E-commerce is accelerating, as are the demands on manufacturers and merchants to process returns. Internet-based businesses receive an average rate of return of 9%. In the next year, returned merchandise amounted to $1.5 billion. All of these transactions involve financial processing. Many of these transactions require physical shipping of goods and processing the goods once they are received. This can lead to a lot of hassle.
NoHassleReturn.com seeks to position itself in a strategic partnership with online merchants, web hosting companies and portals as well as shipping companies and online payment agent such as credit cards issuers. The strategy will allow consumers to return merchandise at a reduced or even free cost due to demand aggregation. This difference will increase consumer acceptance, and all companies will see increased revenues. 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.
E-commerce continues its rapid growth and the number of online orders is not declining. 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 covering categories such as electronics, apparel, books and musical, home and garden, specialty foods, and music showed that there was a 270% increase of the number orders. According to the study, online sales are growing at 145% per year and online retailers’ revenues were projected to exceed $36 billion for 2013. 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. Currently, the average rate of returns for Internet-based companies is 9%. In the coming year the value of returned merchandise was $1.5 billion. This is an extraordinary opportunity.
The company expects to compete with three types: Direct
If we prove successful, 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.
Online retailers are the first competition to the new service. They are considered internal competitors because NoHassleReturn.com must form partnerships with retailers to provide its services.
NoHassleReturn.com offers retailers at least one selling chance while the consumer is browsing the Web. This is something that a partnership with a carrier can’t offer. NoHassleReturn.com is able to serve as a demand aggregater and arrange shipping arrangements for consumers.
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.
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 do our best to improve customer satisfaction and the communication process between retailers with customers.
NoHassleReturn.com’s financials are conservative yet quite promising. NoHassleReturn.com is sure to gain momentum as soon as they get up and running, and start signing up merchants for customers.
Financial Highlights by Year
Financing is Required
To start, we need $50,000. That will be enough to make $25,000 each for the two owners.