DealFinder:

Nigeria currently has about 90 million internet users, out of which half have carried out at least 1 online transaction within the past 12 months. A clear picture of the potentials in Ecommerce business and the growth prospects. This is even as the economy seems to be contracting due to fall in crude oil prices, and the crashing of the naira against the dollar.

Statistics like these have given rise to a number of Ecommerce businesses rising to service this growing market. Online retail stores and marketplaces are a common site, and anyone can mention some of them off the top of the head. With these come opportunities for other players in the sector, and one such opportunity is logistics.

It may surprise you to note that the bane of most Ecommerce stores is logistics. When you hear that an online store is downsizing, laying off staff, retrenching, the root cause most often is logistics. And it is always obvious in the way they eventually restructure their organization.

First it was Konga, where they separated K-express services from the Konga online stores. They had initially wanted merchants to pay before shipping their orders, but the negative response made them change their mind. Jumia used to do pick up from the merchants' location, but now you have to drop off in their warehouse closest to you. Dealdey had a warehouse where merchants supplied products ordered, but now it's a case of self fulfillment.

The list goes on and on. An experienced IT personnel once stated that if you can get logistics right, you'll do excellently in Ecommerce. There are huge prospects in Ecommerce logistics and delivery. I would like to highlight certain information required to get you started in this business, and if properly managed, will ensure financial success.

Logistics, simply, is the branch of business that deals with the management of procurement, distribution, inventory, maintenance and replacement of personnel, materials, information to achieve an organization's goal. It deals with all the actors and activities involved in getting products and services from a supplier to the consumer. It is also actively involved in the manufacturing and production processes.

However, logistics in Ecommerce does not include production, just the movement of products and services from the seller/ merchant to the buyer. It includes information/ communication with buyer, movement of products, inventory, cash handling, between the seller (or outsourced logistics/ delivery outfit) and the customer.

Logistics requires quite a substantial outlay of capital for equipment and man power, but a scaled down version can be started with less than N300,000. With this amount, you can buy or build a cargo bike, get mobile phone(s) for communication, stationery and other items needed for keeping your records.

With between N220k to N250k, you can get a good motorbike equipped with the plastic container to carry the products. Driving around Lagos is quite hectic, but with motorbikes, one can easily meander through the traffic. After the motorbike, the rider is the next most important factor to consider.

The rider is so important that the person you choose may make or mar the project. The rider has to be ready to work, conversant with Lagos cities, possess good phone manners (you'll have to train him), must be honest cause he'll handle cash, and also products.

You need at least 1 mobile phone for the rider to make contact with the buyers. If you're the one managing the outfit, you'll also need to be in constant touch with the rider in case the need arises. Other stationery can be acquired along the way. If you have more to invest, you can consider getting a space, computer, software and 1 or 2 more staff.

From my discussions on a logistics trainer/ consultant, it is possible to deliver an item anywhere in Lagos at the cost of N200. With the added benefit of delivering in volumes, this cost can be conveniently reduced as the cost would be spread out. If you have a smart and efficient rider, you can considerably reduce overhead expenses.

A typical Lagos delivery cost N500. The logistics outfit charges that much to deliver around the state. Some charge more to deliver at the extremes of Lagos eg. Ikorodu, Agege, Okoko, Alaba International. As a new entrant, you can maintain a flat rate of N500 for the time being.

Good places to get sellers who will use your service are Konga, Kaymu and Dealdey, where merchants are allowed to self fulfill. For instance, 2 of my stores sell an average 100 items monthly. The delivery outfit handling this just needs to get 9 more customers like this, and they're sure of about 1,000 deliveries monthly.

There's an arrangement with Dealdey, and the delivery company charges between N300 to N400 for 1kg delivered around Lagos. That translate to

1,000 (deliveries) X N300 (minimum delivery charge) = N300,000

monthly in revenue. Of course expenditures like fuel, oil, recharge cards, bike maintenance , rider's salary, miscellaneous will be deducted from revenue. If you're able to beat down cost efficiently, it's possible to go home with between N50,000 to N150,000 a month.

For your marketing, you have to devise creative ways to reach out to online merchants. You are only limited by your imagination.

What about the fees you need to the various local government touts that litter the roads and pester dispatch riders for money?

Have you factored it in?

SavageResponse:


What about the fees you need to the various local government touts that litter the roads and pester dispatch riders for money?

Have you factored it in?

I started with this advice about 3 years back. All those fees from touts are stuff you tend to learn on the job. The figures he gave are obviously no longer valid today but it was a good starting point.

I've learnt so much over the years that I have decided to write an ebook to help anyone who wants to get into this.

And yes, I will sell the book when it's ready. If you're good at something, don't do it for free.

But as is the case of those who contact me for advice, I will still give like I've been doing so far.

“1000 Miles Logistics Limited” - please call us on 08090855679 for your parcel pick up and delivery service within Lagos.

pclever1:
Averagely N40,000

Ok thank you

Palantir:


I started with this advice about 3 years back. All those fees from touts are stuff you tend to learn on the job. The figures he gave are obviously no longer valid today but it was a good starting point.

I've learnt so much over the years that I have decided to write an ebook to help anyone who wants to get into this.

And yes, I will sell the book when it's ready. If you're good at something, don't do it for free.

But as is the case of those who contact me for advice, I will still give like I've been doing so far.

Permission to PM sir

Awesomemama:


Permission to PM sir

You are welcome to

Viruses:

Contact me. ONLY if you are serious and ready.

I can guide you to some extent if you want to be on your own or you can partner with me to expand my fleet of bikes as my customer base has grown, in which case we co-own

Kind sir, please can I contact you as well as I am about starting. I would appreciate some form of guidance

SavageResponse:


What about the fees you need to the various local government touts that litter the roads and pester dispatch riders for money?

Have you factored it in?

Guess that responsibility falls on the would-be logistics provider.

I'm sure each state have their own fees structure.

If you can find out the fees in your location please share for all.

Palantir:


I started with this advice about 3 years back. All those fees from touts are stuff you tend to learn on the job. The figures he gave are obviously no longer valid today but it was a good starting point.

I've learnt so much over the years that I have decided to write an ebook to help anyone who wants to get into this.

And yes, I will sell the book when it's ready. If you're good at something, don't do it for free.

But as is the case of those who contact me for advice, I will still give like I've been doing so far.

Congratulations

DealFinder:


Congratulations

I haven't seen you on this thread since the last time the earth was flat!

Hope you are good?

Based on the number of people and types of questions I have been getting, I have put together this e-book to help anyone who wants to start a delivery service.

The book is complete with all the information you will need to know, costs and prices of many components and ideas and advice that can help you succeed in yiur enterprise.

Price is N10,000. [s]But I will give the first 5 people who indicate by email at N2,000[/s]

PM me your interest.

https://1drv.ms/b/s!Ajk2xcOuiD2QgfhXmljSgMCIrUWy2w

Palantir:


You are welcome to

Thank you

Palantir:

I haven't seen you on this thread since the last time the earth was flat!

Hope you are good?

Very very good, thank you

brendaduruaku:
I can boost of up to 300 delivers last month

Can I send you a mail please ?

Palantir:
Based on the number of people and types of questions I have been getting, I have put together this e-book to help anyone who wants to start a delivery service.

The book is complete with all the information you will need to know, costs and prices of many components and ideas and advice that can help you succeed in yiur enterprise.

Price is N10,000. But I will give the first 5 people who indicate by email at N2,000


PM me your interest.

https://1drv.ms/b/s!Ajk2xcOuiD2QgfhXmljSgMCIrUWy2w

Just sent you a mail now, please reply.

Palantir:
Based on the number of people and types of questions I have been getting, I have put together this e-book to help anyone who wants to start a delivery service.

The book is complete with all the information you will need to know, costs and prices of many components and ideas and advice that can help you succeed in yiur enterprise.

Price is N10,000. But I will give the first 5 people who indicate by email at N2,000

PM me your interest.

https://1drv.ms/b/s!Ajk2xcOuiD2QgfhXmljSgMCIrUWy2w

Interested, I sent you a message. Please respond.

Gharnew112:




Just sent you a mail now, please reply.

Darling4:




Interested, I sent you a message. Please respond.

Replied

Palantir:


You are welcome to

Sent you a message sir

Awesomemama:


Sent you a message sir

I replied you

Palantir:


I replied you

.

Palantir:


I replied you

Didn't get it, probably have issues with my NL email
Can you please 'hi' me on

Awesomemama:


Didn't get it, probably have issues with my NL email
Can you please 'hi' me on

Send a mail

Palantir:


Send a mail to

Done. Please edit my number from your previous post
Thanks

I have gotten a larger number of requests for my book than I expected as well as the continued interest in this thread that I feel I have to make a number of caveats.

1. I am not the guru at setting up and operating a delivery company as an SME. I am sure there are steps I have taken and things I have done that many people will know how to do better. But I enjoy what I do, and helping people get better is something that gives me a level of fulfilment. So I'll keep doing it.

2. There is such an interest in this business that some could legitimately say the business is getting saturated. I am not saying that. My fear is that many people think it is a lot easier that it actually is and may end up biting more than they can chew.

Any business in Nigeria that involves transportation is EXTREMELY difficult. Do not go into this unprepared. Do not assume it will be smooth sailing. Like any other business, you will need managerial skills to succeed.

So why this is a valid business endeavour, don't get into it lackadaisically. Be prepared, be focused.

Palantir:


Send a mail

Made payment for the Ebook..... check your mail

Gharnew112:



Made payment for the Ebook..... check your mail

Sent

Please who knows how much MOT papers is for this kind of business?

Palantir:

I haven't seen you on this thread since the last time the earth was flat!

Hope you are good?

Can you drop your WhatsApp please?

I cover warri delta state although I don't have bike but I do up to 25 delivery a week and all are pay on delivery anyone interested in partnering with me chat me up via WhatsApp 08030622128

I handle pay on delivery in delta state I have 7 companies am handling pay on delivery for you can try me and see for yourself