Ecommerce Business

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E-commerce Business

This project involves the creation of an e-commerce business called Realtors Ltd. The company will sell sports equipment online with a concentration on the U.S. and European markets. It is a consumer-type business where it focuses on the supply of sports equipment to clients. Dick's Sporting Goods, Primetime Sporting Goods, Play it Again Sports, and TM Sporting Goods dominate the business. These are our major rivals, where their restricted number of outlets is recognized, making it very costly for individuals in various locations to get equipment and facilities needed for different sports.

The company will develop a website where clients can access the product and choose what they want to purchase. The company will not stock the items, and the products will be purchased from manufacturers at consumers' request. The sports equipment to be handled includes the various balls used, flying discs, nets, racquets, rods and tackle, bars, bats, wickets and bases, shoes, and protective gears of all brands, types, and sizes. All the product specifications given by the manufacturers will appear on the website for those consumers who are looking for equipment easily available (Vejačka, 2016, May).

Customers will be required to purchase the items online, following which the delivery costs and time will be assigned based on the location. The business will also have a call center and a telephone number for communication with customers. The business focuses on delivering the products, depending on the product requested and the location, via car, train, airplane, and ship. The products will be delivered as soon as possible following payment, depending on the customer's location. Delivery trucks will be contracted when delivering the products.

Business value proposition

The Realtors Ltd is an online sports equipment delivery business that works by simplifying the process of ordering and receiving the sports equipment. The company value proposition: we enable our customers to order their sports equipment of interest at the comfort of their homes with better products, design, safe payments, and efficient delivery. The company's mission is to use technology to turn desire into action most quickly and simply possible by making sports equipment accessible.

The business model consists of the revenue source, which is markup. This will be the only source of revenue while the costs involved in the business include: licensing, rent, advertising, and commissions and salaries. This can be represented as shown below.

Sales revenue.

Different equipment sales

Personal funding

Commissions and salaries

Realtor Ltd Revenue model

Office rent

Advertising costs

Licensing. Cost for operation

Equipment costs

Business Model Canvas

Key partners · Transport and delivery. companies · Different sport equipment manufacturers. · Different sport equipment dealers.	Key activities · Advertising. · Distribution. · Responding to different customers. · Analyzing the sport equipment market. · Studying different customers’ needs and preferences.	Value proposition · Enabling different customers to select the equipment of interest from a wide variety of different types and brands. · Efficient delivery of the product. · Technology use for customer to access the website and deliver on time.	Customer relations. · Customer care services. · Good user interface for the website.	Customer segments · Sporting academies. · Schools. · Individuals interested in sports.
	Key resources · Human. · Capital. · Internet. · Smartphones.		Distribution channels Train parcels, picking from stalls. Delivery vehicle parcels.
Cost structure · Purchasing the equipment · Storage/rent · Advertising · Distribution	Revenue streams · Sales of products · Personal funding · Bank loan

References

Vejačka, M. (2016, May). Virtual firms as education tool in the field of eCommerce. In 2016 39th International Convention on Information and Communication Technology, Electronics and Microelectronics (MIPRO) (pp. 918-922). IEEE.