Start a Pick-up Point Business and Change your Income Overnight


Blog, Finance / Friday, August 24th, 2018

What is a Pick-up Point?

A pick-up point is a physical location where a customer collets a parcel. This physical location can be an office, a shop or a shipping agent’s warehouse.

Who needs a Pick-up Point?

Any business targeting customers beyond its geographical zone needs a pick-up point unless it offers door-to-door deliveries. In Kenya, there is a steady rise in online shopping sites. Such websites have a meticulous shipping system that delivers parcels to customers around the country. Your pick-up point can target these established online shopping sites, or you can target small scale entrepreneurs working from home.  Online shopping sites in Kenya would require a little more than just storage space in your premise.  They may even need to inspect your premise, and ask for some legal papers before they enroll you into their network of shipping points. But, small scale entrepreneurs are easier to target, and they have lesser demands.

What you need to Set-up a Pick-up Point in your existing Business

Most importantly, your premise should be in a prime spot, easily accessible using both public and private transport means.

  • Storage space

The space can be a few shelves to store clients’ goods. If your clients’ sell clothes, you need a changing room/area too.

  • A Great package

Develop a contract with clear terms and conditions. You should also have a price for use of your space whether on per hour or per week rate. You could charge from Ksh20 to Ksh100 per day. For example, if you charge Ksh20 per trader, per day, 20 deliveries made in a day bring Ksh400. If you charge Ksh100 per trader, per day, 20 traders bring Ksh2,000.

Find out if your business permit can cover this kind of a venture or you need additional papers to run a pick-up point legally.

How to Market your Pick-up Point

Join Facebook marketplaces. To narrow down to your geographical area, join marketplaces in your region. Check the profiles of sellers who publish on those groups.  If they have indicated terms such as ‘home-based, online-based’, contact them.  Invite the seller to view your location, and there discuss the terms and conditions of your contract.

Market your service to online traders through marketplaces. Explain to traders why a pick-up point is better than delivery.  For example, let them know a pick-up point allows a seller more time to concentrate on sales. Additionally, a pick-up point eliminates delivery fees, which often turns away potential customers.

Benefits of a Pick-up Point to your Business

  • A new source of income within your business. Depending with your plan’s success, you can make enough to pay rent for your premise.
  • An array of potential customers will walk into your store daily. Improve your display, engage customer skills and you could just make more sales.

Why this Idea Will Work

There are thousands of home-based entrepreneurs in Kenya. You can start this business anywhere in the country.