How to Start a Courier Business in India - Startup Guide

Devashish Shrivastava Devashish Shrivastava Akshat Hawelia Akshat Hawelia
Nov 8, 2023 12 min read
How to Start a Courier Business in India - Startup Guide

In recent years, the courier business in India has witnessed a significant boom, driven by the growth of e-commerce and increased demand for online shopping. With the rapid expansion of the market, starting a courier business in India can be a lucrative opportunity for aspiring entrepreneurs.

However, launching a courier business in India requires careful planning, research, and execution. From obtaining necessary licenses and permits to acquiring the right equipment and hiring reliable staff, there are several key steps to consider when starting a courier business in India.

This blog post discusses everything you need to know about the courier business and how to start a courier business. It also addresses concepts like proof of delivery and the challenges of sending food items through couriers. With an annual development rate of 25%, the courier industry is estimated to be around INR 4000 crore. There are about 2300 courier companies in India at present.

The courier business is about supplying goods from one locale to another in exchange for payment. A courier company delivers messages, packages, and mail. Parameters like speed, security, tracking service, and specialization decide a courier company's popularity and influence.

How to Start a Courier Business?
Steps To Start A Courier Business In India
1. Initial Planning
2. Fulfill With Business Counsel
3. Assemble the Essential Appliance
4. Total Expenditure
5. What to Charge?
6. Franchising Option
Importance of Giving Proof of Delivery
Challenges Of Delivering Food Commodities via Courier Aid

How to Start a Courier Business?

Commencing a courier company as a career path is lucrative, but it requires investment and preparation. How are you going to secure the delivery, what are the different modes of transportation you'll provide to customers, and what's the refund scheme? With the right arrangements and effort, you can take your courier company to the next level.

Market Size of the Indian Courier Business
Market Size of the Indian Courier Business

The graph illustrates the projected growth of the Indian courier, express, and parcel (CEP) market between 2023 and 2028. The market is expected to expand from its current size of approximately USD 7.28 billion in 2023 to a projected value of USD 15.75 billion by 2028, representing a significant growth rate of 16.69% CAGR. This growth is primarily attributed to the burgeoning e-commerce sector in India, which has fueled the demand for efficient and reliable parcel delivery services.

Steps To Start A Courier Business In India

Starting a courier business requires careful planning and consideration of various factors such as target market, competition, pricing, and more. Here are some key steps to consider when starting a courier business:

1. Initial Planning

Initial planning is a crucial aspect of a courier service in India. Decide your assistance area and the types of luggage you'll accept. Finalize the different sections of the staff you'll employ: customer service representatives, delivery boys, logistics helpers, accountants, legal aid, etc. What sort of packages your firm decides to transmit depends on your reserves. If you're depending on a bicycle, you may need to restrict the courier services to miniature containers and envelopes.

If you have access to huge automobiles like pick-up trucks and vans, be prepared to make wealth through enormous deliveries. Keep in mind that laws are applicable to certain types of cartons. For example, medical welfare and industrial chemicals have certain handling procedures and care ordinances.

The next factor to consider is whether you will be operating inter-state, intra-state, or both. While automobiles allow you to undertake road-based deliveries, do you have any other alternative in mind? What happens when the highways are closed? If you have the money and resources to engage transportation mechanisms like railways, airways, and shipping, then be ready with backup plans. It's good to have a number of alternatives at hand. Do you expect the transmission of parcels across geographies? What are you going to do when your courier business is dry on capital? These are some additional questions you need to answer.

A particular courier business may be easier to govern as coast-to-shore liberation can be valuable, and you would be dealing with vast corporations. Spend some time figuring out how distant your labor range can be before taking action.


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2. Fulfill With Business Counsel

Unless you have extensive knowledge about a specific business, it's uncertain that you'll be able to organize all the facets of a related enterprise alone. It's preferred to include a mixture of consultants to ascertain the phases of your courier business. Discuss the business with an attorney who is aware of the messenger service industry and will notify you of the consequences. These include regional zoning constitutions, which are particularly crucial if you operate the industry from your residence.

Ask an accountant to instruct you on how to protect your business documents, tariff filings, the adepts and hoaxes of workers versus autonomous contractors, and arrange an analysis policy. You will crave to comprehend how buyers can reimburse and what sort of credit cards, reviews, and other expenditure choices are acceptable.

Confer an insurance specialist to urge you to collect reasonable business security for your department. Business security is more than just marketable vehicle coverage, cargo insurance, and employee compensation insurance. If desired, add health insurance as well.


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3. Assemble the Essential Appliance

Spend some time arranging the appliances/resources as you stride through the introductory phase of beginning your company. Decide on the automobiles you'll employ. If you're only transmitting messages or small packets, contemplate using motorcycles or small cars. If you're transferring enormous commodities, you may need to use large baggage trucks.

You may need to procure a business loan to incur the expense of procuring delivery vehicles. Cellphones, clipboards, graphs, and GPS networks are vital for the courier business. If you want your employees to wear uniforms, that's another factor you need to consider.

You'll also need to spend money on marketing mechanisms. In the beginning, it's imperative to build brand awareness among people about your courier company. Some marketing requirements include having a website, contact mechanism, and social media presence.

Above all, you need to have one or more warehouses to stock the inventory and to handle intermediate requirements.


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4. Total Expenditure

Consider monthly payments. Spend some time totaling what your monthly costs can be. This data can be useful down the road when agreeing on how many customers you can acquire.

For a courier business, your major monthly outlay will be vehicle insurance, cargo insurance, and energy. There may be unique expenses considering your subjective courier business plan. Prepare a list of probable payments you may confront each month to enable you to calculate your entire monthly cost.

Evaluate items like earnings, transactions, and publicity utilities to get a clearer picture of everything that falls under expenses.


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5. What to Charge?

Decide how much to charge after contemplating your monthly expenses and other characteristics. Expend some time revising the rates you will indict as a firm. Considering your locale to be in an enormous municipal region, you will have to indict more to give rise to revenue.

You should analyze your competitors to get an impression of regular taxes. You should also research your victim market. If you announce the service of transmitting equipment and groceries in a university town, your taxes may differ from that incurred when supplying the same in an upscale area.

If you are providing expensive heirlooms and tall hierarchy items in a prosperous suburb, you can charge more. With the benefit of an accountant, see what you need to charge to generate sufficient revenue.

Once your courier company's name has been established, you can tweak rates and prices to reap additional wealth. If you want help with managing business operations, you may want to enroll a specialist.

6. Franchising Option

Franchising can be an excellent option for starting a courier business, especially if you're new to the industry or prefer to have the support and guidance of an established brand. When you invest in a courier franchise, you're essentially purchasing a proven business model that has already been tested and refined by the franchisor. You can look out for the Best Courier & Delivery Franchise Businesses in India.

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Importance of Giving Proof of Delivery

Loyal customers are the key to a successful business. To sustain them, it is vital to offer good service. Sellers must make sure that the parcel reaches the exact person. Proof of delivery (POD) is an acknowledgment that the consignee has obtained the parcel. Providing proof of delivery (POD) is a critical aspect of the courier business, as it not only ensures that the customer has received their package but also protects the courier company from potential disputes or legal issues. Here are some key reasons why giving proof of delivery is important:

  1. Customer satisfaction: When a customer orders a package, they want to be sure that it has been delivered safely and on time. Providing proof of delivery assures customers that their package has been delivered to the correct address and at the right time, which helps to build trust and loyalty.
  2. Dispute resolution: In the event of a dispute, proof of delivery can help to resolve any issues or discrepancies between the customer and the courier company. For example, if a customer claims that they did not receive their package, the courier company can provide the POD as evidence of delivery and refute the claim.
  3. Legal protection: Proof of delivery can protect the courier company from potential legal issues or liability. For instance, if a customer claims that their package was lost or stolen, the POD can be used as evidence that the package was delivered to the correct address and received by the intended recipient.
  4. Operational efficiency: POD is an essential tool for tracking and managing deliveries, as it helps to ensure that all packages are accounted for and delivered on time. By using digital technologies like mobile devices, barcode scanning, and electronic signatures, courier companies can streamline their delivery processes and improve operational efficiency.

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Why do we need proof of delivery?

The parcel reaching the right customer is the secret sauce of maintaining a successful courier business. The destination may be an office or a home, but if the recipient isn't there, the only option is to leave the parcel at the door. With POD, it's simple to allege on parcel delivery. POD solves delivery issues between the customer and the seller.

Types of POD

  • Paper POD - the signature of the recipient is taken on paper.
  • E-POD - a digital signature of the receiver is taken. It's simple to handle an E-POD, and a copy of it can be easily sent to the shipper. Hence, POD enables hassle-free last-mile delivery.

Challenges of Delivering Food Commodities via Courier Aid

Before shipping, have a fundamental intention of storing food items and other perishable things.

  • Utilize barely dried food ingredients: Food items are susceptible to decay. Use warmed food components to avoid decaying. Store moist food commodities in airtight containers and have a smaller transit moment.
  • Packaging: Good product packaging carries the freshness of the diet or toasted treats. Tight cooler stores keep the commodity of your packet refrigerated during transfer. While packing biscuits/chocolates, ensure there are no spaces between individual units. Coat fresh food items with tissue paper and stuffed paper to cover the area in between them.
  • Prepare for the transit - Choose carefully: Choose a shipping firm that gives valid assistance and provides protected, on-time, and cost-effective deliveries. If you're exporting perishable food items, choose the shipping company that proposes refrigerators for commodity items.

Conclusion

Starting a courier business in India can be a rewarding venture, but it requires careful planning and execution. From securing the necessary permits and licenses to acquiring the right equipment and hiring reliable staff, there are several key steps to consider when launching a courier business in India.

By following the step-by-step guide outlined in this blog, you can position yourself for success in this growing market. With the continued growth of e-commerce and online shopping in India, the demand for courier services is only expected to increase, providing ample opportunities for entrepreneurs looking to start a courier business.

Remember, running a successful courier business requires a commitment to delivering packages safely and on time, strong customer service skills, and attention to detail. It is very difficult to start a courier business with no money. However, with the right strategy and execution, you can build a profitable and sustainable courier business in India.


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FAQs

What is a courier business, or what is a courier service business?

A courier service is a service that allows someone to send a parcel or consignment from one location to another. Senders have the option to have their parcels collected by a courier or drop their parcels at a nearby location to be picked up later by the courier.

How to start a courier service in India or how to start a courier service business?

  • Find investors from different sources and keep sufficient money in hand.
  • Legalize your business as a private limited company in India.
  • Application for the registration of service tax.
  • Build a team and invest in service quality and training.

What are the things you must do before starting a courier business?

Items you must be done with before starting a courier business:

  • Develop a courier business plan.
  • Get reliable vehicles.
  • Organize a storage space.
  • Purchase equipment and materials.
  • Take out business insurance.
  • Give your courier business a name.
  • Get a logo.
  • Consider the legal structure of your courier business.

What is the cheapest franchise to start in India?

  • Stratus Building Solutions.
  • SuperGlass Windshield Repair.
  • Mosquito Squad.
  • Property Management Inc.  
  • Pillar to Post Home Inspectors.

How to start a courier business in India?

  • Get and connect with a reliable source of transportation.
  • Invest in the right equipment.
  • Find a unique yet engaging name for your courier business.
  • Consider the appropriate insurance.
  • Market your business wisely and mark your presence.

How to get a courier license in India?

  • Get a courier license by creating a name for your courier company.
  • Contact the local municipal government office to get the courier license form.
  • Fill in the application form with accurate information.
  • Submit it to the license bureau.

Is the courier business profitable in India?

Yes, courier service is a great business idea in today's time. It is a business idea with low investment and high profit. Maintaining a courier company is an excellent career prospect as well.

What are the courier business ideas?

Some courier business ideas: Food delivery, fruits and grocery delivery, laundry and dry cleaning service, bicycle service courier, Furniture delivery and assembly, etc.

How can I get a low-investment franchise business in India?

Steps to consider before buying a low-investment franchise business in India:

  1. Research.
  2. Identify individual franchise companies.
  3. Franchise qualification requirements.
  4. Submit a request for consideration/application.
  5. Study franchise disclosure document.
  6. Disclosure period.
  7. Visit existing franchisees.
  8. Visit franchisor.

How to start a courier service franchise, or how to develop a franchise business in India?

Steps to set up a franchise in India with low investment:

  1. Determine the niche.
  2. Completing the formalities.
  3. Ownership.
  4. Licensing.
  5. Registration.
  6. Human resource requirements.
  7. Paying taxes.
  8. Managing currency risks.

Which is the best franchise business to start in India?

Best franchises: Affinity Salon Franchise, DTDC Franchise, Giani's Franchise, Lenskart Franchise, FabIndia Franchise, and Kake Di Hatti Franchise.

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