5 Reasons to Buy a Pack and Ship Business (2024)

Shoppingis easy today. You can go online and buy just about whatever you want, whetherit’s a high price point item like a new washing machine, or just a tube oftoothpaste.

Regardlessof the item’s size or weight, it can be shipped right to your front door.Thanks to this increase in online retail, the packing and shipping business isalso booming.

It’sbeing called the “Amazon effect.” Since more retailers are offering freeshipping (think Amazon Prime accounts), shoppers are indulging in small ad-onitems to reach minimum purchase requirements. U.S. trucking tonnage is atrecord highs, and FedEx and UPS recently raised their rates even though fuelprices are at record lows.

Shippingis a rapidly growing business opportunity and can be profitable for bothindependent businesses and franchises. For those who prefer a turn-key approachto business, a franchise like a UPS Store, can provide owners with quickearning potential in the postal and business services industry. For those whoprefer a more individual approach, many independent pack and ship businessesare also thriving.

Hereare 5 reasons to buy a pack and ship business now:

1.Lowstart-up costs

Theinitial costs for a basic packaging and shipping store can be minimal comparedwith other businesses with inventory, but choosing the right location is key.The best locations will have no competitors nearby, be on a main roadway andnear other businesses. To get started, you will need shipping and packingmaterial, shelving, a bar code printer and scanner, labels and label printer,shelving, computers, credit card readers and cash registers at a minimum.

2.Youhave an interest in logistics and shipping

Fast,efficient and safe shipping quality will be important to maintain. Conveniencewill surely be an important a factor for your customers, so make sure they canget in and out of your store quickly. Set up accounts with the postal serviceand other major shipping companies so that you have options to present to yourcustomers. UPS, FedEx and DHL are the leaders in the industry but also considerlocal trucking companies and courier services to expand your shippingofferings.

3.Youhave an interest in growing your business with additional services

Aswe mentioned before, convenience is a factor for customers, so consideroffering value-added services to make your pack and ship store a one-stop shop.Here are some services that you can consider adding on when the time is rightfor your business:

·Fax,laminating and photocopying services

·Mailboxrentals

·Moneyorder and wire transfer services such as Western Union

·Officesupplies

·Shippingand packing supplies

·Personalservices such as notarization or gift wrapping

4. You have aninterest in networking to build your business

Aquick way to grow your business will be through partnerships with otherbusinesses. Consider offering a daily, low-cost package pickup to nearbybusinesses. Take that concept even further by adding on-call services. When abusiness has a package that needs to be shipped, you take care of it on anas-needed basis.

5. You LoveCustomers

Exemplarycustomer service will keep your customers coming back for their packing andshipping needs so make sure your staff is well trained and courteous.

Formore information on these types of businesses currently available for sale,check out our listings formail services businesses atBusinessesForSale.com.

Thisarticle was contributed by BusinessesForSale.com, the market-leading directoryof business opportunities from online media group Dynamis.

5 Reasons to Buy a Pack and Ship Business (2024)

FAQs

5 Reasons to Buy a Pack and Ship Business? ›

In recent years, the explosive growth of eCommerce has led to many new, supporting businesses in the logistics space. One type of operation helps sellers by storing, packing, and shipping sold goods, and such a pack and ship store business plan can quickly turn into a very lucrative affair.

Are pack and ship businesses profitable? ›

In recent years, the explosive growth of eCommerce has led to many new, supporting businesses in the logistics space. One type of operation helps sellers by storing, packing, and shipping sold goods, and such a pack and ship store business plan can quickly turn into a very lucrative affair.

How profitable is shipping business? ›

A courier service provider has a ~5% operating profit margin (EBITDA margin) after operating costs (salaries, rent, etc.) have been incurred. Indeed, there are various recurring costs involved in running a shipping business.

What is a pack and ship business? ›

The pack and ship industry has become increasingly vital in the era of e-commerce and online shopping. A pack and ship business offers services like packaging, shipping, mailbox rentals, document copying and shredding, to both business and residential customers.

How do mail stores make money? ›

Store operators use these carriers to offer shipment services such as ground, express, international and freight. In addition, most stores generate revenue from the cost of packaging items for customers.

What shipping company makes the most money? ›

World's leading companies in the logistics industry by sales 2022. The top three logistics companies worldwide in 2022 operated as air couriers, with United Parcel Service generating the most revenue from sales with 98.55 billion U.S. dollars.

Is selling packaging profitable? ›

Today, the global packaging industry generates $500 billion yearly. By 2024, it is estimated that the global digital printing packaging market will reach $28 billion. All these things indicate that the industry has a good deal of business opportunities to offer.

How much do shipping store owners make? ›

How much does a UPS Store franchise owner make? The UPS Store Owner's average profit per year is approximately $100,000. It takes "about $365,000 in annual gross sales" to produce a modest "$35,000/yr income for the owner" and "about 60% of all US stores do not break even."

How much does it cost to open a shipping store? ›

How Much Does It Cost to Open a The UPS Store?
Name of FeeLowHigh
Start-Up Supplies$6,180$9,155
Utility Deposits$200$3,000
Insurance$1,000$5,000
Additional Funds - 3 months$40,000$70,000
19 more rows
Jul 29, 2022

Are shipping companies doing well? ›

The transports industry remains under a cloud of uncertainty. The Covid boom fueled a major stock rally, but it was followed by a freight recession, overcapacity in ocean shipping and trucking, and now a sector rebound in a strong economy.

What is pack and ship guarantee? ›

If a participating The UPS Store® location packs your item using only new materials purchased at that participating location, and ships the package via UPS or USPS (on that participating location's applicable UPS or USPS account) and that item is damaged or lost in transit, you'll be reimbursed*:

How to start a pack n ship business? ›

Below are several things to consider when opening a packing and shipping store startup.
  1. Market Research. Perform market research in your area and prepare a market research report. ...
  2. Choose Your Strategy. ...
  3. Write a Business Plan. ...
  4. Licenses and Permits. ...
  5. Find a Location. ...
  6. Purchase Your Equipment. ...
  7. Shipping Logistics. ...
  8. Market Yourself.

Are mailbox stores profitable? ›

Profitability. Most mailbox rental businesses can achieve profit margins between 30-50% after 1-2 years in business.

Are mailbox rentals profitable? ›

Sure, renting a home for that size gives you some recurring revenue. But this is one instance where you shouldn't think big. You can rake in far more with a 1200 square foot mailbox store than you would by renting one house that size! Renting out only 100 mailboxes for $20/month would net you a $2K a month return.

Does USPS make a profit? ›

WASHINGTON - The U.S. Postal Service today announced its financial results for the 2023 fiscal year ended September 30. The net loss totaled $6.5 billion, compared to net income of $56.0 billion for the prior year.

How much can you make shipping? ›

As of May 6, 2024, the average hourly pay for a Shipping in the United States is $19.70 an hour.

Is owning a UPS store profitable? ›

According to reliable sources, it takes about $365,000 in annual gross sales to produce a modest $35,000/year income for the owner. About 60% of all US stores do not break even. In other words, you will not see any profit until your UPS Store does over $30,000/month in sales consecutively every month.

How much can a cargo ship make a year? ›

Cargo Ship Salary
Annual SalaryHourly Wage
Top Earners$75,000$36
75th Percentile$50,000$24
Average$43,812$21
25th Percentile$34,000$16

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