E$-$commerce platform is a prominent e$-$commerce platform, designed to help businesses sell products online efficiently. Founded with the mission to drive trade growth, E$-$commerce platform focuses on providing a seamless online shopping experience for both merchants and consumers. It supports various aspects of e$-$commerce, including payment processing, marketing, logistics$,$and customer engagement$.$

Refundz is a cutting$-$edge platform designed to revolutionize the traditional refund and exchange process for merchants. It allows merchants to issue instant refunds to customers' bank cards or accounts before the items are returned, enhancing customer satisfaction and streamlining operations.

Task: Create Commercial Proposals for E$-$commerce platform and Refundz Partnership

Objective: Develop two commercial proposal scenarios for the partnership between E$-$commerce platform and Refundz. One proposal should use a percentage margin and the other should use a fixed rate margin. Ensure that both proposals reflect the pricing structures, costs, and margins of both companies.

Background Information:

Refundz:

Partnering with E$-$commerce platform and wants to run a pilot.

previously works with OTO, which has logistics companies with COD costs ranging from $18$to $24$$ $($average $20$$$).$

Refundz got COD from OTO at a cheaper rate $($exact rate unknown$).$

Refundz adds a margin of $3$to $5$$$.$

Refundz handles a low volume of requests $(10$to $30$per day$).$

E$-$commerce platform:

COD cost is $$$$16.$

E$-$commerce platform$$s margin is $$$$8.$

Charges merchants $$$$24$for COD.

Requirements:

Commercial Proposal $1$: Percentage Margin

Determine a reasonable percentage margin that Refundz and E$-$commerce platform can agree on$.$

Calculate the final cost to the merchant based on this percentage margin.

Ensure the proposal is competitive yet profitable for both companies.

Commercial Proposal $2$: Fixed Rate Margin

Establish a fixed rate margin for Refundz and E$-$commerce platform.

Calculate the final cost to the merchant with this fixed rate.

Ensure the fixed rate is fair and maintains profitability.

Steps to Complete the Task:

assum Data:

Proposal Development:

Percentage Margin Scenario:

Suggest a percentage margin that both companies can apply.

Provide calculations showing the final cost to the merchant.

Justify the chosen percentage margin.

Fixed Rate Margin Scenario:

Propose a fixed rate margin for both companies.

Provide calculations showing the final cost to the merchant.

Justify the chosen fixed rate margin.

Comparison and Analysis:

Compare the potential revenue and costs for both scenarios.

Highlight the benefits and potential challenges of each proposal.

Provide a recommendation based on your analysis.

Deliverables:

Detailed calculations and justifications for each scenario.

A comparative analysis of both proposals.

Recommendations based on the analysis.

The partnership is going to be between Refundz and the e$-$commerce platform only

Please use excel sheet to show clear explanation and comparison

Why should we go with fix rate instated of $\%$

reasons