Current stage of the project:
- 250 thous. Hits per month;
- 10 thous. people make approximately 15 thous purchases per quarter;
- 1030 suppliers from all over the country;
- E-mail data base counts 304 000 members. Conversion 0,8%;
- 8% of returns from the total number of orders;
- Own delivery service in Kyiv city. Novaya Pochta and Most-Express are in the regions.
- 34 staff members.
Work scheme:
- From day to day, store puts on about 20 commercial rebates, where it is offered to buy household goods with an essential discount, which works during the limited period of time.
- Business model has a good stimulation effect on impulsive purchases.
- During the rebates period supplier freezes the product. We work with a deferral of payments for 14-30 days.
- Internet-store is not a market place, and it independently effects sales, fulfillment and coordinates the delivery and returns.
- Internet store doesn’t`t purchase a product, without a preorder of vendor. That is why we have a minimal stock balance.
Financial prognosis:
Total amount of investments: $100 thous
Marketing budget is equal to 200 thous UAH per month
Results:
- E-mail base will be equal to 577 thous. members. Member acquisition cost - 10 UAH/member.
- Purchase conversion on Email basis is 1,5% per month.
- Marginality 27%.
- Average purchase size will increase from 350 UAH to 700 UAH as a result of adding furniture and household appliances in the assortment.
- Returns index - 7%.
- Within a year, the project can reach the operational profit of 10%.
Commercial offer:
- Investment attraction of $110 thous for 30% of the project – marketing.
- Full repurchase of the business for $350 thous (100% of the project).
