In the trend of starting up new businesses in the logistics industry, especially after the pandemic hit us that developed the habit of convenience is unmeasurable. One of them is the Couier delivery business. Whether you’re purchasing groceries, shopping for clothes, or retrieving a forgotten charger from a location, you can turn these actions into business opportunities by providing a service. Almost 25% of customers are willing to pay a hefty premium for the benefit of same-day or quick delivery. In case you are here with any similar plans of starting a parcel delivery business and wondering how to earn money in Courier Delivery Business, this blog is for you!
The business model in courier delivery business where you act as the middleman that connects the customers and the service providers with a specific Courier delivery app as a marketplace for users to search, request, and avail services of package deliveries is called Aggregators. Here are the ways in which you can know how to earn money in courier delivery business as an aggregator.
1. Commission-based income:
This is the way in which you can charge a commission of a particular amount or percentage for every order that you process through your courier delivery app. Most of the time, this amount is deducted from the courier delivery service provider’s side by the aggregator. Though the delivery service provider provided the service, since the order was from your Courier Delivery App, the courier service agencies are obliged to pay you the commission.
Example:
- Postmates (courier delivery aggregators) which is now a part of UberEats follows a commission-based model where they charge the courier delivery agencies to earn income.
2. Subscription-based Income:
In this model, either customers or service providers pay a recurring subscription fee for perks. The courier service providers pay a fixed subscription fee to be a part of your Courier Delivery App Software to get orders from customers. Customers tend to get subscription packs for perls like faster delivery, etc. Both can be an advantage in the aspect of earning money in courier delivery business.
Example:
- Amazon has an Amazon Prime Annual subscription and allows fast delivery within 2 days for selective products for consumers.
- Though, Amazon is a retailer it also works as a courier aggregator with Amazon Flex which is another example.
3. Freemium Income:
Freemium is one of the sources of income, where you earn money in courier delivery business by letting your customers buy premium packages for availing of perks like free delivery, no surge charge, offers, coupon codes, etc. for a fixed time period as validity. All general users can use the basic features, but to access exclusive features as mentioned earlier, customers must pay a subscription fee or an additional payment. This can also be a source of income in running a courier delivery business.
Example:
- Doordash is a food delivery aggregator, it offers a subscription pass called DashPass, which offers free delivery with some other benefits as well. The free users can still use the app but will have to pay the delivery fees.
4. Advertising and Promotional Charges:
While you act as a mediator between the customers and the courier delivery service providers, with a solid foundation of courier delivery app development, you can have features of promotional spaces in your app for advertising agencies and their brands. Service providers can pay you for this because you display their brands to your customers.
Example:
- Swiggy is a food delivery app that displays Restaurants in their dedicated promotional areas of app
- Swiggy also displays the ads of Instamart, an extended grocery delivery service.
Conclusion:
While it is true that your service might seem a bit expensive with delivery charges, surge charges, subscription fees, etc. to your consumers, it is the brutal truth that there are audience to buy the service. Because people prefer the convenience of getting things delivered right in front of their doors. And that’s exactly what builds the scope to increase sales and revenue. With a well-planned foundation of business with dynamics, competition, strategies, and a strong courier app development solution, you can answer the million-dollar question of how to earn money in courier delivery business, in action!
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