Logistics business is a kind of business that has to do with procurement, distribution, inventory, maintenance, replacement of personnel materials and information to achieve organizational goals. It involves getting products and services from a supplier or manufacturer to a consumer. In this post we shall be focusing on how to start a dispatch rider business in Nigeria. It is different from setting up a courier company.

The number of Internet users in Nigeria are currently more than 100 million and more than 40% or so have done one or two online transactions within the past one year. This explains the potentials hidden in E-commerce business and it is growing in strength everyday. We are talking about now where we are facing challenges in the nation’s economy. Such challenges as a drop in the price of crude oil and the weakness of naira against dollar.

You can give any name you like to logistics business. E-commerce businesses are on the rise because of the rising number of Internet users. In fact business minded persons who do not have online presence are missing out and it won’t take long before everyone begins to tour this line since nobody will want to be on the losing side.
We have few online retail stores that are running services to match with the rising e-commerce growing markets examples are; Konga, Jumia, Jiji etc The advent of ecommerce and online buying of products and services have created opportunities for other key players in the sectors example is logistics business.
Almost all the E-commerce stores depend on logistics for effective delivery.

WHY LOGISTICS AND DELIVERY BUSINESS?

There are huge profits derived from logistics business and if you do it well, you will succeed in E-commerce business. The opportunities in delivery business is huge, many online stores keep increasing every now and then. And all or most of them requires the services of logistics business owners.

Before now clothes, shoes, agricultural products and services where available in online market. But now we are face to face with cooked food delivery business. That is why you will make good money in logistics business.

HOW TO START A DELIVERY BUSINESS IN NIGERIA

Get an office space, purchase a bike (200c) as recommended by Lagos State Government. Esquire to know what is obtainable in your location if you are not in Lagos. Write a letter to the State Ministry of transportation to collect okay paper, Your bike will be inspected by VIO. You will be required to bring the bike for inspection before the paper can be given to you.

After receiving the paper you can then register with any vehicle registration centre that is close to you. Draw out your logistics business plan as it fits your country Nigeria or anywhere you are. Bike delivery business is lucrative but you have to know the pros and cons before you start.

To get permit to do logistics business you need State Government. But when you want to start couriet business you have to get licence from Nipost. The money for logistics permit is just a few thousand while that of courier is in millions.

EQUIPMENT FOR LOGISTICS BUSINESS

Cargo bike
Mobile phone
Space
Computer
Software
Stationery
Items for keeping records
Dispatch box

STEPS TO START BIKE LOGISTICS BUSINESS IN NIGERIA

Consider these things:
Capital
Space
Social media platform
Dispatch riders
Business plan
Get licence
HOW MUCH DOES IT COST TO START A LOGISTICS BUSINESS
Logistics business requires a reasonable amount of money for the purchase of equipment and for man power but with #400,000 you can start the business. #360,000 can purchase a good bike and equipped with plastic container for the products carriage.

Bike is very convenient for logistics business because it can easily move around traffic (meander its way in and out of traffic) than a car would have done. Run a comprehensive insurance on the bike to avoid situations in case of eventuality. Delivery box is #26,000. You can buy in Oyingbo if you are in Port Harcourt.

DISPATCH BIKE RIDER
After the motorbike, the rider is another most important person to consider. Because without a good rider logistic business may crash.

He must be someone who knows the nook and crannies of the area to be covered.
Must be someone who is ready to work and have good manners including phone manners.
Since he will be handling cash and other products, he must be very honest.
PHONE
Phone is needed for communication with the buyers. So give the rider one phone to create contact with the buyers and to also communicate with you when the need arises.

STORE
You can start from the comfort of your home, however to make it official and serous you can acquire a space for it and employ one or two staff.

SOCIAL MEDIA PLATFORM
Use social media platform to attract more econmerce stores and online merchants. Use Facebook, Instagram, twitter and website to tell people about your logistics business. In fact people looking for your kind of services can easily find you.

BIKE LOGISTICS BUSINESS PLAN IN NIGERIA
Don’t fail to draw a business plan for your delivery business. It should include areas to cover, amount to start with and projection for the future. Lets write your logistics business plan for you. Call: 07066986587

HOW TO SET CHARGES IN LOGISTICS BUSINESS
Let’s take Lagos delivery for instance; you can deliver goods anywhere in Lagos at the cost of #200. But a typical delivery in Lagos cost #500 and logistic outfit charges more. For a start you can charge #500 as a flat rate for any location. Since you will be delivering in volume the cost can be spread out.

But as the number of customer increases you can then set different charges according to locations.

PROFITS IN LOGISTICS BUSINESS

Assuming you have about 10 businesses that uses your service and each sales 100 items averagely in a month. This means in a month you will have 1,000 deliveries. If you enter agreement with the companies to charge #400 for 1kg of item to deliver around Lagos or your location, in a month you will realize #400,000 for 1,000 items delivered.

location, in a month you will realize #400,000 for 1,000 items delivered.



By the time you deduct expenses like; fuel, recharge cards, engine oil, salary, bike maintenance maybe plus miscellaneous you will have about #200,000 as a take home pay for a month.

LOGISTICS COMPANY IN NIGERIA
JonKelly Logistics Limited
Simplified Corporate Logistics
Fromix Logistics
GIG Logistics
Max Logistics
CHALLENGES OF LOGISTICS BUSINESS
Factors that affects e-commerce deliveries are:

People make orders for what they don’t want or change their minds about it. And will refuse to pick your calls when you have reach their location. Thereby wasting your time and fuel money.
Some customers have attitudes, they will tell you the item you brought is not the same with what the saw online. As because of that you can’t claim your money because they wouldn’t pay.
Unnecessary delays from some of the clients when you go for deliveries. And you will end up delivery less than your target for the day.
MARKETING
Advertise your logistics business both online and offline. Look for ways to get to online merchants and individuals that sell products on social media platforms.
Reach out to companies, agencies and businesses that will require your services. Some of those outfits include; Kaymu, Dealdey, Konga and online food vendors, where merchants are allowed to self fulfil.

Lets write bike logistics business plan for you. Call:07066986587

Do live in Port Harcourt, Rivers State? Are you a Sea food lover. I gat you..

Do you run a food (restaurant) business, we gat you. If you are into food business,

we'll give you
* fish, *crayfish * periwinkle and meat on credit for you to pay us later depending on how you want it. Just call us today.. on 07066986587
Thank you seun and all the naira land team for this awesome platform.

Do live in Port Harcourt, Rivers State? Are you a Sea food lover. I gat you..

Do you run a food (restaurant) business, we gat you. If you are into food business,

we'll give you
* fish, *crayfish * periwinkle and meat on credit for you to pay us later depending on how you want it. Just call us today.. on 07066986587

Pls I want to partner with any good logistics company I have my bike already

U can partner ur bike personally wit gokada, GIG, Kwik, rapid, hilla dey will give u app just like Uber dey will take dere 20 % commission
08038131187