eCommerce is one of the biggest parts of the US economy, and one of the brightest. In a report in 2018, it was reported that eCommerce in the US had grown by another 16%.
What this means is that these businesses need to focus on logistics as they grow larger. Internet logistics is a growing business sector with a variety of business opportunities associated with it.
So, if you want to start an Internet logistics company, here’s how to do it.
Focus on a Niche
In traditional logistics, there are nine different areas of logistics that you can focus on. Domestic logistics is expected to grow as a whole by 10% in the next five years, so there’s no one area you should exclusively focus on.
Don’t try to cover every area of logistics. Instead, you should focus on a single niche that separates you from the crowd.
For example, 3PL Links is a Toronto-based logistics company. They’re known for their cross border and international logistics services. They focus heavily on facilitating good logistics across both the US and Canada.
So, what’s your company’s unique logistical selling point?
What Matters Most to Your Customers?
Every industry differs when it comes to what their customers expect. The key to starting a great Internet logistics company is dependability.
Your customers ultimately want to be able to depend on you to make things work. They’re not as concerned about the price or the speed. Quality and dependability are the two characteristics that matter most. Focus on those aspects of your business.
Which Businesses Are You Providing Logistics For?
Logistics differ heavily depending on who you’re working with. If you’re working with an online firm selling marijuana-based products, then you have to take into account customs, paperwork, and all the additional restrictions governing these products.
Helping a t-shirt printing firm with their logistics comes with much less bureaucracy. As do many other more conventional businesses.
The point is that you need to know your niche inside and out. You should understand and, preferably, have direct experience with the companies you work with.
How Are You Going to Raise Capital?
Even though you’re working in Internet commerce, there are still costs that have to be met. This is a competitive industry, so it’s not always the right option when it comes to looking for traditional investors.
Instead, the Small Business Administration (SBA) offers low-interest loans to entrepreneurs who can present a convincing business plan.
Spend a lot of time going through your business plan to ensure that you’ve estimated everything correctly and that your idea is viable.
Last Word – Remember, the Odds Are Against You
Do keep in mind that you need to work on separating yourself from the crowd. The odds are against anyone starting a new business in any industry.
Be prepared to have to put your all into it. This is not a simple proposition and you’ll have to work long hours to make it happen in this highly competitive field.
Do you want to start an Internet logistics company?
