The e-commerce boom of recent years would have been impossible without the companies that provide package delivery services. This segment of the freight forwarding market drives colossal turnover and is expected to continue to grow in the coming years, as online sales growth is expected to maintain a positive trend for a long time.
Therefore, it may be a good idea to ask yourself how to set up a courier and parcel company, and that is whatMyXbordergoing to explain to you in this article.
Why set up a parcel company?
Setting up a parcel company can be a smart idea for several reasons. In today’s world, where online shopping and international trade are booming, the demand for sending and receiving packages is higher than ever. Did you know that global e-commerce sales reached over $4.29 trillion in 2020, and they are projected to keep growing? This means more people need a reliable way to send and receive their goods.
Moreover, many businesses and individuals are looking for efficient and affordable shipping solutions. Research shows that the global parcel shipping market is expected to grow at a rate of around 8.5% annually, reaching a value of $665 billion by 2027. This indicates a substantial opportunity for a parcel company to tap into this expanding market.
By setting up a parcel company, you can also contribute to local and global economies. Not only will you create job opportunities in your community, but you’ll also play a role in facilitating trade and connecting people across different parts of the world.
What do you need to set up a courier company?
You should inquire and research the legal requirements for starting a parcel company in your country. But it is important to detail the means that you will need if you want to set up a parcel company.
Offices and warehouse
It is a business where logistics is very important. First of all, you will need an office to be able to attend to those clients who want to deliver or pick up the packages personally. And, of course, you must have a warehouse, to be able to temporarily store the personalized cardboard boxes from the online stores that hire your services and other packages from your clients.
In theory, you could have the office and warehouse in two different locations, but it wouldn’t be very practical. It is not the most common case, but sometimes you have not been able to deliver the package to a recipient, because he was not at home, or because the address was wrong, and he comes personally to pick it up. And there are also clients who are in a hurry to send something and prefer to come to your office.
In addition to having computer equipment such as computers and barcode readers to track shipments, you will also need some shelves to organize all the packages.
Necessary vehicles
It all depends on the size of your company and your radius of operations. If you are only going to work locally, a few delivery vans will suffice. On the other hand, if you plan to set up a network of offices between several cities. centres.
If you want to reduce your environmental impact, you should consider the possibility of buying electric vehicles, or at least hybrids. Keep in mind that it is an aspect that you can use as a commercial argument. Customers increasingly value companies that take care of the environment.
The vans will also have to carry shelving systems, in order to easily organize the different products by size, and especially protect fragile shipments.
Personnel to set up a courier company
The most important workers are undoubtedly the drivers of the vans, that is, the delivery men, who have to make an established route every day, to collect or deliver packages to all customers in the allotted time.
It is also often necessary to have someone in the office to serve customers, answer calls, and schedule routes thanks to route optimization software.
What strategy for your parcel business?
It would be a mistake to want to compete directly with giants like Amazon when you have limited capital and cannot take advantage of the same technical and technological means.
- An interesting option to start with is precisely to propose the services of your courier company to a large company that collaborates with small businesses. Your margins will be tighter, but you will ensure a volume of activity.
- Another possibility is to look for other small companies like yours and offer them alliances. Since you cannot have delivery centres everywhere, you can collaborate with other companies to distribute those packages that transit from your service area to that of the other company.
- You can also contact the online stores in your area, to propose that they deliver packages to local customers. If you optimize your routes, you will be able to offer more attractive prices than the large companies that we mentioned before and attract many customers. It will be enough to find a sufficient number of local clients to make your business profitable.
What other issues do you have to take into account to set up a courier company?
It sounds obvious, but you must be very careful with the packages that are entrusted to you for transport and delivery. You cannot afford them to be lost or damaged due to handling errors. Therefore, you
Setting up a parcel business is an interesting option for an entrepreneur, although it is essential to have experience in this type of logistics company and to be very organized. It is a sector that should continue to offer great opportunities in the coming years.