Start A Shipping Business - Business Ideas
Please note that the data provided in this article are estimates and may vary depending on various factors, and should not be considered as perfect or definitive.
The shipping business is an exciting and dynamic way to earn a living, and it’s a perfect opportunity for those looking for a change of pace from the typical 9-5 office job. This business entails transporting goods and cargo from one place to another. It can involve everything from small packages and envelopes to large freight containers and pallets.
To run a successful shipping business, you should keep a few key things in mind. Firstly, it’s essential to establish a good working relationship with your clients. You need to be reliable, punctual and have excellent communication skills. This will ensure that your clients come back to you time and time again.
Another tip for shipping business success is investing in high-quality equipment and vehicles. This could include a variety of trucks, trailers, and cargo containers. The right equipment is essential to ensure that your cargo arrives safely and on time.
Lastly, it’s essential to be well-versed in the ins and outs of the industry. This could include understanding the different regulations and laws that apply to shipping and staying up-to-date with new developments in the field. Being informed and knowledgeable about the industry will give you an edge over competitors.
Overall, the shipping business is an excellent opportunity for those who want to be their boss and take control of their career. With hard work, dedication, and a little know-how, you can make your shipping business a booming success.
Starting a shipping business 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
Startup Costs
| Min Startup Costs | Max Startup Costs | |
|---|---|---|
|
Office Space Expenses |
$0 |
$7,000 |
|
Employee & Freelancer Expenses |
$151 |
$352 |
|
Website Costs |
$223 |
$7,215 |
|
Business Formation Fees |
$600 |
$4,700 |
|
Equipment & Supply Expenses |
$66 |
$700 |
|
Inventory Expenses |
$350 |
$14,750 |
|
Vehicle Expenses |
$2 |
$10,004 |
|
Software Expenses |
$162 |
$3,094 |
|
Advertising & Marketing Costs |
$0 |
$2,800 |
|
Total Startup Costs |
$1,554 |
$50,615 |
Case Studies
•
$150K/mo
•
$1.5M/mo
•
$2.4M/mo
•
$65K/mo
Successful Businesses
| Business | URL | Rank | |
|---|---|---|---|
|
|
Sendle |
sendle.com |
10,931 |
|
|
ShipHero |
shiphero.com |
13,733 |
|
|
Easy Auto Ship |
diytransport.com |
23,489 |
|
|
Parcel Monkey |
parcelmonkey.com |
33,077 |
|
|
InXpress Winnipeg |
realsimpleshipping.com |
82,777 |
|
|
ShipWorks |
shipworks.com |
102,988 |
|
|
CitizenShipper |
citizenshipper.com |
157,387 |
|
|
Ship4Less |
s4l.us |
306,868 |
|
|
Al Fares |
alfarescargo.com |
380,023 |
|
|
PartnerShip LLC |
partnership.com |
446,252 |
|
|
Ship Smart |
shipsmart.com |
523,231 |
Pros & Cons
| Pros | Description |
|---|---|
|
Flexibility |
You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own. |
|
Scalable |
With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers. |
|
Meaningful business connections |
You never know who you will meet as a shipping business. This could be the start of an incredible business opportunity! |
|
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. |
|
High margins |
The gross margins for your shipping business are typically around 85%, which is considerably high and allows you to grow your business and manage costs easily. |
|
Pick & choose the clients you work with |
Shipping Businesses 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! |
| 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. |
|
High employee turnover |
In the shipping business, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment. |
|
Taxes |
As a shipping business, 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. |
|
Niche Market |
A niche business is not necessarily a bad thing, in fact, it can be the key to your success. However, it can be more challenging and time consuming to find the perfect niche market and target audience. |
|
High overhead expenses |
With starting a shipping business, there are overhead expenses that come with selling a physical product. You will want to make sure you strategically budget for these overhead costs. We discuss this more in the startup costs section below. |
|
You may need to charge sales tax |
If you are selling your products in various states, you may be required to charge sales tax. Although this may not impact your financials specifically, it can be a headache to create a process and procedure for this. To learn more about sales tax, check out this article |
Marketing Ideas
-
1
Affiliate Program
Affiliate marketing is a great way to bring in a new revenue stream, especially when you don't sell products or services.
Simply put, an affiliate program is an agreement where a business pays another business or influencer ("the affiliate") a commission for sending traffic and/or sales their way.
The affiliate typically gets a unique link where clicks and conversions can be tracked.
-
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.
- 4,818 founder case studies
- Access to our founder directory
- Live events, courses and recordings
- 8,628 business ideas
- $1M in software savings
- 4,818 founder case studies
- Access to our founder directory
- Live events, courses and recordings
- 8,628 business ideas
- $1M in software savings
- 4,818 founder case studies
- Access to our founder directory
- Live events, courses and recordings
- 8,628 business ideas
- $1M in software savings
- 4,818 founder case studies
- Access to our founder directory
- Live events, courses and recordings
- 8,628 business ideas
- $1M in software savings
- 4,818 founder case studies
- Access to our founder directory
- Live events, courses and recordings
- 8,628 business ideas
- $1M in software savings
- 4,818 founder case studies
- Access to our founder directory
- Live events, courses and recordings
- 8,628 business ideas
- $1M in software savings
- 4,818 founder case studies
- Access to our founder directory
- Live events, courses and recordings
- 8,628 business ideas
- $1M in software savings
- 4,818 founder case studies
- Access to our founder directory
- Live events, courses and recordings
- 8,628 business ideas
- $1M in software savings
