Packaging and Shipping Business Plan

AuctionShipper is a start-up packaging and shipping organization that caters to online auctions such as eBay as well as offering regular shipping services to walk-in customers. AuctionShipper will be known as the reasonably priced, environmentally sensitive, convenient service provider.

AuctionShipper has identified three keys of success that will be instrumental in its sustainable success. The first is to provide a market-needed service which it will accomplish by offering reasonably priced packaging and shipping services. The second will be to ensure its services are as convenient as possible. If it is not the most convenient solution, then people will not become long-term customers. The last is the use of strict financial controls.

AuctionShipper will target three customer segments, new eBay users and more advanced eBay users. Each group will have different compelling reasons as to why they use AuctionShipper. Recognizing that these are two distinct groups, they will targeted differently. The new eBay users have 11,216 potential users with a 15% growth rate, while the advanced users have 8,097 potential customers with a 9% yearly growth rate. The last group will be all other customers with a growth rate of 7%  and 23,221 potential customers.

AuctionShipper faces two different types of competition. The first type of competition is from mom and pop shops that offer packaging and shipping as an additional service beyond the core service offerings. These type of shops typically offer shipping as an auxiliary service. The second form of competition is from franchise operations that focus on packaging and shipping. There are many different competitors in this space and as a general rule have high priced shipping options. These service providers appeal to someone who values convenience and is willing to pay for it.

AuctionShipper is lead by Jack Paacker, a seasoned entrepreneur who started his first business while still in college. 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. His experience and education will be heavily valued in assuring the success of AuctionShipper. AuctionShipper will achieve $185,000 in revenue for year two, rising to $285,000 for year three.

1.1 Objectives

• Become the premier auction shipping service.
• Reach profitability within the first two years.
• Achieve market penetration of 15% by year three.

1.2 Mission

AuctionShipper’s mission is to become the premier 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.