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E-Commerce Start-Up Business Plan Leave a comment
Opportunity
Problem
E-commerce is growing rapidly, and so do the returns processing needs of manufacturers and merchants. Internet-based businesses have an average return rate of 9%. The value of returned merchandise reached $1.5 billion in the next year. Each transaction involves financial processing. Many require physical shipping and processing of goods. This is a hassle.
Solution
NoHassleReturn.com wants to position itself as an online partnership between online merchants. Due to demand aggregation, the strategy will produce reduced or totally free shipping of returned merchandise to consumers. This distinguishing element will increase consumer acceptance and draw more revenues for all the companies that participate. It is therefore a win/win situation for all. Furthermore, the software architecture as well as the website format will be wireless-friendly. The service will then be available to consumers via their wireless devices such that they can access it from their cell phones.
Market
E-commerce continues to accelerate and the amount of money spent on purchases made through the Internet shows no sign of decline. Online revenues increased by more than 300% in the past holiday season (20 November to 19 December) according to Shop.org. This was far beyond expectations and well above what Shop.org and Boston Consulting Group had expected. A study of 30 retailers across categories like apparel, books and music and specialty foods and electronics revealed a 270% increase in order volume. It was found that online sales were increasing at 145% annually, and it predicted online retailer revenues exceeding $36 billion last year. Ernst & Young did a previous study prior to the holiday rush and estimated that total revenues from online retail and consumer products was around $25-30 million. Currently, the average rate of returns for Internet-based companies is 9%. The value of returned merchandise will reach $1.5 billion in the next year. This is an incredible opportunity.
Competition`
The company expects to compete with three types: Direct
If we succeed, others will follow. Our most worrisome competition would be combining delivery and/or courier services, like something of this type owned or partnered with UPS or FEDEX.
Internal
The first competitors to the new service are the online retailers themselves. NoHassleReturn.com has to establish strategic partnerships with retailers in order offer its services. Therefore, they are classified internally as competitors.
NoHassleReturn.com provides retailers with at least one selling possibility while they are browsing the Web. This is something that cannot be provided by a partnership or carrier. Moreover, serving as a demand aggregator NoHassleReturn.com should be able to arrange necessary agreements and provide consumers with greatly reduced, or even free, shipping for all returned merchandise.
Channel
Thinking in reverse to the previous paragraph, service providers such as Mail Boxes Etc. PostNet might try to establish strategic partnerships with many online retailers in order to make the return process easier.
Why Us
Our mission: To improve the customer experience of online merchants and to increase their sales. We work to improve the image of online merchants, and stimulate online shopping. We do our best to improve customer satisfaction and the communication process between retailers with customers.
Expectations
Forecast
NoHassleReturn.com’’s financials seem conservative but very promising. Once they are up and running and sign up some merchants as customers, NoHassleReturn.com will quickly gain momentum and generate impressive sales.
Financial Highlights for the Year
Financing is Required
To start, we need $50,000. The owners will give us $50,000 each to get $25,000 each.
