Are you looking for a profitable business opportunity in the delivery industry? The pandemic has caused a surge in online shopping and eCommerce, making it the perfect time to start your delivery business in Australia or New Zealand. However, launching a successful delivery service can be challenging. That’s why we’ve put together this guide to help you get started as quickly as possible.
Understanding the Basics of a Delivery Business
Before diving into the nitty-gritty of starting a delivery business, it’s essential to understand the basics. A delivery business is responsible for picking up goods from an origin, like a shop or factory, and safely delivering them to their assigned address. This includes categorizing and transporting the products, which can include restaurant and home deliveries (food and perishable items), parcels from shops and factories, grocery deliveries, flowers, and other fragile item deliveries.
The success of a delivery business relies heavily on trust and reliability. Customers entrust their valuable and fragile items to you, and it’s your responsibility to deliver them securely to their intended recipients. You must handle each item with care and attention to detail to ensure it arrives in the same condition it was picked up.
Create a Solid Business Plan
Once you understand the delivery business, the next step is to create a solid business plan. A business plan will help you focus on your idea, select your niche, target a particular audience, and determine your business’s potential and opportunities. Having a practical business plan will also help you avoid future problems and tension.
Understand the Size of the Market and Your Competitors
To succeed in the delivery business, you need to understand the size of the market and your competitors. The courier market is emerging and competitive, with Australia Post, Pack & Send, and Sendle being the bigger players. Although it may be challenging to compete against Australia Post, you can still find a spot if you have something better to offer your potential clients.
One way to stand out is to offer secondary deliveries, food deliveries, and a pick-up and drop-off service model. Although Australia Post has government ownership, it lacks in these areas, creating an opportunity for you to step in.
Determine Your Target Audience: Personal or Business?
When you’re starting a delivery business, it’s essential to identify the purpose of your courier service. Who are you delivering to? Is it for personal or business use?
You can offer your courier services to a variety of clients, including individuals, companies, enterprises, and government bodies. However, it’s crucial to focus on a specific target audience to achieve success in the business.
By choosing one or two stakeholders, you can easily analyze the performance and operational tendencies of your business. Starting small allows you to establish a strong foundation and build a loyal customer base.
Starting big may seem attractive, but it requires a larger workforce and advanced technology to manage and track items effectively. It’s important to determine your target audience before launching your delivery business to ensure a clear vision of your goals and objectives.
Important Queries to Consider Before Starting a Delivery Business
- Assess Your Expertise in the Industry
Before starting a delivery business, it’s crucial to evaluate your level of expertise in the courier or delivery industry. Even if you have no prior experience, it’s important to educate yourself about how the process is internally managed. Customers care more about how fast and securely you deliver their items to their destination rather than how big your brand is.
- Determine Funding Sources
If you’re starting at a small scale, you may not require a big investment, but you’ll need to consider providing insurance or loss & damage coverage to customers. You’ll also need to budget for employee salaries. Consider various funding sources such as loans, grants, or personal savings to cover your expenses.
- Consider Your Ability to Manage Multiple Orders
To manage multiple courier orders in a day, you’ll need to recruit a team of delivery persons who have previous experience in the industry in Australia. Additionally, you’ll need to hire an expert support team to manage internal operations and provide quick resolutions to any issues.
- Register Your Business Legally
It’s important to legally register your delivery business in Australia regardless of its size. This will ensure the smooth functioning of your services, and identifying your business type and criteria is significant for this process. Consider seeking support from a reliable partner company that specializes in helping new businesses with the registration process.
Steps to Establish a Delivery Business
Here are the essential steps that you must take into account while planning to set up a delivery business in Australia:
- Determine your niche: To begin with, choose a suitable niche that you are interested in and have expertise in. Focusing on one service will help you become a professional rather than trying to handle multiple services at once.
- Choose your delivery system: Once you have identified your niche, decide on the appropriate delivery system that aligns with your business model. Selecting the right mode of transportation is crucial to ensure that the items are delivered securely and timely.
- Decide on the business structure: When starting a delivery business in Australia, it is essential to decide on the business structure, rules, and regulations. You can either operate as a solo, partnership, or a company holding a legal entity and hiring paid workers.
- Legal registration: To run a business legally in Australia, you must register your business and obtain an Australian Business Number (ABN) and Goods and Services Tax (GST) registration. Non-payment of taxes can lead to severe consequences, including the closure of your business.
How to Make Your Delivery Service Suitable for Government Authorities?
The Australian government has an established delivery service, Australia Post, which caters to public and government internal services. It may be challenging for a new company to secure government contracts unless they offer unique services that other delivery agencies do not.
Confidentiality and trustworthiness are crucial factors that the government considers. Your online reputation, including reviews and social media comments, will reveal the quality of service you offer. If your courier or delivery agency has poor reviews online, it will be difficult to become a delivery partner for the government.
Building and maintaining a positive reputation may take years before you can approach a government agency for a partnership. It is essential to establish a good reputation and goodwill to increase your chances of becoming a delivery solution partner for the government.
Starting a Food Delivery Business in Australia
The food delivery niche is highly in demand almost everywhere, including Australia, where leading brands such as Uber Eats and Door Dash dominate the market. However, restaurants often have their own ordering system either through phone or website, making them a potential target for your delivery services.
When approaching restaurants, they are mainly concerned with minimizing delivery rates and fulfilling orders on time, rather than the age or experience of the delivery service. Therefore, it’s essential to offer something unique that other delivery agencies don’t, and showcase your benefits and offers to increase your chances of winning partnerships.
Building a strong market position is vital when starting a delivery business, as customers are already accustomed to exceptional service providers. Consider including dropshipping as part of your services, as it offers an opportunity to deliver products from a company or home to the given address, allowing you to expand your business model.
Note that the sender’s branding card or label may need to be disclosed, and different policies must be followed for each individual in this model. By embracing this modern selling method, you can scale your delivery business to new heights.
Opportunity in Dropshipping
Consider adding dropshipping to your delivery service for additional revenue streams. In Australia, many young entrepreneurs are using this model to sell products on their website without holding inventory. As a dropshipper, you’ll pick up orders from the supplier’s warehouse or home and deliver them to the customer’s address. Keep in mind that you may need to disclose the supplier’s branding information.
Promoting Your Delivery Business
Search-based marketing is a popular strategy for courier and delivery businesses. To promote your new business, you can use AustralianStreet, a platform where you can list your business, receive SEO assistance, feature your business, publish research-based content, and even access premium content. By leveraging this platform, you can learn from other companies in Australia and market your delivery solutions to thousands of potential customers.