Packaging and Shipping Franchises Information

Many companies and consumers rely on franchise firms that offer packaging and shipping services, the business of transporting goods, meaning that there are a number of these franchise opportunities available. There are many different types of packaging services available, but most services use plastic, corrugate and metal materials for packaging purposes relating to shipping. This is a competitive and profitable industry to invest in. Find out more information about available packaging and shipping franchises below...

Interesting Packaging and Shipping Industry Facts

• The US packaging industry is estimated to be worth in excess of $103 billion dollars in annual sales, up from $90 billion in 2002, according to research conducted by Impact Marketing Solutions Inc. (Source: Rauch Guide to the U.S. Packaging Industry, Feb 1. 2006)
   
• Plastics, paper and metal continue to be the most widely used materials within the packaging industry. (Rauch Guide to the U.S. Packaging Industry, Feb 1. 2002)
   
• Corrugate and plastic packaging materials are most commonly used for shiping purposes, representing 25% of the whole packaging industry market. (Source: MSW in U.S. 2000: Facts and Figures)

The Packaging and Shipping Franchise Industry
 

A large amount of these franchises mainly focus on offering shipping services for letters and packages, offering guaranteed overnight delivery (early morning, morning, afternoon, and end-of-day) and two- or three-day delivery services both domestically and abroad.

Businesses are the main clients of packaging and shipping franchises, as they require certain items and documents that cannot be sent over the internet to arrive at a certain time.

They are trusting shipping and packaging franchises much more because of technological advances. Through high-tech computer software, shipments can be tracked all the way through a journey so that companies know when it is arriving and an alert can be given when something goes wrong.

Franchises in this sector are also benefiting from a latest trend where companies use an outsourcer's service only when needed and they pay only for what they use.

That is important to individual franchisees because it expands their range of potential clients. Many franchised business services firms are too small to be able to carry out a systematic daily service for shipping and mailing at large companies. However, the services-on-demand model makes it possible for them to go after new clients regardless of size.

In addition, many consumers with uniquely shaped packages and heavy goods will not want to trust their national postal system and instead use shipping services.

They can visit stores and franchisees will be able to provide them with envelopes, cartons, packaging materials and more. They also offer custom and specialty packaging services, enabling the customer to simply bring in the item to be shipped.

Examples of these franchises are UPS, United Shipping Solutions, Pak Mail and Packaging and Shipping Specialists.

Most companies in this sector are franchised and according to the US Department of Commerce they account for around 70 per cent of the revenues generated by all types of packaging and mailing businesses in America.

The main reason is that  franchisors can provide extensive training so that franchisees can operate tracking systems and effectively package all kinds of items.

In addition, a lot of materials are needed to run packaging and shipping franchises and franchisers already have suppliers in place that can provide these at discounted prices.

Therefore, they offer people wanting to go into business in this sector a huge advantage over those that start their own independent firm.