Delivery of documents by courier: relevance of courier deliveries + main customers + advantages and disadvantages of the business + additional services + delivery methods + 5 stages of opening a business + courier company scheme + commercial assessment.
Despite the fact that most operations with documents are carried out with their copies on the Internet, situations may arise when a person needs to quickly receive or send the required package of original documents.
If we talk about business, it is mainly attractive due to low start-up costs, high return on investment and ever-growing customer demand.
Interested in an idea? In this article, we will tell you how courier delivery of documents is carried out and how to build a profitable business on it.
Despite the stagnation in purchasing power, the total number of online purchases is increasing by 25% per year, which means that more couriers are needed to deliver orders every year.
Since large transport companies do not always cope with the volume of work, some entrepreneurs prefer to cooperate with small local courier services, as they often have attractive cooperation prices and are ready to accept any order.
As a result, the number of orders across the country is growing, and with it, the income of those who earn on delivery is growing.
According to Boxberry and CDEK, about 90% of all delivered parcels are online orders, 37% of them are redirected from foreign senders. The remaining 10% includes financial and legal documents, money orders, letters.
Among other things, courier services are still relevant in small remote cities. Customers prefer to conclude an agreement with those who are ready to carry out transportation in the shortest possible time, so when studying the market, bet on the speed and cost of delivery of potential competitors.
This will allow you to initially choose the right vector for the development of your own messenger.
Who can become a customer of the service?
Since most companies prefer to work with a contract courier service rather than create their own, potential customers can be divided into three categories:
- Large commercial companies, public and government bodies.These can be contracts for the delivery of documents to labor exchanges, banks, city and regional courts, tax and other city services. High speed of delivery is extremely important here, so when cooperating with them, choose express delivery.
- Online stores and trading platforms.Since most online stores do not have their own delivery service, they often turn to outsourcing for help.And yet, it is not uncommon for larger companies to be loaded with orders to the eyeballs, it is for this reason that most online marketplaces prefer small courier companies.
- Retail stores, small businesses and offices.Sometimes a situation arises when one store of the network does not have a product that is in another, and the buyer wants it to be delivered within a few business days.
Since such franchises often do not have a delivery service and it is unprofitable to distract employees from everyday affairs, the company often resorts to the help of a courier service.
Also, if a delivery service buys special containers for transporting food, its couriers can deliver finished products to your home.
Business Advantages and Disadvantages
To study in detail the future business, to consider its advantages and disadvantages. To do this, we use a simple table in which we compare all the indicators.
|Does not require large investments to open||In the initial stages, there may be difficulties with recovery and strengthening|
|Courier delivery has a growing demand, the overall relevance of the business||High level of competition, especially in large cities|
|An easy-to-manage business that does not require special skills from the owner and employees||The overall effectiveness of employee interaction is low|
|Opportunity for business growth and development, expansion of services offered and regional growth||The work of messengers depends on natural and artificial conditions|
If the advantages are obvious and self-explanatory, then the main disadvantage of a business idea is competition, since the attractiveness of a business naturally leads to an increase in the total number of courier services.
The share of large market players is, according to various estimates, 78-86%, the rest is small local and regional courier services, this part will also include your future company.
To get ahead of potential competitors, the company must pursue an active marketing policy, constantly offering services that are not available in similar services.
We strongly recommend that you conduct a detailed analysis of the future market yourself, and preferably with people who do this on a daily basis.
Statistics on the division of the Russian express delivery market by company
1) Additional services for courier delivery of documents
To increase the competitiveness of a courier company, an entrepreneur can provide various services, for example:
- cooperation with restaurants: home delivery of food, delivery of goods and essential products;
- delivery of securities and documents “in hand”;
- transportation of goods between two retail stores;
- delivery of an online store order.
At the same time, the company can offer customers additional services and options:
- pre-order goods;
- prepayment or payment on the spot;
- rent a courier with transport;
- urgent order (delivery in one day);
- package insurance;
- delivery of goods at night – from 22:00 to 6:00;
- lifting the package to the ground.
2) How can courier delivery of documents be carried out?
Before we move on to the phased opening of the business, let’s look at six possible ways to ship orders:
- Car delivery.Depending on the name, the courier delivers orders in a personal or work car.With this method of delivery, the company’s maintenance costs increase, but there are a number of advantages, for example:
- the volume of transported goods increases;
- delivery speed is greatly increased;
- during the day, the courier delivers several times more parcels;
- It is possible to deliver large loads.
- Pedestrian couriers.This delivery option is relevant for those who go to work in a small city or in various areas of a large city.The delivery process itself is not much different from the classic postmen, and the courier can use public transport at his discretion.However, it is obvious that only small documents and goods can be delivered in this way.
- Bicycle messengers.It is distinguished by a fairly fast and convenient delivery of small parcels, suitable for cities with a mild climate, convenient and organized bike paths.But this method also has disadvantages, for example, a low-quality or poorly selected bicycle will complicate the work of the courier, and the seasonality of such delivery puts an end to transportation from winter to spring.
- Delivery 24 hours.Such a delivery can be a combination of all of the above, with only one difference – the package arrives at night. This method will have little competition, so the main advantages will be:
- high delivery speed;
- increased rates;
- less competition
5 stages on the way to opening a courier document delivery service
Delivery of documents by courier is not as difficult and time-consuming as it might seem at first. The whole process of starting a new business can be easily completed in 5 simple steps and does not require any special skills, experience or connections.
Anyone with that desire can start a courier delivery business which we will test below.
Stage number 1. Preparation of documents
Preparing documents is the first thing a future entrepreneur should do. To open the service, you will need to draw up several documents, among which will be:
- Agreement for the development and registration of a trademark;
- Open an individual entrepreneur or, if the company plans to open branches, register an LLC;
- Lease agreement for office and, if necessary, warehouse premises;
- OKVED code – 64.12 – messaging activities.
In addition, the employer is recommended to develop other codes, for example:
- 61.2 – Retail trade through teleshopping and the Internet;
- 82 and 63.40 – packing of parcels and organization of cargo transportation;
- 11.11 – registration, processing and delivery of postal items;
- 84 – Provision of other postal services.
Here you also have to decide on the tax regime, the easiest way to do this is with an individual entrepreneur, since you can choose between:
- STS 6%: the amount of tax is levied on total income;
- STS 15% – total income minus expenses.
When registering a company, do not forget to attach a statement of payment of the state duty, which is 800 rubles.
Stage number 2. Finding a place for an office
Since the location of the office of the courier service does not play a special role, you can approach the choice of premises freely, starting from the initial capital, orientation and transport hub.
In most cases, companies prefer a mini-office up to 50 square meters, which:
- Service of registration and processing of orders;
- Separate room for managers;
- Place for receiving corporate clients;
- Small warehouse for parcels;
- Resting place for messengers and staff.
Since it is important for the customer how quickly the parcel will be delivered, it is necessary to take care of the convenience of the exchange of transport that the couriers will use in the course of work.
Important: when choosing a room for an office, they most often pay attention to specialized buildings. They often have all the necessary communications and cosmetic repairs, and the territory of the office itself is under round-the-clock security.
Renting a room with an area of 30-40 m2 will cost, depending on the region, 8-16 thousand rubles a month.
Stage number 3. Purchase of equipment
To equip an office, it is enough to purchase several shelves for papers, furniture, several computers, an MFP, a long-distance telephone and stationery.
The rest of the equipment is purchased additionally, depending on the delivery method you choose. If this is delivery by car, then for work you need to buy 1-2 working cars, which will be allocated for the delivery of orders.
There are other cheaper options, such as delivery by motorcycle and bicycle. In the first case, fuel consumption will be significantly less than when using a car, in the second case there will be no consumption at all.
The choice of a car should be approached based on the following characteristics:
- low fuel consumption in urban environments;
- low cost of the car, ease of maintenance and repair;
- small car size, high mobility.
Therefore, preference should be given to models that have low fuel consumption, are easy to maintain and repair.
To reduce the cost of buying a car, it is recommended to buy used cars, this will halve the cost of equipping the fleet.
It is worth remembering that when buying a car from resellers, you should always check the availability of documents for transportation, mileage, and also check the car for all typical problems and defects.
If we talk about the most suitable models, then these can be: Skoda Fabia, Citroen C1, TagAZ C10, ZAZ Chance, Volkswagen Golf, Opel Corsa, Daewoo Matiz, Peugeot 107, Honda Fit, Nissan March, Kia Picanto and other similar models
Stage number 4. Hiring
This is the most interesting stage of opening a company. The fact is that the owner, that is, the entrepreneur, at the first stages can combine up to three functions: a manager, a dispatcher and a courier.
But this way of working is quite laborious, so in the future you will still have to look for assistants, although not without useful experience – the entrepreneur will be able to fully experience the work of his staff, which will help to further expand the scope of the business.
Typically, the staff of a courier company consists of:
- intermediaries: pedestrians and drivers.
If the service opens in a small town, then the most preferable option would be to recruit students for walking and cycling couriers. This will help save on salaries: students usually receive from 280 rubles a day, moreover, such delivery will perfectly unload the first volume of orders.
The main requirements for couriers are the ability to navigate the area. If your employees know the city well, they will be able to use additional routes that will reduce the overall delivery time.
Remember that it is important not only to receive and process the order, but also to deliver it to the recipient, which is why couriers are your main source of income.
Stage number 5. Advertising campaign
The work plan has been drawn up, the premises have been selected, the transport has been purchased and the staff has already been recruited, but this is only the beginning of the company’s work, because you have no orders yet. Where to find them? There are several ways to advertise your business, here are 5 of them:
- Place ads on banners, flyers and brochures.Use these tools to attract future customers. The ad itself should contain a list of services, prices and benefits of your service.
It is recommended to place advertising booklets on the stands and in the boxes of those stores where customers may need their services. For example, in a toy store, restaurants, bistros, tourist and sporting goods stores, etc.
- Ad sites.Post information about your services on Avito and similar portals, where you can also agree on cooperation with sellers. Advertising on social networks will also be useful: Odnoklassniki, Vkontakte, Facebook.
- intermediate sites.Such sites are used for quick search and communication between clients and contractors. There is a chance that someone will look for courier services and see your company there.
- Internet directories.use it if you plan to go to the city or region level. It would also be nice to add information about your company to Google and Yandex maps.
- Participation in municipal tenders.Such advertising will allow you to immediately conclude a lucrative contract with the state, there may also be many job options, but competition will not let you forget about yourself. If you are sure that your company compares favorably with others, feel free to bid.
How courier delivery of documents works: step by step instructions
So, as soon as the company has started work, sooner or later the first order will come to it. How will it happen? Let’s see the messaging service step by step.
How to order the necessary goods from Taobao: detailed instructions
|Step 1. Receiving an order from the buyer.||This order can come from a legal entity (for example, delivery of a package of documents to the tax office) and from an individual (sending documents around the city.|
|Step 2. Order processing by the company manager.||The service sets the time of the call, the contact details of the customer, general information about the package, address and distance to the final recipient, and the final cost of the order is negotiated.|
|Step 3. Clarification of the application by the manager.||The service employee contacts the courier located in a pre-arranged waiting area, and then goes to point A, where the necessary papers or parcels are delivered.|
Then the courier accepts the client’s payment, after which it goes to point B, where the receiving party draws up all the necessary documentation, after which the parcel is considered delivered.
|Step 4. Comments.||The courier informs the company’s office that the package has been delivered and the acceptance certificate is in his hands.|
Consequently, office managers inform the customer that the parcel is already in the hands of the recipient.
|Step 5. Turn on shipping.||At the end of the working day, couriers deliver all earned profits and completed documents.|
3 tips on how to organize the work of a courier service for the delivery of documents
- Decide on a work area.After you have opened your company, it is better not to disperse the already small forces, so limit the amount of work to your city or several districts (if we are talking about a large city with a population of more than two million people).For rapid business development, it is enough to find 2-3 large corporate clients who can provide you with orders on an ongoing basis.If the company performs well, you can be completely sure of receiving a stable profit that can be invested in the development of the company.
- Decide on the details of the load.The business plan, which is drawn up from the very beginning, should describe all the details of your courier service, including the goods that you will deliver. All further work depends on this.For example, for start-up entrepreneurs, the ideal option would be mail and small cargo delivery, restaurant order delivery, etc.In the future, please arrange additional delivery services: express parcel, overnight delivery, cash on delivery.
- Competence.To neutralize the danger of competitors, your company must provide qualitatively and financially better services than other companies. To do this, constantly analyze the market, follow the global trends in the field of cargo delivery.So, if there are no e-mail boxes in the city in which you plan to open a business, then it would be nice to use this fact to your advantage and be the first to start working on this scheme.This will facilitate the work of your managers, relieve customers of tedious calls and, most importantly, set you up as a beginner in other messengers.
An example of a successful courier company
CDEK, or Express Courier Delivery Service, is a Russian franchise for the express delivery of documents and oversized cargo.
The company was founded in 2000 as a third-party delivery service for the Korzina.ru online store, but with the closure of the main project, CDEK continued to work independently; moreover, cooperation with the online platform allowed the company to become a federal player
At first, the courier was focused on the domestic market of Russia, priorities were placed on the speed and convenience of delivery, the management constantly developed and expanded new logistics schemes, and over time the company opened its first branch in Moscow.
In the period from 2002 to 2013, the company opened branches in 47 cities of Russia, and also entered the Kazakhstan market by opening a separate representative office in Alma-Ata. The company has significantly expanded the list of services offered, and the speed of delivery of products has become much higher than that of competitors.
By 2019, the company has 1,500 offices in 13 countries, including Russia, China, Kazakhstan, Belarus, Kyrgyzstan, the Czech Republic, Lithuania, Turkey, and the United States. For the third year in a row, the company has been included in the TOP 10 most effective Russian franchises according to Forbes.
But such rapid growth could not but have negative consequences. Increasingly, there are comments that the company’s couriers do not care about their work, and the cost and delivery time of the parcel are practically no different from other Russian couriers.
In addition, in search of a better salary, CDEK couriers are increasingly moving to other companies. Although the service is still generating huge profits and the overall growth of the franchise has not stopped, it has slowed down and it is unlikely that the company will be able to regain its former leadership.
Necessary finances and profit
Let’s move on to the most important thing – to calculate the funds that will be spent on starting a business, as well as to calculate the potential profit.
|Name||One time rub.||Monthly, rub.||Annually, rub.|
|In general, rub.||1 054 800|
|motorized transport||180 000||4000||48000|
|Salary||—||60 000||720 000|
|Office rent||12000||12000||156 000|
|softener cover.||16 200||3800||45 600|
In total, the amount of initial investments will be 237,200 rubles, excluding wages and taking into account 40% of the reserve capital – 332,080 rubles.
The amount of expenses in the first year will average 1,054,800 rubles. This amount includes related costs, such as the purchase of fuel, the issuance of wages, as well as the calculation of wages and deductions.
State tax must be taken into account when calculating expenses. Depending on the system you choose, the simplified tax system will charge 6% of total income or 15% of total income minus expenses.
To calculate the profit, you need to understand what the average profit will be for each delivery, and this depends on many factors:
- the city where the company will operate;
- availability of additional services;
- the complexity of the path;
- availability and delivery time.
Because of this, it is difficult to give exact profit figures, however, at a price of 100 rubles for sending papers, 250 rubles for a small package and contracts of 20-30 thousand rubles, the company’s monthly income will be 180-220 thousand rubles with monthly expenses of 86-98 thousand rubles .
This means that, taking into account 6% of the simplified tax system, the net profit will be 88,360 rubles per month, and the full recovery of the company will take 7-9 months.
Summing up all the above information, we will make an overall assessment of the business based on five parameters: the number of initial investments, payback and profitability of the business, ease of launch and its relevance.
|Initial Costs||9.8 out of 10||Final business score: 8.8 out of 10|
|Recovery||7.8 out of 10|
|Economic efficiency||8.1 out of 10|
|Ease of launch||9.0 out of 10|
|Relevance||9.4 out of 10|
|Starting a courier company is a great business idea for those who are looking for something original that doesn’t require a large initial investment. Although this business is challenging, with good management and excellent service, the company can quickly become a regional leader among other courier services. Rapid technological progress and the introduction of new technologies such as postal machines and drone delivery will help to quickly list services that potential competitors do not have.|
Statistics of the market section of express delivery of online orders in Ukraine
1 day in the life of a courier:
Is it worth starting a project?
Of course, even if you consider the project as a temporary business, the ratio of initial costs and payback can easily attract investors and contributors.
The relative simplicity in managing and processing orders makes it possible to open the delivery of documents by courier even to those who are faced with entrepreneurship for the first time, in addition, this can provide valuable experience for the implementation of subsequent business ideas.