How to Start a Delivery Business in Phnom Penh

How to Start a Delivery Business in Phnom Penh

At the same time, the online sales market in Cambodia is gaining momentum, making the shipping or delivery market and the mobile payment market are growing.

Currently, the light freight market in Phnom Penh is highly competitive between local and Chinese companies. By the time this article was published, the competition had reduced the shipping cost to 2,500 riels per package provided by Chinese company Best Express, while another Chinese company, Cambodian Express (CE), was presenting the competition form. Well done by offering a package price of $ 0.80 covering all 14 districts and free delivery to the place, even if there is a package and free of charge (COD) free of Zone. In addition, Chinese companies J&T and ZTO are also showing good competition.

Above is some information about the freight market in Phnom Penh, now we come back to our main topic. As the market becomes more competitive and you want to compete with less capital, so does your competitiveness. Here are the key points for starting this business.
With an initial investment of $ 500, you can start on your own with your own motorcycle, but we encourage you to start as a group, as you will not be able to afford the freight alone and you will not be able to afford it rather than hiring staff which cost a lot of money.

Related: 4 Best Skills to Learn For Making Money Online in Cambodia

1. Form up a team

In the process of providing delivery services, there should be at least three managers: the accountant, the person who collects the goods from the customer and the person who delivers to the destination. It requires that you have clear inventory management with your clients and shipping agents, and it would be better if technology and accounting professionals join your team.

2. Organize shipping operations

How will you start and end the service? For example, first, collect the goods from the customer (issue a bill to the customer), then bring them to your warehouse, then divide the goods that have a destination on the same street or nearby areas for each carrier (out A bill for the carrier) At the end of the evening, the shipping agent must pay the bill and finally pay the bill with the customer by transferring the money through the ABA bank account, where the data is recorded and computerized.

Starting with less capital, you may not be able to build websites and apps and open branches like many of the big companies, but your goal is to have them when you can manage and develop them well.

You will need a hood and a jacket with your logo on it. If you buy in Cambodia, the fabric tank costs about $ 35 for a large 62L, while the price of the jacket depends on the type of fabric you choose. But if you order from the Taobao website from China yourself, you can pay about $ 220 for 5 containers and 5 shirts with a pre-printed logo and including shipping to Cambodia through Loda or ZTO. It can cost as much as $ 20 to print a bill, depending on how many heads you need. So you have $ 240 leftover after spending on those items.

3. Business model

Pricing will affect your income. You can not choose the price competition with them, but you can choose to compete on convenience and confidence.

Related: 5 Way on How to Get More Online Reviews for Your Business

For example, you offer a package of 4,000 Riel in 10 Khans in Phnom Penh and 8,000 Riel for 4 Khans far away. Because you have less capital, you can not pay the staff salaries, so you can use the method of dividing the percentage to the carrier. For example, for the service of 4,000 Riel, you distribute 3,000 Riel to the carrier and the remaining 1,000 Riel to cover the expenses in the transaction.

The big companies mentioned above charge $ 0.80 / package without Zone because they have many branches to distribute the goods to the final destination, but for those with the same location to transport to different destinations in the city is not Can not cover the cost of gasoline and transport speed like them. In fact, they charge $ 0.80 to transport from Chbar Ampov to Khan Kambol, which you can not do like them.

4. Marketing

If you do not have a friend who sells goods online to be your first customer, you will have a hard time when the shipping agent has no goods to transport, which makes them unprofitable. So you need to think about this before you start because you will be stressed if you rely on spending money on Facebook to get customers because of both price and confidence, you can not grab customers online with big companies Many of those branches.

If you start with two shipping agents and you can attract your friends who are online sellers or business owners who need regular shipping, let’s say you get at least 20 packages a day, consider that A good start. Then try to maintain a good service profile, focusing on providing convenience to customers.

5. Development

You can no longer continue to use Ms. Word and Excel to record data and settle transactions with customers and shipping agents. You need to try to create a clear and fast management system and branch expansion, which depends on raising additional capital and revenue from shipping services.

It is not easy to jump into the online shipping market, especially starting from such a small, it requires a lot of patience and high intelligence to be able to stand in this stressful market.

In conclusion

Launching an online shipping service with less capital, the key is based on having an automated customer, that is, an online seller who has a relationship with you. If you know them better and can persuade them to become your customers, even if they are not successful, you can stay afloat and learn a lot from investing this small amount of money.

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