Mail Order Returns Marketing Plan

QuickReturns

Executive Summary

The handling of electronic retailer returns is one of the most serious problems currently facing e-tailers and catalog merchants. E-returns not only are expensive, time consuming, and labor intensive for retailers to process, but the potential hassles to consumers impair sales and slow customer growth. As a result, pure-play e-tailers and catalog merchants are at a significant disadvantage to brick-and-mortar and click-and-mortar retailers that allow customers to return purchases made online to their physical store locations. QuickReturns fills the role of an outsourced solution provider, as it is the first company to provide consumers with a no-hassle and cost-free method to return and exchange merchandise ordered from virtual stores, while saving retailers money on returns handling.

QuickReturns will provide its retailer partners with physical points of presence at which their customers can return unwanted or defective merchandise. To minimize capital expenditures, operating costs, and scalability time, QuickReturns will utilize a distribution partner model. Retailer partners will pay annual membership fees and transaction-based return and exchange fees. The latter two fees will be shared with the QuickReturns distribution partners.

By partnering with QuickReturns, retailers will benefit from reduced return handling costs, increased sales, and improved customer service. Distribution centers will benefit by adding a low-cost revenue stream that will also drive desired, but otherwise inaccessible, customers into their stores. Finally, consumers will enjoy saving time and efforts with the product return process and instant refunds.

QuickReturns was founded by four individuals, each of whom has had many years in management consulting. At the moment, the company seeks $3 million in seed financing. Additional rounds of financing will be required to fund future marketing activities and technological development.

Sales Forecast
2003 2004 2005
Sales
E-tailers $131,875 $498,000 $700,300
Catalog merchants $180,118 $675,300 $850,000
Total Sales $311,993 $1,173,300 $1,550,300

Direct Cost of Sales 2003 2004 2005
E-tailers $39,563 $149,400 $210,090
Catalog merchants $54,035 $202,590 $255,000
Subtotal Direct Cost of Sales $93,598 $351,990 $465,090