Opportunity
Problem
E-commerce is accelerating, as are the demands on manufacturers and merchants to process returns. Internet-based businesses have an average return rate of 9%. In the coming year the value of returned merchandise was $1.5 billion. Every transaction involved financial processing. Many require physical shipping, as well as processing the goods upon receipt. This can be a major hassle.
Solution
NoHassleReturn.com is a strategic partnership between online merchants. Web hosting companies, portals, shipping companies and online payment agencies such as credit card issuers. Because of demand aggregation, this strategy will reduce or eliminate shipping charges for returned merchandise. This difference will increase consumer acceptance, and all companies will see increased revenues. All parties will benefit from the proposed program. Additionally, the website and software architecture will be wireless-friendly. This will allow consumers to use the service from their mobile phones.
Market
E-commerce continues to accelerate and the amount of money spent on purchases made through the Internet shows no sign of decline. According to Shop.org and Boston Consulting Group, online sales increased by 300% during the holiday season, from November 20 to December 19, and surpassed expectations. According to a study that included 30 retailers, the number of orders increased by 270% in categories such as apparel, books, music, specialty foods, electronics, and home and garden. The study indicated that online sales were growing at 145% annually and it projected online retailer revenues of more than $36 billion for 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. The current average rate of return for Internet-based companies stands at 9%. In the next 12 months, returned merchandise was worth $1.5 billion. This is a tremendous opportunity.
Competition`
The company foresees three types of competition for the services we offer:Direct
We will be successful if others follow our example. Our greatest threat would be to combine delivery and/or shipping services, such as something that is owned or partnered in partnership with UPS or FEDEX.
Online retailers are the first competitors to the new service. Since NoHassleReturn.com will need to strike partnerships and strategic agreements with retailers in order to offer its services, they are classified as internal competitors.
With NoHassleReturn.com, at least one selling opportunity will be given to retailers while consumer is on the Web–something a partnership with a carrier cannot provide. 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.
YouTube Channel
Reversing the sentence above, service providers such Mail Boxes Etc. may be considered. PostNet and other online retailers may be able to create strategic partnerships that will simplify the return procedure.
Why Us?
Our mission is improve the customer service of online merchants, increase their customer retention, and increase their sales. We work to improve the image of online merchants, and stimulate online shopping. We are committed to increasing customer satisfaction in dealing with retailers.
Expectations
Forecast
NoHassleReturn.com’s financials look conservative, but they are very promising. NoHassleReturn.com can quickly grow momentum once they have established themselves and signed up merchants to become customers.
Financial Highlights for the Year
Financing Needed
We need $50,000 to start. To start at $25,000, we will each get $50,000 from the owners.