How to Start a Package Delivery and Shipping Business

What is a packaging business?

A world pack packaging business or package delivery company provides personal and commercial goods packaging for individuals and businesses. Depending on the customer's needs, professional packaging can be requested for moving, storing goods or shipping items.

 

Start a packing and shipping business with minimal investment.

Learning how to start a packing and shipping business involves knowing how to properly pack your items, choosing the correct shipping method, and completing the necessary documentation as required by the shipping company. It is a rapidly growing industry and can be profitable for both independent businesses and franchises. Here are several things to consider when opening a packing and shipping store.

 

Market research

Conduct market research in your area and prepare a market research report. The report will include lists of competitors, area demographics, and other information used to determine the viability of a packing and shipping operation in the chosen neighborhood. Remember that competitors in this industry may also include companies that provide their own packaging and shipping options.

 

Choose your strategy

There are three main options when starting a packing and shipping store. You can open a separate store, buy a franchise, or buy an existing packing and shipping store. Opening a separate store versus buying a franchise saves your upfront capital costs. However, buying a franchise like Safe Ship, which has an initial franchise fee of $ 19,900, makes it easier, faster, and smoother to get started as you can get help from the corporate franchise office. Lastly, buying an existing packing and shipping store helps you save on upfront start-up costs.

 

Create a business plan

Writing a business plan helps turn vague ideas into concrete plans. You can use the US Small Business Administration (SBA) website to help you develop your business plan. Be sure to include your market research, business strategy, and company structure in your report. Your business plan should also include financial estimates such as the pricing structure and estimated revenue.

 

Obtain the required Licenses and permits

These may include, but are not limited to, a business license and a retail license. Check with your city government for a complete list of proper licenses and permits. If you hire employees, obtain the taxpayer and employer identification numbers (EINs) from the Internal Revenue Service (IRS).

 

Choose a business location

While location is important to all businesses, it is especially important for a pack and ship store. Generally, you want to be close to other businesses, not near other packing and shipping stores, and close to a major highway.

 

Buy your equipment

At a minimum, you will need shipping and packaging materials, a barcode printer and scanner, labels and a label printer, computers, and a credit card reader. As your store grows in size, you can purchase additional equipment for services such as laminating, photocopying, or notarization. You can purchase these supplies and equipment through shipping supply distributors like International Plastics and The Packaging Wholesalers or office supply stores like Office Depot.

 

 

Shipping logistics

Fast and efficient shipping will be the most important thing to your customers. Therefore, it is important that you have supplier accounts with major shipping companies such as UPS, FedEx, USPS, and DHL, as well as local shipping companies. The more options you have, the greater the chances that you will be able to ship your customers' packages in the best possible way. Wholesale suppliers of packaging products can be found in trade directories or through trade associations that have a convention that provides training and learning materials to the packaging industry.

 

Commercialize

Everyone who submits an article is a potential customer. Business customers can ship items on a daily basis, while a regular consumer can only ship them occasionally. Therefore, it is important that you properly advertise your business to everyone. Use business cards and brochures to advertise your services. Visit other local businesses and offer your packing and shipping services. During the holidays, be sure to advertise locally in newspapers and brochures. Be sure to mention that their packing and shipping services are a cost-effective and easy way to send gifts during the holiday seasons.

 

Develop a work order template for the business

 This business form must include contractual language regarding the limit of liability as a packaging service provider. This helps against potential liability when a customer claims that property was damaged while in possession of the business.