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4 Things to Consider Before Starting a Delivery Business

Discussing opportunities for delivery businesses due to changes in consumer behaviour from the COVID-19 pandemic.

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We live in a world that is changing. Our cultures and corporate practices have been forced to adapt drastically as a result of the Coronavirus pandemic. One of the major shifts is in how consumers purchase goods: rather than purchasing items in person, people are increasingly opting to have them shipped to them. If you’re considering starting a delivery business, now is the time!

This pattern can be seen in all types of enterprises, in all industries, and in all countries. This, predictably, means a plethora of opportunities for many. This article examines some of the issues to consider when beginning a delivery service.

Table of Contents

  • #1 What is the opportunity?
  • #2 What is the landscape like?
  • #3 What Are the Different Types of Delivery Companies?
  • #4 How Do I Get Started With My Own Delivery Service?

#1 What is the opportunity?

The first thing to remember is that worldwide, demand and development for distribution are on the rise. Any company that provides delivery services should expect to expand. This is true for entrepreneurs who want to start a delivery service or any small business that deals with local food or retail.

According to Logistics News, the last-mile distribution service market in North America is expected to expand at a compound annual growth rate of 12.76 percent from 2018 to 2022. According to the report, the global demand for last-mile services could hit $53 billion by 2027.

Of course, the Covid-19 pandemic and the resulting stay-at-home orders have resulted in a surge in demand for delivery services. This accelerated a trend toward digitization, online customer service, and the emergence of the home delivery industry. The retail / in-person experience is on the decline, while the delivery service industry is on the rise.

This is a global trend, and it means that many people are starting their own businesses, whether it’s delivery services or a small business in last-mile retail or food logistics.

Working for a large corporation is the most recent trend. Amazon is best known for Amazon Prime, but they also offer Amazon Flex, a platform that allows customers to launch their own delivery service by delivering exclusively for Amazon. This article will not cover Amazon or its services, but will instead concentrate on readers who want to start their own company or courier delivery service.

#2 What is the landscape like?

The “big players” in the delivery service – or courier – industry are well-known. UPS, FedEx, DHL, Uber, and other similar companies are well-known. The relationship between these major players and smaller courier companies is less well-known. This will provide more information on the advantages and disadvantages of starting your own delivery service.

Big Players

The major players enjoy a number of advantages. They have a well-known brand. If there’s a delivery company we’re familiar with, it’s one of the big three. They also profit from having long-term customers. This client base indicates that they have a steady stream of repeat business and a steady cash flow.

Another benefit of big players is that they have well-established distribution boundaries as well as the requisite delivery vehicles and materials.

Finally, they have sophisticated delivery algorithms, which has resulted in a lot of success for them and their shipments to customers.

Small Players

There is still a place for you to compete as a small package delivery company owner when starting a business doing deliveries or. As we all know, David  triumphed over Goliath in the end by identifying market opportunities and launching a new company that caters to a particular niche market. It would be beneficial if you considered the startup costs as well.

Smaller courier services, in particular, benefit from increased versatility and responsiveness. The success of your courier company will also be enhanced if you establish close and loyal relationships with your customers. Same-day or last-minute deliveries (for example, flowers, or sensitive and last-minute medical samples that must be delivered, or architectural plans that must be transported, and so on) are examples.

Another benefit is that a small courier service can be nimble in the sense that it has low overhead (except for your startup costs). As a result, you can provide courier service to some customers at a low cost.

#3 What Are the Different Types of Delivery Companies?

There are numerous types of businesses that you might begin. The most common business model is to start with a van; however, there are other vehicles that could be used, such as:

  • Fleets;
  • Vans (small and big);
  • Bicycles;
  • Motorcycles;
  • Mopeds.

The customer list would be lengthy as well. Your business plan will include a section on identifying your best niche. We’ve already mentioned a few, but here’s a longer list:

  • Retail stores;
  • Food and Meal Delivery Service;
  • Flower shops;
  • Engineers, contractors, and architects;
  • Medical Labs, pharmaceutical deliveries, hospitals;

#4 How Do I Get Started With My Own Delivery Service?

There are numerous criteria for starting a company. We’ll go through some general business needs as well as some basic software requirements.

Setting up your business

The following is a list of steps to take when starting a business:

  • Business Plan: Of course, you’ll need a business plan and the framework of a distribution company. As previously stated, you must know who your target market is, what services you will provide, the name of your company, the startup costs, and how you will deliver them. You’ll need to conduct thorough market research.
  • Administrative and legal: When starting a company, there are numerous tasks to complete. This covers things like obtaining a business license, deciding on a name, budgeting for startup expenses, and purchasing liability insurance. It should be incorporated as a limited liability corporation, with state licenses, freight insurance, and business insurance, among other things.
  • Obtain a Vehicle: In the vast majority of situations, a car would not suffice. This move involves deciding whether to purchase or lease a vehicle or car for your business whether you’re going for a cargo van, pickup truck, or larger vehicle. There is also additional equipment such as a hand truck, a box truck, and so on. You’ll still need to hire delivery people.
  • Marketing: Owners must consider marketing tools such as blogs, business cards, social media, and more, as well as the most effective ways to draw consumers using them. A simple concept or piece of content may also help to increase demand and efficiency.

Route planning and optimization

A company’s primary goal is to make profits. Route planning and optimization software, such as EasyRoutes local delivery routes planner, is important. The “Travelling Salesperson Problem” is the primary reason for using a route planner. When you have 12 stops, as we’ve discussed in previous posts, there are millions of potential combinations. It’s difficult to guess which path is the safest.

EasyRoutes is an excellent delivery service partner for any business that needs to deliver packages or food. We offer complete Shopify integration, as many delivery routes and delivery stops as you like, team collaboration, a quick and well-designed user interface, and excellent customer service.

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 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.

"It integrates very well with Shopify and it is flexible when you need to increase your drivers and routes for a busy holiday and then decrease them as well."
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