Opportunity

Problem

E-commerce is growing rapidly, and so do the returns processing needs of manufacturers and merchants. Internet-based companies receive an average of 9.9% in returns. In the next year, returned merchandise amounted to $1.5 billion. Every one of these transactions involves financial processing. Many require physical shipping and processing of goods. This is a big 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. This strategy will result in reduced shipping costs for consumers who return merchandise due to demand accumulation. This difference will increase consumer acceptance, and all companies will see increased revenues. It is therefore a win/win situation for all. The website design and software architecture will also be wireless-friendly. Consumers will be able later to access the service using their personal wireless devices.

Market

E-commerce continues to grow and the amount spent online on goods and services is increasing. 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. The number of orders rose by 270% when 30 retailers were surveyed in different categories, including apparel, books, music and specialty food. The study found that online sales are increasing at 145% per annum and projected online retailer revenues in excess of $36 million for the past year. Ernst & Young had previously done a study before the holiday season. It estimated that online retail revenues and consumer product sales totaled between $25-30 billion for the year. The average return rate for Internet-based businesses is currently 9%. The value of returned merchandise will reach $1.5 billion in the next year. This is an incredible opportunity.

Competition`

The company anticipates three types of competition in the services they offer: Direct

Others will follow us if we are successful. Our most worrisome competition would be combining delivery and/or courier services, like something of this type owned or partnered with UPS or FEDEX.

Online retailers are the first competition to the new service. NoHassleReturn.com needs to make strategic deals and partnerships with retailers to be able to offer its services. These online retailers are classified as internal rivals.

NoHassleReturn.com gives retailers at most one selling opportunity when the consumer is online. This is not something a carrier partnership can provide. NoHassleReturn.com serves as a demand-aggregator, and can arrange the necessary agreements to provide consumers with reduced or even free shipping for all returned merchandise.

Channel

In reverse order to the paragraph above, service providers like Mail Boxes Etc. and PostNet may try to forge strategic partnerships with numerous online retailers to simplify the return process.

Why Us?

Our mission is to enhance customer service of online merchants, boost their customer retention and increase their sales. We want to increase online shopping’s growth by improving the image of online retailers. We are committed to increasing customer satisfaction in dealing with retailers.

Expectations

Forecast

NoHassleReturn.com’s financials are solid, but not too optimistic. 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 per Year

Financing is Required

We need $50,000 for our first venture. The owners will give us $50,000 each to get $25,000 each.