Do you want to start a bike logistics and dispatch rider business in Nigeria from home and online to earn money daily, equipment needed, and basic requirements?
If YES, then this is the only post to read.
In recent times, people are becoming more acquainted with shopping on the Internet, and this has led to a massive advancement in e-commerce business.
Because the e-commerce business is fast growing, especially in Nigeria, people always need to move their goods from the vendor’s destination to that of the customers.
Now, here is where the importance of the logistics business in Nigeria steps in.
Starting a logistics business in Nigeria should be one of your business ideas in this time and era.
The industry can help you make so much money if you put in the required effort.
We know by now you already have questions like, how do I start the business?
The logistics business is the backbone behind every internet business and shopping.
They play a vital role in virtually everybody’s life. It doesn’t matter if you are a drop shipper or just placing an order on Amazon, Jumia, AliExpress, etc.
The logistics companies ensure the goods get to your doorstep and are in good condition.
Aside from transporting goods from the sellers to the buyers, their services extend to packaging, warehousing, transportation, and shipping.
Types of Logistics Companies in Nigeria
1. Courier Companies
We know that before now you’ve been hearing; I gave my goods to DHL, FedEx, or even Red Star Express.
They are some of the popular logistics businesses in Nigeria that help people deliver small packages and documents.
They are known as courier companies, providing services both locally and internationally.
2. Freight Forwarding Companies
Freight forwarding company is the type of logistics business in Nigeria that helps firms with transporting their goods.
Their services include air freight, road freight and ocean freight.
They function as customs service clearance agents and other services that are in line with goods’ transportation.
There are existing freight forwarding companies in Nigeria you should check out: GWX, LXGlobal, Fortune, Global Limited, etc.
3. Warehousing and Distribution Companies
Warehousing and distribution companies help store and distribute various services for many businesses.
They work with different sizes of businesses by assisting them to keep and distribute their goods to customers.
You should check out logistics companies like WACOT and VDS Global to see how the industry works.
There are more than just three types of logistics businesses in Nigeria you can try out.
However, we made these three available.
Steps to Starting Logistics Business in Nigeria
Here are the steps to start a profitable logistics business in Nigeria:
1. Research on the Logistics Industry
The first thing to do when planning to build a logistics business is research.
You need to learn everything about the industry.
If not everything, 80%, how they get customers, register their companies, etc.
During the research stage, you get to find out the type of logistics business you would prefer to start and who your target audiences are.
2. Business Plan
Craft a business that details everything about the company, from the executive summary to the business description, products, business goal, marketing aim, operation and management, and financial highlights.
Don’t say I am starting small.
Even at that, draft out all the things needed and expect expansion.
3. Business Name Registration
Get a catchy business name that is in line with what your business does.
Build a business logo, and make sure it reflects your business and the services you offer to clients.
4. Get a Location, Equipment and Hire Workers
Getting a suitable location and equipment and hiring workers is essential to starting a logistics business in Nigeria.
You should get most of the equipment needed for running a logistics business in Nigeria to enable efficiency.
Even if you don’t have the money for the highest qualities, go for brands you can afford.
Also, if you are having issues with finances, consider a partnership or loan to enable you to raise the capital you need.
5. Starting Publicizing Your Business
Finally, it’s time to publicize your business since everything is already in place.
Start marketing to your target audiences through fliers, posters, banners, social media posts, and influencer marketing.
Remember that your marketing strategy is one thing that determines your business growth.
Define your market, create a strong and consistent online presence, and network with people.
Who knows, they might become your next biggest clients.
Offer your customers competitive prices they can’t get anywhere but pay attention to quality service more.
Partner with other local businesses that are into e-commerce, and don’t forget to advertise on social media and attract customers through discounts and promotions.
Logistics Business Cost
The cost of starting a logistics business in Nigeria will vary depending on several factors, including the size and location of your business, the type of delivery bikes you purchase, and the level of service you provide.
Expect to spend within ₦500k to ₦10m to start your logistics business in Nigeria.
Requirements for Logistics Business
The requirements for a logistics business vary depending on the size and scope of the business, as well as the specific services that it offers.
The general requirements that all logistics businesses must meet include:
1. Business Registration
All logistics businesses must be registered with the government agency.
In Nigeria, this is the Corporate Affairs Commission (CAC).
2. Licenses and Permits
Depending on the type of logistics services offered, businesses may also need to get additional licenses and permits from the government.
For example, businesses that transport hazardous materials may need to get a special permit.
Logistics businesses typically need to have insurance to protect themselves against financial losses in the event of an accident or other unforeseen event.
4. Physical Infrastructure
Logistics businesses need to have physical infrastructure, such as warehouses and transportation equipment, to support their operations.
Logistics businesses need to use technology to manage their inventory, track their shipments, and communicate with their customers.
6. Trained Staff
Logistics businesses need to have trained staff to operate their equipment and provide their services.
How to Start Logistics Business in Nigeria without Money
Starting a logistics business in Nigeria without money can be challenging, but it is possible.
Here are a few tips:
1. Start Small
Don’t do too much too soon.
Start with a few customers and a small service area.
As you grow, expand your services and customer base.
2. Become a Bike Messenger
This is a great way to get started in the logistics business without a lot of money.
You can start by delivering packages for local businesses or for individuals.
As you grow, you can invest in a cargo bike or a small van.
3. Become a Personal Shopper
This is a great way to use your logistics skills to help others.
You can start by offering personal shopping services to individuals in your local area.
As you grow, you can expand your service area and offer personal shopping services to businesses.
4. Partner With Other Businesses
Partner with other businesses, such as e-commerce websites and retail stores, to offer logistics services to their customers.
This can be a great way to get started without having to invest in your own fleet of vehicles and warehouses.
5. Use Technology
There are several technology solutions that can help you start and run a logistics business without a lot of money.
You can use a transportation management system (TMS) to track your shipments and manage your fleet.
6. Get Creative
There are several ways to get creative when starting a logistics business without money.
You could offer to deliver packages to people on your way to work or school.
Or you could offer to pick up and drop off packages for businesses.
7. Offer Unique Services
One way to compete with larger logistics companies is to offer unique services.
You could offer same-day delivery, overnight delivery or you could offer to deliver packages to remote areas.
8. Provide Excellent Customer Service
Excellent customer service is essential for any business, but it is especially important for a logistics business.
Make sure that you respond to your customers’ needs and that you go the extra mile to meet their expectations.
9. Build a Good Reputation
It takes time to build an excellent reputation, but it is worth it.
When you have an excellent reputation, you will attract new customers and partners more easily.
Starting a logistics business without money is difficult, but it is possible.
Logistics Bike Price in Nigeria
The price of a logistics bike in Nigeria varies depending on the brand, model, and condition of the bike.
Expect to pay between ₦200,000 and ₦300,000 for a new logistics bike.
You can also find used logistics bikes for sale for around ₦100,000 to ₦150,000.
Here are the most popular logistics bikes in Nigeria:
- Bajaj Boxer BM150
- Qlink XF200
- TVS Neo NX
- Haojue Rocket 125
- Keeway Superlight 110
When choosing a logistics bike, consider these factors:
- Engine Size: The engine size will determine the power and torque of the bike. If you plan to deliver heavy packages, you will need a bike with a larger engine.
- Fuel Economy: Fuel economy is important for logistics businesses, as they need to keep their costs down. Choose a bike that has good fuel economy.
- Comfort: The bike should be comfortable to ride, even for long periods of time. Choose a bike with a good seat and handlebars.
- Durability: Logistics bikes need to be durable, as they will be used heavily. Choose a bike that is made from high-quality materials.
Once you have purchased a logistics bike, maintain it properly.
This will help to extend the life of the bike and prevent costly repairs.
You should have the bike serviced regularly and replace any worn parts immediately.
Starting a logistics business in Nigeria can be a challenging but rewarding experience.
With careful planning and execution, you can build a successful business that meets the needs of your customers.