Parcel delivery franchises – what are the opportunities?

With a continuing boom in e-commerce, it’s not surprising that the parcel delivery industry is thriving, or that FedEx want a bigger slice of it.

While FedEx and TNT are two of the largest global courier and parcel delivery businesses, the bucks aren't just in big business – smaller parcel delivery franchises are enjoying a lucrative share of the market.

We take a look at opportunities in the parcel delivery franchise industry.

Mail Boxes Etc.

Not only do Mail Boxes Etc. have over 1,500 stores in five continents; they are also a recognised and trusted brand with a large team of experts. Having been a high-street name for 35 years, they are confident in the industry.

There are multiple revenue streams; for example auction room delivery, student luggage delivery, printing, and mail box rental.

No prior experience is needed to become a franchisee (though they are expected to be ‘independent, committed, positive-minded people who want to make a success of their business’) and a support package is provided, including:

- Pre-opening, site location and lease negotiation

- Finance assistance and business planning

- Area operational support

- Training

- National marketing support

Key clients of the brand include auction house Sotheby’s and Nike, and they are full members of the BFA (British Franchise Association).

‘Having been involved in a business venture before, I understand how difficult and complicated it can be to set up your own business,’ franchisee Karl Lowe says.

"This time, I was looking for something with a brand, structure and organisation behind it. I liked the idea of working in partnership and developing a business through franchising. I decided that Mail Boxes Etc. would fit with my existing skillset and I liked the idea of the different services they provide."

An initial, up-front investment of around £60,000 is required to become a Mail Boxes Etc. franchisee, though up to 70% can be funded by a high-street bank. In this case, the initial personal investment will be around £20,000.

Pack & Send

Having originated in Australia in 1999, the Pack & Send franchise began trading in the UK in 2009. The business prides itself on the simple slogan ‘We Send Anything, Anywhere!’ and aim to provide low-cost solutions that meet any deadline for their customers.

Pack & Send were recognised by PwC and the Franchise Council of Australia as the 2007 Australian Franchisor of the Year, and are also accredited by the BFA.

Primarily, Pack & Send are looking for franchisees who are highly motivated and are willing to provide a ‘no limits’ service to customers. They also provide intensive initial training over four weeks and additional labour in the store during the first weeks of trading.

"Pack & Send is a physical business that is not going to be killed by the internet", franchisee Richard Webb says. "I like the concept and the fact that it’s new to the UK – that makes it a risk but also a great opportunity".

"Like all franchises, one gets a territory of an agreed size but, as Pack & Send is fairly new and the concentration of stores is not yet that high, to all intents and purposes I can operate in a much bigger area. It’s a high gross margin business based on service, innovation and delivery and there just aren’t many companies nation-wide that have our skills and ability – we offer a retail service that fills a gap in the market between the high volume corporate contracts offered by the freight companies and the discounted but basic delivery services available to consumers."

A minimum investment of around £100,000 is needed, which Pack & Send can provide advice on bank financing and business planning for.

If you’re interested in the parcel delivery franchise industry, take a look at opportunities available on our site.