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How To Start an Online Fuel Delivery Business

Do you want to start an online fuel delivery business? If yes, you have landed at the right place. Here in this article, we have provided a complete plan guide to start an online fuel delivery company.

On-demand fuel delivery is not a new phenomenon for countries like the USA and UK. However, in India, this is no doubt an emerging business these days. And definitely, this is the right time to start this business when the eCommerce industry is booming.

India is a developing country and here the automotive industry is growing at a faster pace. Additionally, several reasons are driving the market for automotive fuel delivery systems rapidly. An increasing number of vehicle manufacturing facilities due to the low cost of production, increasing production capacity, and growing demand for light and heavy vehicles are the major reasons.

Those days are gone when people will move around with their car searching for a petrol pump or fuel station. Nowadays, the Indian population always looks for a convenient and user-friendly online store for any purchasing requirements.

Apart from the domestic consumers, you can also provide the service to the factories and industries where fuel is an important utility item. Additionally, big establishments like shopping malls and IT hubs are the regular users of the generator. You can cater to these audiences too. Also, we can find several start-up initiatives in the online fuel delivery sector. Therefore, starting an online fuel store is a very lucrative proposition for both existing and new entrepreneurs.

5 Steps to Start an Online Fuel Delivery Business

1. Business Compliance

In initiating the business, you have to form a company with ROC. According to the management pattern of the company, you can register as LLP, Pvt. Ltd or as a Ltd company as well. Registering with ROC is necessary because you need to have both financial and expert resources.

Additionally, it is utterly important to determine the business objective, mission, and vision statement. You must have a company brand name. And you can secure the name with Trademark registration. In selecting the name, check the domain availability first. Because you are most likely to operate the business from your company website. It is advisable to check the state law regarding special licensing, permissions, and taxes.

2. Cost & Investment

Broadly, there are two different types of investments where you need to put your money. One is the in-house operations that include website building, maintenance, manpower, office expenses, etc. And another is the delivery-related expenses. It includes the purchasing of the delivery van, procuring fuels, manpower, and other miscellaneous expenses.

Regardless, of how much area you cover for fuel delivery, you have to invest in building an eCommerce site. In addition, your site must be simple and user-friendly. However, the investment related to the fuel delivery operations depends on the aspects of how much area you want to cover, how much quantity of fuel you want to sell per day, etc. In conclusion, it is advisable to start the operation in only one city. And as your business grows you can scale up at any moment in time.

3. Business Operation

For a successful commencement of this business, you need at least two expert teams. First of all, you need tech experts who can put effort into building websites, SOPs, etc. The other team will take care of the processing of orders.

Read: How to Make a Small Business Website

On your website, you have to mention your target audience, the area PINs you cater to, the minimum and maximum quantity of orders you accept, etc. An ideal site provides four broad steps to a customer when he or she wants fuel delivery at doorsteps.

  • First, is entering the consumer location with the PIN.
  • The second is choosing a specific product and quantity. Here, he or she can check the price.
  • Thirdly, selection of the most convenient time for getting the fuel.
  • And finally, getting the delivery at the doorstep.

Creating the right business model is one of the most important aspects of this business. The right business model makes or breaks the aspect of this type of business. Therefore, you must be careful in the operational part of delivering fuel.

Related: How To Start a Petrol Pump Business

4. Setting up the Online Fuel Delivery Business

First of all, you need a small eCommerce site for the overall operation. Additionally, you must be careful about the security of the site. Use good and effective accounting software for billing, accounting, generating money receipts, and getting the accumulated data.

Additionally, you have to procure small vans that can carry and deliver fuels as per specific requirements. Contact an existing fuel dealer to get the fuel at a reasonable price. Fix the price carefully for the clients. Here, we have compiled some of the important links for further knowledge.

5. Marketing & Expansion

Online marketing is the most crucial part of this business. The people who use the internet daily to purchase requirements are the target audience of your business. Therefore, you have to emphasize reaching the people who have already a car and are convenient for online shopping.

Ensure the availability in the GoogleMyBusiness. Additionally, you can use Adwords to get users to your site. Also, promote the business on social media pages. Facebook ads are effective for this type of business. You can check using Facebook advertisements.

For promotion, you can provide some discounts as an introductory offer. Additionally, craft a package for the consumers who ensure monthly filling. Finally, a mobile app will help your consumers to order quickly in time of immediate need.

You can expand the business by expanding the area of operation. Additionally, you can add products. If you start with only diesel, you can add petrol, gas, etc. However, the addition of the product line demands fresh investments.

Opening an online fuel delivery business is a self-rewarding business for any individual. However, the business demands crucial entrepreneurial traits like dedication, persistence, risk-taking ability, etc.

About Next What Business Research Team

The Editorial Staffs at NextWhatBusiness is a team of Business Consultants with years of experience in small and medium-scale manufacturing and service-based businesses.