One Stop After Sales Service Platform | eCommerce Startup Idea


This eCommerce Startup Idea from the 1001 Startup Ideas collection of YoStartups is to establish One Stop After Sales Service platform for your the appliances. Through this platform, users can request support & service, pass their feedback and concerns, and access all the troubleshooting and operation manuals for their home appliances. The brands will also get to engage with their customers and provide services for better customer retention.

Market Definition | One Stop After Sales Service Platform

As per a report on Businesswire, the global household appliances market is estimated to reach 343.98 billion USD by 2020 at a CAGR of 6.1% for the forecasted period. And the growth is expected to be majorly from the developing countries like China, India and the cash-rich region of Middle East.

The major reason for the growth in developing countries can be contributed to rising per capita income and new products that are increasingly interconnected with each other, popularly known as smart home appliances.

Stressing on the importance of customer service, a report on Forbes mentions businesses losing USD 62 billion per year through poor customer service in 2016. It is USD 20 billion more than what it was found in 2013. Based on a survey, 49% of respondents reported switching because of poor or inappropriate customer service. Millenials (25 – 34 years old) are found to be more critical of the customer service with 62% of respondents switching due to poor customer service.

Competitor Analysis | One Stop After Sales Service Platform

Owing to the huge market and the risks associated with the customer service, brands are themselves coming up with the platforms or applications for the last mile customer service. At the same time, there are companies which are working across different brands and combining them together under one application for the ease for customers. Handymade, from India, is one such company which combined expert services for home/kitchen appliances from the brand authorised service centres. Handymade later got acquired by UrbanClap, the home service platform from India.

Pain Point & Target Audience | One Stop After Sales Service Platform

The user of this product would be any home appliance user that has access to a smartphone. And the customers are the home appliance brands that are looking to enhance customer satisfaction and retention through improved after-sales customer service.

Users find it difficult to access information about their appliances, and often end up frequently calling/visiting their service centre or spending hours on the internet for the solution.  Users spend hours for simple requests like extending warranty, booking service or even putting product feedback.

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Brands often loose track of their customers after sales are done, mostly they are unable to follow up for after sales service or contact them to get feedback on the usability of the product.  In absence of an automated platform, brands end up using traditional methods like calling and emails which are found to be more annoying than effective to customers.

Value Proposition | One Stop After Sales Service Platform

Users can access a single mobile based app for their complete after-sales service of their home appliances. They will be able to reach their brands for any service request or troubleshooting manuals with just a few clicks. At the same time, brands get complete visibility on the performance of their products and the quality of service from their authorised service centres. By connecting customers and brands on one application, brands will see happier customers with higher engagement and retention.

Business Model | One Stop After Sales Service Platform

The startup can charge brands on the basis of their customer base size, it can have different monthly subscription slabs for different customer base size. The application will be completely free for the users.

Way to market | One Stop After Sales Service Platform

The startup needs to tie up with leading brands in different home appliance segments and with their help make users download the application and register as part of the sales process to activate warranty. In the early days, the startup should focus on the brands which sell varied appliances like television, air conditioners, refrigerators, washing machine, etc. Including multiple appliances will provide additional incentive for users to be engaged with the application.

Milestones | One Stop After Sales Service Platform

For the first year, the startup should target at least two leading home appliance brands and try to provide its coverage in three to four metro cities in the selected country. This will help the startup to learn from the customer experience and build trust with the brands.

Investment Needed For Prototype | One Stop After Sales Service Platform

For testing & building the prototype, pitch for raising 100k-150k USD from angel investors or incubators for building the application. There won’t investment required for marketing and application download, as that part will be taken care by the brands at their authorised outlets.

Team Capability | One Stop After Sales Service Platform

You would need to have a full stack developer in your team for the backend and application development. Since you will be working various brands and keeping their sensitive customer data, you would also need to have security expert in your team. In addition to this, a co-founder who has experience in dealing with consumer appliances manufacturers would be a great addition to the team.

Investors / Expert Take | One Stop After Sales Service Platform

Considering the sheer size and market opportunity, this sector is considered very lucrative by investors. Some of the investors which have invested in the segment are Accel Partners, Bessemer Venture Partners, Kae Capital, etc.

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