AuctionShipper is a packaging and shipping start-up that caters for online auctions, such as eBay. It also offers regular shipping services to walk in customers. AuctionShipper can be described as the convenient, affordable and environmentally sensitive service provider.
AuctionShipper has identified three keys of success that will be instrumental in its sustainable success. The first is to offer affordable packaging and shipping service. It will also make sure its services are as easy as possible. If they don’t offer the best solution, customers will not stay with them for long periods. Last is strict financial controls.
AuctionShipper will target 3 customer segments: New eBay users, Advanced eBay Users and More Experienced eBay Users. Each group will have different reasons why they use AuctionShipper. Because these two distinct groups exist, they will be targeted in different ways. The new eBay users boast 11,216 potential customers, a 15% growth ratio, and the advanced users boast 8,097 potential clients with a 9% annual rate. The last group is all customers with a growth of 7% or more and 23,221 potential clients.
AuctionShipper faces two types competition. The first comes from mom-and-pop stores that offer shipping and packing in addition to core services. These type of shops typically offer shipping as an auxiliary service. The franchises that specialize in shipping and packaging are the second kind of competition. This space is crowded with many competing companies and offers high-priced shipping options. These service providers are for those who value convenience and can afford it.
AuctionShipper is led by Jack Paacker. Jack, an experienced entrepreneur who began his first business while still in school, runs AuctionShipper. Jack will be successful in leveraging his experience of operating his own business with the skills taught to him while he was pursuing his MBA. AuctionShipper will benefit greatly from Jack’s education and experience. AuctionShipper will generate $185,000 in revenue in year two and $285,000 the following year.
- Be the leading auction shipping service.
- Within two years, you can achieve profitability.
- By year three, market penetration should be 15%
AuctionShipper is striving to be the leading auction shipping service. This will be achieved by offering reasonable prices, fast and environmentally sound service, and maintaining 100% customer satisfaction.
1.3 Keys to Success
- Provide a market-needed service.
- Be as convenient as possible.
- Employ strict financial controls.