flower Shops

What Steps Do I Need to Take to Start a Delivery Business?

There are various requirements for launching a business. We’ll go through some basic software requirements as well as some general company necessities.

Starting your own delivery business

The actions to take while beginning a delivery business are as follows:

  • Business Plan: Of course, you’ll require a business plan as well as the framework of a distribution organization. You must know who your target market is, what services you will provide, the name of your firm, the initial costs, and how you will provide them, as previously said. You’ll need to do a lot of study on the market.
  • Administrative and Legal: There are several things to accomplish while beginning a business. This includes acquiring a company license, deciding on a name, budgeting for initial costs, and purchasing liability insurance, among other things. It should be set up as a limited liability company with state permits, freight insurance, and business insurance, among other things.
  • Obtain a Vehicle: A car would not serve in the great majority of instances. This step entails determining whether to buy or lease a vehicle or car for your company, whether it’s a cargo van, pickup truck, or anything larger. A hand truck, a box truck, and other pieces of equipment are also available. You’ll still need to hire personnel to deliver the goods.
  • Marketing: Business owners must think about marketing tools including blogs, business cards, social media, and more, as well as the most effective ways to get customers to use them. Increase demand and efficiency with a simple concept or piece of content.

Route Optimization and Planning for your Delivery Business

The basic purpose of any business is to make money. It is critical to use route planning and optimization tools, such as EasyRoutes local delivery routes planner. The main reason for adopting a route planner is to avoid the “Travelling Salesperson Problem.” There are millions of possible combinations when you have 12 stops, as we’ve discussed in prior posts. It’s not easy to figure out which option is the safest.

For any business that wants to deliver parcels or meals, EasyRoutes is a fantastic delivery service partner. Complete Shopify connection, as many delivery routes and delivery stops as you want, team collaboration, a speedy and well-designed user interface, and exceptional customer care are all available.

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.

"The app has simplified our delivery workflow significantly and allows us to be significantly more efficient in our delivery and also reduce human error thanks to its direct integration with our Shopify Store. We deliver to a large geographical area and the routing works well with our large list of delivery locations. The drive app that pairs with this is simple, clean and easy to use. Our customers have already expressed how much they love having tracking information and estimated arrival times."
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