Buyer's guide: Looking to buy a FedEx ground route for sale?
FedEx delivers millions of packages per day. By investing in FedEx Ground Routes for sale, you can get a piece of the FedEx pie and generate thousands of dollars in annual revenue.
FedEx is one of the leading delivery and logistics companies and is growing fast. It relies on hundreds of independent contractors who operate as corporations and complete the pickups and deliveries for FedEx. And by buying a FedEx route, you can become an independent service provider and grow with FedEx.
Through this article, we are shedding light on some great reasons why investing in a FedEx ground route will prove to be the best decision you've made for yourself.
How Do FedEx Ground Routes Work?
FedEx has two different types of routes. FedEx Ground and FedEx express. The FedEx ground pickup and the delivery route is the most common route among investors.
Once you buy a FedEx ground route, you must sign an independent service provider (ISP) contract with FedEx. After which, you become an autonomous business owner and start operating as a small corporation.
The ISP contract lasts for one to three years, after which it renews automatically if you wish to continue with your FedEx route business.
FedEx routes may come with vehicles and, in some cases, employees as well. But usually, you pay the price of the route and then invest in freight vehicles and hire employees yourself.
Operating a FedEx ground route requires you to pick up and drop off parcels from commercial and residential locations. These locations are defined within the territory that comes with your chosen route.
As far as payment is concerned, it depends on your ISP contract. The route owners are usually paid based on how many deliveries their trucks have picked up and dropped off.
Why Invest in A FedEx Route?
Do you know what the best time to invest in a FedEx route is? Right now! Why? Because the online shopping industry is seeing an unprecedented boom. And the growth of eCommerce is inevitably accompanied by the growth of the shipping industry.
The way things are right now, the logistics industry's business looks steady and appears to continue its upward trajectory. This means there are opportunities for revenue in a FedEx route business like never before.
If this is not enough, here are some more reasons to paint a clearer picture of why investing in the FedEx route might prove to be one of your best investments:
Usually, when you start a business, you start from scratch. You have to perform market research, design products, set prices, bring in resources, and whatnot.
On the contrary, when you buy a FedEx route, you get access to FedEx's state-of-the-art business infrastructure. You buy an existing running and earning business, so all you have to do is focus on keeping it running and invest your efforts in growing it, rather than building it from the ground up.
Moreover, you get to enjoy the benefits of working with an established organization while reaping the perks of operating as an independent business.
The FedEx Support
FedEx is a massive international brand. And it has reached where it is with the organization's belief and support from its route owners. And hence it does not leave it all to the ISPs and offers them immense support.
In conventional businesses, the business owner has to invest a lot of time, money, and effort into growing their business through various marketing channels. FedEx route owners, however, don't have to spend their profit on marketing and advertising to grow their business. FedEx does it all for them.
FedEx takes care of the marketing and advertising areas of the business. And your job as a route owner is to pick up and deliver the packages safely.
How do FedEx route owners get paid?
Weekly Payments and Good Revenue:
Subject to the ISP contract, FedEx usually pays its ISPs weekly. That means you see consistent cash flow every week and don't have to keep waiting on the payments.
Apart from what you earn on deliveries, FedEx also offers bonuses to its route owners for exceptional customer service or commendable safety practices.
Combining all the delivery income and bonuses, FedEx route owners earn around $30,000 to $40,000 annually, which may multiply if you invest in multiple routes.
Independent Business Under an International Brand's Name
If you start any business, it will take decades of immense hard work, lots of investment, and sheer luck before you can even come close to where FedEx stands today as a brand.
However, investing in the FedEx route gives you the freedom to invest in your own business under an international brand's name without investing time, money, or effort into earning that name or place.
Can a FedEx ground route be an absentee owner business?
Yes, it Can Be Run Remotely
If you buy a FedEx route, you don't need to ride it too. You can hire drivers to ride your freight vehicles and manage the deliveries on your route. While you can manage the logistics and other aspects of the business remotely. In this way, you can generate good revenue without going behind the wheel.
Moreover, FedEx does not necessitate that the drivers you hire have any experience in logistics. They must have a commercial driver's license and are required to pass the FedEx safety test. Then, they are good to work your route and earn profit for you.
It is important to note that driver retention at FedEx is tricky. And if you choose to operate your business remotely, be prepared to hire and hire drivers often and hit the road to complete the deliveries when no driver is available, running an absentee owner business stills requires you to be 100% involved in the business.
Are FedEx routes going out of business?
No, FedEx is growing consistently year after year. And being an independent service provider for FedEx, your business grows with it.
The shipping and deliveries from FedEx have increased significantly in the past few years. FedEx ground reported shipping an average of more than 8 million parcels per day in 2018, which had risen from 7 million in 2017.
With the growth in FedEx's business comes greater deliveries. An increased number of deliveries means a higher payout and more revenue for you, that too, without investing any of your resources.
What experience is needed to own a FedEx ground route?
No Experience Necessary
The best part about the lucrative FedEx ground routes is that you don't have to have a college degree or relevant experience to buy a route. Once you apply to buy a route, FedEx will carry out a background check, and if it sees that you are eligible to run their route, you will get to sign the contract.
Of course, previous experience in managing your own business tilts the needle slightly in your favor. But chances of getting the route are high enough without it too.
The eligibility criteria for a buyer are:
A valid CDL license
Passed in Department of Transportation physical and drug test
Expenses of buying a FedEx ground route include maintenance costs, and payment of employees. In most cases, 7 workers are employed by the route owner. There is certain equipment that needs to be made available apart from the vehicle for example uniforms, FedEx scanners, and software. Other expenses include fuel, repair, and insurance.
Can I resell my FedEx route after buying it?
Yes, FedEx Routes Can Be Sold
If you purchased a FedEx route and want to put it back on the market No worries! You can sell your FedEx route to buyers willing to step into the FedEx route business whenever you want.
FedEx routes are always in demand. And you can easily find a suitable buyer, selling to whom you can regain more than you have invested.
Bizroutes review on FedEx ground routes
With the trend of online shopping on the rise, investing in FedEx ground routes for sale was never more profitable than it is today. When owning a FedEx route, increasing deliveries brings surmounting revenue and opportunities to invest in multiple routes. The main benefits of the routes in the topic include scheduled weekly payments. But on the other hand, the payments can get affected due to seasonal dips. Another brighter side of owning a ground round is that the owner doesn’t need to worry about the steps for the development of the route rather they only deal with the logistics and ensure timely deliveries. All the marketing strategies are provided by FedEx itself and route owners deal with the logistics.
What makes FedEx ground routes all the more lucrative for budding entrepreneurs is that they get to work for an international brand while still reaping the perks of operating independently. And with FedEx routes being high in demand, you can sell your route whenever you like and pursue a different avenue!
Disclaimer: The information provided in this article is for general informational purposes only and should not be considered legal advice. The laws and regulations regarding business licenses may vary from state to state and are subject to change. It is important to contact your local state office to determine which licenses are required for any specific businesses. Additionally, please note that this article contains affiliate links and we may earn a commission from our affiliate partners or amazon links. If you are considering starting a business, it is recommended that you seek the advice of a qualified lawyer, business broker, or professional in your area. The information provided in this article is not a substitute for professional advice and should not be relied upon as such. We want to make it clear that BizRoutes is not sponsored by or affiliated with fedex or any other companies mentioned in our articles. Our content is completely independent and based solely on our own research and opinions.