Opportunity Snapshot
- Country: USA
- Industry: Internet, eBusiness
- Stage: Start-up
- Investment size: $100,000 / min. $55,000
- ROI: 40% in 2 years
- Type of investment: Equity
Investment Opportunity
We are setting up an e-commerce platform that people all around the world can use to shop and search among millions of products at stock.
We have a big dream, the biggest vision we've ever had.
Imagine a website that made online shopping nearly as fun as real world shopping. Not just to compare prices, but to actually shop on. A place where you could get the feeling of walking down a real Main Street in any town, anywhere.
Window shopping. Browsing. Feeling the thrill of discovering something you didn’t know you needed but just have to have.
For an Investor: Let's remember about 40% of Amazon's $70B in sales last year came from 3rd party small businesses participating on the Amazon web site. But Amazon doesn't share any customer information with the merchant, in fact they hide the merchant from the shopper. How can you build a business this way?
Competitive Advantage
Our network has great strength in global sourcing of consumer goods. This means there is nothing our competitors offer now that we cannot source at a lower cost and sell cheaper.
We have devised an innovative strategy that incorporate local transport and international system into our delivery system, thereby making it faster and more cost effective.
The merchants on the competitors’ sites are now being taken for granted. They are all limited by excessively long turnaround time of each sales transaction, to when they get their payment. We intend to correct this to our mutual benefit.
By the 3rd stage of our roll-out plan, we will execute a strategy that will give people free unlimited access to our platform.
Although the market is right now grossly undeserved, we intend to continuously innovate in all areas of the business to stay ahead of the competition.
Rationale for the deal
Our present opportunity represents a huge market which is just aligning with the proliferation of computers and smartphones, cheaper data and availability of telecom network. The growth is just beginning, so there is no better time to tap into the opportunity.
We will make money from this opportunity through the following:
1. Over 50% margin on sales of direct import items on our e-commerce site.
2. Commissions from sales by other merchants on the e-commerce site.
3. Income from funds which will be held in merchants’ Magento accounts until the conclusion of a transaction.
4. Income from excesses on the cost of product delivery to customers.
5. Income from online advertisements by merchants and other businesses on the site due to the high traffic it will be generating.
6. Specialized design and graphic services to merchants operating on the platform.
7. Specialized wholesale sourcing and delivery of products that are available or not on the site to customers on request. No competitor is offering this service to the best of our knowledge.
8. We have several years of experience in managing multi-product conglomerate.
9. We have experience from operating as merchants on the platform of some of the competitors.
Use of financing
1. Buying equipment for warehouse space for the company's direct imports and other stock.
2. Funding of a large variety of imported and local goods.
3. Purchase of motors vehicles for local delivery and airfare for international delivery and the setting up of the delivery logistics.
4. Execution of extensive online marketing campaign to attract visits to the site.
5. Renting, equipping and staffing of the merchants' drop-off points at the roll out of vendors/merchant services.
A second round of funding will be required at the launch of the merchant/vendors services. A third one may be required at full national roll-out of services and the expansion of product portfolios.
Opportunity for the investor
Our business is looking for equity investors who can take up to 40% to 20% of this business. ROI promises to be double what is obtainable in more matured economy because of a high level of imperfection in our market as it is. We will commence dividend payment by the end of our second year of operation.
We would not really mind whether it is a hands-on investor or a silent investor. Privacy of the investor will be respected as may be desired by the investor.
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