Idea for Prospective Business
FreeReturn.com will serve as an ecommerce startup organization, which will position itself to emerge as a leader in the market in offering online costumers and merchants an undeviating way of returning products bought online freely and without trouble. The organization will specialize in the provision of business-to-business services to merchants dealing with non-perishable products online. It will use a consolidated strategy that will facilitate in dealing with all returned products, allowing online dealers to avoid bad sales, restore the satisfaction of consumers, and boost repeat sales. The organization will do this by providing clients with a centralized and convenient means of claiming returns online (BizPlanDB, 2014) . By developing the new category of service delivery and leveraging on first-mover benefits, FreeReturn.com will be able to position itself as a company characterized by rapid growth and institute entry barriers for probable rivalry.
The services that FreeReturn.com will provide will streamline the retailers overall return process. It will provide retailers with the opportunity for outsourcing significant portions of their enterprise, allowing them to lay considerable emphasis on their key competencies, while avoiding processes that do not add sufficient value to their operations (Hiduke & Ryan, 2013) . FreeReturn.com will minimize capital spending of organizations that utilize its services, raise the services the retailers provide to consumers, boost opportunities for sales, grow earnings, as well as improve management of inventory (Belew & Elad, 2011) . Consumers will realize increased benefits by accessing a convenient and easy means of returning the products they purchase, while at the same time tracking the returns.
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Competitors and their Strength and Weaknesses
The organization will anticipate experiencing rivalry in the services it provides in the form of internal and channel competitors. On internal rivalry for instance, online retailers will serve as the initial competitors for the new service. Since FreeReturn.com will require engaging in strategic agreements and partnerships with retailers to allow it provide services, these will serve as internal rivals. Here, the retailers might regard their processes for internal return as sufficient and meeting the demands of consumers adequately (Belew & Elad, 2011) . Nonetheless, certain cons prevail in the whole industry’s return process. Even when it comes to corporations, such as Amazon, which pride themselves in an easy and fast return policy, they find clients consulting other companies to return products. In this case, certain e-retailers might see collaborating with retailers operating brick-and-mortar establishments as an ideal solution. Nevertheless, in the viewpoint of consumers, no centralized location prevails for returning merchandize in an easy way, while no shipping cost savings are realized (BizPlanDB, 2014) . In this vein, the customers end up visiting different stores when returning distinct items.
In the event of channel competitors, carriers including FedEx and UPS might consider venturing into the area. These companies have tremendous shipping experience, numerous facilities, and reputation for quality. In the recent years, the U.S. Postal Service has commenced TV advertisements for a service allowing online retailers to offer consumers means of printing labels for returning products online. When looking at this approach, it appears to be a focused on ending return challenge on the shipping end (Hiduke & Ryan, 2013) . However, it faces challenges when it comes to saving bad sales in line with offering merchants new opportunities for selling. No individual shipping corporation has the ability of offering the numerous benefits that FreeReturn.com anticipates to offer. FreeReturn.com will have the ability of assembling strategic alliances with diverse carriers, while at the same time playing them against each other on matters related to negotiating reduction rates and ideal terms of service for consumers and merchants (Hiduke & Ryan, 2013) . Since FreeReturn.com is a small corporation that targets the ecommerce community, it will gain the advantage of leveraging on increased flexibility when it comes to adjusting to the requirements of the consumers.
Company Mission
The mission of FreeReturn.com will be to boost the level of service delivery that online merchants offer to consumers, increase their ability to retain customers, and boost their overall sales. The organization will focus on improving the overall online merchants’ image, which will play a critical role in allowing online shopping to grow. The organization will direct its efforts toward raising the overall level of satisfaction of consumers once retailers deal with them, boost the process of interaction when the retailers are interacting with clients, and smoothen the process of addressing any existing problems in all probable ways.
Business Ownership Form
The business will initially serve as a partnership between two of its owners, who will be involved in the initial stage financing as well as developing strategic approaches for executing the business successfully. During the first year of operation, the enterprise targets raising around $1 million in two financing rounds together with gaining access to extra $500 million, which will support cash flow processes before online merchants and clients can start utilizing the program fully. Depending on conservative financial projections, FreeReturn.com will anticipate realizing profits during the start of the second year (Hiduke & Ryan, 2013) . With the dual-pricing approach that the organization plans to adopt, it will facilitate in generating solid overall income, while almost eradicating downside threats. During the firth year, the 1.5 million overall investment will generate around $50 million in the form of cash flows, which will all be generated internally. The organization can consider going public by the end of the second year, while an IPO would allow the financial position of the firm to back its market capitalization of over $500 million. The founders of the business have degrees and experience in business administration, which will allow them to operate the business successfully (BizPlanDB, 2014) . They will also be liable for any losses the organization realizes in line with paying taxes based on the set standards for operating such a business.
References
Belew, S., & Elad, J. (2011). Starting an online business all-in-one for dummies. Hoboken: John Wiley & Sons.
BizPlanDB. (2014). E-commerce website business plan. New York: BizPlanDB.
Hiduke, G., & Ryan, J. D. (2013). Small business: an entrepreneur's business plan. Boston: Cengage Learning.
