Always one of the main questions in starting a delivery business is choosing between in-House delivery and third-party delivery services. Which method is best for your business depends on several points, and before choosing any method, it is necessary to get acquainted with the meaning and function of each of these methods and the differences between the two methods.
In this article, we intend to get acquainted with the definition of each of these methods and learn about the main differences between the two.
So let’s go.
What is in-house delivery?
First of all, it is necessary to get acquainted with the definition of this delivery method. In-house delivery or self-delivery is one of the methods of sending products in which businesses use their resources or their employees to send products to customers. In general, in this method, you do not use third-party party delivery businesses such as DoorDash and GrubHub or shipping carriers such as FedEx and UPS.
Benefits of in-house delivery
Full control over the delivery process
By using your resources for delivery, you can have full control over the shipping process, and control your drivers. Increase or decrease orders and cancel if needed and be aware of the entire process of sending the order, including loading, current location, and delivery time.
By Angariium, you have full control of your drivers and third-party services deliveries all in one dashboard.
for more information: Angariium.com
Easy communication with driver and customer
Using in-House Delivery allows you to easily communicate with your drivers, coordinate the order of sending orders with them, and increase or decrease the delivery time if needed.
Also, you can establish a proper relationship with your customers and get their feedback on your drivers’ behavior.
Note that order delivery is the most direct area in your relationship with your customers. So it is necessary to have complete management on this point.
Using a personal courier is more economical in the long run
If you have a small business, using in-house Delivery is not a good choice. You can use delivery services at the beginning to get a good profit margin. But if you have a big company or you think about long-term profitability, using your resources for delivery is the best choice.
Challenges of in-house delivery service
It requires sufficient experience and resources
As we said, using In – house delivery requires expertise, knowledge, and sufficient resources. If you are a small business and you are at the beginning of your business, using In – house delivery is not recommended at all.
We suggest you read our post about In-house delivery setup.
Read Here: setup in-house delivery
The reason for this is that although with in-house delivery you have full control over your deliveries, with Self – delivery you have to hire professional drivers and pay their salaries, prepare a vehicle to send your orders, prepare a reliable payment system, and take care of insurance for drivers.
Lack of planning for unexpected mistakes in In – house delivery
If you send your orders with third-party delivery systems, if there are problems such as late arrival of the order or non-arrival of the order, you can solve these problems with the services provided by the delivery services. (like a discount or free shipping)
But in in-house delivery, you must prepare yourself for these cases and look for a solution to these problems.
In-house delivery cannot be used during peak time
Using in-house delivery, you only have a specific delivery capacity, and if your orders exceed this capacity, you have no choice but to cancel these orders.
If you don’t have a specific delivery capacity by using 3rd party delivery services, you can accept any number of orders you want.
In businesses that deliver products to customers, it is difficult to choose between Self-Delivery and 3rd party delivery services for product delivery. Of course, this choice requires checking the conditions and resources of your business and it can be different for each business and different conditions.
In general, in-house delivery can be explained in this way: When you do not use third-party services and shipping companies to deliver your customers’ orders, you have used in-house delivery. That is, to deliver the order from your sources (driver, vehicle, etc.)
Self-Delivery has various advantages and disadvantages, the most important of which are full control over delivery with in-house delivery, easy communication with customers and drivers with in-house delivery, and in-house delivery inefficiency in small businesses.