Google for "cargo insurance". There are a few informative links, I wasn't sure if its the right one but you might find what you are looking for.

hi ken_zie,

This concept is similar to the return policy of major department stores. Something very common in the US where you aren't happy with a purchase you made in their store, you can return it back and change for another item.

However this applies only if you already have a store to begin with and it assures customer satisfaction with this value added service. Meaning customers need not worry about buying something of a wrong size because they can return it anytime or change it if they aren't happy with the product once they tried it.

Online stores not only provides a cheaper alternative to a physical store, it is extremely convenient for a busy lady at work to do some shopping without stepping out of the office. My friends bought stuff online and the clothes/items they bought are delivered straight to their office or home where they can try it. They do not need to go to any physical stores and experience the jam and the sun or rain. The risks like you mentioned is that sometimes what they bought does not fit them and then they are stuck with this clothes/items which they do not want to wear/use. But this does not happen very often because if it did, online stores will not be popular anymore. Maybe out of 10 purchases, customers might not be happy with 2 or 3.

1. Since you intend to open a physical store, shoppers don't have the convenience anymore since they have to come to you like they do any normal retail shops.

2. I assume you will also charge a commision to order online for them, so the costs of buying online has increased for them. Since they are already travelling out of their office/homes, why cant they just go to a shopping centre and buy their clothes instead which they can try on or test. Do they need to go to your shop to collect?

3. The only service you provide is the guarantee that if they aren't happy with the product, they can return it to you at a discount of maybe 25-35%. So if they are happy, then you only earn the commision from them if they are not, you are stuck with the rejected stuff that you need to sell to earn money.

4. How can your store which only provides 1 specialise service beat the other normal stores that are selling clothes in the street which customers can test the products. Since you don't sell clothes originally and only sell clothes rejected by customers and customers still need to go to your shop just to collect and still don't know if what they ordered will fit them or not.

5. You assume the risk of an unhappy customer, you earn peanuts compared to other clothing stores around you that buy their clothes at much cheaper prices in bulk, your customers still need to order online from you and you will most likely be labeled as a 2nd hand store because you are selling customer rejected goods.

Ultimately, I doubt your business can survive on that concept alone. But you can use that idea as a value added service for a clothing store.

IMHO anyway.

This post has been edited by skiddtrader: Mar 18 2010, 05:34 AM