Business Idea

Start A Shipping Services Business

About

Starting a shipping services 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.

Want to learn more? You can check out our full guide on how to start a shipping services business ➜

Key stats

market size
$14T
revenue (monthly)
$2.5M
starting costs
$201K
gross margin
85%
avg product price
$12
time to build
6 months
growth
Word of mouth
business model
E-Commerce
time investment
Side project

About

Starting a shipping services 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.

Want to learn more? You can check out our full guide on how to start a shipping services business ➜

Key stats

market size
$14T
revenue (monthly)
$2.5M
starting costs
$201K
gross margin
85%
avg product price
$12

 

time to build
6 months
growth
Word of mouth
business model
E-Commerce
time investment
Side project

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $750 $7,000
Employee & Freelancer Expenses $151 $352
Equipment & Supply Expenses $566 $5,700
Website Costs $303 $7,215
Business Formation Fees $600 $4,700
Inventory Expenses $350 $14,750
Vehicle Expenses $2 $10,004
Other Expenses $0 $2,300
Software Expenses $162 $3,094
Advertising & Marketing Costs $0 $2,800
Total Startup Costs $2,884 $57,915

Successful Businesses

Business URL Rank
ShipHero shiphero.com #13,733
Parcel Monkey parcelmonkey.com #33,077
ShipWorks shipworks.com #102,988
Al Fares alfarescargo.com #380,023
PartnerShip LLC partnership.com #446,252
Ship Smart shipsmart.com #523,231
Frc Logistics Inc freightratecentral.com #577,006
Vehicle Shipping Services easyhaul.com #938,122
UPS Express Critical upsexpresscritical.com #1,142,289
Goin' Postal goinpostal.com #1,244,582
Animal Land petmovers.com #1,265,330

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 services 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 services 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 Services 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 services 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 services 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 services 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](https://www.thebalancesmb.com/do-i-need-to-collect-sales-taxes-in-my-state-398913)

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.

    Learn more about social media advertising ➜