One of the biggest issues on business owners minds is whether they should actually hire an in house deliveryman who is dedicated to delivering items for the company or they should actually engage the courier and delivery services of an external courier company like PCA Masters or Regent or even SingPost.
Here are some tips to help you come to the right conclusion.
First of all, you need to understand that vehicle ownership is much more expensive in Singapore than in most other neighboring countries. This means that if you were to either purchase or lease a commercial vehicle for deliveries, you would be incurring a lot of expenses up front. To make it worse, you can only depreciate it over 10 years as COE would have run out. You would then need to be forced to dispose of the vehicle for virtually no money. This can be very expensive and is a clear unnecessary expenditure for companies which main business service is not deliveries.
Secondly, if you were to hire a deliveryman, the estimated salary including CPF payments for him or her would probably run up to around $2,000 to $3,000. This means that you should at least get him or her to deliver products (if you are an E-commerce business owner) which would profit you more than $2,000 to $3000 before it is worth it to hire him or her. However, if you were to engage an external courier company which specialty is deliveries, they have the advantage of economies of scale as well as prior training and experience. This means that they’re able to perform each delivery for much cheaper than your deliveryman would be able to perform. Not only would this save you effort, it would also save you a lot of money by engaging external courier services!
In a nutshell, engaging the services of a courier company would be the wise choice for most companies in Singapore.