Information On Courier Franchises
With more and more online spending, many potential franchisees may be thinking to themselves, “who delivers all these packages and how can I make the most of it?”
The answer may lie in a high-qualitycourier franchise opportunity. It is an industry that is benefiting from people turning to online for their shopping needs. The trend for people to do more of their shopping online doesn’t look like it’s going to end any time soon either.
Market researchers, IBISWorld, has revealed that the Australian courier industry takes in around $6bn in revenue annually, which is a lot of packages, but more importantly to those of you who are looking for an ideal business opportunity, it is a lot of money!
There are opportunities within the courier franchiseindustry, with benefits that include the following:
- No experience needed: Many of the franchise businesses in this sector provide comprehensive training, ongoing support, and resources to help you.
- Multiple revenue streams: A highlight of many of the franchise opportunities in this area is that they give you the option to make money through an array of revenue streams.
- Tried and tested systems: This is a difficult business to break into independently, but when you choose a franchise, you are joining a team that has done it all before and know how to succeed.
- Brand recognition and loyalty: When it comes to both B2B and individual transactions, people want a courier that they trust. If you join a franchise, you may be joining a team that already has a loyal customer base.
The continual rise of online shopping has given this industry a timely boost over the last number of years, with the services of courier businesses including:
- Point-to-point delivery.
- Depot-to-point delivery.
- Set-run services.
- Intra-depot services.
IBISWorld also believes that the most important success factors for a courier business include:
- Effective cost controls.
- Optimum capacity utilization
- An ability to alter goods and services produced in favour of market conditions.
It is estimated that around 85 percent of Australia’s businesses send parcels regularly, with approximately four out of every five sending at least 10 parcels per month. That is a lot of packages, and it could be your franchise delivering them!
It is an industry that has done well during the pandemic, as the amount of people turning to online retailers for their shopping needs has risen dramatically.
Here are a few more facts and trends about the courier industry that potential franchisees might find interesting.
- According to research by the International Trade Association (ITA) in September 2020, Australia is the eleventh-largest e-commerce market in the world, expected to reach USD 32.3 billion by 2024. Therefore, you are joining an industry that already has an incredibly large market and one that is growing.
- The global pandemic greatly increased the number of Australian shoppers using online services. With the advent of smart devices, it also seems unlikely that the public will regress to buying less online.
- Discussing the effects of the pandemic, Mordor Intelligence said the following: “With the infiltration of the Covid-19 pandemic, as reported by Australia Post, there were over 200,000 new online shoppers that entered the market, while a million more people started shopping online every week as compared to the average in 2019 driving the demand for faster delivery with flexible delivery options.” Thus, it appears that this is an industry that thrived during the pandemic.
- Research from the Pitney Bowes Parcel Shipping Index showed that Australians shipped 934 million parcels in 2019, with an average of 37 parcels shipped per person in the year. That is a great deal of parcels, which all have to be delivered by someone. Could that someone be you and your franchise?
- Mordor Intelligence also discussed what drives this industry, adding: “The growth in e-commerce is driven by the popularity of the sales events and marketplaces, the introduction of ‘buy now pay later’ payment options, affordable logistics and faster deliveries with next business day deliveries growing significantly.” If you have a savvy business mind, you may be able to take advantage of these opportunities.
- According to IBISWorld, the market size, measured by revenue, of the Courier Pick-up and Delivery Services industry is $6.2bn in 2022. Who wouldn’t want a slice of that!?
- It is an industry that has low barriers to entry, allowing people who have never worked in the courier industry before to thrive in franchise positions. If you are unsatisfied in your current position, it could be the ideal option for you to move to a more lucrative career.
- The global courier, express and parcel market reached a value of US$ 394 Billion in 2021.
How to Start a Courier Franchise in Australia
The Australian courier industry is experiencing a meteoric surge in demand as consumers continue to embrace the convenience of e-commerce and swift delivery services. If you're thinking about stepping into this burgeoning sector, becoming a courier franchisee could be a great idea.
Here's a guide on how to open a courier franchise in Australia.
Learn About the Australian Courier Industry
The first step to starting a courier service is conducting extensive market research. Learn if you're in a good location and recognize the market dynamics that could shape your courier business venture. Look at local and national trends and make financial projections to ensure you have the budget to get started and are in a position to attract investors.
Remember that owning a courier franchise business involves more than delivering packages. You need to have the business acumen to run daily operations and handle customer service, employee training, and logistics.
Diligently Explore Your Options
You can find an ocean of courier franchise opportunities in Australia, but they aren't all cut from the same cloth. It's crucial that you perform thorough research to find the best courier franchisor. You need to believe in the franchisor's ethos, like their operational model, and be able to cultivate a long-term business relationship with them. Crucially, make sure they're legitimate and trustworthy.
Prioritize Compliance, Embrace Tech, and Deliver Excellence
Setting up your Australian courier franchise is just the beginning — it takes hard work to make it a resounding success. First off, the industry is heavily regulated. Ensure you continuously comply with transportation regulations, have the necessary licenses, and receive training at required intervals.
Second, with economic innovation happening faster than ever, keeping up with trends and the latest tech is non-negotiable. Drone deliveries and green initiatives are a few current trends in the courier franchise industry. Understanding and implementing the latest tech is a great way to position your courier franchise at the forefront of the industry and stand out from competitors.
Work With a Seasoned Partner
Consider exploring franchise opportunities with help from seasoned experts, such as our team here at Franchise Direct. We're a one-stop gateway to courier franchise opportunities, with detailed profiles of courier franchisors, news, testimonials, and videos.
Our listings enable you to choose the perfect partner and connect by completing a short, no-obligation contact form.