Expedition Business Prospects and Tips for Starting It for Beginners

Admin BFI
5 January 2023
Expedition Business Prospects and Tips for Starting It for Beginners

The need for expedition services is increasing with the need to shop and buy goods online. This trend is now popular, especially when the pandemic hit. Not surprisingly, in the midst of a situation full of uncertainties, the expedition business is actually increasing.

This business is also one that can last a long time. This is because the need for goods delivery will continue to exist, even increasing at certain moments such as holidays.

How much shipping capital is needed, as well as business opportunities? Come on, see the full review here!


1. What is an Expedition Business?

Expediting business is a business in the service sector that serves the delivery of goods from one region to another, both within and outside the country. This business generally provides shipping services by land, air, and sea.

2. Difference between Expedition Business and Logistics Business

At first glance, the logistics business and the freight forwarding business are similar, even though the two have several differences. Quoted from detikfinance, here are some differences between expeditions and logistics.

Usaha Ekspedisi

Image Source: Freepik/Drazen Zigic

2.1. Name Meaning

The expedition is defined as a service for sending goods from one place to another with various types of goods, ranging from small to large. It is called an expedition because this one service is more flexible, it can send goods at any time according to the service chosen.

While logistics is a process of procurement or movement of goods. This process consists of planning shipping routes, selecting the mode of transportation to be used, and managing inventory or warehousing.

In other words, logistics is a business in the larger service sector and it is difficult to include expeditions.

2.2. Purpose

Logistics focuses on meeting large-scale needs, for example, to meet the operational needs of a company and the procurement of fleets. While the expedition only focuses on shipping goods. Rarely do we meet expeditionary businesses that serve requests for logistics management and warehousing.

2.3. Load

The expedition has a smaller payload. This is because the expedition is able to serve various types of delivery of goods regardless of the dimensions and weight available. It's different with logistics, which can send more goods, ranging from 10-50 tons.

2.4. Fleet Used

Transportation used to accommodate cargo in logistics is usually in the form of ships, planes, and trucks. This transportation is certainly bigger and wider when compared to expeditions which generally accommodate cargo by motorbikes and vans.

2.5. Delivery Time

Expeditors are able to make continuous deliveries in a shorter period of time. For example, in one day it is able to complete sending more than 50 packages to an area.

It is different with logistics, where delivery time is limited and tends to send goods only in one way. This is of course influenced by the load carried because logistics accommodates more.


Also Read: Inspirational! Here's How to Start a Car Travel Business Multiply Profits


3. Expedition Business Capital Estimation

The initial capital that needs to be prepared varies greatly, depending on the scale of the expedition business that you will run.

So, for those of you who intend to get into this business, here's an estimate of the capital you need to run it.

Expedition Business Capital Estimation
Initial capital
No. Item Quantity Price Per Quantity Total
1. Business Location 1 Rp10.000.000 Rp10.000.000
2. Business Transportation in the Form of Cars or Motorcycles 1 Rp120.000.000 Rp120.000.000
3. Equipment to Support Business (Tables, Chairs, Computers, Printers, Shelves) Secukupnya Rp15.000.000 Rp15.000.000
4. Scales of goods and other tools Secukupnya Rp5.000.000 Rp5.000.000
5. Making a business license 1 Rp1.500.000 Rp1.500.000
Total Rp151.000.000
Operating costs
No. Item Quantity Price Per Quantity Total
1. Salary of 3 Employees and Courier 1 Rp7.500.000 Rp7.500.000
2. Electricity, Water, Internet 1 Rp1.000.000 Rp1.000.000
3. Emergency Fund 1 Rp1.000.000 Rp1.000.000
Total Rp9.500.000
Total Required Capital Rp161.000.000

The details above are estimated capital needed if you start a small-scale shipping business. The existing nominal can of course change according to the current price.

Those are the details of the expedition's business capital and business opportunities. How, interested in trying?

If you don't have enough capital, don't worry. BFI Finance is ready to help you in the form of multipurpose financing that can be used for your business.

With only a motorcycle or car BPKB, you can get a loan for business capital with flat interest and a long tenor.


Also Read: Accurate, Here's the Formula to Calculate Profit In Easiest Way


4. Tips for Starting an Expedition Business

In starting a business, especially for beginners who don't have much experience, knowing some business tips can be very useful for determining future business navigation. So that you don't take the wrong step when starting an expedition business, consider the following important tips.

Usaha Ekspedisi

Image Source: Freepik/pressfoto

4.1. Prepare Business Capital

Capital is the spearhead of a business, shipping business is no exception. The amount of capital required depends on the business model you choose. The wider the coverage area and the services you offer, the greater the capital needed.

This business capital will later be used to support your business, starting from buying delivery vehicles such as vans or motorbikes, renting business locations, scales, printers, and much more.

4.2. Determine the Type of Delivery Service

The second expedition business tip is to determine the type of shipping service. Will you focus on all services such as shipping goods, documents, food, and vehicles, or do you only want to focus on one service?

The reason is, each existing item has a different treatment in order to arrive safely at the destination. Therefore, it is important that you consider this type of service carefully. Do not disappoint customers because the goods sent are damaged.

4.3. Determine the Delivery Area

Third, it is important to determine the boundaries of the delivery area. To determine it, you can choose based on region, sub-district, district, or national scale. Most importantly, make sure the selected area has enough workers. For example field couriers and so on.

4.4. Determine the Type of Delivery System

In addition to the three previous things, determining the delivery system is also one the crucial thing. The reason is, starting an expedition business requires a lot of manpower.

You must be able to determine the length of time for delivery according to the workforce you have. Does the existing staff make it possible to send goods quickly or in less than 24 hours for certain areas or maybe it takes days.

So, if you want to offer more than 1 type of delivery system, make sure the existing fleet and workforce are suitable. Do not let there be delays due to internal problems caused by a lack of manpower or an inadequate delivery fleet.

4.5. Determine Shipping Rates

You can determine shipping rates based on weight per kilogram (kg) or the dimensions of the goods. Make sure the rates you set are quite competitive with competitors' prices, especially for those of you who are just starting this business.

4.6. Prepare Business Legality

Business legality needs to be prepared for the smooth running of your business. One way is to make a business license and business place permit (SITU). By having official permission you will avoid various licensing problems. Investors also tend to be more interested in investing in businesses that already have complete legality.


Also Read: Trade Business License and Easy Ways to Make it


4.7. Create Attractive Promotional Strategies

A promotional strategy is needed to boost profits. Create an expeditionary business promotion strategy that attracts consumers. For example, a shipping discount with a minimum weight of several kilograms or on certain days, such as Harbolnas and twin dates each month.

4.8. Collaborating with Other Parties (Business Partners)

In addition to making attractive promotions, you should also consider having a business partner. For example, working with food stalls, clothing stores, pet shops, building shops, and other businesses that often ship out of town.

Besides being profitable, this can also expand your business opportunities to be better known by many people. By partnering with a business, you can get regular income without worrying that no customers will use your delivery service.

BFI friends, that was the discussion about Expedition Business Prospects and Tips for Getting Started for Beginners, for those of you who are interested in starting this business, you can get a business capital loan with a fast process at BFI Finance!


BFI Finance is a company that provides multi-purpose loans with guarantees for motorbike bpkbcar bpkb, and house or shophouse certificates


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