One name certainly infamous in the courier service industry of India is ekart logistics. You might have come across various packages with this name labelled across it and you might have thought to yourself, “The revenue on this would be amazing!”
Well you thought right. Ekart logistics is one of the biggest courier services spread across over 3600+ pincodes all over India. Since it is such a huge courier brand in itself, the GOODWILL on the company is a reason in itself why you should look into starting a franchise with the brand. This brand was also recently bought by Flipkart, which is also a leading e-commerce website, which in turn works in advantage of the popularity of the company.
If all of this information has won you over and you would want to look into starting a franchise, we’ve got it all the information that you will need to start it, listed down below.
What’s the USP of EKart Logistics
Provides the option of one day delivery
Not a lot of courier brands offer one day delivery, which gives an upper hand to ekart logistics. Fast and efficient delivery are the two key points that make a good courier service. One day delivery ensures an increased number of orders as it promises customers that need their orders delivered urgently, this creates a bigger customer base and consequently a greater revenue.
Why ekart logistics and not any other courier service?
Works under Flipkart LTD.
As mentioned above, ekart logistics was recently purchased by Flipkart limited which comes with its unique perks. E-commerce websites in general have a huge user base and Flipkart in particular is a renowned e-commerce website. This ensures the regular flow of customers. Flipkart has stopped sourcing other courier services and all of its orders fall under ekart logistics’ service, this directly means that you would never fall short of orders.
Provides an option between master and subsidiary franchise depending on plausible capital investment.
Ekart logistics provides two franchise options, namely, master and subsidiary. You can choose either of the two depending upon the amount of capital you can pump in. Subsidiary type has a low capital investment and master type has a higher capital investment. Both of the options are profitable with their own hits and misses.
Training and business support.
As Flipkart is such a renowned company, it cannot rely on inexperienced service providers as it has a reputation to uphold. Therefore, any franchise owner gets on hand training through training located in multiple cities to ensure utmost efficiency.
Simple terms and policies.
The terms and policies of the courier service are simple and easy to understand providing a clear outline for the owner to understand and accept. This helps with the eradication of any confusion or misunderstandings that might be created.
Low capital investment, high ROI
This is true to all courier services available in the market. The capital on courier services isn’t very high since it requires limited resources but it’s return is much greater as the e-commerce industry is booming and courier services now don’t only rely on individual orders for income.
What are the requirements to start an Ekart Franchise
Space requirement
The owner of the franchise is required to have an office space of 500-600 sq.ft. as the company is fully computerised and requires a computerised working space and for employee work space environment.
Documentation required
Owner of the franchise has to produce identity proofs such as aadhar card, voter card and also proof of ownership of working space.
Equipment required
Equipment required is the same as any other courier service company. It includes transportational vehicles, barcode scanners, stickers, printers etc. Since the company is computerised it is required out of the owner to have the least of 3 working computers per center.
Employee requirement
Employees are expected to be physically and mentally fit to carry out the task at hand and the delivery employees are required to know how to drive the company provided vehicles. A minimum of 10 employees are required to run one franchise.
Investment requirement
The owner of the franchise is required to make a minimum security deposit of 50,000 to 1lac INR, depending upon the type of franchise (Subsidiary or Master).
Profitability
Now that we’ve weighed all the pros and cons it is easy to conclude the profitability of this particular franchise.
If person A was to start an Ekart logistics franchise, with a place on rent, with the area required, Person A would pay maximum of 20,000 for rent every month. With a minimum of 10 employees running the place, the salary of all of the 10 employees collectively would work out to a maximum of 1,15,000 INR, if the delivery boys were paid 10,000 per month and the team working the computers were paid 15,000 individually.
The cost of transportation, electricity bills and other miscellaneous items of use like paper, packaging products etc, would vary based on the number of orders received in the month but the cost of production is always way lower than the pricing of the service. But if we were to assume a hypothetical number it would all round off to about 2lac INR per month.
On an average Flipkart received about 1,60,000 orders daily. If your franchise gets even 0.1% of those orders, you would average to about 160 orders from Flipkart alone in a day.
On an average ekart logistics charges Flipkart 80 rupees per package which accounts to about 3,84,000 INR per month, if we are looking at the bare minimum. With this calculation, Person A would still make a profit of about 1,84,000 per month after subtracting all expenses and you get your capital of 1lac or less back almost immediately. Hence this franchise is extremely profitable and could make you a lot of money if you invest into it.
Conclusion: So is it all worth it?
So after putting everything we know into perspective and weighing both sides, it is clear that it is very profitable to invest into an Ekart franchise. There is almost zero possibility of the company being in debt, collectively considering the goodwill of both ekart logistics and Flipkart. The easy terms and conditions create a clear path for any investor to understand the terms and invest into the franchise. With the continuous development of both Flipkart and e-commerce websites in general, starting a courier service franchise in general is very profitable and a really good business proposition.
The very fact that this franchise is very exclusive and hence the information on franchise opportunities are limited online, shows how good the proposition is.
Ekart logistics promises almost full return on investment in the very first month and steady flow of orders in the long run as well. In conclusion, ekart logistics is one of the best courier service franchises that one could start with.