Having a business with a package collection point can be a perfect opportunity to earn money and become known. Stacked boxes, delivery people constantly coming and going and queues of customers every day give the impression that it is a very profitable activity, but the economic reality behind this service is much tighter than many imagine.
This is the case of Antonio, owner of a neighborhood supermarket that also functions as a collection point for several courier companies. In an interview published on Adrián G. Marín’s YouTube channel, he explains how this business really works and what income it can generate.
Despite the large volume it handles every day, it recognizes that the benefits are very limited and that the service works more as a complement than as a main source of income.
UPS, SEUR, Correos Express, Amazon…
Antonio explains that he works with several transport companies and that the flow of packages is constant. It currently collaborates with Inpost, UPS, GLS, DHL, SEUR, Celeritas, Correos Express and Amazon.
The payment system is simple: each person pays a small amount to receive or deliver one. As detailed, the average for the sector is very low. In his own words, “the average would be approximately 0.13 cents” for each operation. This means that, when a package enters the establishment and is subsequently picked up by the customer, the total income is around 26 cents.
The differences between them are also notable. Antonio explains that “generally the one that pays the most is UPS, 18 cents for entry and 18 cents for exit,” while other companies offer smaller amounts.
Despite these margins, the volume can be very high. According to him, when all the companies he works with are added together, he can handle between 200 and 300 packages a day, which requires him to reorganize the space in the store and dedicate staff exclusively to managing logistics.
An average billing of 300 euros per month and up to 800 in specific campaigns
Although the workflow can be intense, the monthly income generated by this service is quite modest. Antonio explains that the average billing is usually around “about 300, 350 euros per month” among all transport companies.
There are times of the year when the volume increases considerably, especially during commercial campaigns such as the start of the school year, Halloween or Christmas. In those periods you can bill higher figures. According to him, “it can reach about 800 euros per month between all the companies.”
However, even in the best months, this service is not enough to sustain business alone. For this reason, Antonio considers it a support for his main activity, which continues to be the sale of products in the supermarket.
An opportunity for those who enter to get to know you
One of the main reasons why many businesses agree to become a collection point is the foot traffic it generates. Each package brings with it a potential customer who enters the establishment.
In the case of Antonio’s supermarket, the daily influx is notable. The merchant himself explains that “generally approximately 100 people are entering daily.”
However, most of those people just come in to pick up their order and leave. According to him, “only 10%” end up buying a product in the store.
This means that, of every 100 customers who enter the establishment for this reason, around 90 leave without making a purchase. Even so, the traffic generated can help give visibility to your company and attract new occasional customers.
The amount also implies a considerable workload. Antonio explains that at first he managed the service alone, but with the growth of this service it was necessary to organize a team to receive, classify and deliver the packages.
Management can be complicated, especially when delivery people, customers and local buyers coincide at the same time. Furthermore, any mistake can have financial consequences. If one is lost or delivered in error, the business may be forced to assume the cost of the product.
For this reason, Antonio is clear about the real possibilities of the business. In his opinion, it can serve as a complement or support to attract clients, but not as a main activity.
In fact, he recognizes that “living generally on parcel delivery does not give you enough to live on,” a conclusion that summarizes the reality of a sector where work is intense and benefits are measured in cents per unit.