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Pankaj Tyagi
| Updated: 01 Jul, 2021 | Category: Startup India Registration

A Detailed Guide to Set Up a Parcel Delivery Business in India

Set Up a Parcel Delivery Business in India

The parcel delivery business has witnessed massive growth in the past, particularly in the Covid-era. This growth has been credited to the increasing number of e-commerce portals in the market. Presently, the demand for courier services is escalating rapidly in tandem with the increased dominance of the online business. In light of these facts, it seems that it is the right time to enter into this venture. If you are projecting to make an entry into this business domain and are unaware of pre-establishment requirements then continue reading this blog.

Why Courier Services adhere to massive growth potential in the present time?

To get an idea of growth prospects, it’s important to know the key clients that frequently use courier services.

  • E-commerce platform
  • Banking
  • Healthcare
  • Businesses from the B2B domain
  • Businesses from the B2C domain
  • Life science
  • Industrial manufacturing

The market for Express, Courier, & Parcel in India is projected to thrive at a CAGR of more than 10.5% owing to the increasing dominance of web-based business, high-speed data, and advanced technological innovations.

India is slowly transforming into a centre stage of domestic and international shipments with bigger organizations venturing into the Indian market. Innovation has turned out to be a vital factor for companies to get seamlessly aligned with market trends.

Our nation has witnessed a steep growth in parcel volumes in 2018, up 21% y-o-y to 2.5 billion. Moreover, the global parcel volumes in 2018 were accounted for 87 billion, thereby posted a growth rate of 17% on a y-o-y basis. In 2019, this figure witnessed a dramatic rise as it crossed the 100 billion mark for the first time.

Now let’s move on to the following section which will brief the establishment procedure of a parcel delivery business in India[1].

Read our article:How to set up a Sustainable Courier Business in India?

A viable blueprint to set up parcel delivery business

You can consider this section as a blueprint for establishing a parcel delivery business in India

set up parcel delivery business

Draft a business plan

Before drafting a business plan, it’s important to ascertain how the parcel delivery business works in general.

Companies that operate in parcel delivery services provide land, sea, air, or combined express parcel delivery services for individual and corporate clients. Such companies are typically active in metropolitan areas or urban centers and built a network that encompasses local and global pickup and delivery to meet customers’ needs.

As you can see the cost of setting up a parcel delivery business is somewhat proportional to the mode of operation and coverage area. Now you can correlate these parameters with your existing funding capabilities to find what is right for you.

An extensive plan ought to depict every possible facet that will influence your venture in one way or another.  In general, a typical business plan manifests:

  • Cost of setting up a particular business model
  • Numbers of employees and staff for the handling the operation
  • Key members who will be in charge of the entire operation
  • A briefing on how your business will going to perform all functions
  • An analysis on counterparts working in your business domain
  • Viable funding sources
  • Possible compliances applicable to your business model
  • Tax implications
  • Cash flow projection

Decide on a business structure

After sorting out a clear and detailed business plan, you need to select an apt company structure for your parcel delivery business among the followings

  • LLP
  • Private limited company
  • Public limited company
  • One Person Company

Each business structure listed above comes with a different set of compliances and requirements.

Look out for the sustainable funding sources

To initiate your business operation you will need sustainable fiscal backing, either from the government portal, banks, or some private institutions. Today, startups have access to a host of credit options to fuel their business journey. The Indian government has taken various measures in past to elevate the growth of new companies. Apart from these sources, the new businesses can approach venture capitalists, NBFCs, and Angel investors to procure the much-needed funds.

Procure the right equipment and raw material

Once you have the required funding at your disposal, proceed with setting up an in-house infrastructure. Setting up an in-house infrastructure includes

  • Procurement of the right equipment such as PC, printers, fax machines
  • Procurement of raw materials such as brochures and flyers, mailing envelopes, pick-up and delivery log, and shipping boxes

You may have to locate the right vendors to serve such purposes.

Procure the right kind of vehicles

A fleet of reliable vehicles is a boon to a flourishing parcel delivery business. Before you rush to amass these vehicles make sure to check their paperwork thoroughly. Documents like PUC, Registration certificate, and insurance certificate are necessary to legalize their existence.

Hire Right People via Clear-Cut Guidelines

Hiring the right candidate is indeed a complicated task for most start-ups. Companies that lack clear-cut policies and guidelines for employing people are more likely to encounter such a situation.

For a general thump of rules, you can leverage the following points for hiring the right candidates

  • Hire young and well-educated individuals when it comes to carrying ground-level tasks such as delivering the packages.
  • Refers to the current industry standards for hiring top officials.
  • Prefers candidates with a proven track record for middle-level management.

Remember that you cannot perform these activities in the absence of clear-cut guidelines that depicts your hiring protocols. Thus, for hassle-free hiring, you need to underpin detailed employee policies that should encompass roles and responsibilities for every designated position in your company.

Leverage trending mediums for marketing

Correct marketing is a boon to a business. The same is true for the parcel delivery business as well. Since the competition in the courier domain is on the rise, it’s pertinent to select an apt marketing medium to create a strong brand image.

Today social media is playing a vital role in the marketing realm owing to its unparalleled ability to reach and retaining the target customers.  Moreover, advertisement via social platforms is cost-effective than traditional marketing tools. 

Consider revising your marketing plan before initiating any advertising campaign on these platforms for better targeting. You may opt for the traditional marketing tools if your coverage area is limited to the local vicinity. Utilize your marketing budget wisely to maximize the output.

Conclusion

Remember that start-ups are more prone to mistakes and significant errors. Make sure your business plan covered all the potential risks associated with your business. The problem may occur on any part, be it compliances, legality, or funding.  If you experience such a situation then seek expert assistance instead of addressing the matter on your own. 

As soon as you get started with your business journey, ensure better coordination within your operation from day one. Remember that every successful parcel delivery business harnesses better tools and resources for scalability, improved operation, and higher efficacy.

Read our article:How Patenting Can Help Start-Ups To Get Required Funding?

Pankaj Tyagi

Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.

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