Starting a Shipping and Packing Service Store

Summary: There is money in shipping/packing service store if only you understand the ins and outs of the business. It can't be argued; the industry is growing and rapidly changing, which is particularly propelled by online shopping.

More and more customers are demanding shipping/packing services that offer reasonable prices and promise convenience, speed, and reliability. Hence, the shipping/packing service business deserves a closer look and a deeper probe.

Three Ways of Starting a Shipping and Packing Business

In starting up, you are confronted with 3 options -- to go independent, buy a franchise, or purchase a ship/pack store. While it may be easier, faster, and smoother to run a franchise store, setting up a new and original company offers a good business challenge and probably for lower capitalization. Franchising can cost at least $20,000. Also, you might be asking where your shipping/packing store must be located. If you wish to put up your independent store, you can utilize that extra space at home. However, franchisers often require space at commercial areas. In this regard, you need to choose leases or rental rates/terms that are favorable or acceptable. Overall cost to start a franchise ranges from $80,000 to around $300,000. You also have an option to purchase shipping/packing service store. Most of these stores are actively running and earning from below $100,000 to around $500,000. Purchasing these stores saves you from start-up troubles.

Managing the Shipping/Packing Service Store

Be aware of the importance of pricing strategies. There are several Shipping/Packing Service providers whose pricing schemes are valid as benchmarks. You need to know the standard or special sizes of packages and boxes, their packing and shipping methods, and price equivalents. Most shipping/packing service stores also offer other services and operate as a home or office supply store, post office, copy/fax station, etc. So there are other means to earn on top of your core business. Partnerships with major shippers, ability to identify and offer economical services, authority to run as a post office outlet are valuable assets. Having several workers isn’t necessary. A small-time shipping/packing service store can be initially operated by 1 to 5 persons. As your business grows, you can expand and hire more personnel. There is also the thing about insurance. Fragile and costly items need to be insured.

Franchisers often shoulder advertising expenses in exchange for royalties -- a portion of sales/income. Independent stores often use basic ads and marketing tools while newly bought ship/pack stores have established some form of reputation, good or bad.

Competitors in this industry include those stores that offer shipping and packing as additional or auxiliary services on top of their mainline offerings. Other rivals are the established franchisees and independent store operators. The store clients include online shop buyers and sellers, importers/exporters, PR officers, and collectors, aside from the individuals with erratic shipping and packing needs.