How the Rise in eCommerce Impacts Your Route Business
In the era of online shopping, FedEx has continued to thrive. And while this has been the case for many years, the COVID-19 pandemic has propelled the growth of eCommerce (and FedEx) even further.
Many consumers, after all, are hesitant to browse in stores these days. At the same time, retailers are unable to accommodate crowds due to social distancing restrictions. This has prompted a surge in online shopping, which is projected to continue even after the pandemic subsides.
In turn, FedEx route owners like yourself must adapt and adjust in order to stay afloat. Here’s a closer look at how the rise in eCommerce affects your route business—and what you can do to maintain success.
- Increased Demand of Your Time
As with any business, rapid growth means more hours on the clock. Moreover, FedEx tends to roll out new responsibilities for contractors every year. This means you can expect to take on additional obligations while striving to meet consumer demands.
However, this doesn’t mean you need to stretch yourself thin. Make it a point to outsource tasks that can be completed by another person. This will allow you to focus on your obligations as a route owner while maintaining a sustainable business system.
- Additional Growth-Related Expenses
Be ready to incur more expenses as you grow. This includes costs in almost every area of your business, from additional trucks to outsourced back office tasks.
To prepare, take the time to reassess your financial health. Look for new ways to increase efficiency and reduce costs. By prioritizing your financial strategy sooner rather than later, you can protect the profitability of your business as you grow.
- Extra Vehicle Fleet Maintenance
The more deliveries your team needs to make, the more miles they’ll need to drive. As a result, your vehicles will require more frequent maintenance to ensure they’re in tip-top shape. This is crucial not only for optimal fuel efficiency, but for the safety of your drivers too.
As the route owner, you’ll need to adjust your vehicle maintenance calendar to accommodate these changes. Plan these changes in advance to ensure your day-to-day operations aren’t interrupted by increased routine maintenance.
- Additional Need for Driver Retention
Retaining drivers is more important now than ever. The sheer volume of packages, along with the ongoing COVID-19 precautions, can take a toll on employee morale, especially if your team doesn’t feel valued.
As your route business grows, make it a point to show your appreciation by offering driver incentives. Consider starting a mentorship program and look for ways to cultivate a supportive, encouraging environment. If your team feels respected and valued, they will work in a way that helps your route business thrive.
Buy or Sell a FedEx Route with KR Capital
With eCommerce on the rise, owning a FedEx route is a lucrative business investment. If you’re interested in scaling your existing business or buying a FedEx route, we invite you to partner with KR Capital. Our team can help prospective buyers secure financing and, when the time comes, streamline the approval process.
Likewise, if you want to sell a FedEx route you already own, KR Capital can lend a hand. We can market your route to our proprietary database of more than 10,000 qualified buyers and offer support during the sales process.
To learn more, call KR Capital at (503) 664-0753 or complete our online form.