Business Idea

Start A Shipping Company

About

Starting a shipping company requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell shipping services, or selling shipping services online, you can use this page as a guide for everything you'll need to know.

Key stats

revenue (monthly)
$20K
starting costs
$18K
gross margin
90%
time to build
270 months
growth
SEO
business model
Subscriptions
time investment
Full time

About

Starting a shipping company requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell shipping services, or selling shipping services online, you can use this page as a guide for everything you'll need to know.

Key stats

revenue (monthly)
$20K
starting costs
$18K
gross margin
90%
time to build
270 months

 

growth
SEO
business model
Subscriptions
time investment
Full time

Startup Costs

Min Startup Costs Max Startup Costs
Employee & Freelancer Expenses $151 $252
Website Costs $223 $7,015
Business Formation Fees $600 $4,700
Vehicle Expenses $0 $10,000
Retail Business Expenses $1,250 $6,650
Advertising & Marketing Costs $75 $3,986
Software Expenses $162 $2,720
Office Space Expenses $0 $100
Specific Industry Expenses $0 $500
Total Startup Costs $2,461 $35,923

Successful Businesses

Business URL Rank
UPS ups.com #221
USPS usps.com #255
MyUS.com myus.com #4,023
Shippo goshippo.com #5,751
Uline uline.com #8,263
Stamps stamps.com #8,708
ShippingEasy shippingeasy.com #8,709
Welcome to APL apl.com #17,578
CMA CGM cma-cgm.com #18,090
Maersk maersk.com #18,208
MSC msc.com #23,727

Pros & Cons

Pros Description
Little startup costs required The cost to start a shipping company costs significantly less money than most businesses, ranging anywhere from 62 to 35,923.
Rewarding work Starting a shipping company can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.
High customer retention rates Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.
Pick & choose the clients you work with Shipping Companyes have the ability to choose the clients they work with. You have the freedom to work with only a few loyal clients or with hundreds of clients!
Control of workload With starting a shipping company, you have the unique ability to choose how little or how much you want to work. You also have the freedom to decide which projects you want to work on, and can turn down the ones that do not interest you.
Gain exposure and experience This career allows you to gain experience working for multiple different businesses - which will benefit your resume and also keep things interesting for you!
Cons Description
Motivation of employees If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
Longer Sales Process A shipping company can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.
Work can be inconsistent As a shipping company, the amount of work assigned to you and schedule tends to be more inconsistent, which may make your income less stable. It's important to set boundaries and budget accordingly based on the amount of work you plan to have.
Lack of benefits With a shipping company, you are typically self-employed and responsible for finding your own insurance, which can be quite costly and time-consuming.
Taxes As a shipping company, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.
No safety net Typically, as a shipping company, you do not receive a consistent pay-check and instead earn money based on your transactions each month. During the slow periods, you typically take away less since the job is based on commission. It's important to budget accordingly for the slow times.

Marketing Ideas

  • 1

    Direct Sales

    Direct sales strategy implies a direct contact between a seller and a consumer without the involvement of any third party. Direct selling is popular in sectors where sellers communicate with their clientele personally. The sales technique occurs at non-store locations which include at home, work, or online.

    For direct selling to succeed, hire a few (or many) salespeople to support the sales conversion process. It's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.

  • 2

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

  • 3

    Social Media Advertising

    Social media advertising is the use of social media platforms to connect with your audience with the objective to build your brand, increase sales, and drive website traffic.

    According to Oberlo, approximately 48% of the global population use social media, and the number is ever-growing.

    Therefore, social media allows brands access to cost-effective advertising by enabling them to interact with a large audience.