BusinessHABHow to Start Delivery Business : Presently has around 90 million Internet users, in a group which half have carried out at best 1 online transaction amid the past 12 months.
A very clear picture of the capabilities in Ecommerce business and the growth anticipations. This is even as the economy appears to be condensing due to the fall in crude oil prices, and the shattering of the naira against the dollar.
Statistics like these have really given rise to quite a number of Ecommerce businesses emerging to service this ever growing market.
Marketplaces and online retail stores are an average site, and anyone can actually mention some of them off hand. With these come favorable circumstances for other participants in the sector, and one of such opportunity is logistics.
It may perplex you to note that the downfall of many Ecommerce stores is logistics. When you find out that an online store is shrinking, retrenching, laying off staff, the root cause mostly is logistics.
And it is consistently obvious in the way they ultimately reorient their organization.
Get expert advice on becoming a successful business owner with BusinessHAB Business category! Our step-by-step articles can help you navigate the ins and outs of the business world, from forming a public limited company (PLC) to measuring company growth of an existing company. Learn how to avoid unionization of a company, identify industry trends, implement efficiency strategies, and more! You can request publication of your article for publication by sending it to us via our Email below. Get the 20 Best Strategized Fuel Tanker Business Plan
First it was Konga, where they disembodied K-express services from the main Konga online stores. They had originally wanted sellers to pay prior to shipping their orders, but the unwilling responses made them change their mind.
Jumia always used to do pick up from the sellers’ location, but now you just have to drop off the item in any of their warehouse closest to you. Dealdey also had a warehouse where sellers supplied products ordered online, but now it’s a matter of self fulfillment.
The list goes on and on. An accomplished IT personnel once declared that if you can get logistics right, you’ll do very well in Ecommerce. There are very huge possibilities in Ecommerce logistics and delivery.
Additionally, I would also like to highlight specific information necessary to get you started in this business, and if accurately managed, will secure financial success.
Logistics, clearly, is the branch of business that accord with the management of obtainment, inventory, maintenance, distribution and substitution of personnel, materials, information to accomplish an organization’s goal.
It accords with all the actors and activities included in obtaining products and services from a seller to the consumer. It is also intensely involved in the assembling and production processes.
Nonetheless, logistics in Ecommerce does not involve production.
Just the moving of products and services from the merchant/seller to the buyer.
It consists of information/ communication with buyer, inventory, cash handling, moving of products between the merchant (or outsourced logistics/delivery outfit) and the buyer.
Logistics demands quite an important outlay of finance for man power and equipment, but a scaled down version can be also be started with just less than N300,000.
With this amount, you can actually build or buy a cargo bike, buy mobile phone(s) for communication, stationery and some other necessary items needed for storing your records.
Delivery Business
With between N220k to N250k, you can definitely get a good motorbike outfitted.
With the plastic container to convey the products.
Driving around Lagos is absolutely hectic.
But with motorbikes, one can comfortably drift through the traffic.
Delivery Business
After getting the motorbike, the rider is the next most substantial factor to consider.
The rider is so substantial that the person you choose may make or break the project.
The bike rider has to be prepared to work, familiar with Lagos cities.
Have good phone manners (you might have to train him).
Must be very truthful cause he’ll handle cash, and products.
Delivery Business
You need relatively 1 mobile phone for the bike rider to be able to make contact with the customers.
If you’re the one Controlling the outfit.
You’ll also need to be in consistent touch with the rider in case the need emerges.
Other stationery can be attained along the way.
If you have more capital to invest, you can contemplate acquiring a space.
Delivery Business
Computer, software and probably 1 or 2 more staff.
From my analysis on a logistics consultant/trainer.
It is very achievable to deliver an item any place in Lagos at a low cost of N200.
With the added advantage of delivering in high volumes.
This cost can be easily reduced as the cost would definitely be spread out.
If you have a very efficient and smart rider, you can significantly reduce overhead expenses.
Delivery Business
A normal Lagos delivery cost N500.
The logistics outfit collects that much to deliver anywhere around the state.
Some even charge more to deliver at the outskirts of Lagos eg. Agege, Okoko, Ikorodu, Alaba International.
As a new participant, you can charge a flat rate of N500 for the main time.
Good places to get merchants who will patronize your service are Kaymu, Dealdey and Konga.
Where sellers are allowed to self fulfill. For examples, 2 of my stores sell a typical 100 items monthly.
Delivery Business
The delivery outfit managing this just needs to get at least 9 more customers like this.
And trust me they’re sure of about 1,000 deliveries or more monthly.
There’s an agreement with Dealdey, and the delivery company collects between N300 to N400 for 1kg delivered anywhere in Lagos.
That easily translates to 1,000 (deliveries) X N300 (minimum delivery charged) = N300,000 monthly in profit.
Of course expenses like fuel, oil, bike maintenance, rider’s salary, recharge cards and miscellaneous will be subtracted from the profit.
Delivery Business
If you’re able to beat down cost competently.
It’s absolutely possible to take home between N50,000 to N150,000 per month.
For your marketing, you have to devise innovative ways to reach out to online sellers.
You are only restricted by your imagination.
Delivery Business
Make a list of the businesses in the area that you think could gain from your services.
These could be either grocery stores, banks, restaurants, pharmacies, flower shops, hospitals, gift shops or offices.
You can additionally list senior centers and make picking up products for seniors who don’t drive part of your services.
Delivery Business
List businesses you know might like to have lunch or breakfast delivered to them everyday.
Create business cards, flyers and a website for your business.
Once you have deliberated what services to offer.
Develop an interesting brochure or flyer that you can paste on public bulletin boards.
And deliver to businesses you think can always use your services.
Delivery Business
Your website should contain your contact details and also an online data sheet.
Where customers can place their delivery orders.
Purchase a magnet with your latest business name and contact details to place on your vehicle.
Preferably, you can just get the details painted on or you can alternatively use vinyl lettering.
Because your vehicle will most likely be your place of business.
Delivery Business
It is very necessary to promote what you’re doing.
Price your services properly.
Even though you are just getting started, don’t be desirous to make your prices lower.
Price yourself conferring to what the market will bring and keep in mind that you have to deal with vacillating gas prices and changing mileage.
Establishing within your city limits might be vital at first.
At least until you become popular and more experienced at the business.
Delivery Business
Call other delivery services, notwithstanding services in other cities and discover what they actually charge. This will help you decide your baseline prices.
Have the recipient and sender sign for their deliveries.
You don’t want to be accused of not delivering an item.
Create a data sheet that is very simple but requires both parties to list the item and when they received it.
Things Needed:
If you need a complete business plan, please let us know. Or, you want us to help you set up this business, kindly contact us. Otherwise, Please check out these other business ideas you can do
BusinessHAB
3 comments
Good day,
I want to set up a delivery bussiness. If you can help me out i will really appreciate it. Please can we discuss so i know how much it will cost me. thanks
I am interested in the possibility of starting a delivery business in Lagos. What it entails, the pitfalls, the benefits, startup capital, etc.
Also, in doing the business plan, how much?
Hello sir, please I want to chat with you or give you a call. I want to start a delivery business. I need more advice. Pls u can add me on WhatsApp 07038809469. Thanks