- You do not have any fixed costs in the form of employee’s salary. Regardless of the amount of deliveries that you require for a particular month, especially if you just started, a deliveryman can be a big portion of your costs and can potentially disrupt your company’s growth and positive cash flow as a result of that. The most important things to an E-commerce business success is cash flow in the beginning. Hiring a deliveryman and incurring fixed costs will potentially break your business. However, with a courier company as your partner in SG, you will only have low variable costs instead of having high fixed costs!
- You do not have to plan your employee(s)’ leave schedule and for any unexpected medical leaves by them. These are all human resource problems that you would face if you were to hire your own deliveryman instead of engaging courier services in Singapore. You would need to handle their salary and CPF payments as well. As an E-commerce business owner in Singapore, you should focus your efforts on growing your business and making it a sustainable, long-term business instead of things such as delivering your items one by one to your end customers.
- Leasing or renting a vehicle, e.g. a van, in Singapore can be really expensive. This is especially the case if you were to factor in the petrol expenses as well. This is why it is highly not recommended for most E-commerce businesses to lease their own vehicles and perform their own deliveries. You would have to make at least well over 100 deliveries a month to simply break even. It is highly recommended that you outsource your product distribution to a reliable company like www.PCAMasters.com instead.
- Some business owners in Singapore may argue, and say that they have less control over the distribution and customer service experience because they outsourced their deliveries. However, before you argue that as well, one important question you must ask yourself is: Do you want growth and big success or do you want to be a control freak and stay small? If your goal is to get a big company, then there will definitely things which you will need to outsource or you would not be able scale quickly and in a sustainable way. To best grow a business in 2016 and beyond, it is ideal for you to focus heavily on your competitive advantage and outsource everything else. You would definitely not have as much time nor ability to drive your costs down and/or your efficiency up in terms of deliveries compared to courier companies in SG, so you might as well let them do the hard lifting work for you while you look after your customers and products instead.
In conclusion, it is highly recommended from a financial point of view for you to outsource your E-commerce deliveries to a courier services company.