How To Start a Courier Business in 8 Steps

As more consumers than ever order online, demand for courier businesses and local delivery services keeps growing. In fact, according to IBISWorld, the value of the US courier and local delivery service market has increased about 3.4% each year since 2020, hitting nearly $180 billion in 2025.

If you’re an aspiring business owner who’s customer-focused and organized—and interested in logistics, of course—starting a courier business is worth considering. This step-by-step guide covers everything from conducting market research to developing your pricing strategy and building a website, so you can launch your courier business with confidence. Let’s take a look.

What is a courier business?

A courier business is a company that delivers parcels, packages, documents, or other items on behalf of paying clients. Individuals and businesses rely on courier services for deliveries that are often faster, more flexible, and more trackable than traditional postal services. Courier companies range in size from a solo operator making same-day local deliveries to international logistics giants like UPS, FedEx, and DHL. While these three companies alone control about 80% of the global courier, express, and parcel (CEP) market, there’s always room for new businesses to enter the fray with specialized offerings or local expertise. 

Types of courier businesses

Courier businesses fall into several broad categories, and many services operate in more than one of them:

• Local couriers. A local courier company focuses on making deliveries in specific locations like a city, town, county, or territory. 

• Express couriers. Couriers like DHL Express offer express delivery services for urgent shipments, including guaranteed same-day deliveries and next-day deliveries.

• Standard couriers. A standard courier service business like FedEx Ground typically delivers items within one to five business days, with generally lower shipping rates than express courier services.

• International couriers. This type of courier delivery business has the infrastructure to provide international shipping, making deliveries between countries.

• B2B couriers. A business-to-business (B2B) courier service company handles delivering shipments between businesses, often moving inventory between warehouses and fulfillment centers. 

• Specialized couriers. Specialized couriers focus on niche delivery services catering to a specific market, such as medical supply or legal document delivery.

How to start a courier business

1. Perform market research and select your niche
2. Write a courier business plan
3. Structure and register your courier business
4. Estimate startup costs and fund your business
5. Acquire delivery vehicles
6. Set your service prices
7. Build a website
8. Market your business to find clients

Here are some basic steps to follow when launching your own courier business.

1. Perform market research and select your niche

Research other courier companies in the areas where you plan to offer delivery services. Create a spreadsheet and fill it out with competitors’ information, including pricing structures, shipping fees, and specific services offered. By performing a thorough competitive analysis, you can identify how your new courier business can fill a need in your target market. For example, you could identify a niche market for premium services like on-demand courier services for local retailers or the need for specialized services like food delivery.

Selecting a specific niche for your courier business from the outset can help you stand out from competitors in your area and inform your business decisions going forward. For example, a legal courier business serving a specific downtown area with bike delivery will involve completely different startup costs than a food courier serving an entire county with a refrigerated truck.

2. Write a courier business plan

Write a business plan following a template that includes a few key components, such as:

• Executive summary. This is a one-page summary of your business idea, goals, and mission statement (typically written last and pulling information from the other sections).

• Company overview. Outline your courier business and how you plan to stand out from your competitors (using information from your market research).

• Products or services offered. Detail what specific courier services you plan to offer and what pricing strategy you will use for those services.

• Market analysis. Dive deeper into your market research by explaining what target market you will serve and how your business is uniquely positioned to capture that market. Consider using the SWOT analysis framework to identify your courier company’s strengths, weaknesses, opportunities, and threats in your market.

• Marketing plan. Explain what types of marketing strategies you will use to generate clients for your courier business, including online and local efforts.

• Logistics and operations plan. Describe what will go into your delivery operations, from delivery vehicles and necessary shipping supplies to software tools like route optimization and real-time tracking software.

• Financial plan. Create financial projections based on the revenue expected from clients purchasing courier services, along with projected expenses, such as startup costs, overheads, and operating expenses.

Although you may want to write your business plan at the beginning of your business journey (it will function as a sort of roadmap), you should continue to update and adjust the plan as you go through the process.

3. Structure and register your courier business

First, consider the name of your business. You can use Shopify’s Delivery Business Name Generator for ideas. It helps if your name explains what you do (you may want to include words like “deliver” or “courier”) and is distinct and easy to search online. Check for your business name’s availability on your state’s business registry and that it’s available as a domain name and on social media channels you plan to use.

Once you have a name you love, decide on a legal structure for your courier business. The biggest choice is how much personal liability you’re comfortable taking on. Sole proprietorships and general partnerships make no legal distinction between the owner(s) and the business, which means the owner(s) are personally responsible for the business’s losses, debts, and liabilities.

Limited liability companies (LLCs) and corporations, on the other hand, are distinct legal entities, so they provide personal liability protection. Forming a limited liability company is much simpler than forming a corporation, and it enjoys pass-through taxation, meaning the business’s earnings are not subject to federal taxation. C corps are subject to two levels of taxation—corporate taxes on profits plus taxes that the shareholders must pay on their dividends. The advantage of a C corp is that you can sell shares as a way of raising capital.

An attorney or a tax professional can be a helpful resource when deciding on the best structure for your courier business. Once you’ve decided, register through your state’s secretary of state office or business division.

Additionally, you need to obtain any necessary licensing, often including a general business license from your county or city. If you’re in the US, research whether a state business license is necessary, or if there are any other permits you need to acquire to operate in your market. For example, couriers transporting cargo across state lines have a range of federal and interstate permits they need to apply for, depending on the area. Similarly, medical couriers might need to go through HAZMAT (hazardous materials) training or HIPAA (Health Insurance Portability and Accountability Act) training, depending on what they’re delivering. 

4. Estimate startup costs and fund your business

Start with a realistic budget based on your business plan, niche, and estimated shipping volume. Your costs will vary depending on the size and scope of your operation, but here are the main categories to consider:

• Transportation. One of the major costs for courier businesses is acquiring vehicles to make deliveries, which can range from a few hundred dollars for smaller vehicles like bikes to tens of thousands for larger vehicles like trucks or vans. If you already own a vehicle you can use, calculate fuel costs and vehicle maintenance costs.

• Shipping supplies. List the types of shipping supplies you will need to buy for your business, such as envelopes for document deliveries or boxes for larger shipments. Other shipping materials include labels, bubble wrap, packing tape, kraft paper, and stretch wrap.

• Equipment and tools. Calculate the cost of any equipment and tools you will need to move and secure items for shipment. This may include forklifts and pallet jacks, dollies, bungee cords, moving blankets, computers and printers, and more.

• Business software. Consider the cost of business software, including software for accounting, customer relationship management (CRM), dispatch, GPS tracking, and route optimization.

• Licenses, permits, and insurance. Calculate the cost of any necessary business licenses, vehicle permits, and insurance (including general liability insurance and commercial auto insurance).

• Marketing. Evaluate the cost of generating marketing materials for your business, from printing flyers to creating brand assets and running paid ads online.

Once you’ve calculated all of the costs necessary to start your courier business, consider your financing options. For example, you could apply for a small business loan from a bank or the Small Business Administration (SBA). You can contact potential angel investors with your business plan if you have a personal connection. Self-funding, also known as bootstrapping, is another option to consider if you’re planning to launch a small local courier business using a vehicle you already own.

5. Acquire delivery vehicles

If you’re planning to run a small local courier business by yourself, you can consider using your own vehicle when starting, as long as it’s reliable. However, with only one vehicle, you can only handle a limited number of deliveries.

To scale a profitable courier business, you will likely need to acquire a fleet of reliable vehicles that suit the needs of your target market. For example, if you plan to offer legal courier services in a city’s business district, you could consider purchasing several e-bikes to make quick deliveries without getting stuck in traffic. On the other hand, if you’re offering specialized services like furniture delivery, you might need a pickup truck or a box truck.

Remember to get insurance coverage for any vehicle you plan to use for your courier business.

6. Set your service prices

Figure out how you’re going to price your courier services. Set your prices high enough to earn a profit after calculating all of the expenses that go into making deliveries. Other factors that can affect your pricing strategy include customer demand and the competitive landscape (highly competitive markets might require more competitive pricing).

Here’s a breakdown of some of the pricing models you can consider implementing:

• Flat-rate pricing. You can set a flat rate for your courier services, keeping pricing consistent for all of your services. This method works best for businesses offering similar services, such as legal couriers delivering papers within a small localized area.

• DIM weight pricing. Dimensional weight, also known as DIM weight or volumetric weight, is a pricing method based on package size rather than actual weight, helping couriers who deliver packages make money from large, lightweight packages that can take up a lot of space in vehicles.

• Dynamic pricing. Dynamic pricing involves adjusting your prices based on market conditions (such as customer demand) and peak shipping times (such as holidays). 

• Tiered pricing. Another option is to break different types of packages or shipping distances into pricing tiers. 

• Bulk pricing. If you plan to offer B2B courier services, consider implementing a bulk pricing model that rewards businesses with discounts when they place large or consistent shipping orders with your courier business.

7. Build a website

Next, set up a website that speaks to your target market and drives sales. Use a reliable platform like Shopify, which can integrate with route optimization apps like EasyRoutes Local Delivery and Bird Pickup Delivery Date.

By downloading route planning and customer communication apps from the Shopify App Store, you can set up the necessary features that let clients book shipments and track orders directly from your website. With a well-designed and easy-to-use website, you can field customer inquiries and schedule deliveries much faster than if you’re handling it manually.

8. Market your business to find new clients

Develop marketing strategies designed to attract clients for your courier service. Here are some of the strategies you can consider implementing to build a customer base for your courier business:

• Physical marketing materials. Print physical materials like flyers, ads, brochures, or business cards with your company information. Place them in areas that your target audience is likely to see them, like lobbies in office buildings or commercial centers.

• Local SEO. Local SEO involves reaching potential customers online by increasing your ranking on search engine queries related to specific locations. Local SEO strategies include building your Google Business Profile and including relevant local keywords on your website.

• Word of mouth. Encourage word-of-mouth marketing using positive customer testimonials and setting up a referral program that rewards clients with discounts or points in exchange for referrals. 

• Paid advertising. Another option is to pay for ads on platforms like Google, TikTok, Instagram, Facebook, and LinkedIn.

• Networking. Contact local retailers and small businesses in your area to learn more about their shipping needs and better understand how you could offer a unique value to earn their business.