Is Buying a FedEx Route a Good Investment?
The entrepreneurial spirit shines brightly in many Americans who yearn to be independent business owners, and many of those folks look into buying a FedEx route. And with good reason. As a relatively sound and stable investment, FedEx routes can show an average increase of 15% per year.
But making the decision to buy a FedEx route goes far beyond investment. You can spend countless nights wondering how much does it cost to buy a FedEx route, but you would be better served to understand the benefits and opportunity that being an operator can present.
Several of the benefits of FedEx ownership are highlighted below:
- FedEx contractors are paid weekly which greatly minimizes working capital requirements since you are not waiting on receivables
- Thanks to the continuing boom in online shopping, necessitating delivery services, a record $6.59 billion was spent online according to Adobe Analytics metrics. Do you see this trend dropping? Nope. Which leads us to the next point…
- Consistent revenue helps contractors plan and budget effectively, eliminating ugly surprises. While there are no guarantees in life, you would be hard-pressed to find an investment that rewards hard work the way buying a FedEx route does. The stability that owning a FedEx route usually offers allows owners to keep a watchful eye on staffing and equipment needs, planning and adjusting accordingly.
- Regularly awarded as one of the most admired brands, the FedEx name comes with an amazing legacy and long history of success. And with diverse business operations, FedEx service is not overly reliant on any other entity. Yes, we are talking about the FedEx Amazon relationship. To put things in perspective, FedEx only handles approximately 3% of Amazon’s shipping business. So as the retail giant experiments with “Seller Flex” and drone delivery, the FedEx business will not be greatly impacted. And if it is, it could be for the better.
- Being part of the FedEx family gives you access to the flexibility, networks and leadership that has helped keep the ship afloat during difficult economic times. The company has historically battled back against rising fuel prices and even the global economic crisis in 2008.
- With the organic growth in some FedEx areas in excess of 10% year-over-year, the company rewards successful contractors with additional routes.
The time is right to consider buying a FedEx route through a broker. With continued growth and the backing of an internationally recognized organization, the sky is the limit.