Singapore E-commerce and Parcel Deliveries

The volume of Singapore E-commerce and parcel deliveries are on the rise in Singapore. The boom in the E-commerce popularity has contributed to the direct increase in growth rate of the courier companies in Singapore. Many courier companies in Singapore offer parcel delivery Singapore services. The parcels can range from small to large size. Traditionally targeting the residential and commercial players, the courier companies now turn their attention to target the E-commerce players. Successful E-commerce businesses have huge parcel deliveries to fulfill and often, they outsource the logistics operations to courier companies. The volume of deliveries per month can easily reach hundreds and thousands of deliveries.

Although some E-commerce businesses prefer to manage the delivery logistics internally, most E-commerce businesses know that it is more beneficial to outsource it to a courier company than to hire deliverymen internally. Of course, the assumption is that you will be able to find a reliable courier company in Singapore that will fulfill all the deliveries without major hiccups.

Firstly, it will save the E-commerce business owners a lot of trouble trying to fulfill the deliveries. Delivery logistics is one of the most complex and troublesome operations in the whole E-commerce supply chain. If an external party can manage it well for the E-commerce business, it will make sense to do so. As the courier companies’ core competency is the management of delivery operations, it is most likely that they will be able to handle the delivery logistics operations better than E-commerce businesses which core competency is on the procurement and products management instead.

Secondly, not only will the external party manage the delivery logistics better than the E-commerce business, they will be able to provide cost saving for the E-commerce businesses. The cost of engaging an external courier company to manage the deliveries will most likely be lower than the cost of hiring deliverymen to handle the logistics internally.

Hence, it will make both operational and financial sense to outsource the logistics operations to an external courier company.

Working In Singapore Courier & Delivery Services Industry

Ever considered a career in the exciting logistics and delivery services industry in Singapore or something similar?

There are many logistics jobs in Singapore that you can do in Singapore, ranging from a logistics coordinator to a deliveryman. Of course, depending on your passion, you should apply and check out different jobs in the logistics industry in Singapore.

As the trading hub in South East Asia, Singapore is a vibrant country for business and operations for E-commerce distribution and delivery. There are many businesses which have incorporated in Singapore and doing business in Singapore due to the high population density. In terms of business, Singapore is a hot spot for Asian E-commerce businesses. As a result of the boom in the E-commerce industry, the logistics industry in Singapore has grown rapidly as well and more jobs pertaining to delivery and courier services in Singapore have been popping up nearly every week!

Check out the following video of people sharing their experiences working as a logistics coordinator.

On the other hand, if your goal is to be more hands on in this courier delivery services industry in Singapore, then you might want to check out courier jobs instead of coordinator jobs.

The following is a video of the daily life of a courier driver. It may be tough, but it can be really fulfilling and pays really well especially if you’re willing to work hard as a freelancer for courier companies in Singapore like PCA Masters or Regent.

Advantages Of Using Courier Services In Singapore

Whether you are working for a business that requires deliveries or you need to get item(s) delivered rather often, there are many advantages that a courier company can offer which you would be hard pressed to find if you hired your own deliveryman. As many people say, the buzz word of 2016 and beyond is outsourcing. Few companies and people do everything themselves already and this is the case even for the self-employed. The new world economy encourages ‘sharing’ and ‘sharing’ in the corporate world is also otherwise known as outsourcing.

Let us take 2 examples, the first would be that of a business and the second would be that of a self-employed person.

  1. Let us imagine for a moment that you’re the manager at a company and you need to manage deliveries. In such a case, you could either hire a deliveryman or you could engage the courier services of local courier companies. Most courier service prices range from $5 to $20. If you were to engage your own in house deliveryman, you would need to pay him or her approximately $4000 (including CPF and vehicle leasing). This means that you would need a bare minimum of over 200 deliveries a month to make it reasonable to engage your own in house deliveryman. Do you see the immense cost savings that a local courier service company in Singapore can provide you now? You can then invest these cost savings into something profitable instead of burning it all on an unnecessary in house deliveryman.
  2. Now, let us imagine that you are a local self-employed business owner and you need to run errands from time to time or perhaps deliver documents or goods to people. You would either need to take the public transport and waste lots of precious time away (which you should be putting to use to grow your business instead of doing mindless chores like running errands) or you would need to take the cab or drive and waste your precious profits away. Instead, by simply engaging local courier services within Singapore, you get rid of these headaches and save both time and money. Meanwhile, you would then be able to focus on your business as a result of having outsourced your delivery needs.

Check out, they are among one of the best courier services in Singapore.

Why Engaging Courier Companies Is Better Than Deliverymen

In Singapore, courier services can be really affordable and convenient, and this can seriously tilt the argument between engaging courier services and hiring an in house deliveryman in Singapore.

When you engage a courier firm in Singapore, you only pay for deliveries when you need them. Basically, if there are no deliveries for the day or month, you will not need to pay a single cent for delivery or courier services. However, when there are, you only pay for what you need and nothing more! When you hire a deliveryman, you would need to pay for the vehicle lease (often a van), his salary, CPF (for Singaporeans and PRs) and any other related business expenses regardless of the delivery volume that he does for that month. This means that on the months with low delivery volume, you would be potentially losing money.

When you engage courier services in Singapore, you would not need to worry about the leave schedule or medical leave for the courier. All these mundane issues will be dealt with by the courier company and all you need to focus on is your business. You would not need to keep yourself busy for these issues. On the other hand, if you were to engage and hire your own deliveryman, you will need to deal with everything related to his or her leave schedule, and any unexpected medical leaves as well. These can impact your business quite substantially if you only have 1 deliveryman. Engaging a courier company is definitely the better choice in this case.

In certain countries where courier services can cost a lot, it is recommended that you hire your own deliveryman and lease vehicles (it’s cheaper to lease vehicles in countries other than Singapore). However, in Singapore, where motor vehicles are so expensive, it would add up to a very significant amount and that is why hiring your own deliveryman is so much more expensive than simply engaging the delivery services of a local Singapore courier company.

Different pricing models of courier services

In my previous post “What you should expect from courier services in Singapore“, I said that different pricing models exist for courier services in Singapore. There are three pricing models that I have shared – distance-based pricing model, weight-based pricing model, and region-based pricing model. I will discuss these different pricing models of Singapore courier services in detail in this post.

1. Distance-based pricing model
Distance is the key fundamental value in the distance-based pricing model. The delivery fee will be computed based on the total distance traveled from the collection point to the delivery point. It does not include the distance traveled from the location the courier was at when he received the delivery order to the collection point. Sometimes, courier companies using this pricing model may include peak hours surcharge similar to the way the taxi transportation fee is charged.

2. Weight-based pricing model
Weight is the key fundamental value in the weight-based pricing model. Courier companies that use this pricing model mainly specialized in delivering heavy and bulky goods such as refrigerator and television sets. The delivery fee will be computed based on the total weight of the items per delivery location. As the courier companies that use this pricing model mainly uses lorries, they will not impose a cap on the maximum weight that items can be to a single location. From their point of view, they will also want the weight to be as high as possible so that they will be able to charge a higher delivery fee.

3. Region-based pricing model
The collection location and delivery location are the key fundamental values in the region-based pricing model. Locations that are at the outskirts of Singapore will be charged at a higher price than locations that are nearer to the central of Singapore. Courier companies such as PCA Masters that use this pricing model concentrate their couriers around the central region of Singapore. They reason that the accessibility of the regions at the outskirt is lower than that of the central regions of Singapore. Hence, more time will be incurred for subsequent traveling to the next locations. This is why premiums are placed on outskirt locations.

Now that you understand the various pricing models of the courier services in Singapore, carefully choose the one which will be cheaper for you in the long run according to your delivery needs.

What you should expect from courier services in Singapore

The courier services industry is very established in Singapore. Since the 1990s, though it is a small market then, the courier services industry has slowly grew to be a sizable market in Singapore. From the constant innovations throughout the years, you can be sure that the courier services in Singapore are great now.

These are what you should expect from Singapore courier services.

Singapore courier services focus greatly on service quality. Service starts when you first approach the courier companies for quotation. You will notice that most of the sales support staffs are friendly and patient with you. Next, you will pass your items to a friendly courier who will come over to your location to pick up the items from you. You will then get constant updates on your delivery status from the courier company. The entire process is developed to make the customers feel assured and pleased with the courier company’s services. Customer satisfaction is of huge importance to the courier companies because they want the customers to stick to them and not hop over to the competitors.

In addition, courier services are incorporating the latest technologies to make the processes more efficient. You will have noticed some courier companies implemented website applications and mobile applications for client log in purpose. When logged into these applications, customers will be able to find out quotations and request for deliveries automatically and efficiently. As compared to the traditional way of contacting a sales support staff via email or phone call, this usage of website and mobile applications has greatly saved time for both the customers and the courier companies.

It is to be noted that different pricing models exist for courier services in Singapore. Some courier companies use a distance-based pricing model while others use a weight-based pricing model. There are also a few courier companies that use a region-based pricing model. You should analyze their different pricing model to see which model suits you best in terms of overall cost.

Comparing Singapore Courier Companies

Let us take a quick look and comparison between the various courier companies located in Singapore.

First of all, there would be the private and local Singapore courier companies. Examples of such courier companies in Singapore would include PCA Masters Pte Ltd as well as Ixpress647, Network Courier e.t.c. These are owned by local businessman and are very flexible when it comes to their service levels depending on what you require. In other words, they provide normal courier services just like any other companies in Singapore, but they also provide custom pricing and packages for companies which require it.

Next of all, there would be the international couriers such as Fedex, DHL, UPS, e.t.c. These are large international courier companies. Although most of these companies offer competitive rates in Singapore as well, their real specialty is in international freight. When it comes to local delivery services in Singapore, I would still highly recommend you look at local courier companies instead of such international ones.

Last but not least, there is the state owned Speedpost (a subsidiary of SingPost). Speedpost is not actually the cheapest nor the most efficient courier company in Singapore, in direct contrary to what some people think. Speedpost has 2 main levels of services, one which is their express level of courier service where they get your items delivered in 2 hours or less in Singapore, while the other one is the delivery service where they will deliver your item(s) within 1 to 2 days of collection. Obviously the express courier service would cost a lot more than the normal delivery services.

I would recommend you check out the rates of both the local courier companies and Speedpost before you make a prudent decision choice for yourself and / or your business – depending on which you require delivery services for.

Picking A Courier Service In Singapore

If you are an E-commerce business owner or simply an admin manager who  require courier services from time to time, here is some advice on picking the right courier service for yourself.

Find out your own delivery requirements. There are some people who require hundreds or perhaps even thousands of deliveries a month, and therefore, there are many things that such a person / customer would require or demand from a courier company. Accordingly, such a person would need to consider many different things for the courier service that they want. For instance, if you require regular and constant deliveries every month, then you would ideally need waiver for your outskirt charges e.t.c. or these charges would add up to be a seriously substantial sum of money and expenses for you.

Next of all, after knowing what quantity of deliveries you require, you would need to know what type of item(s) you would need to be delivered. If you need parcels to be delivered, they would generally cost more than that of document deliveries. This is because only vans or cars are able to deliver such parcels while documents can be delivered by both motorcycle riders as well as van couriers.

Third of all, you need to ask yourself if you only require general courier services in Singapore or you need a dedicated courier from a particular courier company in Singapore. There are people who want a dedicated courier (hired from a courier company in Singapore and not hired in-house). However, this is not a common choice and you need to ask yourself if you really require such levels of courier services. This is because a dedicated courier, though much more controllable, costs a lot more than normal levels of courier services.

The above provides you with key advice in finding the right courier company in Singapore to partner with.