business plan en e commerce

How to Write an Ecommerce Business Plan [Examples & Template]

Published: April 03, 2024

If you have a promising idea for an online e-commerce business , it’s important to create an e-commerce business plan to ensure your vision has enough stock to be profitable.

Having a business plan for your online store will help you define your target market, establish your monthly and quarterly sales goals, and increase the likelihood of long-term e-commerce success.

In this post, we’ll go over an online store business plan and how you can create one for your e-commerce startup. Let’s get started.

What is an e-commerce business plan?

An e-commerce business plan is a document that outlines your business and its goals, analyzes your industry and competitors, and identifies the resources needed to execute your plan. It also lists the e-commerce retailers you’ll use to distribute your products and the marketing strategies you’ll use to drive sales.

Whether a company operates as a startup or has years of operations and growth under its belt, an e-commerce business plan is essential for evaluating a business and determining areas of improvement.

An e-commerce business plan is essential, with increasing numbers of shoppers conducting business online. It's estimated this number has reached over 2 billion . An e-commerce business plan keeps you organized and is useful when seeking investors who need to understand your company.

So, let’s dive into some examples of e-commerce business plans and what goes into writing one using our free template .

Free Business Plan Template

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• Pitch to investors.
• Secure funding.
• Get to work!

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HubSpot's template provides clear steps to structuring one for your ecommerce business. Throughout this section, I’ll use the example of a photography company specializing in online photo editing.

How to Write an Ecommerce Business Plan

• Give an executive summary.
• List and describe your business.
• Detail your products and services.
• Conduct a market analysis.
• Strategize your marketing plan.
• Create a sales plan.
• Outline legal notes and financial considerations.

1. Give an executive summary.

An executive summary is a one-to-two-page overview of your business. The purpose of an executive summary is to let stakeholders know what the business plan will contain. HubSpot‘s free template offers some tips on how to write one, as I’ve done below:

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How to Make an Ecommerce Business Plan for Your Startup

Darren DeMatas

June 5, 2024

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In addition to receiving commissions generated through affiliate marketing, we are able to fund our independent research and reviews at no extra cost to our readers. Learn more.

So you’ve decided that you want to quit your day job and start your very own ecommerce empire. That’s great!

But before you become the next Jeff Bezos  (and definitely before you quit your job!), it’s worth spending some time thinking about a business plan. In this article, we’ll dive into the key elements of an ecommerce business plan, which is very different than writing traditional business plans.

Why You Should Create a Business Plan

We know that starting an ecommerce business is exciting, and it can be tempting to jump right in without constructing a business plan. READ: PLEASE DON’T DO THIS.

If you haven’t put your ideas, questions and concerns on paper, then you haven’t given your business model enough thought .

Taking the time to write a business plan might seem like a lot of work, but it can save you a lot of time and money in the long run by better preparing you for potential challenges and opportunities that you’ll face as a first-time entrepreneur. Think of it as a roadmap for your new business venture.

It’s exciting to start your own ecommerce business. However, you want to be well prepared and not jump into anything without having a solid, foolproof ecommerce business plan in place.

After all, you wouldn’t jump out of a plane without a parachute, so why start a business without a safety device in place? That safety device is your business plan.

The business plan is the brainstorming process that ensures your concept and goals are realistic.

This is more than just mental notes. True business plans take your ideas , questions, and concerns and put those in writing.

As you start creating your business plan, you’ll soon understand that it’s more than a single piece of paper with handwritten details on it. It’s a clearly constructed format of how your business will be created, how it will operate, and what you hope the future holds in terms of a successful ecommerce business.

When you write your business plan, be sure to have a target audience in mind. Are you going to look for investors or put a Kickstarter campaign into motion and use this as your descriptive platform? If so, make sure that your business plan contains everything the audience would want to know about your business (and more!). Many traditional funding solutions require a business plan in order to give you capital. However, there are alternative solutions, such as  Payability  that specialize in ecommerce and don’t require credit checks, a business plan, or any complicated paperwork. They can also get you approved in as little as 24 hours.

When your business plan is completed, you should have achieved the following goals:

• Knowledge:  A greater sense of knowledge of the business aspects.
• Resources:  The resources you’re going to need to make your business successful, such as partners, money, employees, etc.
• Road Map: Have clear set goals to take you from the very beginning of your business and onward.
• Viability: In other words, is your business possible? Will you have enough profit margins to keep the doors open long-term?

Now that you know why you should create a business plan, it’s time to move on to how you can create your business plan and get started putting your ecommerce business into motion.

How to Start an Ecommerce Business Plan

At the very beginning of the planning stages, it’s a good idea to develop a framework for your business model. This business model will continue to evolve as you create each section of your ecommerce business plan, so don’t strive for a perfect completed plan on the first try. You will be making tweaks to the plan of certain steps along the way.

There are many ways to sell products online and different business models  to pursue. Research and learn from successful ecommerce business examples in the market. The exact business model you follow will be one that makes the most sense with your resources, skills, and interests.

In order to create the best online business plan with your product in mind, you need to figure out the following things:

What are you selling?

The first step to creating an online business is to learn the absolute basics of what you can sell.

• Physical products: Clothing , shoes, home goods
• Digital products: Software as a Service products, ecourses, ebooks
• Services: Consulting services, home cleaning

Who are you selling to?

• Business-to-Business (B2B): You are selling to organizations, corporations, and non-profits rather than individual customers
• Business to Consumer (B2C): This means you are selling to individual consumers rather than businesses
• Marketplace: You are acting as a middleman by bringing businesses and (B2B or B2C) customers to one website.

How are you sourcing your product?

• Manufacture in-house: You make your product or service in-house
• Third-party manufacturer: You outsource the manufacturing of your product or service to a third-party manufacturer
• Dropship: You partner with a dropship manufacturer. Basically, this means that they make your product, package it and ship it directly to your customer while your company handles the entire customer relationship.
• Wholesale : You buy goods or services from other companies in bulk and re-sell those products on your online store

Additional References

• Entrepreneurship: Business & Marketing Plans
• Small Business and Entrepreneurship
• Entrepreneurship Resources
• Business Plan Resources

Executive Summary

The executive summary will be written according to your goals, and it’s recommended that this is done at the very end of your business plan completion. This will ensure that you include all of the important factors about your business and present your ideas in a concise and complete way.

Some of the features you’ll include in the executive summary include information showing that you’ve done your research, you have concrete sales forecasts, and the main details about your brand.

Business Model

When you’re figuring out your business model, you have to consider four different areas:

• Monetization strategy
• Product/industry
• Target market
• Sales channel

Monetization Strategy

The monetization strategy delves into the methods you are going to use to sell your products.

This strategy will look at different product monetization methods, including white label, private label , affiliate marketing, wholesale, dropshipping, and even selling ads.

Product/Industry

The product industry section is where you summarize your main niche.

For example, “Vegan Skincare Products.”

Target Market

In the target market section, you will write a sentence or so on who your target market, or ideal customer, is in the community.

If you’re selling vegan skincare products, your target customers might be women who embrace the vegan lifestyle and use natural skincare products in their daily beauty regimen.

Sales Channel

The sales channel refers to where you’re going to sell your products.

For example, you might be selling your products on your own website, and this should be entered in this section.

Business Overview

This next section covers your company overview.

This section of your business plan will cover various features of your company, including the following:

• Company type
• Domain name
• Value proposition
• Brand traits

The brand name section lists your business name or brand name.

This is an extremely important aspect of your business plan as it’s what will set the tone for everything that follows.

Pick a brand name that’s simple yet unique and is something that can be used in a wordplay manner, if desired, but not pun-worthy.

Company Type

The company is how your business operates. For example, you might label your business as an LLC , S-corporation, sole proprietor, or some other type of business organization.

The best way to determine how you should categorize your company is to speak to your accountant. There are various tax and legal aspects to forming your business in a certain way.

Speak with the professionals in the company and corporation formation field to determine how to label your company and which company type best benefits your business in a variety of ways.

Domain Name

This section is where you list your domain name.

Choose a domain name that is memorable and embraces the overall traits and features of your business.

And, when choosing a domain name, be sure to think of SEO aspects when doing so. You’ll find out just how much all of these things tie together and ensure a frequently-visited website is the end result.

Keep in mind that with ecommerce, the domain name is just as important as the brand name. Maybe even more so!

Value Proposition

A value proposition is a short, crisp statement that will gauge how clear your idea is. Write this section as if you had one minute to explain your business to a potential investor or customer and then practice it over and over again.

The value proposition can be used on your ecommerce store as your company description.

Here’s a good example: Say you’re looking to start a hiking company called Atlas Hiking Co. which sells premium performance hiking shirts. A possible company description could be the following:

Atlas Hiking Co. is a lifestyle hiking company that produces high-performance hiking shirts for outdoor lovers. Our proprietary SPF40 fabric is one of the lightest fabrics on the market, providing mountain lovers with maximum comfort, both from a breathability and sun-protection standpoint. Our product is made in the U.S.A. and a portion of our profits are donated to preserve national parks around the country.

Pay special attention to all the sensory words !

The mission statement in your business plan is the “why” of it all.

For example, why you started the business, why you are selling the products you are selling, etc., can all be added to this section of your business plan.

You can make this portion as simple or detailed as you like. Just make sure to properly and clearly explain your business mission.

The vision part of the business plan is your “how” in the grand scheme of things. It is the dream you have for your company and the path you’re going to take to realize that dream.

When you write the vision portion of the business plan, think long-term. What are you hoping to achieve, not just in the near future but for the long haul of the life of your business?

Look into the future and plan out where you see your business in 5, 10, even 20 years from now.

This will help you construct the rest of your business plan if you know where you want your business to head, now and in the future.

Brand Traits

The brand traits section is a short section in your company overview.

Basically, in the brand traits section you’re going to want to list three to five words that describe your brand.

Think of your brand personality and describe it using a few separate powerful words.

The personnel section lists all individuals, including yourself, who will be involved in the daily operations of your business. You can create a separate section for a full operations plan or add that later.

Some business owners choose to handle all duties on their own or with a partner, while others will hire individuals to fill the following roles:

• CEO (usually the business owner)
• Management team
• Customer service/logistics
• PR/Social media specialist
• SEO manager
• Advertising manager

Competitive Market Analysis

Here’s a fact you can bank on: there has never been a successful e-commerce entrepreneur that didn’t understand his/her target market cold.

That’s why this section is one of the most important in the entire business plan. It will force you to understand the industry in which you operate, the overall industry analysis and outlook, the existing competition, and your target customer demographic.

Market Segment

The market segment portion of the business plan will help you to put your ideas down on paper, make them more focused, and get your team together.

This area will include your niche selection, target market, and competitive analysis.

Niche Selection

The niche section  provides an overview of your niche, why you selected it, whether there’s a micro niche included, and the type of niche you’ve chosen.

The purpose of this section is to crystalize the ideas that you have and make sure they are understandable and viable.

The target market section covers an overview of your target market plus describes your market segments.

Ask yourself who your  target customer  is (population size, age, geography, education, ethnicity, income level) and consider whether consumers are comfortable with buying your product category online.

When listing the target market information, make sure to mention your target audience size as this is important for ensuring that your audience will be adequately covered.

Competitive Analysis

With the competitive analysis portion of your market analysis, you want to list your market leader and direct and indirect competitors.

After you mention who these entities are, you need to list the characteristics of each one, such as domain name, business model, monthly traffic, and pricing range.

However, before you even get started in writing this section, you need to spend several hours researching your target market.

Here are some of the most efficient ways to research a particular market:

Industry reports

Google is your best friend. Look for any recent industry reports on your market of choice. This will give you a good sense of how much growth the industry is experiencing, why this growth is happening, and what are the largest customer segments. In our example of Atlas Hiking Co., we should research the outdoor apparel market.

Let’s say that through our research of the outdoor apparel industry, we discovered that there was a huge boom in youth hiking apparel. Perhaps parents were increasingly concerned about their kids’ exposure to UV rays while hiking, so they began to spend more money on their kids. We could use this valuable information to guide our business strategy.

There’s only so much you can read online. Go to a nearby store that sells similar products to yours and interview the store representative. The store rep has interacted with hundreds of interested customers, which can lead to thousands of valuable insights! It’s amazing how these insights can translate into a meaningful business opportunity.

Here’s an example:

If I were going into Billy’s Outdoor Store to research the outdoor apparel market, I would probably ask Billy the following:

• What are your best-selling products?
• What are your worst-selling products?
• Find products similar to yours and ask the representative his/her favorite features on products similar to yours.
• How much are customers generally willing to spend on these types of products?
• Do customers make repeat orders of any of these products?
• Do you get a lot of customers that are looking to buy last-minute hiking gear before they go on a hike?

Competition

Create an Excel spreadsheet of all of your competitors. In your spreadsheet, you should have the following columns:

• Competitor Name
• Price point
• Product Description
• Key Features (e.g., fabric, waterproof, slim fit, etc.)

What is the competition missing? Is there a gap in the offering? Where you can add some additional value?

After conducting the competitor analysis, Atlas Hiking Co. might find that the competition’s hiking shirts offer very few features at a low price point, but no one offers a luxury hiking shirt with additional features at a higher price point.

This is just an example of the types of insights one can gain from market research which can drastically alter your business model.

Keyword Research

By using Google’s keyword planner  and trends pages, you can get a good sense of how in demand your product is and whether it’s trending upward or downward. Google is great for a general idea, just don’t bank on it.

Some other keyword tools you can use for keyword research include Ahrefs, JungleScout, and Viral Launch. Check out this list  for more ideas.

Trade shows

Are there nearby trade shows that you can go to? Again, creating connections with other people in your industry is a surefire shortcut to countless hours of reading on the internet. Trade shows are also a great opportunity to talk to competitors, meet manufacturers, and better understand where things are heading in your industry.

Once you finish researching the relevant industry, you should summarize your findings by answering the following questions:

General Industry

• How big is the overall industry?
• How big is the specific sub-industry in which you intend to operate?
• Where has most of the historic growth in the market come from?
• Why is this the right time to enter this market?
• What are the sub-segments that are poised for future growth (e.g., youth apparel)?
• How crowded is the product category with competition?
• How is your competition distributing its product (online, retail, wholesale, etc.)?
• What’s missing from the competition’s product offering?

Products and Offers

So we know we want to sell hiking shirts, but how do you research specific products?

But for some of us, we’re not quite sure what we should sell. To succeed in online retail, you need a product that is trending upwards in a growing niche.

Different types of products

Some of the different types of products include the following:

• Convenience products: Frequent purchase products, little effort on buying
• Shopping products: Less frequently purchased in between purchases, little more effort and planning, shop around
• Specialty products: Strong brand preference and loyalty, will buy no matter what the price

The various types of niches include the following:

• Hobby niches
• Lifestyle niches
• Problem niches
• Weird/embarrassing niches

Existing products

Come up with detailed specifications for each product or service you intend to sell. If it’s a hiking shirt we’re selling, we would want to have:

• Detailed sketches of the shirt
• Fabric weight, materials, type
• Key features (e.g., pre-shrunk, water-proof, SPF 40)

Future product pipeline

What are other products that you have in the pipeline? Perhaps once you’ve successfully sold hiking shirts, you’re able to leverage your manufacturing relationships to provide hiking socks and shorts. Include that information in this section.

The products and services section will cover the various selling categories of items.

These product offerings will include the following:

• Core product

Each product group will have its own purpose in your sales catalog. For example, tripwire is the product that brings customers to your ecommerce store or online marketplaces  while the core product is your main seller.

Knowing what products you’ll include within each section allows you to have a firm grasp on what your main product will be and how the other types of products will work alongside your main product.

This section will also cover the search volume and Amazon pricing range.

You’ll need to calculate your true costs. You have to make sure you don’t overestimate your margins.

To tabulate your total true costs, you need to write down the costs in the following areas:

• Target price
• Supplier cost of the product
• Total cost per unit
• Net profit per unit
• Profit margin per unit

Once you complete the pricing portion, you’ll have everything on one sheet and readily accessible whenever you need it.

Marketing Plan and Operations

So, now you’ve concluded that you have a great business idea, and it’s in a growing market. That’s fantastic – but how are you going to drive traffic to your ecommerce website and get customers to buy it ? And how much can you afford to spend on your product?

Marketing  is everything. It’s important that your marketing efforts match your business model.

If you have a website and no marketing, your site won’t have any visitors. With no visitors, you will make no sales. Then how do you grow and sell your ecommerce business (if that’s your long-term goal)? Even with the best possible products, nobody will buy them if they aren’t directed to them in some way.

In order to come up with a marketing strategy, you need to first know your customer inside out. You should be able to answer such questions as:

• How old is your customer?
• Where does your customer live?
• What is the population of your customer base?
• What is their education level?
• What is their income level?
• What are your customer’s pain points?

With so many channels to reach your customer, which one is best for you?

Once we know pretty much everything there is to know about our target customer, we can shift focus to our marketing strategy. You want to choose marketing strategies that equal positive conversion rates. What channels should you use to grab the attention of your customer demographic? Some of the key marketing channels include:

Paid Marketing

• Pay-per-click – this online marketing typically involves using Google Shopping campaigns  and managing a product data feed.
• Affiliate sales networks – Allowing other blogs and websites to sell your product for a cut of the revenue. List the different affiliate sale networks that you plan to promote through.
• Facebook ads ⎯ Ads posted on Facebook to draw in buyers through social media means.
• Influencer marketing ⎯ Hiring industry influencers to get the word out about your product through their social media platforms and contacts.

Organic Marketing

• Social media (Facebook, Instagram , Pinterest, etc.): What is your strategy for social media, and where will you dedicate your attention?
• Search Engine Optimization : Create and promote awesome content so people find your product organically through search.
• Content marketing: Figure out how you’ll use content marketing in your business. Consider various article topics that will persuade your target audience to buy your products.
• Blogger networks: could be organic or paid through affiliate sale programs.
• Key bloggers: Develop a list of the key bloggers in your product category. For Atlas Hiking Co., this might be an influencer that blogs about the best hiking trails in America.

Finding the optimal mix of these advertising tools depends 100% on your customer segment as well as your product type. For example, a SaaS product targeting millennials will require an entirely different marketing strategy than an e-commerce physical product targeting baby boomers. Perhaps that should be a post on its own for another day!

How much should you spend to acquire a customer?

In order to understand this, we need first to discuss a concept known as customer lifetime value or LTV. In essence, this is a formula that helps you better understand how much an average customer will spend over time.

Here’s  a good read on how to calculate LTV.

It’s important to remember that for new businesses, you don’t have a lot of data on customer purchase habits so it’s a good idea to be more conservative with your assumptions in calculating LTV.

Let’s say, for Atlas Hiking Co., I determine that the average LTV per customer is $300. This means that over time, the average customer will spend $300. Let’s say, on average, if I receive $300 in revenue, $100 of that will translate to gross profit before I factor in my marketing costs (basically, I’m just subtracting the cost of making the shirts).

Knowing that my gross profit is $100 per shirt is a critical piece of information because it tells me that I can spend up to $100 in marketing to acquire a customer and still be profitable!

Some of the marketing options include social media marketing and content marketing.

Think about your business model and then line up your marketing budget. Your marketing budget may include the following items:

• Sales/branded content
• SEO/blog content
• Facebook/Instagram ads
• Influencer marketing
• Marketing tools
• Niche advertising

Choosing The Right Technology

With so much technology and SaaS products out there, it’s important to understand the various moving parts and diagram how they all integrate with one another.

Some of the different elements include:

• Shopping Cart Platforms  – e.g., Shopify , BigCommerce , WooCommerce , or any open-source platform
• Hosting – Nexcess , BigScoots , Kinsta , WPX
• Payment Processo r – e.g., Stripe, Paypal
• Fulfillment Center – e.g., Amazon, ShipBob
• Apps – e.g., Zipify, BuildWooFunnels, Gelato
• Accounting & Taxes  – e.g., Quicken, Xero
• Marketing Automation – e.g., Klaviyo , Mailchimp
• Marketing Tools – e.g.  Buzzstream, Ahrefs
• Customer Loyalty Programs  – e.g., Antavo, Smile

Come up with a detailed list of the different products and services you need to run your business as well as the monthly and per-transaction cost of each of them. This will be important in understanding the impact of these services on your margins.

Matching your business model to your technology is essential, too. Certain website platforms are better suited for specific sales models.

Email marketing is another type of technology that should be carefully considered and matched up correctly with your business model.

Keep in mind that it takes, on average, 6-7 interactions with a brand before someone makes a purchase, so you need to keep using technology to get them back to your website.

As you explore the technology options and find out ways to draw potential customers in and keep them happy while they’re there, here are some key points to keep in mind:

• What you say about yourself and your products with your website content
• How you respond to questions on live chat and email support
• How to make use of chatbots
• How you connect on social media
• The information you send through email marketing
• What bloggers and influencers say about your brand
• How existing customers review your company
• How you advertise
• How you establish loyalty beyond sales

After you figure out your technology methods, you have to come up with a technology budget.

The business plan must also include the operations side of things. Determine who will be your manufacturer, secondary manufacturer, and shipping and fulfillment  provider.

When looking at supply chain costs and options, ShipBob  is an ecommerce fulfillment provider you can consider.

Financial Plan

When figuring out your financial plan, evaluating and pinpointing your startup costs  is essential.

The focus of the financial plan is how long it will take for you to make your money back. You also need to figure out if you need a business loan .

Traffic and conversion rates will help you determine how long it will be until you start making money back.

You’ll also want to use an income statement to detail financial information.

This section is used for financial projections, such as forecasting sales, expenses, and net income of the business. Ideally, you’ll want to create a monthly Excel balance sheet showing the following:

• Projected revenue:  First, come up with your projected number of units sold and then come up with your projected revenue (Projected Revenue = # of Units Sold * Average Sales Price).
• Fixed expenses:   these are expenses that are fixed no matter how much you sell. Typically, these relate to monthly SaaS subscriptions, employee salaries, or rent.
• Variable expenses  – these expenses change in direct proportion to how much you sell. Common examples include the cost of goods sold and credit card payment processing fees.

This helps business owners better understand what they need to achieve to hit their profit goals. In reality, projections are usually always off the mark, but it’s good to give yourself some measurable goals to strive for.

This section should aim to answer the following questions about your product offering:

• How much product do you need to sell per year to meet your income goals for the business?
• What are the margins on your product? If you sell one hiking shirt for $50, how much do you make after paying your supplier, employees, and marketing costs?
• What is the lifetime value of a customer?
• How much can you spend to acquire customers? If you conservatively project that the average customer will spend $300 over time on your shirts, then you can afford to spend an amount less than $300 to acquire that customer using the paid marketing channels described previously.
• Do you have any big capital expenditures early on that would require you to need to bring in investors?
• Can you improve gross margins by making bigger orders from your suppliers?

There are various acquisition channels that will help your traffic to convert including:

Your revenue plan will contain a 12-month revenue forecast plan to help you map out each month of earnings.

There are different business earning models you can go through to determine how much you can make with your business.

You want to calculate how much traffic costs. This all depends on the methods you use to gain traffic to your site.

As you determine what your profit might be with your ecommerce business  or ecommerce businesses, there are certain math formulas to use:

• The profit equation
• Break-even analysis
• Units needed to achieve the profit target

You should also consider how you will use fintech companies in your ecommerce business.

What are the key elements of an ecommerce business plan?

The main components of an eCommerce business plan include the executive summary, company description, market analysis, organization and management structure, product line or service, marketing and sales strategy, financial projections, and funding request, if applicable.

How do I create a budget for my ecommerce business?

Start by estimating your initial startup costs and ongoing expenses. Consider costs like website development, inventory, marketing, shipping, taxes, and any necessary licenses or permits. It’s also important to factor in a contingency plan for unexpected costs.

How do I find the right product to sell?

Research is fundamental. Look at market trends, customer needs, and competitor products. Use tools like Google Trends or social media platforms to understand what customers are currently interested in. Always consider your passion and knowledge about the product too, as this can drive your business forward.

How can I differentiate my product from competitors?

Differentiation can come from unique product features, superior customer service, better pricing, or a compelling brand story. Understand what your competitors offer and how you can do it differently or better.

Wrapping Up Your Business Plan

Careful planning is crucial to get your e-commerce business from the planning phase to the launch phase and to ensure its successful future.

Going through the exercise of writing a business plan will cement your own understanding of your business and your market. It will also position you to take advantage of lucrative opportunities while mitigating harmful threats to your business down the line.

Your turn! Have you written a business plan for your online store? Do you have anything to add? Tell us about it in the comments below!

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How to Write an eCommerce Business Plan + Template

Noah Parsons

10 min. read

Updated May 10, 2024

Free Download:  Sample eCommerce Business Plan Templates

If you’re starting an online eCommerce business , it’s tempting to dive right in and set up your digital shop. After all, eCommerce businesses are often less expensive to start than physical businesses and the risk may seem lower. Unfortunately, that’s not the case. There’s still risk involved and money you may lose if you don’t start your business the right way.

So if you want your business to be successful you’ll want to start with a business plan first. Not having a business plan is one of the primary reasons businesses fail and it’s an easy first step that you can start for free.

Businesses that do take the time to plan are actually proven to be significantly more successful than those that don’t.

• Why write an eCommerce business plan?

If you’re looking for funding from investors for your eCommerce business, you’ll definitely need a business plan. But, business plans aren’t just for entrepreneurs who are looking to raise money for their business. There are many other reasons why you should consider writing a plan.

• Strategy. Writing your plan down will help you clarify your business strategy and figure out key aspects of how your business will run. You’ll think about your marketing plan, fulfillment, sales strategies, and more.
• Test ideas. Business plans can help you figure out if an idea will work. A plan will help you figure out which ideas will be profitable and which will struggle to make money.
• Know your numbers. Developing your financial plan as part of your business plan will help you understand what it’s really going to take to start an online business. Running the numbers will help you determine profitability and what it will take to get your business up and running.
• Market research. Your business plan will help you answer questions about who your customers are and how you can best get your product in front of them.
• Marketing and advertising. Getting your eCommerce business running online is just the first step. Now you need to bring customers to your website . Having a plan and knowing how much it will cost you before your start will improve your chances of success.
• Business plan competitions. An often overlooked way of getting money for your eCommerce business is business plan competitions. There are thousands of them every year that include cash prizes. With a solid business plan, it’s usually free to enter.

A business plan can help you develop your strategy, test your idea , figure out how much money you’ll need to get up and running and identify potential roadblocks. It’s a critical step that will ensure that you don’t waste time or money as you get your business off the ground.

• How to write an eCommerce business plan

Every business plan follows a fairly standard format, but for eCommerce you will need some extra detail in the marketing and fulfillment sections. Here’s an outline of what you should include. 

If you’re ready to get started you can also download a free template for your eCommerce business plan .

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Executive Summary

Every business plan needs an executive summary . Usually, you write the summary last, after you’ve fleshed out all the details of your plan. The executive summary isn’t a repeat of the full plan—it’s really just a brief outline that should be 1-2 pages at the most. 

When you’re getting introductions to investors, you’ll probably just share your executive summary to start, and then share the full plan if an investor is interested. 

Your executive summary should summarize your vision for your online business, the products you’ll be selling, a short description of your target market, and highlights of your management team and financials. If you did a market analysis, don’t get into tons of detail, but cover enough that a casual reader will understand what you’re trying to accomplish.

Opportunity: Problem and Solution

The first chapter of your eCommerce business plan describes your opportunity. That’s a description of the business you are building and the problem you are solving for customers. 

Every business needs to solve a problem for customers. For your business to stand out and be successful, you’ll ideally fill a gap that other companies haven’t filled yet. 

Even if you’re selling the same types of products as other companies, your eCommerce business could offer a better shopping experience, lower prices, or better customer service. The problem you are solving then is that customers can’t get good customer service or low prices from other companies in your industry. They will come to you, instead, because you do offer those things.

You can also solve problems for customers by offering a product they’ve never seen before. Perhaps you’ve developed a new line of kitchen utensils that are designed for older hands and wrists. Or maybe you’ve invented a new line of soap that is more sustainable than traditional hand soap.

Target Market

Arguably, the target market section of your eCommerce business plan is one of the most important components. Your target market describes the types of customers you hope to attract. Trying to please everyone is bound to be a failure—instead, focus on a specific group of people or type of person and build from there.

For example, maybe you’re trying to sell to young professionals who value good design. Or, maybe you’re targeting new families who are looking for sustainably made, affordable kids toys.

When you’re writing the target market section of your business you’ll describe exactly who your ideal customer is, what their demographics are, and how large your target market is.

There are a lot of details that you can include in your target market section of your eCommerce business plan, and we’ve got a great article that covers everything you might want to include .

Marketing and Advertising

For an eCommerce business, getting the word out about your business is critical. Unlike a physical storefront that potential customers might walk or drive by, an online store needs to figure out how to get customers to its virtual doors.

In the marketing and advertising chapter of your business plan, you’ll want to detail your marketing plan for your business – how are you going to get customers’ attention? How will they know you exist?

Here are a few tactics you may want to consider:

• Content marketing. Start writing blog posts that your potential customers may find interesting so that you can attract prospects to your business. Also, consider guest posting on other blogs that your potential customers might read.
• Social media. These days, most consumers expect that the companies they shop at will have some form of social media presence. Pick the networks that you plan to be active on and determine a strategy that will engage your potential customers.
• Traditional PR. Traditional PR isn’t dead. If you can get popular publications to cover your company launch and your products, you’ll be able to drive new customers to your door.
• Advertising. Online advertising will almost certainly be in your plans. The good thing about online advertising is that you can measure its effectiveness and fine-tune things as you go. Depending on your business and how much cash you have on hand, you may consider traditional off-line advertising as well.
• Email marketing. For many eCommerce businesses, email is a core strategy for driving sales. If you have a content marketing plan, you can use that content to drive email subscriptions. You can also offer deals to build your email list, such as free shipping or discounts on orders.

Successful eCommerce businesses are all about ensuring that their operations are running smoothly and efficiently. Use your business plan as your chance to figure out what your operations plans are ahead of time before you jump in and get started. This is where many businesses can get tripped up, so taking the time to get your operations set up properly is worth the up-front investment of time.

Areas you’ll want to cover include:

• Locations. Even though your business may be online, you’ll still need to run the business from somewhere. Perhaps you can run the business entirely remotely, but potentially you may need some office space for employees or warehouse space for product storage. Think about where these locations are located and what it will cost to keep them running.
• Suppliers. You’ll need suppliers for raw materials if you’re making products and you will also need suppliers if you are reselling products. Use your plan to figure out who you’re going to work with, what their purchase terms are, and what kind of delivery timeframes they can provide for you.
• Production. If you’re assembling raw materials into products, you’ll need to know how and where you will be producing your products.
• Storage & fulfillment. If you’re not drop-shipping from products from a supplier, you’ll need to store and ship your own products. Your business plan should detail where and how storage and fulfillment will take place and what the costs will be. Don’t forget to think through how you’ll handle returns and exchanges.
• Technology & payment processors. All eCommerce businesses need technology to function. You’ll want to think about the platform you’ll use for your online store, what functionality you need, and how you’ll accept payments. 

Company & Management

This chapter of your eCommerce business plan describes the structure of your business and who is running it. If you’re going into business with other people, you should establish a partnership agreement. Your plan will need to explain how your business is structured and who owns what portions of the business. 

You’ll also want to include a company description that includes details on the management team and the highlights from their resumes. Potential investors will be looking for experienced owners and managers to get an eCommerce business up and running, so this section of the plan should explain why your team is qualified to build the business into a success.

If you aren’t looking for outside investment, this section of your eCommerce business plan is still important. You should think about the different positions you’ll need to fill and who is going to do each job in the business. Even if you don’t plan on hiring employees right away, having a plan for who you’re going to hire and when will be enormously helpful when the time comes.

Financial Plan

Finally, your eCommerce business plan will need to include a financial plan . Investors will want to see a sales forecast , income statement (also called profit and loss statement), cash flow statement , and a balance sheet. If you use a tool like LivePlan , you’ll be able to build out your financial forecasts relatively quickly, even if you don’t have experience with business numbers.

Even if you’re not working with investors or getting a bank loan, you should run your numbers. This is arguably the most important part of your business plan. You need to know if the numbers work for your business based on your forecasted sales and planned expenses . 

It’s much better to find out if you need to make changes to your business model while it’s all just an idea on paper rather than a business that you’ve already invested money in.

If you need additional help, we’ve created a guide to creating the financial statements you need to include in your business plan .

• Ecommerce business plan templates and examples

If you want to see how other eCommerce businesses have created their plans, check out our free library of eCommerce business plans . You can download all of them in Word format so you can jump-start your own business plan.

Noah is the COO at Palo Alto Software, makers of the online business plan app LivePlan. He started his career at Yahoo! and then helped start the user review site Epinions.com. From there he started a software distribution business in the UK before coming to Palo Alto Software to run the marketing and product teams.

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May 24, 2022 | 9 min read

How to Write an E-Commerce Business Plan (Step-by-Step)

Dream of being your own boss? So do lots of other people, including 64 percent of the UK workforce and 65 percent of Americans . And I’m sure you’d see similar figures across a bunch of other countries.

I get it—after all, I did it myself.

But sadly, not every business is destined to become the next Amazon, Google, or Sleeknote.

Much-quoted data from the US Bureau of Labor Statistics show that about one in five new businesses survive for 12 months or less , while only half make it to the five-year mark:

So what separates the successes from the also-rans and the never-weres?

While some people will tell you the secret to “making it” lies in adopting a rise-and-grind mentality , truth is there is any number of reasons why some businesses thrive and others fail. 

But I can categorically tell you there’s one thing every successful startup has in common, and that’s a killer e-commerce business plan.

Basics of Writing an E-Commerce Business Plan

What is an e-commerce business plan, why do i need an e-commerce business plan, how to write an e-commerce business plan.

E-commerce business plans are roadmaps that plot the route to achieving your business goals. They set out who you are, what products you sell, and how you plan to operate (among many other things).

Just like a real roadmap, e-commerce business plans also highlight potential hazards, helping you plot alternate routes well in advance.

No one expects you to stick precisely to your original plan throughout the entire lifespan of your business. But by gathering business-critical information like cash flow, sales projections, and marketing budgets in a single place, your business plan can help you build a persuasive pitch to win backing from investors, which can be absolutely vital at the start of your journey.

And even if you’re not looking for external funding, figuring out your strengths, weaknesses, and objectives early on will save you a lot of pain down the line.

I know what you’re thinking: “I’ve got a to-do list as long as my arm; why should I spend days or weeks writing a business plan? Why can’t I just get on with it?”

You’re not completely wrong. Honestly, if you think buying a house or having a baby is stressful, try starting a business.

One study claims the biggest challenge founders face in the first three months is building a customer base, but there are countless others.

From dealing with suppliers to building a website and chasing invoices, it’s one headache after another, and you never feel like you have enough time to give each problem your full focus.

But you really can’t afford to overlook your e-commerce business plan. Here are five benefits to creating one.

1. Understanding the Competitive Landscape

You might like to think of yourself as a visionary, but I can pretty much guarantee that someone, somewhere has had a similar business idea to yours.

They might have been doing it for years, or they might be gearing up to hit the market at the same time as you.

Either way, you need to know about them, and the research you carry out while building a business plan will naturally help you do that. Which means you’ll be better placed to differentiate yourself through marketing.

2. Getting to Know Your Audience

Another key element of creating a business plan is assessing the market you’re trying to reach. That means digging into who you’re selling to, where they hang out online and “in real life”, and what they’re looking for in a product like yours.

Why would they buy it? When would they buy it? How much would they spend on it?

All of that will help inform your messaging .

3. Locating Potential Investors

Unless you have a metaphorical (or literal) gold mine to fall back on, money is definitely going to cause you a few headaches in the early days of your business.

Even successful e-commerce companies struggled to keep the lights on when they were just starting up.

Building a business plan will help you identify potential sources of financial backing, like angel investors, business loans, venture capitalists, or wealthy business partners.

4. Finding Your Niche

There’s a reason Amazon started out as an online bookstore, rather than immediately selling every product you could ever imagine.

As an e-commerce startup, you need a niche . Ideally, you need to go further and find a niche within a niche. Rather than founding a womenswear e-commerce site, launch one that’s 100 percent sustainable and carbon-neutral. Or instead of selling regular sunglasses, sell sunglasses made from hemp (I don’t know, I’m just spitballing here).

My point is, all the other research you’ve done at this stage—studying your competitors, understanding your audience, figuring out your pricing strategy—will naturally guide you toward the best niche with the biggest opportunities.

5. Sourcing Fresh Talent

Admittedly, recruitment might not be on your immediate agenda.

But if things go well, you’re going to need a little help in the not-too-distant future. You might need people in the warehouse, a customer success agent or two, a marketing team, a developer, someone to handle the finances… The list is huge.

Problem is, a lot of other businesses want to get their hands on those people, too.

If you don’t want recruitment to constrain your growth, start reaching out to potential candidates early, using the information in your business plan to get them bought into your project.

Hopefully, by this point, I’ve demonstrated the value of creating an e-commerce business plan. Now, let’s dive into how to do it.

There are no hard-and-fast rules to how long a business plan should be. The more complex the business, the more in-depth the plan. But as a minimum, your business plan should include these seven sections:

• Executive summary
• Company overview
• Market analysis
• Products and services
• Marketing plan
• Logistics and operations plan
• Financial plan

You might want to add a few more too. For instance, if you’re entering a largely untapped niche, you might want a section dedicated to the audience you’ll be targeting.

But for most e-commerce businesses, those seven categories should do the job.

Section 1: Executive Summary

Think of this as the “elevator pitch” element of your business plan.

Your goal here is to sum up the rest of your business plan in no more than one page, communicating key information to time-poor reviewers, and (hopefully) tempting them to read on.

Generally, you should look to answer the following questions:

• What does your business do?
• What do you want to achieve?
• What do you sell?
• Who will you sell it to?
• What sets you apart from the competition?
• How will you raise awareness among your target audience?
• What is your current monthly/annual revenue?
• What is your projected revenue for next year and the following years?
• Who’s currently on your team?
• What are their backgrounds and skills?
• How much money are you asking for (if you’re looking for financial backing)?

Section 2: Company Overview

Again, heed the word “overview”. Like the executive summary, this is a concise section that demonstrates who you are, what you do, and why people should care.

Whether you’re seeking investment or planning your e-commerce marketing strategy , it’s vital you get all this information down in one place. Make sure to include your:

• Company name
• Business structure (e.g. sole proprietor, partnership, LLC)
• Vision, mission statement, and value proposition
• Product or service
• Business model (e.g. direct to consumer, dropshipping, wholesale)
• Team members, including their roles, backgrounds, and salaries
• Short and long-term business objectives

Section 3: Market Analysis

A bad product in a good market stands a chance of success.

If you don’t believe me, check out your own purchase history—if you’re anything like me, you’ll have bought your fair share of useless products that sounded amazing when you saw them online.

But a good product in a bad market doesn’t have a cat in hell’s chance. You might be completely changing the game; solving a problem that’s never been solved before. But if no one’s prepared to spend money on it, you’ve not got a business—you’ve got a hobby.

The market analysis stage of your e-commerce business plan should help you find the right market: one with lots of customers who have an immediate need for the “thing” you’re selling (and enough money to buy it). Your market analysis should incorporate the following elements:

The Size of Your Market

It’s impossible to come up with a meaningful financial projection without first estimating the number of people who are potentially interested in buying your product.

Of course, to do that, you first need to figure out who your customers are.

The more demographic and psychographic information you have on them, the more accurately you’ll be able to gauge the scale of your market.

At the same time, remember to factor in broader industry trends. If you’re starting an e-commerce store that exclusively sells gas cans, you might have some early growth potential, but bear in mind there’s a good chance we’ll all be driving electric cars within a decade—in which case your whole market will have dried up.

Your Competitors

No e-commerce brand is an island.

To stand out against the competition, you need to find some way to differentiate yourself. That could be through:

• Segmentation: Focusing on a very specific (and, ideally, underserved) niche within a larger market.
• Pricing strategy: Do you plan to undercut your rivals? Or create demand through exclusivity by pricing yourself higher?
• Distinctiveness: Ideally, there’ll be something unique that distinguishes you from the current market leaders.

SWOT Analysis

SWOT analyses are about assessing your business’s:

• Strengths: The things you do best.
• Weaknesses: The things you’re not so good at.
• Opportunities: Gaps and advantages in your market.
• Threats: External challenges you need to tackle.

Typically, a SWOT analysis is presented as a simple, four-section grid, with bullet points under each heading. Here’s a beautifully presented example from the creative geniuses at Asana :

Section 4: Products & Services

In a sense, your whole e-commerce business plan will be centered on your products and services.

However, given their importance to your business prospects, a section of your plan should be dedicated solely to outlining what you’re selling.

If you only sell one product or plan to launch with a very small range, give plenty of detail on each. But if you stock a wide selection of products, stick to general features and benefits such as price, unique selling points, and materials.

Additionally, be sure to reference any new products you’re planning to launch in the near future, along with any intellectual property you own.

Section 5: Marketing Plan

We know who you are and what you’re selling.

Now’s your chance to explain how you’re going to sell it.

As a marketer, I’m well aware that a marketing plan could easily run to thousands of words, and it can be hard to know where to start—you’ve likely got a lot of ideas about positioning and messaging. To make your life a little easier, use the so-called “four Ps of marketing” as the backbone of your marketing plan:

• Product: How does it meet the needs of your customers? What are its unique selling points?
• Price: How much does it cost? What is its value?
• Place: Where are you selling it?
• Promotion: Which channels will you use to reach your target audience? What messaging will you use?

Discuss the first three relatively briefly, as you’ll cover them in greater depth in other parts of your e-commerce business plan.

Reserve the most detail for that final “P”: promotion. That’s the real meat and drink of your marketing strategy.

Section 6: Logistics & Operations Plan

This might not be the “sexiest” part of your e-commerce business plan, but it’s important to discuss the systems and processes that will help you reach your goals. Specifically, you’ll want to cover:

• Suppliers: Who are they and where are they based? What are their payment terms?
• Production: Are you manufacturing your own products, using a third party, or going down the dropshipping route? Can you efficiently scale up or down to cope with changing demand?
• Shipping and fulfillment: Are you handling fulfillment in-house or using a third party? Will you ship internationally? How long will it take for products to reach customers?
• Inventory: How much will you keep, and where will you store it? How will you manage and track it?

Section 7: Financial Plan

Whether you’re seeking backing from an external investor or simply trying to understand your projected revenue and costs, a financial plan is a crucial element of your e-commerce business plan. Most are broken down into three elements.

Income Statement

Designed to demonstrate your revenue sources and expenses over a month, quarter, or year, the income statement also highlights your all-important bottom line. Subtract expenses from revenue and you’ll see whether you’re in profit or loss.

Of course, if you’re yet to launch your e-commerce business, these figures can be projected.

Balance Sheet

The balance sheet is used to calculate the level of equity in your business—that is, the amount you’d be left with if all debts were paid and assets cashed. To work it out, subtract liabilities (things like loan repayments, wages, and accounts payable) from assets (such as stock and equipment).

Cash Flow Statement

Lastly, your cash flow statement is like a real-time version of your income statement. That’s because it takes into account when cash goes in and out of your business, based on when payments are received and debts settled.

Calculating and projecting cash flow should help you identify periods when you’re likely to be in surplus or short on money, which gives you time to prepare.

Sure, an e-commerce business plan requires a whole lot of work.

But as Abraham Lincoln supposedly said: “Give me six hours to chop down a tree and I will spend the first four sharpening the axe.”

All that time spent analyzing your audience, honing your messaging , and crunching the financial numbers will give you a better chance of making it through those tough early days and scaling effectively when the time is right.

And honestly, no one ever said starting a business is easy.

Emil Kristensen

Emil is the CMO of Drip. When he’s not busy writing awesome content and building the Drip brand, he spends his time reading blog posts and listening to podcasts.

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How to write an effective ecommerce business plan [2024]

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Start selling products with Gelato

Updated Jan 15 2024

In recent years, ecommerce businesses worldwide have collectively created an industry that's expected to pull in $4.11 trillion worth of revenue in 2023, with a projected annual growth rate of 11.51%. If you've got a great idea for an online shop, this is a great time to jump in on the action!

But not so fast - before you quit your day job and sign up for an Etsy account , it's essential to take the time to create an effective, comprehensive business plan. While some people write a business plan designed to attract potential investors, there are plenty of reasons to draw one up, even (and perhaps especially ) if you plan to finance your own ecommerce business.

Simply filling in an ecommerce business plan template can help you familiarize yourself with the ecommerce business model, set goals, and make plans to help you avoid unfortunate surprises. We'll show you how to create a solid business plan that details everything from your target market and company description to your sales channels and marketing strategy.

Main takeaways from this article:

An ecommerce business plan is a valuable asset that can help you avoid the common pitfalls of online retail.

From selecting the perfect target market for your products and services to nailing down which marketing channels to utilize, starting an ecommerce business involves plenty of considerations.

We'll walk you through what you need to know to create an ecommerce business plan to help you achieve long-term success.

How to write a successful ecommerce business plan

Few of us would select a random destination we'd like to travel to, hop in the car without knowing how to get there, and hope for the best. Yet plenty of would-be ecommerce business owners fall prey to the same mentality when attempting to start an online store.

Don't let it happen to you! We'll walk you through everything you need to consider when mapping out ecommerce business plans designed to chart your route to success as an online business owner.

1. Write an executive summary

While you'll usually find the executive summary on the first 1 -3 pages of an ecommerce business plan template, don't feel pressured to nail it on the first draft. Some people even wait until after filling in the other sections to come back and draft an executive summary.

An executive summary is a collection of highlights from your business plan. It will include an overview of things like:

Your mission statement.

The products or services your ecommerce company plans to sell online.

An overview of your target market (who your products and services are designed for).

Your market research and competitive analysis.

Any unique market gaps your business idea is designed to fill.

An overview of your business model, including a logistics and operations plan.

The sales and marketing channels you plan to utilize.

The short and long-term business goals you hope to achieve.

If you create a formal business plan to attract potential investors, you'll also want to include information on your funding requirements. Additionally, ensure you introduce your management team or business partners if you have them.

2. Provide a business overview

A company overview is all about the business aspects of your ecommerce store. This is where you'll get incredibly specific about exactly how your ecommerce business will work by nailing down several key considerations.

Business name

What do you plan to call your online business? Try to come up with a business name that's catchy, memorable, and relevant to your target audience.

Company purpose

What type of products and services do you plan to sell, and to whom? What are the defining characteristics of the potential customers who make up your target market?

What will give your company a competitive advantage over other ecommerce companies and brick-and-mortar business competitors? Taking the time to find a unique selling proposition can be one of the key elements to success.

Mission statement

If you haven't already, this is where you'll develop a mission statement that summarizes why your business idea is an awesome one. Explain your company's purpose, goals, and values briefly and concisely.

Feeling stuck? Wix has a great collection of example mission statements from real companies to help give your creative gears churning.

At this point in your business plan, take some time to think about the type of values that are important to you and your company. At Gelato, for example, sustainably is at the heart of everything we do.

Throughout our business plan, we explored ways to make the print on demand (POD) business model more environmentally friendly for creators and entrepreneurs worldwide. What are your values, and how will you work them into your business model?

Business model

Now it's time to think about your business structure and model. If you plan to make a significant income from your online store, you may want to set up shop as an LLC or S-corp for tax purposes.

Do you plan to go it alone or hire employees to help? If you intend to hire employees, you'll definitely want to look into registering as a business, which you can do online through companies like IncFile or ZenBusiness .

3. Describe your products

Now it's time to get into the product section of your ecommerce business plan. This is where you'll describe what type of products and services you intend to offer.

Do you want to sell custom t-shirts or turn your original artwork into wall art or custom phone cases ? Consider the type of products trending among your target audience and start to think about the price points at which you'll offer them.

4. Perform a market analysis

Taking the time to get to know your target audience will provide essential clues for success when it comes to everything from product selection to marketing strategies. Conduct market research into a few key areas to get to know your ideal customer and your direct and indirect competitors.

Research your target market

Your target market, aka "target audience," is simply the type of people most likely to be interested in your product. They generally share specific traits such as age, life stage, occupation, interests, common challenges, or other demographics.

For example, if you decided to sell performance tank tops , your target audience might be "female athletes who live in warmer climates." If your shop focused more on "urban-dwelling parents who care about the environment," you might choose to offer custom organic t-shirts for kids instead.

Create customer personas

A buyer persona is a fictional representation of your ideal customer that you develop to help you get to know them better. For instance, say you created a persona called "Jan the yoga fan" who was in her mid-20s, lived in an urban environment, and cared about doing eco-friendly shopping.

By targeting this persona, you might offer products like reusable water bottles , custom tote bags that Jan could use for shopping or even 100% biodegradable phone cases . Hubspot has a great persona creator that you can use for free!

Get to know the competition

Now it's time to do a little competitive analysis to determine who you're against! Conducting a competitive analysis involves studying other businesses that sell products similar to your own to get an idea of what they're selling, at what prices, and how they're attracting customers.

By studying everything from their marketing strategy to their product, you'll be able to analyze what's working and what isn't. This can give you valuable insights into everything from potential gaps you may be able to fill to what is and isn't working among your shared target market.

5. Create a marketing plan

If there's one section you don't want to skip when writing a business plan, it's this one. No matter how much better your product is than your competition's, it's unlikely to matter if potential customers have never heard of you.

Marketing efforts are incredibly important when it comes to getting the word out about your business. A marketing plan includes a detailed summary of all the marketing strategies you plan to use to reach your audience and may include ideas like:

Conducting organic and paid social media marketing campaigns using software like SproutSocial or HootSuite .

Collecting emails to set up a newsletter or email marketing strategy with tools like ConstantContact or MailChimp .

Using your own blog or webpage for content marketing.

Using search engine optimization ( SEO ) to rank higher in search engine results.

Learning to use free tools like Google Analytics or Google Trends to measure the results of your marketing plan and conduct market analysis.

6. Establish a sales strategy

Your ecommerce business plan should also detail your sales strategy, such as whether you plan to offer subscriptions or operate on a traditional sales model. Equally important is deciding where you're going to set up shop.

Do you plan to start an ecommerce business on an online marketplace like Etsy or build your ecommerce site using tools like Shopify or WooCommerce ? Take the time to research here, as each approach comes with its own business and financial considerations.

7. Devise a logistics plan

Now comes one of the most potentially tricky parts of starting an online business - figuring out how to source materials, fulfill orders, and deliver them to your customers. Do you and your staff plan to handle all business operations and shipping aspects, or do you plan to work with a print on demand service like Gelato?

In case you're unfamiliar, print on demand is a business model that involves partnering with a reputable POD provider like Gelato. After you sign up for a free Gelato account , you simply upload your custom designs and let us know which of our high-quality products you'd like to feature.

Use one of our easy integrations to connect your Gelato account to your online store, and when a customer makes an order, we'll handle everything from order fulfillment to delivery. POD can be a cost-effective way to launch an ecommerce business without ever having to worry about managing inventory, dealing with shipping, or investing in pricey product creation tools.

8. Plan your finances

Now that you've got a better idea of your ecommerce business plan, it's time to make a financial plan. This is where you'll take into account everything from the cost of your company's digital storefront and marketing plan to any overhead costs or POD service charges.

By outlining realistic costs and financial projections, you'll avoid surprises on your income statement down the line. While it tends to cost much less to launch an ecommerce business than a traditional retail store, it's vital to ensure you can factor your overhead costs into your retail prices.

Start an ecommerce business with minimal effort

Creating your business plan is the first step in becoming a successful online retailer. Want to launch a competitive online store with minimal startup costs?

Learn more about how partnering with Gelato can help you make your business plans a reality. We make it possible for creators everywhere to launch their own online business without ever having to buy any materials until a product is already sold.

Ecommerce business FAQs

How profitable is an ecommerce business.

While market research indicates that ecommerce will make up 24% of all retail sales by 2026, how much profit each retailer can make is a little trickier to nail down. Much like traditional businesses, the profit margins of individual sellers can vary widely.

How much money you're able to make from your ecommerce business will largely depend on everything from your business plan to your marketing strategy. That's why developing detailed ecommerce business plans is important before launching your online business.

Do I need a business plan for an ecommerce business?

While there are no rules that say you must create a business strategy before launching an ecommerce business, it will make your life a lot easier. Making important decisions in the early stages will save you a great deal of time and money, not to mention help you dodge potentially costly mistakes.

Where can I find a free ecommerce business plan template?

There are now several great templates out there that can help guide you through creating your own ecommerce business plan. Hubspot offers a great one, and Canva has a wide variety of choices if you're looking for something snazzy.

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Home > Business Plan Templates > The Ultimate E-Commerce Business Plan Template With Examples

The Ultimate E-Commerce Business Plan Template With Examples

Apr 26, 2024 | Business Plan Templates

This customised business plan template is specifically designed for those crafting a strategy for an e-commerce business. It contains every essential element of the e-commerce business plan that you need to consider—from your Executive Summary to the important Appendices. It has all the key components: Business Description, Market Analysis, Business Structure and Team Composition, Products and Services, Marketing and Sales Strategy, Operational Plan, and Financial Analysis, including Projections.

This template is structured to be comprehensive yet straightforward, simplifying the process of writing an e-commerce business plan . The added examples provide context and make the content more relatable. Yet, they can be swapped with specific details relevant to the planned e-commerce business.

Table of Contents

1. Executive Summary

The executive summary serves as a brief introduction to your e-commerce business, summarising the key points of your business plan. It is normally best to prepare this section last, allowing you to cover all the vital inputs from your marketing plan.

Business Overview

Start with a clear snapshot of your business. What’s its name? What does it sell? Is it a B2B or B2C e-commerce store? Make this information gripping and engaging.

Example: XYZ Fashion Boutique is an online clothing store specialising in trendy and affordable apparel for women and men, focusing primarily on the B2C market.

Vision and Mission Statement

Specify your e-commerce business’s mission and vision statement. This should spell out your company’s objectives, strategic goals, financial plan and commitment to your cause.

Example: Our mission is to offer high-quality fashion at accessible prices while providing an exceptional and seamless online shopping experience. Our vision is to become a leading online fashion boutique, empowering individuals to express themselves through our trend-led fashion.

Business Model

Explain your e-commerce business model. Detail how your own e-commerce business now generates revenue. Does it dropship products, produce its own goods, act as an affiliate, or use a different model?

Example: XYZ Fashion Boutique operates on a dropshipping business model, allowing us to offer a wide variety of products without needing physical inventory, thereby significantly reducing operational costs.

Key Goals and Objectives

Lay out your short-term and long-term business goals first. These should be SMART (Specific, Measurable, Achievable, Realistic, Time-bound) goals.

Example: Our key goal over the next year is to increase our monthly website traffic by 60% and to boost conversion rates by 3%. In the long term, we aim to expand our product offerings and enter international markets.

2. Business Description

This section offers a deeper insight into your business, explaining what it is, what it does, and its status in the e-commerce landscape.

Company Details

Start by introducing your e-commerce business, discussing when and why it was founded, and what needs it targets to address.

Example: XYZ Fashion Boutique was founded in 2018 with a vision to make trendy, affordable fashion accessible through a convenient, user-friendly online shopping platform.

E-commerce Platform

Explicitly mention your e-commerce platform. Is it a standalone website, or do you use third-party platforms such as Amazon or eBay? Why did you choose this platform?

Example: Our store operates on Shopify, a robust e-commerce platform that offers great customisation options, integrated payment gateways, and a user-friendly interface.

Unique Sales Proposition

Identify what makes your e-commerce business unique. You can highlight distinctive product offerings, customer service, pricing model, or any other specific strengths here.

Example: Our unique sales proposition lies in our trend-led designs at affordable prices, along with efficient customer service and speedy, reliable delivery.

Legal Status and Ownership

Specify your business’s legal structure. Is it a sole proprietorship, partnership, a Limited Liability Company (LLC), or a different type of entity?

Example: XYZ Fashion Boutique is a Limited Liability Company (LLC), ensuring our personal assets are protected should the business incur debts or liabilities.

3. Market Analysis

This segment offers an overview of your e-commerce landscape, including the competitors you face, the potential customers you target, and the opportunities you aim to seize.

Industry Description

Provide a brief overview of the current e-commerce and specific product category landscape, discussing its size, growth rate, and trends.

Example: In the thriving e-commerce industry, the online fashion sector has grown exponentially over the past few years, driven by consumer demand for variety and convenience.

Target Market

Elaborate on your target market. Detail their demographics, behaviours, and shopping habits.

Example: Our primary target market includes fashion-forward men and women ages 18-35 who value style and affordability. They are tech-savvy and prefer online shopping for its convenience and variety.

Competitor Analysis

Describe your main competitors and analyse their strengths and weaknesses. Discuss what sets your business apart.

Example: While our competitors offer fashionable attire, not all of them provide the combination of trendy, affordable, and quality products that we do. We also emphasise fast shipping and responsive customer service to distinguish ourselves further.

Market Positioning

Explain how your e-commerce business is positioned to better address the needs of your target market than your competition’s e-commerce businesses.

Example: Our store is positioned as a go-to online destination for on-trend yet affordable fashion, aiming to provide an unmatched shopping experience through exceptional customer service and a smooth user interface.

4. Business Structure and Team Composition

This section delves into the structure of your e-commerce business and introduces the key players in your team.

Business Structure

Discuss the structure of your online business now. How is the management organized? Who manages the website, inventory, customers, ads, and similar aspects if it’s an online store?

Example: XYZ Fashion Boutique employs a well-structured management team comprising an operations manager, customer service representatives, a digital marketing specialist, and a part-time accountant to effectively manage various business aspects.

Key Team Members

Give brief profiles of the core team members and explain their roles. Highlight their relevant experience and skills.

Example: Our Operations Manager, Jane Doe, has over five years of experience in the e-commerce sector, successfully managing various online stores. She oversees daily operations, from order processing to inventory management.

Outsourced Tasks

Detail the outsourced tasks. This could include website development, SEO, content creation, etc.

Example: We outsource our website maintenance and SEO to a digital services agency, a decision driven by their expertise and cost-effectiveness compared to hiring in-house.

If you have mentors or advisors, introduce them briefly and mention how they contribute to the business.

Example: Our advisor, John Smith, a veteran in the retail industry, provides invaluable advice on strategic planning and business expansion.

5. Products and Services

This section provides detailed information about the products or services your e-commerce business offers, explaining how they meet the needs and preferences of your target customers.

Product/Service Description

Provide a comprehensive description of your products or services. Highlight their features, benefits, and what makes them unique or appealing to ideal customers.

Example: XYZ Fashion Boutique offers a wide range of clothing items, from casual wear to formal attire. Our products stand out for their high quality, trendy designs, and affordable prices.

Pricing Strategy

Describe your pricing strategy. How do you price your products or services compared to your competitors, and why?

Example: We follow a competitive pricing strategy, keeping our prices slightly lower than our competitors while still maintaining product quality. This strategy caters well to our target customers, who seek quality fashion at affordable prices.

Supply Chain and Fulfilment

Discuss how your products are created, sourced, stored, and delivered to customers.

Example: We operate on a dropshipping model, procuring products directly from trusted suppliers, which are then shipped to the customers, eliminating the need for storage. The suppliers have been selected for their reliable product quality and efficient delivery services.

Product Life Cycle

Explain where your products or services are in their life cycle. Are they in the growth stage, maturity stage, or decline stage?

Example: Given the constant need for fashionable garments, our products exhibit a rapid life cycle and are constantly updated with new trends to match consumer demand.

6. Marketing and Sales Strategy

This chapter discloses how your e-commerce business plans to promote its products or services and its sales plan to convert prospects into sales.

Marketing Strategy

Explain your strategy to generate awareness and interest from potential investors in your e-commerce business. Detail how you plan to reach and engage your target market.

Example: Our marketing strategy utilises digital channels, including social media, email marketing, SEO, and PPC ads. We strive to create compelling content that resonates with our own target audience of consumers, from the latest fashion blogs to engaging social media campaigns.

Sales Strategy

Outline your sales strategy. Describe how you plan to transform interested prospects into paying customers.

Example: We utilise a mix of aggressive retargeting campaigns, personalised email marketing, and offering time-sensitive discounts to entice customers to complete their purchases.

Customer Retention

Discuss your customer retention strategies. How do you ensure that the first-time customers become recurring customers?

Example: We prioritise providing an excellent shopping experience through a user-friendly website, exceptional customer service, and incentive initiatives like loyalty programs and personalised offers to encourage repeat purchases.

What key performance indicators (KPIs) will you track to measure the success of your marketing and sales strategies?

Example: We track KPIs such as website traffic, conversion rate, average order value, customer acquisition cost, and customer lifetime value to measure and optimise our marketing and sales strategies.

7. Operational Plan

This section conveys a company overview of your e-commerce business’s daily operations, indicating how it functions and establishing timelines for execution.

Order Fulfilment

Describe how your orders are processed and delivered. How are customer inquiries, complaints, or returns handled?

Example: Once an order is placed, our automated system alerts the suppliers, who pack and ship the product directly to the customer. Within 24 hours, our in-house customer service team handles customer inquiries, complaints, or returns.

Supplier Information

Provide information regarding your suppliers if applicable. What are your backup plans in case of supply chain disruptions?

Example: Our suppliers are reputable manufacturers from overseas. To mitigate supply chain disruptions, we have alternate suppliers for each product category lined up.

Inventory Management

Discuss how your inventory management works, especially if you’re not dropshipping.

Example: As a dropshipping business, we avoid traditional inventory management challenges. However, we regularly check our suppliers’ stocks and update our website accordingly to prevent overselling.

Technology and Tools

List some of the tools and technology you use to run your operations efficiently. This could include e-commerce platforms, customer service tools, email marketing software, etc.

Example: We use Shopify for our e-commerce platform, ZenDesk for customer service, MailChimp for email marketing, and Google Analytics for tracking and analysing website data.

8. Financial Analysis and Projections

This section delves into the financial elements of your e-commerce business, detailing how you will generate revenue and manage your costs.

Revenue Streams

Identify your primary revenue streams. Is it purely product sales, or do you have other income sources like affiliate marketing, ads, or membership fees?

Example: Our major revenue source is product sales. However, we generate minor income through affiliate marketing and ads on our blog pages.

Cost Structure

Break down your high costs. These could include website operation costs, marketing expenses, taxes, shipping costs, and any other significant expenditures relevant to your business model’s operations plan.

Example: Our major costs include website operation and maintenance, advertising and promotional expenses, taxes, transaction fees, and customer service expenses.

Financial Projections

Present your financial projections for the company description for the next five years, including projected revenue, costs, and net profit.

Example: We project a steady 20% YoY growth in revenue over the next five years as we expand our product range and enter new markets. Our costs are expected to grow by 15% YoY, primarily due to planned increases in marketing spend and product diversification.

Break-Even Analysis

Detail your break-even point. When does your e-commerce business expect to become profitable?

Example: With our current cost structure and projected growth rate, we anticipate breaking even at the end of the second year.

9. Appendices

This section comprises any additional documents or supportive content related to your business plan.

Website Screenshots

Include screenshots of your e-commerce website to provide visual insights into your product offerings, website design, layout, and user interface.

Example: Enclosed are screenshots of our homepage, product pages, and shopping cart page to give a glimpse of our user-friendly website interface and varied product range.

Relevant Market Research

Include any market research that supports your business plan. This could be from recognised industry reports, customer surveys, or other relevant data.

Example: Included are excerpts from the ‘Online Fashion Retail Report 2021’ that underscore the growing demand for online fashion shopping, particularly within our target demographic.

Financial Statements

If available, provide detailed financial statements such as income statements, cash flow statements, balance sheets, etc.

Example: The detailed financial statements for the past two years, enclosed, demonstrate our business’s steady growth and robust financial health.

Kick-Off Your Online Venture

By using this template, business owners or potential entrepreneurs can efficiently outline their plans, anticipate potential challenges, establish clear goals, and define strategies to achieve them. Ultimately, this tool will guide you in shaping an effective business plan to navigate your business idea or e-commerce venture towards success.

Remember, although the template provides a sturdy structure, it’s crucial to tailor your free business plan template to reflect your unique business situation, market dynamics, and strategic intentions. Business planning is not a ‘one-size-fits-all’ task; your business plan should echo the distinctive heartbeat of your e-commerce endeavour.

Good luck with your business planning!

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BUSINESS STRATEGIES

How to create a defensible eCommerce business plan

• 10 min read

In order for your online business to survive its first precarious years—and to thrive beyond them—you need a solid ecommerce business plan.

Most eCommerce websites  are built on a dream, a passion or a noble goal of fixing something that lacks a proper solution.

But unfortunately, many businesses don’t last more than a few months. A discouraging truth about eCommerce is that 90% of startups fail  in the first 120 days.

After all, some of the most common reasons why businesses fail include lack of capital, inadequate management, and a faulty business model. Much of this is a symptom of poor planning. Here’s how you can better plan for your brand’s future and create a strong eCommerce business  plan in order to bring your eCommerce business ideas  to life.

What is an eCommerce business plan?

A business plan  is a roadmap for how to structure, operate, and manage your business. It includes the important elements that define your company—such as your name, description, capital needs, product categories, target market characteristics, and business goals.

A thoughtful ecommerce business plan can prepare your store for a successful launch and/or help it to scale in the right ways. In the latter case, an annual business plan review and revision can help you adapt to industry changes and anticipate new trends or consumer behaviors.

In a nutshell, an ecommerce business plan helps you to:

Secure funding: By having a business plan that details the who, what, where, when, and hows of your business—you’ll enjoy an easier time building trust with investors and piquing their interest.

Filter distractions: New trends and distractions crop up all the time in eCommerce, making it especially important to have a plan that holds your business accountable to (read: focused on) particular goals.

Do your due diligence: When you’re first figuring out how to start a business , it’s easy to get caught up in the excitement and act on gut feelings. But building a business plan requires you to slow down and perform more thorough research on your target market, product(s), financial plan, and more.

Plan for the long term: Your business plan will help you to better gauge where your business should be in both the short and long terms. It can also act as a compass, estimating the steps you need to take to get from where you are today to where you want to go.   

Grow your team: An ecommerce business plan not only gives you a sense of who to hire and when, but serves as the glue binding your team to one, clearly defined vision.

Grow your operations: Between your tech stack, staff, supply chain, website, and more—there’s a lot that needs to be put into motion before your eCommerce business can take off. Your business plan should outline all of these moving parts, helping you strategically build out your operations.

How to create an eCommerce business plan

An eCommerce business plan is structured similarly to a traditional business plan. However, it will detail things like your website builder, eCommerce merchandising methods , sales channels, fulfillment process, ecommerce metrics and goals that are distinct to building an online store  and running it successfully.

Here’s a breakdown of what you should include in your plan and how to create it:

Write your executive summary  

Include your company name, description, and domain  

Perform eCommerce market analysis  

List the products you’re selling and why  

Plot your operations plan  

Set out your marketing and advertising plan  

Lay out your financial plan  

01. Write your executive summary

Though this is published at the beginning of your business plan, your executive summary should be written last.

This summary is exactly as it sounds. It connects and introduces all the components of your document for readers who want a brief overview of what your business is all about. It’s similar to a hook or an elevator pitch that compels readers to continue scrolling.

Keep this summary short. Do not exceed one page, and include a brief description of your product or service, growth opportunities, and why your business is set up for success. What do investors or teammates need to know right off the bat?

02. Include your company name and description

In this section, you’ll want to outline the who, what and why of your business. Rather than going into details about the products you plan to sell (this comes later), talk about your vision for the company. Share your motivations, values and problems that you plan to solve.

Your description can include things like:

Brand name: Selecting a meaningful name is particularly important for eCommerce businesses since your website domain will be closely associated with your brand. Jeff Bezos famously named Amazon after the world’s largest river because his goal was to create the world’s largest bookstore, but also didn’t want to be tied to books. Similarly, you’ll want to pick a name that you won’t outgrow. If you need some inspiration, give Wix’s store name generator  a whirl or check out this guide to eCommerce business names .

Domain name : At this point, you’ll want to have registered a domain name. Use Wix’s domain name search  to check if your preferred domain is available. If the domain is taken, you can take one of several steps: contact the site owner directly, tweak your domain (e.g., add a verb like “get” to the front of your name), use a different TLD than .com, or use an abbreviated form of your name.

Background: Your description is a great place to share why you started your ecommerce business in the first place. What inspired you to create your brand? Who do you plan to serve? What do you plan to accomplish? While you want to avoid waxing poetic here, it’s worth giving your readers an inside look into the history of your company.

Vision: Your vision statement  should capture the ideal state of your business. In other words, what is the future that you’re building towards—not just now, but five or 10 years from now?

Mission: Your mission statement , on the other hand, should express what you’re striving and able to achieve now. While your vision statement provides the 30,000 foot view of your company, your mission statement acts as a compass for your team and keeps them motivated to do their best.

Business structure: Be clear about whether your company is a sole proprietorship, an LLC , s-corporation, c-corporation or partnership . If you’re not sure which applies to you or which one to pursue, consult a lawyer or accountant.

Key personnel: Name key team members like your cofounders, CEO, partners, and upper management. There should be no question about who owns the company and who is responsible for managing what. This is not something just meant for appearances—your team should be well-structured to ensure efficiency and growth.

Core values: Your values should represent how you plan to run your ecommerce business. Investors and employees will want to know that they’re backing the right horse, not just from a financial perspective but from a human perspective. Your values will naturally make an appearance in your vision, mission, and background, but make sure that your values are clearly stated for readers to refer back to.

03. Perform eCommerce market analysis

Your ecommerce business plan should include extensive information about your industry and the people you plan to serve. The last thing you want to do is enter the ring blindly or operate based on assumptions alone.

This section should describe everything from the barriers to entry, to how your business fits into the existing landscape, to how much opportunity exists. Remember that you’re the expert here. Not everyone who gets their hands on this doc will have as much insight into the industry—nor the time to research it on their own—so you’ll want to provide all the essential information up front.

Target market: Estimate the number of consumers who need your product (based on real independent research) and how often they may make a purchase. Revisit your buyer personas  and describe who you’re planning to target. Is the need for your product growing, based on the climate of your industry? What consumer behaviors have you observed? Are there any doubts or questions that you should address?

Competitive analysis: Identify your top competitors and perform a deep dive into their strengths, weaknesses, top products, pricing strategies, and more. You should know how your business stacks up against these players. For example, many companies manufacture and sell hair and body care products but Lush built its reputation by taking a stand against animal testing, over packaging and harsh synthetic ingredients. The company has a clear niche of eco-friendly products within the cosmetics and bath products industry. They create unique, memorable products that are easy to differentiate from competitors (and fuel brand loyalty). The most important thing at this stage is to be honest in your assessment. Don’t turn a blind eye to areas where your company needs to improve or any risks that you run. At the same time, zero in on any product gaps or niches that your company can effectively target to get ahead of competitors.

Special considerations: As an eCommerce business, you may not simply sell D2C  from your branded site. You may also choose to sell on third-party marketplaces like Amazon, sell wholesale, or open brick-and-mortar locations. Each of these may involve a different set of competitors and buyers. Take the time to look into each of these channels separately. Understand how you plan to compete on all of these different fronts (or perhaps now is a good time to define which is most important to start off with).

04. List the products you’re selling and why you’re selling them

By now, you’ve likely mentioned your product several times within your ecommerce business plan. Still, you’ll want to have a section that clearly lists out your products.

In this section, describe your pricing, product positioning , margins, product life cycle , and key differentiators. You can include pictures and product reviews if you’ve already tested your items in the market. Or, if you’re still in the research and development phase, describe your timeline and progress in detail.

It should be clear whether your products are private label  or sourced elsewhere. If you only sell a few items, provide a more detailed description of each. Alternatively, if your catalog is too large to list out, give a more general overview of each product type, plus the strategy behind them.

05. Plot your operations plan

If your ecommerce business plan is meant to serve as an internal doc for your team to use (or even if you want investors to see where your capital is going), include a section that describes how you plan on tackling logistics and operations. There are tons of things to keep track of on this front, from the suppliers you’ll need to work with to the storage space you’ll require.

Here’s a breakdown of information you can include.

Suppliers: List out your suppliers for raw and/or finished goods. Where are they located? How do you plan on connecting with and managing them?

Production: Are you dropshipping , manufacturing, hand-crafting, or buying your products wholesale? Include details like lead time, contingency plans (for when demand spikes), and other essential details about your supply chain.

Equipment: What hardware and software will you need to conduct business? Include your website builder and other subscription-based tools that you’ll need.

Warehousing: Explain where you plan on storing your products—whether that be your own warehouse or a third-party logistics (3PL) provider.

Facilities: Do you plan on opening a brick-and-mortar location or will you have a designated office space? Include where your team members will be operating out of and how that might change as you grow.

Personnel: You’ll want to be clear about the chain of command and which roles are filled or need to be filled. Don’t forget to think about any legal or accounting needs, in addition to board members, consultants, and employees.

Inventory: How do you plan on handling inventory management ? This is an area where lots of ecommerce businesses stumble, so you’ll want to have a clear strategy (and the necessary technology) to keep this in check across all of your sales channels.

Shipping and fulfillment: Do you plan on fulfilling orders on your own or will you outsource this responsibility? Moreover, how will you handle international shipping if your brand plans on selling overseas?

06. Set out your marketing and advertising plan

It’s no secret that you need a good marketing and advertising plan to grow your eCommerce business .

But you may be surprised to know that a staggering 37% of surveyed startup owners  said that poor online marketing caused their businesses to fail. Of this cohort, 35% said that a lack of online search visibility was the top reason.

That’s why you don’t want to haphazardly build your eCommerce marketing strategy . Think of—and document—the various components of your strategy:

Social media ads

Content marketing/SEO

Organic social media

Email marketing

Influencer marketing

Promos/discounts

Affiliate marketing

Loyalty programs

Events/pop-ups/ flash sales /trade shows

Radio or TV

Brand partnerships

A strong marketing plan  doesn’t necessarily require a big advertising budget. But you’ll want to name your top channels upfront and specify whether these things will be handled in-house or with an agency’s help.

07. Lay out your financial plan

So you’ve got big plans for your eCommerce business. How will you fund them?

This is where you reassure readers that your head isn’t just in the clouds. While this is probably the least fun to write, the viability of your online business (and your reader’s confidence in you) relies on having a firm grasp of the numbers.

If you plan to seek financing, then investors and lenders will want a sales forecast along with your list of expenses (this includes both fixed costs and variable costs) to ultimately ensure that they’re making a sound investment.

Or, if you don’t plan on seeking third-party funding, a financial plan still tells you how much money you’ll need to run your business and helps to protect you from unwelcome surprises. The last thing you want is to run out of money before you can establish yourself—which is one of the top five reasons that eCommerce startups failed in the same survey mentioned above.

Consider including these elements within your ecommerce financial plan:

Startup cost

Income and expenses

Balance sheet

Cash flow statement

Break even point

Customer acquisition cost

Key assumptions

Financial projects for next five years

Whether you’ve just dipped your foot in eCommerce or have been in business for years now, you’ll need an up-to-date business plan to run a tight ship. Download our free business plan template  today and build a solid foundation for your brand.

Ecommerce business plan FAQ

Why do i need an ecommerce business plan.

Having an eCommerce business plan is essential for several reasons. It serves as a roadmap that outlines your business goals, strategies, and tactics, helping you navigate the complexities of starting and running an online store.

What are the main steps included in an eCommerce business plan?

Related posts.

7 types of eCommerce you need to know to succeed

What are eCommerce KPIs and how to track them?

28 best eCommerce tools to power your online store’s growth

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How to Create an Ecommerce Business Plan in 2023

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Do you need to launch an ultra practical online business? It all starts with a pre-meditated ecommerce business plan. At first glance, this feels like a superficial blueprint for most starters.

But here's the deal.

You need an executive summary of everything you're about to do in order to convert your objectives into actual results. From the onset, you must put your thoughts on paper. It doesn't matter how smart you are. I'm pretty sure that Jeff Bezos of the retail giant, Amazon, sat down to sketch his master plan at some point during the initial stages.

What does this imply?

If you sort all the salient pointers for your online business accordingly, this will undoubtedly, funnel your future goals towards the right direction.

Goes without saying that any ecommerce business ought to have an online store that matches its precise niche . As long as you have a product to sell, drafting a roadmap to your ecommerce store's success isn't that much of a hassle.

So let's cut the chase.

In this article:

Is an ecommerce business plan worthwhile, do a product market research, choose the right sales channel, streamline your order fulfillment process, shape up your marketing campaigns, create a sound financial plan, identify your business model.

Absolutely Yes!

Let me persuade you further. Any business startup, no matter small or big, needs some sort of manifesto, for lack of a better phrase. In actual sense, a sound ecommerce business plan helps you mitigate any future shortcomings. You should think of it as a pacesetter. It provides you with the most appropriate pointers on how to run a successful online enterprise.

A well-articulated ecommerce blueprint is a practical idea if you don't have adequate funding to start off your business. Still not convinced?

Let me explain how.

Provided that your business plan is distinctive and logical, you can pitch it to financiers or make arrangements for crowdfunding if the idea requires an immense capital input. If making your prospective ecommerce startup your full-time job is within the bounds of possibility, then a sensibly analyzed business plan is a must-have for any newbie.

More often than not, an online business operates in the same fashion as brick and mortar stores. The only disparity is it may not need a physical location. Bear in mind, the fact that the merchant needs to do some extra logistics planning and marketing as well.  So there's absolutely no excuse for not having a manageable business plan in check.

So what needs to be done?

This guide is fine-tuned to illustrate all the qualities of a money minting ecommerce business masterplan .

👉 To give an executive summary, here's a painstaking breakdown of the rightful pointers we'll shortly look at:

• Carrying out a scrupulous market research
• Marketing your business
• Financial Planning
• Choosing the right sales channel
• Identifying the appropriate business model

Let's take a look.

To get things started on the right foot, you need to plan ahead before spending a penny on whatever demands that your online business has. With the prevalence of brilliant research tools, a merchant can now do an intensive market analysis without any constraints. How else would you know your suitable target audience?

Let's face it.

Whether you're a small business or an enterprise-level setup, the need to identify the most accurate demographics is pretty inevitable. Above all, the acute competition in the ecommerce industry is never easy. As stiff as it tends to be, there are techniques to help you cut all corners. In fact,  in a competent, or rather, proficient manner.

No matter the kind of niche you want to hang on, there are salients tools you ought to upskill yourself with. As a matter of fact,  that's a rule of thumb while structuring your business plan. So here are some of the elementary hacks to use for your market analysis;

Use Google Trends

To put it into context, Google Trends is, unquestionably, a feature-rich tool that hooks you up with the winning keywords. It calculates the popularity which a particular key phrase has garnered over time. Google Trends generates this graphical data in real-time and filters the same information as per the preset demographics.

So that begs the pertinent question.

How exactly do I make best out of this exceptional tool? As a merchant looking forward to starting a new ecommerce business, this is a means to fetch potential customers.

Please allow me to illustrate.

Suppose you want to sell some type of ‘ sportswear ‘on your online store, this tool allows you to view its interset by a value between 0-100. It has options that help you filter data according to the region and duration of time, respectively.

The logic here is that Google Trends uses search queries to sort the trending products and services. That aside, there's a comparison feature that contrasts several search phrases. With such data-driven information at hand, a merchant gets to make well-informed decisions while creating SEO focused content to market their products or services.

Google Trends feeds you with industry-focused reports that abundantly, help you out with marketing campaigns. So long as you catch sight of most applicable keywords, boosting your ads engagement is absolutely a no-brainer.

Do a Small Physical Survey

There are lots of bricks and clicks stores selling a wide range of products in the market. By Bricks and Clicks, I mean those that do have both physical and online stores. There's so much to learn from such retail setups.

In a resourceful way, this strategy gives you a smooth learning curve while inventing your ecommerce business plan . That way, you get to bank on sharp insights that help you make realistic prospects for your future online business. Doing a survey is as easy as walking in a storefront that owns an online store and asking the requisite questions.

👉 Practically speaking, here's what should be on your checklist:

• How often does a specific product get returning customers?
• Which are the best selling products in their online store?
• Find out the worst-selling products as well.
• What's the average order value for this category of products?

Make the perfect use of Google Analytics

Yet another instrumental tool that you need to incorporate while figuring out what your ecommerce business plan ought to entail.

So what's the deal with Google Analytics ?

Well, there's so much to bargain on. This tool keeps you conscious of where exactly to keep more focus on. Once you set up your online marketing campaigns, this tool feeds you with exclusive data as regards to how each ad performs.  Otherwise stated, Google Analitycs allows you to find out which audience reacts to your campaigns. It integrates with your sales channel ( Shopify , Volusion , WooCommerce , and others) via a Google ID.

This tool shows you the stats in reference to where exactly your online store gets its traffic from. Along the same line, you get to discern between those ads which convert as well as those that don't.  The Keyword planner, on the other side, gives you a projection report of high ranking keyphrases.

The Keyword planner helps you make good strides for your B2C website. In particular, you get to boost your sites SEO via your blog.

👉 In other words, Google Analytics is, without fault, the most idealistic tool that helps you with:

• Calculating the total number of new visits to your online store
• Shows the average session time. This is the duration which a visitor spends on your ecommerce site.
• Allows the user to view the location where most visits come from. You get to push your campaigns to the right demographics(target audience).

Know who your competitors are

Needless to say that this part is quite inevitable in any kind of online business. You're not alone in the market. That being the case, you need to what your rivals do best.

And not only that.

👉 Your quest to come up with the most accurate results need to be inclined to the following:

• Have a deep run on how your competitors sort out their product descriptions
• You need to compare their pricing techniques.
• How responsive are their product pages? Do they load quite fast?
• Consider having a snippet of the feedback from customers

Thereby, your business model operates on a great volume of descriptive information. That gives you the roadmap to fill the market gap. Making such a fundamental exercise sort of oversimplifies your strategy to beat the already existing competition.

At the moment, there are so many avenues to count on. The list is actually endless. Indeed, this is the most fascinating part of running your online business.

Forget about the retail giants such as Amazon, eBay or even Alibaba. There are other suitable 3rd party salse channels on taking center stage.

But don't get it twisted.

Not that there's anything wrong with Amazon and the likes. Which we'll look into shortly, as a matter of fact. But just in case Amazon sounds thrilling to you, you'll have to part with $39.95 each month to get hold of an Amazon seller account . The deal is, you need to consider what your specific needs are.

👉 Choose a sales channel that allows you to:

• Import products in bulk together with their descriptions
• Connect to the most prolific and niche-oriented themes
• Run an actionable blog section
• Sell on social media platforms
• Work with real-time reports
• Do marketing  campaigns

Surprisingly, there are a couple of shopping cart channels that are built to streamline such needs.

So let's briefly touch on some of these notable sales options:

As things currently stand, Shopify seems like the quintessential ecommerce platform for starters. The reason being that Shopify's pricing model works out for merchants looking to open up small online stores. It has plans starting from $9 to $299 per month. It's still a competent cart solution for retailers who deal with massive volumes of sales. The enterprise plan allows you to reach your maximum potential in a far-reaching way (have a look at our Shopify reviews ).

While sketching your online store's plan, you don't want to crack your head over any sort of web development tasks. I'd recommend Shopify to a newbie who's not alive to any coding skills. Unlike other tangled solutions such as Magneto or WordPress, Shopify's user interface, is sort of plug and play.

What strikes me most is its integration prowess. Shopify's marketplace makes you want to sit back and wait for your financial projections to mature up in an automated manner.

If you have vested interests in dropshipping , for instance, this is the way to go. In fact, there are lots of Shopify dropshipping apps that will let you make a decent ROI. The DSers app (full DSers review ), for example, allows you to sync products together with their descriptions and variants to your Shopify store. DSers allows you to import products from the popular AliExpress .

💡 Other significant apps include Spocket (full Spocket review ), Printful (full Printiful review ), Spreadr App , and much more.

WooCommerce

If you've used or at least, heard of WordPress , then probably WooCommerce shouldn't sound strange to you. Technically, it's a WordPress plugin that is e-commerce oriented. Since it syncs with the WordPress CMS system, this gives you full autonomy over your online store.

That's the bright side part of it.

However, WooCommerce requires some extra skills while dealing with hosting, domain, theme adjustments, and the likes. (read our full WooCommerce Review )

Aside from the basics, this sales channel allows you to;

• set shipping rates
• import products in bulk via a CSV file
• Integrate with payment processors like Stripe

I'd recommend this channel if you really want to boot up your SEO. The reason is pretty simple. WordPress is a champ at it. For B2C setups, you can never go wrong with it's blogging functionality.

Weebly is a pretty solid alternative to work with more precisely if you want to run a simple online store. Well, it's not as versatile as Shopify or Magneto , but it's a good starter pack if you're working on a low budget.

This website builder has drag and drop tools that are quite easy to learn for a beginner. Weebly's pricing is notably budget-friendly and has plans that meet various types of demands. The price for the plans starts from $5 – $38  per month if paid annually.

Other well-built 3rd party sales channels include;

• BigCommerce ( full review)
• PrestaShop ( review )
• Squarespace

This is what builds or breaks your ecommerce business. If you don't deliver ordered items to your customers on time, the aftermath could be sickening. You don't want to deal with chargebacks and derailing reviews from frustrated clients.

The ingredient to always have to customers return to your checkout button is having a sensible order fulfillment criteria in place. The good part about it is that there are well-founded companies to help you deal with that. While picking the most reliable sales channel, it's thrifty and forehanded to pick one which integrates with remarkable carrier companies.

Let's presume that you're dropshipping products from AliExpress , which is, as you may know, based in China. In this case, you may want to work with reliable carrier services. Moreover, the shipping speed is of great essence here. You need to bank on big carriers such as;

Alternatively, you can try out predominant 3rd party order fulfillment services such as ShipBob (read our ShipBob review ), ShipWire, or ShipMonk, just to name a few verified solutions. Besides that, here's another tried and tested approach to a successful order fulfillment process;

This is a robust channel that a merchant can use to potentially make revenue that is up to the mark. With over 6 million 3rd party sellers , there's definitely more to decipher about these numbers. This guide will actually teach you everything from scratch. Needless to say that it's one of the most pressed on fulfillment services in the world.

The Amazon FBA which stands for ‘Fulfillment By Amazon' is an option you can put to test. Basically, this model is designed to process all customers' orders on the retailer's behalf. For this to happen promptly, you need to send your products to Amazon's warehouses, or if you like, fulfillment centers. Thereafter, Amazon picks, packs, and sends the ordered items to your customers.

What makes Amazon FBA a choice for most serious merchants, is the convenience it sets forth whenever one needs to scale their business. Amazon has multiple warehouses which makes it feasible to ship ordered items globally. That's a huge plus for your business and future revenue prospects.

In order to beat your competitors, you need to boost your store's visibility. But that just doesn't happen by doing the bare minimum. A merchant needs to do a conclusive analysis and figure out which marketing options draw more attention to the target audience.

A marketing campaign is one of the most purposeful and resolute technique to drive immense traffic towards your online business. And not just ordinary traffic. The end goal is to have insightful traffic that translates to fulfilling conversions.

For that to happen, you need to ask yourself the right questions. This should be on  your checklist;

• Where do most of my customers come from? (location)
• What's their age demographics
• Do they prefer online shopping over a storefront?
• How much are they willing to spend on my products?

Such kind of information allows you to tweak your marketing techniques. As you may know, a merchant can custom-make their target customer base. Hence, you end up with potential visitors who are most likely going to make a purchase.

Without further ado, let's have a look at some of the conventional marketing techniques;

Email Marketing

I wouldn't term it at the most reinforced marketing option per se, but email marketing still scores fairly well in the world of advertisement. Email marketing is now an automated method you can try out to keep customers in your pockets.

Choosing the best service for your email campaigns can turn out to be a bit daunting. Before jumping into any emailing tool, you need to have these specifications in your mind;

• Choose one that automates your customers' subscription notifications.
• Has a dashboard with email editing features.
• Comes with flexible plans that allow scalability.
• Has professional reporting and analytics tools.
• Gives you access to incredible CRM (Customer Relationship Management) tools.

For this to happen, I'd recommend that you choose any of these tools;

• ActiveCampaign
• GetResponse

Please read this guide to get an overview of the newfangled email marketing services.

The gladdening part about Google Ads is that it allows you to set your own budget. This tool creates visibility for your business. Customers who search for related keywords get to see what your online store has to offer.

For as low as $150 per month, this solution allows you to reach out to relevant customers. You get to choose a specific period which you want your targeted ads to run. Just like other marketing campaign tools, Google Ads allows you to customize how you want the ads to appear.

Instagram & Facebook Advertising

I must say that there's so much potential from these two ends. However, be careful not to spend up to the last coin only to end up with sluggish results.

These two social channels are good with marketing no matter how small your brand is. Thankfully, you can create shoppable posts at the convenience of your sales channel.

There are two avenues that you can explore here. You can either opt to go with paid ads or work with influencers. Choose an influencer who's crafty enough to tap into your audiences' emotions. Potential shoppers need to get the impression of how your product solves their problems.

These two channels allow you to run an array of ads ranging from photos, videos, stories, and much more. If you don't know how to go about these options, then your bait will certainly miss the fish. If you can spare some time to make some eye-catching videos and post them on your store's accounts.

As another option, a merchant can choose to run organic posts on the site's official page. This alternative is absolutely free. You only need active internet for that.

Customer Loyalty Program

This is one of the most common ways to maintain repeated customers. You can decide to create promo codes, do retargeting ads, offer discounts if customers refer their friends to make a purchase, and so on. A stable customer loyalty program can help your business be operational for decades.

Print Marketing

This is an easy strategy to start off with if you feel like paid ads are somewhat expensive. It's as simple as branding merchandise with your brand's logo and using creative promotional inserts.

Organic Marketing

This method doesn't need you to invest so much to achieve any projected outcome. You can run a blog and produce SEO focused content to reach your target audience. Although this might take so much of your time, it equally boosts your conversions in a far-reaching way.

To run a successful blog, you don't just need an ordinary CMS (Content Management System) . It must be one with essential tools to help you strikingly rank high on the search engine. An all-inclusive software like WordPress is a perfect example in such a scenario.

What does a blog have to do with my online store?

You might ask yourself.

Well, running a blog is one of the most promising channels a merchant can use to introduce a ‘call to action'. It's an easy peasy way to persuade readers to buy your products.

Practically, you can put ‘buy buttons' in your articles to direct customers to your online store. You need to create good content to convince your readers. That comes to fruition only if you know how to engage your audience with what they can actually relate to.

I'm pretty sure that you must be alive to the fact that WordPress is free to use and also an open-source platform. This means that you can actually joyride a couple of its functionalities. To improve your site's SEO, you can set noticeable meta descriptions, insert backlinks, and set appropriate keyphrases.

If you intend to target a population from the younger demographics, you ought to run a marketing strategy which they're more affiliated with. In this case, Instagram tends to be more associated with Millenials.

I don't necessarily need to emphasize the fact that you need to work with a budget. If this is left unattended to, your business is more likely going to crumble in the near future. A merchant ought to be sharp about the start-up costs and any extras that they might have to incur in the long run.

Assuming that you're going to run your online business alone, setting a budget that fits your wallet shouldn't be a demanding exercise. You need to maintain a streamlined cash flow in your business dealings. To keep off from discrepancies, it's doubtless that you need a high-standard accounting tool.  Most of this software charge a few bucks for its services. Not much, that I can give you some sort of guarantee.

As a matter of fact, the likes of Intuit Quickbooks and Xero are ideal for bookkeeping and any other accounting needs. By use of such tools, you get to stay ahead of your priorities by maintaining a sound financial plan.

So let's see what you should put into deep consideration;

Projected Earnings

This gives you a sneak peek of the amount of revenue you should anticipate. But you just can't take a wild guess to know exactly how much you'll generate over time. Since you're the CEO of your e-commerce business, you need to be a wise bookkeeper. Act like you have 10 years experience as a professional accountant, even though you're not close to being one. But if you are, that's a huge plus.

Figuring out what your gross revenue amounts to isn't enough. There's more work to be done in order to narrow down to accurate projections. Once you do the math and come up with the total sales, it's pretty obvious that you need to deduct all expenses. Finally, you get to know the actual profit yield.

And that's how a viable financial projection works.

To make a more intelligible projection, you can use business planning software to remove all forms of complexities. Small businesses can use apps like LivePlan , Bizplan or Enloop to account for their business forecasts.

Recurring Expenses

If you're going to depend on 3rd party SaaS services to run your business, then it's patent that you need to pay for the monthly plans. An online business owner must factor in what the sales channel charges on a periodic basis. Shopify, for instance, charges $29 each month for its Basic plan.

But that's not all.

There are extra plugins which integrate with your store to boost its overall perfomance. Some of these extensions have premium plans. That aside, you'll have to set a budget for your marketing campaigns as discussed earlier on. Besides, a merchant whose business is at an enterprise level requires elite-level services from the marketing tools.

Paid advertising, in particular, is often a recurring expense that needs to appear in your financial books of accounts.

You don't expect to thrive over your rivals by clinging on a free trial plan. With the acute competition in the ecommerce setups, there's more to making huge revenue than merely putting basic efforts to your online store.

If you want to run a winning online business, you better use a theme that's sort of intertwined to your niche. Furthermore, you need to brace yourself with some extra bucks so as to access a fully functional theme. Realistically,  a professional WordPress theme would roughly cost you about $200 or even more.

Magneto, on the other hand, is a sales channel that needs some tender care. It has a knotty learning curve since it's designed to run ecommerce businesses that have scaled to an industrial level. In order to make adjustments on Magneto's functionality, you might have to spend on web development experts.

Payment Processing

Since you'll be running an online business, thus handling payments from customers, you need to work with a cloud-based POS system. One which integrates with processors such as Stripe , PayPal , Square, just to mention a few notable ones. A merchant service provider like Shopify has its own POS app which works perfectly well for all their retail needs.

This solution uses a tiered technique on each of its plans to calculate the processing fees. The pricier the plan, the lesser the processing fees.

To further illustrate, Shopify's Basic plan charges 2.9% + 30 cents per sale transaction. Its counterpart WooCommerce charges the same amount for all the credit card transactions.

No matter how old this phrase is, here's the moral of the story.

To get your business into good financial shape, you need to be mindful of the processing fees. Be keen to choose an ecommerce platform which has multichannel functionality yet with low processing fees. This allows you to greatly maximize your profit on each sale transaction.

Fulfillment Expenses

As noted earlier, there are a couple of ways to go about this process. If you want to offer free shipping to your customers, pick a solution that rewards you the most. Most drop shippers tend to include the shipping costs in the selling price. If that's the case, choose reliable carrier services to avoid future chargeback claims.

Also, go with one that has an efficient management team. Amazon's FBA can serve as a pretty solid order fulfillment service. The same goes for services such as ShipWire or ShipMonk.

If you decide to do premium shipping, then you'll have to elevate your pricing index formula. Contrastingly, if your products are somewhat expensive, customers might shy off from making a purchase.

Other Operational Costs

Just like a brick and mortar store, you'll definitely incur some extra expenses while running your online business in a bid to boost productivity. If you're running a large online store, it's prudent to have some technical assistance. That costs money. Depending on the size of your ecommerce business, you might incur some accounting expenses and business taxes too.

Not to mention hosting services if you go with a sales channel that isn't self-hosted. Besides that, there are premium integrations which come with monthly recurring costs.

The earlier you realize which category your ecommerce business plan falls into, the better for your future projections. The trendsetting business models are not the same as those that used to reign a couple of years ago. Many thanks to the cumulative progression in technology and shopping trends.

For an online merchant, this brings on board, diverse ways of doing business across borders.

The end result?

Your online business setup generates more revenue like never before. With such kind of innovation in the realm of running an ecommerce business, numerous opportunities are created. It's no wonder that there is an uncountable number of niches which potential online store owners can venture into.

Before we even delve further into these ecommerce oriented business models, let's have a recap of the long-established, or put differently, the traditional ones;

Business-to-Consumer (B2C)

B2C setups are those which sell products and services, or both, to the end buyer. That simple. It's one of the most prevalent methods in the sphere of ecommerce. Most merchants use this method to sell products to consumers since it requires fewer efforts than B2B(Business-to-Business).

The Business-to-Consumer approach is highly preferable for products that have a lower market value. Under ordinary circumstances, it's easier for buyers to make up their minds on a pair of shoes over an accounting software. At least, owing to the fact that the latter is a recurring expense, which they have to incur periodically.

The B2C model is mobile-friendly and helps you optimize your online store's perfomance.

Business-to-Business(B2B)

Unlike B2C, B2B transactions occur between two businesses entities. In other instances, the buyer is usually the end-user. But most-predominantly, the buyer makes the purchase and later on resells the products to the consumer at a retail price.

This framework is now more focused on B2B ecommerce businesses which are well versant with niche markets.

Consumer-to-Business(C2B)

This structure allows individuals to sell products and services to companies. In ecommerce, a business buys such a product or service so as to aggressively compete in the market.

Let's use a typical illustration. Consumers who let's say own blogs can allow companies to advertise products in their sites. Of course, this comes with a price.

Moreover, there are Business models that focus on ecommerce setups.

They include;

Direct-to-Consumer(D2C)

If you want to cut the middleman, this is the right model to use for your ecommerce business. It's a tried and tested technique that connects businesses to customers in an unconventional manner.

Subscription services

In e-commerce, this is the kind of business that offers a type of service to consumers. Examples include; online magazines, streaming services, online classes, gym and club memberships, the list is endless. In return, the merchant collects recurring payments on a periodic basis and at a preset date from the consumer.

Wholesaling

As the name suggests, the wholesaler sells products to a retailer in bulk. A perfect marketplace to source wholesalers is Alibaba. The same goes for AliExpress, which is its subsidiary retail site. The latter is compatible with both the B2B and B2C model since consumers can make a direct purchase from AliExpress. A merchant can also opt to open a seller account here.

Dropshipping

This model is on the mainstream in the e-commerce industry. A merchant, otherwise known as a drop shipper, markets a product that is later fulfilled to the customer by a 3rd party supplier. The drop shipper, who is more of a middleman, virtually displays the products via a sales channel and adjusts the pricing to make a small profit on each sale.

Everything considered it's rightful to say that coming up with a detailed e-commerce plan isn't baffling whatsoever. The catch is, a merchant needs to make some sort of fusion between their business needs and the above-discussed blueprint. So long as you have an idea of what products to sell online, the initial stages of launching your business should be a no brainer.

Also, you don't want to go a little overboard with your startup costs. As you may know, that might slow down the launching process. To kick off with bargain-priced e-commerce sales channels, you can try out plans from solutions such as Shopify , WooCommerce , or even BigCommerce.

In a nutshell, having a full-proof e-commerce business plan sort of guarantees you systematic progress towards your future goals. This guide gives you a comprehensive analysis of what you need to have in your bucket list. If you feel unbalanced while sketching your plan, don't feel shy to drop a query in the comment box below.

Compare the best ecommerce platforms

Bogdan Rancea

Bogdan is a founding member of Inspired Mag, having accumulated almost 6 years of experience over this period. In his spare time he likes to study classical music and explore visual arts. He’s quite obsessed with fixies as well. He owns 5 already.

Comments 4 Responses

Thanks for in depth guide. Really wonderful article.

You’re welcome Sanjay!

Thanks Meaghan Brophy for your very detailed guide. I also would like to add a quick point as my takeaway. It all starts with a pre-meditated ecommerce business plan. At first glance, this feels like a superficial blueprint for most starters. But here’s the deal. You need an executive summary of everything you’re about to do in order to convert your objectives into actual results. From the onset, you must put your thoughts on paper. The key is to start it. Planning is very important. But be aware to not overdo it.

Thanks for sharing you thoughts, we’re really glad you liked the article!

Comments are closed.

Develop an Effective E‑Commerce Business Plan

Discover the key elements of a successful e‑commerce business plan. Drive sales and achieve goals with a strategic roadmap in place.

Developing an effective e-commerce business plan is critical for any entrepreneur looking to establish and grow a successful online store. A business plan serves as a roadmap for your e-commerce business, outlining your goals, strategies, and the necessary steps to achieve them.

Understanding what a business plan is and why it's essential is the first step toward building a solid foundation for your online business.

An e-commerce business plan is a comprehensive document that outlines your business strategy and goals, target market, marketing strategies, financial projections, and operational plan. It provides you with a structured blueprint to guide decision-making and ensure the long-term success of your e-commerce company.

In this article, we'll explore the critical components of e-commerce business plans and provide insights on creating your business plan. Whether you're an e-commerce startup entrepreneur or an existing business owner looking to expand into e-commerce, a well-crafted business plan will be a valuable tool to attract investors, guide your operations, and beat out your competition.

Keep reading to learn more about e-commerce business plans and how to begin crafting one for your e-commerce company.

Before starting an e-commerce business , you should have a clear plan. A business plan provides a clear strategic direction for your business. It defines your business plan, goals, target market, and unique value proposition. By outlining your business objectives, you can stay focused on your long-term vision and make informed decisions that align with your overall strategy.

Market research and analysis are key to crafting an e-commerce business plan. You can't successfully build a marketing strategy without knowing who you're marketing to and your competitors. This process gives you insights into your industry, direct and indirect competitors, and target market.

Understanding market trends and customer preferences helps e-commerce businesses position their stores, identify opportunities, and address potential challenges.

Another aspect of an e-commerce business plan is financial planning and resource allocation. By forecasting your revenue, expenses, and profit margins, you can assess the economic viability of your e-commerce business. This helps in resource allocation, budgeting, and setting realistic financial goals.

Additionally, your business plan outlines your day-to-day operations. This includes logistics, inventory management, customer service, and more. Planning for operational efficiency ensures smooth business operations, fast order fulfillment, and a positive customer experience.

Effective planning plays a crucial role in achieving long-term goals for any venture. A well-structured business plan guides the business by outlining strategies, setting clear objectives, and anticipating potential challenges.

Key elements of a comprehensive e-commerce business plan

A comprehensive e-commerce business plan addresses key elements that lay the groundwork for success. Every business plan template or example you'll come across will require these components, and they're something you should plan for the future.

Let's explore the crucial elements of your business plan and how they help your online store succeed.

Executive summary

The executive summary is the snapshot of your entire e-commerce business plan. It provides a concise overview of your business, its mission, goals, and strategies to achieve them.

Investors and stakeholders often base their initial impressions of a business on the executive summary, making it a critical section in determining whether they want to learn more.

To create an engaging executive summary, highlight the uniqueness of your e-commerce business. Consider the business model, its market opportunity, and the strategies that set you apart.

Market analysis

Market analysis comprehensively examines your industry, target market, and competitors.

Understanding the market landscape can help you identify opportunities, mitigate risks, and tailor your strategies to meet customer needs effectively. This component provides the context necessary for informed decision-making and strategic positioning.

Market research involves gathering data on market trends, consumer behavior, and competitor strategies. Use research methods like surveys, interviews, and industry reports. Analyze demographic, psychographic, and behavioral factors to paint a detailed picture of your target audience. This information can then be used to guide product development and marketing. 

Product and service description

Clearly defining your products and services helps to communicate your value proposition to potential investors and customers. This component of your e-commerce business plan outlines what sets your offerings apart and addresses the specific needs of your target audience. 

Clarity in product and service descriptions helps customers understand your business and its offerings and helps internal teams align their efforts with the overall business strategy. 

Present your products and services in a way that resonates with your target audience. Emphasize unique features, benefits, and how your offerings solve customer pain points. Use visuals such as high-quality images or graphics to enhance the presentation. 

You should also clearly articulate your competitive advantage and address any gaps in the market that your product or services fill. This component should leave readers of your business plan with a compelling understanding of why your offerings are a must-have for your target customers. 

Marketing and sales strategies

Every successful e-commerce business has marketing and sales strategies to support it. Your marketing plan serves as a driver behind customer acquisition and revenue generation. Effective marketing creates awareness and builds brand loyalty while engaging customers throughout their online journey. 

Combining robust marketing efforts with strategic sales tactics is essential for maximizing conversion rates and ensuring sustainable growth in a competitive market. Again, crafting effective marketing strategies requires deeply understanding your target audience, using the proper channels, and delivering compelling messages. 

To reach your audience, leverage digital marketing strategies such as social media marketing, email and SMS campaigns, and search engine optimization (SEO). Implement data-driven approaches, analyze customer behavior, and optimize the user experience to enhance conversion rates. A seamless integration of marketing and sales efforts is key to staying ahead. 

Financial projections

Accurate financial projects provide a realistic view of the business's financial health to promote better decision-making and resource allocation while attracting potential investors.

Financial projections include revenue forecasts, expense estimates, and profitability assessments that can help you achieve financial goals and sustain long-term viability and growth. 

Consider market trends, customer demand, and pricing strategies when forecasting revenue. Analyze your cost structure, including production, marketing, and operational expenses, to protect accurate financial outcomes. 

You can use historical data if available and adjust for anticipated changes in the market. Regularly revisit and update your financial projections to reflect the evolving nature of your business.

A tailored e-commerce business plan is crucial to building a successful online store. While the key components above can guide you, writing a business plan specific to your company is crucial.

Follow these steps to write your business plan: 

1. Write your executive summary

Start by succinctly articulating the essence of your e-commerce business. Clearly state your mission, vision, and unique value proposition. Highlight what sets your business apart in the online market. You should also outline your business's short-term and long-term goals.

Express how your e-commerce business aims to meet the needs of your target audience and contribute to the market. 

2. Perform market analysis

Conduct a thorough analysis of the e-commerce market you're entering. Identify your target audience, analyze market trends, and assess the strengths and weaknesses of your competitors. 

Create detailed customer personas to understand your ideal customer's demographics, preferences, and behaviors. This information will guide product development and future marketing strategies. 

3. Craft your product and service descriptions

Clearly define your products and services. Highlight their unique features, benefits, and how they fulfill the target audience's needs. Use visuals to enhance understanding. 

When detailing your products and services, articulate your competitive advantage. Explain why your target customers should choose your offerings over competitors. Showcase any innovative elements or unique selling points. 

4. Build marketing and sales strategies

Develop a cohesive marketing and sales strategy that aligns with your business goals. Use digital marketing channels, social media, and content marketing to create brand awareness and engage customers. 

Outline specific sales tactics to maximize conversions. Consider discounts, promotions, and effective call-to-action strategies to encourage online purchases. 

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5. Detail your finances

Project your revenue based on market demand, pricing strategies, and sales forecasts. Be realistic and transparent about your assumptions. Consider different scenarios to assess potential outcomes. 

You should also review your expenses and detail any operational and marketing costs. Break down production, advertising, and logistics costs to ensure your expense projections align with your revenue forecasts.

6. Outline operations

Outline your operational processes, including logistics, inventory management, and order fulfillment. Ensure scalability to accommodate growth. 

Don't forget about customer service. Detail how you'll manage customer inquiries and complaints. Whether through chat support, email, or phone, articulate how you'll provide excellent customer service. 

7. Manage risks

Anticipate potential risks and challenges. Whether it's market fluctuations, supply chain disruptions, or technological issues, have contingency plans in place. 

Outline strategies for adapting to unforeseen circumstances. This may involve diversifying suppliers, having logistical backup plans, or implementing agile business processes that can adapt to the ever-changing market dynamics. 

8. Monitor and adapt

Set a schedule to review and update your business plan regularly. Ensure that it evolves with market, industry, or internal process changes. 

Ensure you set key performance indicators (KPIs) to measure the success of your strategies. Monitor customer acquisition cost, conversion rates, and customer satisfaction to gauge performance.

Regularly updating your e-commerce business plan is essential to keeping it dynamic and aligned with the evolving business landscape. As markets change, consumer behavior shifts and new technologies emerge, your business plan should reflect these developments to remain relevant and effective. 

When adapting your plan, stay informed about industry trends, continuously monitor customer feedback and preferences, and be open to revising your strategies based on data-driven insights. Consider integrating agile business processes that allow flexibility and quick adjustments to seize new opportunities or address emerging challenges. 

Start your own business and create your business plan with Mailchimp. We offer tools to enhance various aspects of your e-commerce business. From email marketing to customer relationship management (CRM) and analytics, Mailchimp provides solutions to help you connect with your audience, measure the effectiveness of your campaigns, and adapt your marketing strategies based on real-time data.

• Business plans

Ecommerce Business Plan Template

Used 5,221 times

This Ecommerce Business Plan Template is tailored particularly to e-commerce companies, and all you require to do is add the elements related to your business.

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Prepared by:

​ [Sender.FirstName] [Sender.LastName] ​

​ [Sender.Title] [Sender.Company] ​

​ [Sender.Phone] [Sender.Email] ​

Business Overview

​ [Sender.Company] is headquartered at [Sender.StreetAddress] , [Sender.City] , [Sender.State] [Sender.PostalCode] and operates in the (industry) . [Sender.Company] was founded in (month, year) by (Founder.Name).

​ [Sender.Company] seeks to offer (a general description of specific products or services to be offered) in response to what management has identified as a clear market need.

Products and Services

​ [Sender.Company] will sell (specific products or services to be sold). The products sold by [Sender.Company] will stand apart from the competition due to (explain the unique selling proposition of the product to be sold). [Sender.Company] will also provide (describe any supplementary products or services offered).

Website Design

​ [Sender.Company] will develop a website whose key elements will include the following:

About section explaining the company's mission

Database of products

Shopping cart system

Help and FAQ pages

The website will be built by an established development firm and designed by an accomplished web designer, with the process supervised by [Sender.Company] 's designated supervisor.

Management Team

​ [Sender.Company] is led by (Manager.Name) who has been in the e-commerce industry for (number) years.

Previously, (Manager.Name) worked as (job title) at (previous company) and acquired in-depth knowledge of the e-commerce industry as well as the (industry name) industry and the needs of the mass consumer.

Industry Analysis

​ [Sender.Company] has conducted a thorough analysis of the industry and discovered the following statistics that bode well for the business:

(Provide point-by-point statistics that illustrate the opportunity for your business e.g., growth projections for the e-commerce industry and your specific niche, consumer survey results, cost projections, etc.)

Customer Analysis

​ [Sender.Company] ’s target market is comprised primarily of (describe your ideal customer) .

The demographics of these customers are as follows:

The average income of $XX, XXX

XX% work in (industry)

XX% (married/single)

The median age of XX years

Strong desire for (a specific type of product/service you sell)

Competitor Analysis

There are numerous competitors in the industry in which [Sender.Company] will operate. The most noteworthy competitors consist of:

(List 2-3 competitors and include a brief description of their history, the scope of their businesses, and some noteworthy facts and stats.)

Competitive Advantage

​ [Sender.Company] is positioned for success because:

There are a limited number of competitors.

There's no one selling the exact product/service that [Sender.Company] offers.

The management team is seasoned and has a strong track record of success.

The product/service is on trend, and the industry is growing.

Marketing Strategy

​ [Sender.Company] plans to leverage several strategical prongs to achieve success in its marketing strategy.

Brand Strategy

​ [Sender.Company] will consistently focus its marketing efforts on the brand's unique value proposition, consisting of:

(Describe what makes your product or service stand apart from your competitors)

Promotional Strategy

(List some of the channels or methods your company will use to promote itself, e.g., SEO, email marketing, paid advertising, social media outreach, affiliates, etc.)

Pricing Strategy

​ [Sender.Company] 's pricing, is based on comprehensive market research, and it has been determined that our pricing is fair and attractive compared to competitor offerings.

(State the specific pricing or the general price range of products to be offered.)

Operational Plan

​ [Sender.Company] has determined that the following roles are essential for the success of the company:

(List some of the departments and roles that will need to be in place to operate the business.)

​ [Sender.Company] believes it is reasonable to expect completion of the following milestones at the following times:

(State when you expect the milestone to be completed.)

(Briefly describe what the milestone is e.g., the website goes live, marketing campaigns launch, products ship, etc.)

Financial Projections

​ [Sender.Company] is seeking total funding of $(amount) to launch its business. The capital will be used for (state what funding will be used e.g., building the website, hiring personnel, working capital, marketing, etc.)

Specifically, these funds will be used as follows:

Hiring a content production team: approximately $(amount of money)

Marketing: approximately $(amount of money) design/build and startup business expenses: approximately $120,000

​ [Sender.Company] 's financial projections for the next (number) years are as follows:

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• Featured templates
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How To Start an Ecommerce Business in 2024

Want to learn how to start an ecommerce business? This is a complete blueprint for launching a new ecommerce store.

Many people dream about starting an ecommerce business, but the realities of building an online store can be daunting.

In this article, you’ll learn the five basic steps to launch an ecommerce store, how much it's likely to cost, and extra tips for starting your business.

Start an ecommerce business in 5 steps

• Find product opportunities and choose what to sell
• Thoroughly research your competition and write a business plan
• Choose a logo and name and set up your online store
• Choose your shipping strategy and set sales and marketing goals
• Launch your business

1. Find product opportunities and choose what to sell

Finding a product to sell

The first step to building an ecommerce store is knowing what products you want to sell direct to consumer. This often is the most challenging part of starting a new online business. In this section, we’ll highlight strategies you can use to find products with great business opportunities , explore the best places to find product ideas, and look at trending ecommerce products to consider.

• How To Find a Product to Sell Online
• 17 Places to Find Profitable Products
• Trending Products to Sell Right Now
• How to Start an Online Business

💡 Learn more: What is Ecommerce: A Definition and Guide with Examples

Evaluating your idea

Once you have an online business idea , how do you know if it will sell? In this section, we’ll cover a few approaches that active entrepreneurs have used to validate their product ideas and potential markets.

• How to Validate Your Product Ideas
• How To Find And Validate Winning Products

Obtaining your product

After landing on a solid product idea, your next step is figuring out where and how you’re going to obtain your products. The next four posts cover the various methods for acquiring your products, along with the pros and cons of each model.

• From Dropshipping to DTC, Here Are the Most Popular Types of Ecommerce Business Models
• How to Find a Manufacturer or Supplier for Your Product Idea
• How to Source Products for Your Online Store: Top Apps and Tips
• Print on Demand: A Low-Risk Way to Sell Custom Products

Sell your retail products online

Shifting your brick-and-mortar business online can help you generate cash flow and build a more resilient business model. You’ll need to find a good ecommerce solution to build your store on, like Shopify.

• Bricks to Clicks: How to Move Your Brick-and-Mortar Business Online
• Sell Gift Cards for Your Brick-and-Mortar Business with a Simple Online Store
• Local Delivery: Add Local Delivery to Your Store to Increase Sales
• The Ultimate Guide to Curbside Pickup (With Examples of Local Retailers Doing it Right)

2. Thoroughly research your competition and write a business plan

Research your competition

You’ve found your product, evaluated its potential, and sourced a supplier. Before you get into that, you’ll need to thoroughly research your competition so you know what you’re up against and how you can differentiate your business model from theirs.

• How to Conduct a Competitive Analysis for Your Business (Plus a Free Template)
• SWOT Analysis: A Simple Way to Find Your Competitive Edge (Plus a Free Template)

Writing a business plan

With your competitive research complete, it’s time to write your business plan . A business plan is a roadmap that helps bring your ideas and thoughts together. It’s vital in determining what to prioritize, especially if you plan to run your online store as a side hustle . A business plan also highlights your company’s mission statement to show investors and employees the core values of your brand.

• 7 Business Plan Examples to Inspire Your Own
• Business Plan Template: A Practical Framework for Creating Your Business Plan

3. Choose a logo and name and set up your online store

Choose an online business name

Aside from finding actual products to sell online, another challenging decision is determining your business or brand name and choosing an appropriate and available domain name . This blog post will help you tackle these important tasks.

• Need a Catchy Online Store Name? Find Ideas With These Tips and Free Name Generators

Creating a logo

Once you’ve selected a memorable name and registered a corresponding domain, it’s time to craft a simple logo. In these resources, we’ll show you several options for creating a great logo for your new business.

• Shopify’s Free Logo Maker
• The Top 10 Paid and Free Logo Makers Online
• How to Design a Memorable Logo

Understanding search engine optimization (SEO)

You’re almost ready to begin building your online store. However, before you jump into it, you should understand the basics of search engine optimization so you can properly structure your site and pages for Google and other search engines.

• The Beginner’s Guide to Ecommerce SEO
• Want to Rank Your Store? Get On Page One With This SEO Checklist

Building your store

With a better understanding of search engines, it’s time to build out your store using a website builder . There are many crucial elements to consider. Below, we’ve listed our essential reads to help you build high-converting product pages, write captivating product descriptions, shoot beautiful product photography, choose your ecommerce color palette, and much more.

• 50 Exceptional Shopify Stores to Inspire Entrepreneurs
• How to Optimize Your Product Pages For More Sales
• Product Description Examples and Tips to Inform and Persuade Your Customers
• A Picture Is Worth a Thousand Sales: A DIY Guide to Beautiful Product Photography
• Customizing Your Shopify Theme: How To Use Images, Colors, and Fonts
• 10 Must-Know Image Optimization Tips
• How to Create a Coming Soon Page and Start Marketing Before You Launch

Don’t forget, if you run into any problems getting your store set up, you can always hire help from Shopify Partners .

Choosing your sales channels

One of the best ways to reach new customers is to choose sales channels where they already shop. The right mix of sales channels will depend on your products and your target market, but there are a number of great options that can complement and support your self-hosted store.

• Etsy and Shopify: How Three Makers Used Both to Grow Their Businesses
• Scaling Sales on eBay: How One Business Balances Growth, Customer Service, and Life
• How a Jewelry Business Generates 76.8% of Orders Selling on Amazon with Shopify

4. Choose your shipping strategy and set sales and marketing goals

As you get close to the launch of your new business, there are several shipping and fulfillment elements you need to prepare for. In this section, you'll find comprehensive guides on how to set your shipping strategy.

• Ecommerce Shipping and Fulfillment: A Complete Guide
• International Shipping: Everything You Need to Know to Deliver Beyond Your Borders
• Shipping Strategy: Get Packages to Customers Without Cutting Into Your Bottom Line
• How to Reduce Shipping Costs for Small Businesses: 6 Helpful Ways

It’s also a good idea to define your key performance indicators upfront so, once you launch, you know what measures of success to track.

• Top Key Performance Indicators (KPIs) for Ecommerce
• What Are the Basic Ecommerce Metrics I Need To Focus On First?

As a final checklist, this post covers the most essential things you need to do before launch:

• Starting up Starts Here: The Shopify Store Launch Checklist

5. Launch your business

Acquiring your first customer

Now that you’ve launched, the hard work of marketing your products begins. While many new store owners should consider selling their physical products in person, the rest of digital marketing relies on doing one thing well: driving targeted traffic. Next, we’ll share a variety of marketing tactics that will help you in your first months.

• How to Get Your First Sale in 30 Days: A Marketing Checklist for New Entrepreneurs
• Need Traffic? Here’s How to Get Visitors to a New Website (Even If You Don’t Know Where to Begin)
• Customer Acquisition: How to Calculate It and Create a Profitable Strategy For Your Business

Marketing your store

You’re well on your way now and likely have a few sales under your belt. It’s time to get serious and invest in marketing your store . The following posts will help you zero in on your top-performing ecommerce marketing tactics or expand into new ones for driving traffic and converting that traffic to sales.

Email marketing essentials

• Learn Email Marketing: Everything from List Building to Advanced Lifecycle Automation
• Automated Email Campaigns That Win Customers and Keep Them Coming Back
• How to Write Engaging Welcome Emails (+ Examples to Inspire Yours)

Driving traffic from social

• Go Beyond Likes and Follows: How to Create a Social Media Strategy That Sells
• How to Get More Followers on Instagram: Reliable Ways to Grow Your Audience
• Pinterest Marketing 101: How to Successfully Promote Your Business on Pinterest
• How to Start a Successful YouTube Channel
• Find The Best Fit: Your Beginner’s Guide to Influencer Marketing

Driving traffic and conversions from paid ads

• How to Advertise on Facebook: A No-Nonsense Facebook Ads Guide For Beginners
• The Google Ads Playbook: Top Campaign Types And What to Expect From Them

Optimizing for higher conversion rates

• The Complete Guide to A/B Testing (Tips from Google, HubSpot, and Shopify)
• How to Find and Plug the Leaks in Your Conversion Funnels
• Drive More Ecommerce Sales with Live Chat Without Being Trapped at Your Desk
• Growth and CRO Experts on Increasing Revenue Without Increasing Traffic
• Top Ways to Earn Customer Trust When You Have Zero Sales
• The 39-Point Store Trust Checklist: How Trustworthy Is Your Online Store?
• Driving Traffic but No Sales? Here’s How to Diagnose and Improve Your Store

Using analytics to uncover insights

• The Beginner’s Guide to Analyzing Shopify Reports and Analytics
• Google Analytics Segments (and How to Use Them to Increase Revenue)
• Google Analytics Custom Reports by the Experts (and How to Use Them)
• Facebook Custom Audiences 101: A Starter Guide for Ecommerce Businesses

How much does it cost to start an ecommerce business?

Starting an ecommerce business costs as little as $100, which is spent on a subscription and purchasing a theme for your store. Ecommerce companies cost less than brick-and-mortar stores because they don’t require the same amount of licenses and permits, and you don’t need to pay rent for a retail space.

If you operate as a dropshipping business model, for example, it’ll likely cost less to start because you don’t need to pay for raw materials, inventory, or manual labor. You only pay for products after a customer purchases them. If you’re creating your own products by hand or working with manufacturers, you’ll need to pay for equipment, materials, and labor upfront.

Many ecommerce entrepreneurs learn how to start a business on a shoestring budget. To get a better idea of upfront costs, we surveyed 150 entrepreneurs and 300 small business owners in the US to find out.

According to our research , new ecommerce store owners can expect business costs to total up to $40,000 in the first year, which is paid back to the owner through profit margins.

Expense categories include:

• Product: raw materials, inventory, supplier, manufacturing, patents, etc.
• Operating: incorporation/legal fees, additional software, business insurance , accounting, etc.
• Online store: website/platform subscription, hosting/domain, contract developer/designer, etc.
• Shipping: packaging, labels, etc.
• Offline: stall/table fees, rent, gas, etc.
• Team/staff: salaries, benefits, perks, etc.
• Marketing: logo, branding, ads, printed materials, business cards , etc.

In the first year, business owners spent:

• 11% on operating costs
• 10.3% on marketing costs
• 9% on online costs
• 31.6% on product costs
• 8.7% on shipping costs
• 18.8% on team costs
• 10.5% on offline costs

Now, this doesn’t mean you will definitely spend $40,000 opening up your ecommerce store. The amount spent in the first year varied significantly, depending on industry and ecommerce business model , whether the business had employees, or if it was a full-time gig.

You also don’t need to find $40,000 in cash before you can begin thinking about how to start an ecommerce business. While many (66%) entrepreneurs use their personal savings to fund their business (respondents could choose more than one funding source ) , they also used financial support from friends and family (23%) and personal loans (21%).

5 tips for starting an ecommerce store

• Forget about year-one profitability
• Know your target audience
• Sell an in-demand product
• Experiment with marketing and advertising
• Invest in outreach and link building

1. Forget about year-one profitability

The project of starting an ecommerce business is a marathon, not a sprint. Don’t measure business success by profitability in your first year. Give yourself a runway of 18 to 24 months for your business to get off the ground. Spend your first year testing, reiterating, and reinvesting your sales back into your business using the above budget guidelines.

2. Know your target audience

Outside of developing or sourcing products, you’ll spend a majority of your time getting the attention of customers. The challenge? You want to get your products in front of the right customers—the ones who will actually buy on your site. Understanding these people, a.k.a. your target audience, can help you reach them faster and make more sales.

💡 Read more: Finding Your Ideal Customer: How to Define and Reach Your Target Audience

3. Sell an in-demand product

Create or sell an amazing product with proven market demand. Take a look at the top retailers today—Allbirds, Tushy, Bombas—and you’ll notice they all sell top-tier products. “Product quality is critical because a good product sells itself,” says Eric Even Haim, CEO of upsell and cross-sell app ReConvert . “When you marry a great product with an audience who’s hungry for it, your marketing becomes 10 times easier.”

Eric explains that new products don’t need to be the “next big thing.” You just need to look for growing trends and markets where customers are underserved.

“Then step in with an excellent product and give them what they want,” Eric says.

Two places to find market demand are:

• Google Trends , where you can research topics people search for
• Trends.co , which uses data to predict trends and business opportunities before they become popular.

When you marry a great product with an audience who’s hungry for it, your marketing becomes 10 times easier. Eric Even Haim, CEO, ReConvert

4. Experiment with marketing and advertising

It’s important to get the word out about your new business after launch. You’ll want to try different marketing strategies to understand where your audience hangs out and best responds to your content.

Test different online marketing tactics like:

• Affiliate marketing
• Instagram ads
• Website pop-ups
• Checkout upsells and cross-sells
• Organic search
• Content marketing
• Loyalty programs

“Success depends on your ability to experiment, test, and analyze your ad and marketing strategies,” says Stephen Light, CEO and co-owner of mattress company Nolah . “Experimentation is the best way to avoid falling into any assumptions about your audience that could end up hurting you rather than helping.”

Stephen suggests being open to getting things totally wrong, especially when you’re just starting out. Use the data you collect to create more effective campaigns that drive traffic and profit.

“Plus, optimizing your ad campaigns and gathering data regarding how your customer base responds to them can help you shape your website’s features,” says Stephen.

Experimentation is the best way to avoid falling into any assumptions about your audience that could end up hurting you rather than helping. Stephen Light, CEO, Nolah

5. Invest in outreach and link building

Another tip for new ecommerce stores is to have an outreach and link-building plan in place. These tactics can help boost your SEO rankings in Google.

“The sooner you have an approach to link building and driving authority into your site in place, the sooner search engines will recognize your website as an authority in its niche,” says UK-based SEO consultant James Taylor .

“Search engines see a link from an authority source as a vote of confidence towards your website, so the more links you have from trusted websites, the more search engines are going to trust you as an authority.”

James recommends new ecommerce store owners and marketers invest in digital public relations and link-building campaigns early on. This sets the stage for long-term SEO success, so you can rank higher in Google, earn more organic traffic, and make more sales.

“The sooner you have an approach to link building and driving authority into your site in place, the sooner search engines will recognize your website as an authority in its niche.”

Start your ecommerce store

Building your own successful ecommerce business is as exciting as it is challenging. You’ll learn about choosing a product, evaluating its viability, figuring out how to get it produced, building an ecommerce website, and marketing and selling to new audiences. At times, you may feel like you’re solving a head scratcher of a puzzle, but it’s rewarding all the same.

We hope this ecommerce business guide provides you with a roadmap on your journey. As always, the best advice anyone can give is to get started and enjoy yourself along the way.

Illustration by Cornelia Li

Million-dollar ideas start here

Learn how to build an online business from the ground up with Shopify’s new free course, First Day to First Sale. You’ll develop a winning product, build a brand, launch a marketing strategy, and more.

• How to Start a Dropshipping Business- A Complete Playbook for 2024
• AliExpress Dropshipping- How to Dropship From AliExpress
• The Ultimate Guide To Dropshipping (2024)
• The 13 Best Dropshipping Suppliers in 2024
• What is Shopify and How Does it Work?
• 130+ Dropshipping Products To Sell for Profit
• How to Build a Business Website for Beginners
• Amazon Dropshipping Guide- How To Dropship on Amazon (2024)
• How To Get a Business License in 3 Simple Steps
• Trimming It Down- How to Create a Lean Business Plan

Ecommerce business FAQ

What is ecommerce business.

Ecommerce is the buying and selling of goods or services online. Ecommerce business is conducted through an ecommerce store or online marketplace, social media, or a mobile app. Ecommerce enables businesses to offer convenient shopping to a global audience.

How to start an ecommerce business?

Research what products you’d like to sell or can source to sell, select a business name, register your business with the government, obtain permits and licenses. Then choose an ecommerce software and create your website, load your products onto the site, launch, and start marketing your business.

What are the 4 types of ecommerce businesses?

• Business to consumer (B2C): When you sell a good or service to an individual consumer (e.g., you buy a jacket from an online retailer).
• Business to business (B2B): When you sell a good or service to another business (e.g., a business sells wholesale products for another business to use).
• Consumer to consumer (C2C): When you sell a good or service to another consumer (e.g., you sell vintage clothes on Facebook Marketplace to another consumer).
• Consumer to business (C2B): When you sell products or services to a business (e.g., an influencer or affiliate offers exposure to their audience in exchange for a fee).

Is ecommerce a profitable online business?

Yes, the ecommerce industry is profitable. Successfully starting an ecommerce company is a marathon, not a sprint. It can take 18 to 24 months for your business to get off the ground. It’s critical that you don’t measure the success of your business by your first-year profitability.

Is it hard to start your own ecommerce business?

No, starting an ecommerce company is easy, with platforms like Shopify enabling brands to go online in just a few days. Starting a brand consists of hard work and continual market research to improve your business. We encourage you to read our guide on how to start an ecommerce business before you set up a store.

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Ecommerce business plan template

Everything you need to plan and pitch your online store

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Ecommerce is booming, and you could be, too. But before you can start your business, you need a business plan.

Our business plan template outlines everything you need to write out the future roadmap of your your company, as well as a rock-solid pitch for banks, investors and potential business partners.

Included in this template:

• An executive summary structure you can follow
• The kinds of market research you’ll need
• Breakdowns of what costs you’ll have to account for
• Templates for competitor analysis
• And everything else you need to write a business plan that impresses

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What Is an E-commerce Business Plan and How to Create One?

Creating an eCommerce business plan can seem daunting if you are an aspiring entrepreneur who wants to start an online business. 

But it doesn't have to be! In fact, an eCommerce business plan is a great tool to help you grow your e-commerce business. 

So, why should you create an eCommerce business plan? After all, just writing down your business idea and hoping for the best won't work in today's fast-changing world.

Creating a comprehensive business plan is the most crucial step in starting an e-commerce business. Without writing a solid business plan first, you'll have no idea where to start or what steps to take next.

In this article, we will explain how to create an eCommerce business plan and its importance.  

Why Does Your E-commerce Company Need an eCommerce business plan?  

You can't just start an e-commerce business and hope it will succeed. You need a plan, which is why e-commerce companies need an eCommerce business plan.

Here are the reasons why your e-commerce company needs an eCommerce business plan:

Saves You A Lot Of Time And Money

A well-crafted eCommerce business plan will help save both time and money for your company as it takes away some of the guesswork involved with making critical decisions during the early stages of your business's life cycle. 

This will allow time for staff members to focus on other tasks so that they can continue growing their businesses without having to worry about day-to-day operations at all times.

Makes You Financially Well-Prepared

The business plan lays out your goals and strategies for achieving them. 

It also lists your financial projections, including the costs of starting up and running the company, as well as any capital investments you'll make in the near future. 

The business plan will also help you determine how much money you'll need to get started and where that money should come from.

A Clear Set of Goals

E-commerce businesses need an eCommerce business plan because it helps them ensure they're on track with their goals and strategies while starting up or growing their business. 

The more detailed your plan is, the better equipped you'll be when you start making decisions about how your company's digital storefront will operate once it's up and running.

How Does an eCommerce business plan Differ From a Business Plan For Other Company Types?

E-commerce has become one of the fastest-growing industries in the world, and it's about to become even more popular. 

E-commerce companies have been able to use technology to streamline their processes and make them more efficient than ever.

Regarding eCommerce business plans, there are some critical differences between a traditional business plan and digital business plans. Here are some of the most important ones:

• Rather than leasing a physical storefront, you create a digital storefront. You can use any web platform to create a storefront for your company, including Shopify and BigCommerce.
• Rather than hiring house staff members, an eCommerce business plan would emphasize roles in online customer service, fulfillment, and marketing.

Ecommerce Business Plan Template

An eCommerce business plan is an essential document to have in your e-commerce business. It helps you to know the direction of your business and how it can be improved. 

An eCommerce business plan template can help you write the contents of your plan correctly. Here is how you can go about it-

Draft an Executive Summary

Your Executive Summary is a brief overview of the business plan that summarizes your entire business plan. 

It should be written in a way that allows investors to quickly understand what you are trying to accomplish and how you will achieve it. 

What does your business do?

In this part of the business plan, you will have to introduce yourself, your company, and your story. 

You can also include information about your industry and why you choose that niche. 

For example, if you are a fashion designer, you can tell about yourself and why you decided to start a new line of clothes online instead of going into a traditional retail store or brick-and-mortar stores.

What goals does your business want to achieve?

The first section of this section should include a description of your company, its mission, and its goals. 

All e-commerce businesses start with huge goals, but you must set realistic goals and ensure you achieve them.

What products do you sell?

The third section should explain how you plan to achieve your company's goals in the next five years. 

You can break this into two parts: (1) what products or services will be sold, and (2) where the company plans on selling those products or services.

Who is your audience?

Identify your target market and mention your audience. Choose your product wisely so it sells quickly in the target demographic. 

For example, if you want to sell trendy clothes, better to target GenZs, who are always looking to be fashionable. 

Identify Your Company Overview

Write the brand name of your company in your business plan. 

This will help you create a memorable brand, one of the most important factors for gaining customers' trust. 

Having a strong brand name is also vital because it will help you get your products on shelves and attract new clients and investors.

Business structure

Include all the details about your company's structure or business model, including its legal status and whether it is a private or a public company. 

You should also mention what kind of business entity has been chosen for your company and how many employees currently work for it.

Domain name

Include the domain name for your website in this section of your business plan and any other vital details about it, like who registered it and where it can be found on the Internet (URL). 

You should also include any other relevant information in this section, such as its geographical location.

Your company's mission statement is an integral part of your business plan. It should describe the company's purpose, what it does, and how it will benefit society. 

It should also include a description of how the company can help customers and clients, as well as its goals for the future.

This is a concise statement of what you want to achieve shortly, such as becoming profitable, expanding into new markets, or creating more products and services that are unique to your company.

Background information and Your team

This section should include information about your management team members, their educational background and experience within their fields, skillsets, past work experience, and any other relevant information that will help readers see them as real people rather than just names on a page.

Conduct Market Research

Conducting market analysis and research can help you understand your competition and what it will take to get competitive advantage and succeed in your industry.

Market opportunities

For a business plan to be successful, it must be based on sound assumptions about what will happen when it's launched. Market research allows you to identify potential customers, determine their needs, and determine how to meet them. For example:

• Who are your customers? 
• What do they want from you? 
• What are their problems?
• How much can you charge for the products or services you provide?
• What is the demand for your product or service? 
• What is the supply?
• How many people are interested in buying it? 
• How many people can buy it right now? 
• How many people will buy it in the future?

Competitive analysis

Competition is one of the most critical factors that impact your success as an e-commerce retailer. 

Before launching any new product or service, understanding how other companies compete with yours will help guide pricing and marketing strategy decisions. 

All in all, competitive analysis and market analysis helps identify potential. With this information in hand, you can plan how to better compete against them.

Products and services

Once you've determined all the things people want and need, it's time to figure out how you will provide those things for them through e-commerce sales. 

For anyone to buy anything from an e-commerce store, they have to have information about what they're buying so they know whether or not they should buy something!

Write about your product, how it solves the problem, benefits buyers, and why they should buy it. 

Develop a Marketing Plan

Marketing channels

It would be best to have a marketing plan when making an eCommerce business plan to build brand awareness, reach your target audience, and boost sales and revenue. 

It should contain your marketing strategies, and acquisition channels, tools, and technology to market your various products and services.

In marketing channels, you can mention all the platforms and ways you are willing to use in your marketing efforts, like:

• Direct mail campaign: A direct mail campaign is a great way to target your ideal customers and build brand awareness. It is a very low-cost marketing channel allowing you to reach many people simultaneously.
• Social media: social media can be used to engage with your customers, grow your audiences, and promote your brand.
• Email marketing: email marketing can be used to send out newsletters, product updates, event invitations, etc. Email marketing is also relatively inexpensive compared to other marketing channels.
• Website : the website is an excellent way to promote your business and build trust with potential customers. You can use the website as a digital storefront for products or services sold online only (i.e., digital products). 

The website should contain all relevant information about your company, including sales & services information, testimonials from happy customers, contact information for essential people in the organization such as managers & executives, etc. 

Your website should also be search engine optimized (SEO) to rank high in search engine results pages (SERPs) when people enter keywords like "company name" into the Google search bar or Bing. 

Acquisition channels

Next, let's talk about customer acquisition channels. These are ways of finding new customers without investing money in advertising or promotions. 

The most common ones are search engine optimization (SEO), paid social media ads like Facebook Ads or Google AdWords, guest posting on blogs relevant to your niche, and other organic search engine optimization (SEO).

Tools and Technology

Finally, let's talk about tools and technologies you can use to develop your marketing strategy. 

Many free tools are available online, but if you're serious about growing your business, it's worth investing in some paid ones, such as Offeo, Hubstaff, Semrush, etc.

Establish a Financial Plan

Your company must set up a financial plan detailing all its revenue streams and expenses. 

Income statement

The income statement is a summary of the company's sources of revenue and expenses. 

The income statement shows how much money the company made in a given period, usually one year. 

You can also use it to calculate the company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) and its Net Profit.

Balance sheet

The balance sheet gives you an overview of the company's assets and liabilities, plus any accumulated earnings or losses since the last time an accountant audited it. 

You can use it to calculate a company's cash flow and net worth.

Sales Forecast

The sales forecast is also included in this plan. It shows how many customers are expected to buy from your store each month or over the next year/quarter and how many of those customers will be repeat buyers. 

This information helps ensure that your business has enough money coming in to continue growing and expanding.

Cash-flow statement

Finally, a cash-flow statement helps you understand how much money comes in and goes out each month. 

Any unexpected expenses or costs that come up during the year (like taxes) should also be included in this statement!

Create a Sales Plan

The sales plan is a crucial part of the e-commerce business, as it will determine the company's success. 

The goal of this plan is to show the sales channels you will use, as well as how you define your customers and what they will need to make a purchase. 

You should also include metrics that indicate how well you are doing in terms of making sales.

Here are some things to consider when creating your sales plan:

• What channels will you use to promote your products? 
• Do you want to use social media, or is email better?
• How long do you expect it to take to reach your first customers? If you're going after new customers, how much time do those customers need to take from their lives before they purchase from you?
• What kind of pricing structure will you use for each channel? Will it be fixed or variable? What about the cost of shipping? 
• All three questions are important because they can impact whether or not your customers will buy from you.

Outline Legal Notes and Financial Considerations

In this section, we'll include any legal notes or financial considerations important to your business. This can include things like trademark concerns, privacy policies, and more.

1. Outline Legal Notes

• a. Name of entity
• b. Purpose of entity (to what extent will the entity be used?)
• c. Ownership structure
• d. How do you plan to obtain legal counsel?
• e. Are there any specific laws you are aware of that might affect this project? If so, identify them and explain how they could impact your business plan.

2. Financial Considerations

• a. How will the money be raised? What is the estimated cost of running each part of the business?
• b. What are your expenses related to raising capital? For example, do you need to pay for an accountant or lawyer, or does your company have one? How much does it cost for each person involved in this process?  
• Do you charge for services upfront or based on milestones achieved? Do you consider any other costs associated with starting a new venture?  

For example, if you're hiring someone new, do you need to pay them more than usual during their first few weeks at work because they've been transferred from another department temporarily while this project gets off the ground?  

What other costs might come into play during this phase of development? For example: what would happen if one investor backed out after signing on

FAQs: Ecommerce Business Plans

Who needs an ecommerce business plan.

An eCommerce business plan is a great way to understand the costs of starting an online store. You may not need a formalized business plan if you already have a website or blog. 

But if you don't have any existing clients or customers or have no idea what to expect when launching your e-commerce store, this will help you create a structure that can help guide your decisions along the way.

What are the benefits of creating a business plan?

The benefits include:

• Helping you make intelligent decisions by laying out all the details of your online store in one place;
• Creating a roadmap for your company from start to finish;
• Allowing you to analyze different options for building an online presence; and
• Providing you with an opportunity to find out what others are doing well and how those ideas might work for you.

How do I start an e-commerce business with no money?

E-commerce businesses are built using the internet, which has two parts: content and commerce. 

You need to create content, be it a blog or a website, and then figure out how to get people to buy your product or service. Content can be videos, images, music, etc. 

Is e-commerce a good business to start?

It is an excellent business to start, but only if you have the right experience and skills. 

What are the 6 major e-commerce business models?

The six major e-commerce business models are 

• Business to Consumer (B2C)
• Business to Business (B2B)
• Business to Government (B2G)
• Business to Business to Consumer (B2B2C)
• Consumer to Consumer (C2C)
• Consumer to Business (C2B)

Conclusion: Ecommerce Business Plans

Many e-commerce businesses are in the market since the internet has brought the world to one place. 

While some are doing great, most need help with the right eCommerce business plan for success. 

Developing an eCommerce business plan is a tricky task and must be done carefully. This blog is based on creating an eCommerce business plan template. 

You can find an eCommerce business plan template in this thread. It has many necessary sections, like the executive summary, marketing strategy, and sales forecasts. 

The blog has details about various sections to get a good idea of how to start your research, what to include, and important clauses on managing finances and budgets. 

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An Ultimate Guide to Write an E-Commerce Business Plan

A business plan is an essential part of creating a strong foundation for your e-commerce store. The competition is fierce and without a good strategy and thought-out plan, your path towards success can be filled with bumps and roadblocks.

By writing a comprehensive business plan, you’ll be able to create a clear guide for your team. Based on the plan, your team can take data-driven steps that will help you thrive. Considering that about 80% of e-commerce businesses fail , writing a business plan can assure that careless mistakes don’t make you a part of this statistic.

In addition, a business plan can help you raise funds for your business. Investors will be more willing to support your idea when you present them with actionable steps and detailed facts about how your business operates.

If you are determined to succeed, you need to get yourself a business plan. The thought of writing a business plan may be intimidating, but that is only until you get guidelines on how you should approach it.

In the following lines, you’ll learn everything you need to know about writing an effective business plan for your e-commerce store.

Why Does Your E-Commerce Store Need a Business Plan?

A business plan can benefit your company in many ways. If you’ve associated the plan solely with attracting investors, you’ll be surprised by the variety of useful roles that the plan has.

Here are some of the key ways in which a business plan can help your e-commerce business:

• It will motivate you to do thorough research
• It will inspire you to think through all your ideas and decisions
• It can help you to properly prepare for starting your business
• It can push you to develop a smart business strategy
• It will help you identify necessary resources
• It will keep your focus on set goals
• It will make your goals more achievable through predefined milestones
• It will give your team members a roadmap to success
• It can help you understand important business topics (marketing, finance, etc.)
• It will help you convince investors and lenders that your business is worthy of their funds

Once you finish writing the business plan, you’ll have no doubts about what you need to do. The evaluation will lead you to the right solutions for your business growth.

Define the Essential Elements of Your E-Commerce Business

First of all, you need to create a clear concept of your business. The closer you define your niche, goals, and purpose, the easier it will be for you to write the plan.

The questions you need to answer to contextualize your business are:

• What are you offering?
• Where will you get the goods (that is, who is your manufacturer)?
• Who is your target audience?

The answers to these questions will make sure that you determine the key factors that round up your business strategy. When you sort this out, you can start writing the plan.

A business plan should contain the following segments:

• Executive summary
• Company introduction
• Market analysis
• Products and services
• Marketing plan
• Operations plan
• Financial plan

Let’s clarify what you need to cover in each segment of the plan.

1. Executive Summary

As the title suggests, the executive summary will summarize your plan in a concise one-page text. Since the summary wraps up the whole plan, you want to write it last.

The summary acts as an introduction to the plan. It gives the readers a glimpse of what you’ll address later. When you finish and revise your business plan, you should get back to the summary and share a few key ideas.

What you can include in the summary is:

• What you do
• Products you sell/services you offer
• Your target audience
• Your mission and vision
• Your sales channel (website, Amazon, eBay, etc.)
• Your unique selling proposition
• Your monetization strategy

The purpose of the summary is to help readers create a general idea of your company. The reason why a summary is relevant is that without an effective summary, the reader can give up on your e-commerce right away.

2. Company Introduction

This segment will help the readers get to know your business. You need to give them an overview of what you do and what makes you unique.

While you should be as succinct as you can, this part is vital for showing how you can add variety to the market.

The information you want to address in the company introductions is:

• The name of your brand
• What inspired you to start your e-commerce brand
• Mission statement
• The key people in your team (CEO, partners, HR manager, sales manager, marketing manager, logistics manager, copywriter, etc.)

Aim to present your brand as an innovative and unique team of people who can make a difference. If you manage to evoke an emotion in the reader, you’ll have a higher chance to compel them.

For example, a mission statement is ideal for giving the reader a reason to believe in your company. Whether you need to convince investors to provide you with funds or motivate your team to give their best, a well-written mission statement can make that happen.

Here’s an example of an impactful mission statement by Wayfair to inspire you:

“ We give you the power to create spaces that are just right for you. We provide true partnership to help you define your vision. We empower you to create spaces that reflect who you are, what you need, and what you value so that you and the ones you love can feel right at home.”

3. Market Analysis

The market determines the demand for your products or services. Thus, your market report and analysis will clarify the need for your products. If you don’t conduct this analysis, you won’t validate your business’ and products’ potential.

What you want to pay attention to in market analysis is:

• Target market
• Target audience (buyer persona)
• Industry trends
• Your business’ position in the market
• Competitors

Think about both your strengths and weaknesses when analyzing the market. Do the same for your competitors. Aim for that overlap where your services fill in the gaps in your competitors’ offers. That’s how you’ll be able to pin down what’s your unique selling proposition. That unique selling proposition is what will make your products stand out on the market.

The market analysis needs to be specific, supported by data, and realistic. The better you assess the market, your strategy will be more customized and effective.

4. Products and services

The products or services will be mentioned throughout your business plan. However, they do deserve a separate segment dedicated to them solely.

Describe what you sell in detail. Mention specific items, price, quality, how you sourced products, whether you want to expand the product range, the ingredients/materials you use, and similar.

For example, if you are selling natural cosmetics, stating that the products are natural won’t suffice. Instead, share the ingredients you use, explain the process, and even share technical lab reports that prove the quality of your finished products.

You want to state your product’s features and benefits. The benefits should explain how your products make customers’ lives easier. For improved readability, use bullet points for these lists.

If you already have some bestsellers, share them. You can also include your customers’ reviews. Or, if your e-commerce is yet to be launched, include testimonials from pre-launch tests.

The product reviews can reveal what customers like most about your products. They can also be the proof of customers’ loyalty and your experience in providing customers with high-quality products or services.

5. Marketing Plan

Without a good marketing strategy, your brand can fall in the shadow of well-advertised e-commerce stores. Therefore, you need to develop a marketing plan and include it in your business plan. In this way, the investors will see that you have a thought-out promotional strategy. On the other hand, your team will have a marketing plan to follow.

Think about the following when writing your marketing plan:

• Marketing methods (social media marketing, affiliate marketing, etc.)
• Unique selling proposition
• The customers’ needs and pain points you’ll target
• Marketing team
• Future marketing plans

Bear in mind that your marketing strategy needs to accommodate your target audience. Thus, create your marketing plan with your audience in mind.

6. Operations Plan

The operations segment of your business plan will help you revise requirements for running your business smoothly. When writing and reviewing your day-to-day operations, you might spot room for improvement. This is a good opportunity to realize how your company can grow.

Explain how you run your business by elaborating on these business aspects:

• Supplier (who supplies the products or materials)
• Production (who makes the products, how long does it take)
• Shipping (shipping costs, time, delivery process)
• Demand (how you deal with increase/decrease in demand)
• Inventory (how long you keep the stock, where you store it)
• Facilities (which facilities you use)
• Staff (people responsible for handling day-to-day operations, cost of paying for the staff)

Your e-commerce business operations and costs that come with them will help you define and write the next segment—the financial plan.

7. Financial Plan

Lastly, you need to address the financial part of your business. The financial plan should focus on your present and future monetary dispositions.

This segment can include the following:

• Economic analyses (include a balance sheet, an income statement, and a cash-flow statement)
• Funding requirements
• Funding plans (angel investors, crowdfunding, etc.)
• Sales forests
• Financial projections

To outline the projections, you should look into your market analysis and product demand. It might be a good idea to look into case studies of e-commerce start-ups or successful e-commerce brands to get a better understanding of their financial operations.

The financial plan will help you calculate what you need to do and how you need to handle your funds to stay afloat. You can also take into consideration your ROI (return on investment) potential and what actions are necessary for keeping your business running.

While creating your financial projections, do it with risks in mind. The business world isn’t ideal, so if you don’t count on risks and drawbacks, you’ll miscalculate your possibilities.

Writing Tips for Creating a Comprehensive Business Plan

You need to pack all that information in a readable and understandable format. How you write the plan is just as relevant as what you share in it.

Therefore, here are some useful tips for achieving brevity and clarity.

1. Prioritize quality over quantity

Don’t focus on the length of your business plan. How many pages you’ll have depends on your type of business. A startup can’t have the same amount of information as an e-commerce store that runs for 5 years. Therefore, focus on including information that adds value—nothing more and nothing less.

2. Use simple language

Use everyday language so that everyone can understand it. You don’t want your team or investors to use a dictionary to decipher your writing. If you must use industry jargon or terminology, include a short explanation.

3. Personalize it to your target reader

Try to adjust your business plan writing to the readers. If you are writing the plan for internal use only, you can use industry terms that your team knows about. However, if you’ll be sending out the plan to investors from your industry and other industries, you’ll need to keep it plain and simple.

4. Add additional documents in the appendix

If you have any documents you want to supply, add them in the appendix. Your business plan will be easier to follow if it’s not filled with unorganized documents. Overall, you shouldn’t let the additional documents lessen the readability of your plan.

5. Use specific data

Whenever an opportunity arises, support your claims with statistics. Numbers make your statements credible. Thus, you should always aim to add quantifiers to your business plan.

Final Thoughts

As an e-commerce business owner, you need to have clarity of your past wins and misses, as well as your future strategy. You also need to keep up with the situation in the market and with the needs of your target audience. A business plan will motivate you to cover all of this.

While you write the business plan, you’ll get a complete understanding of what your business needs to reach the desired profit. It will also be a tool that can get you the funds you want to develop your e-commerce store. So, look at the business plan writing as a process of immense value that can help you take strategic steps to success.

Jessica Fender is a professional writer and educational blogger at Writeload , an aggregator for useful college resources and websites. Jessica enjoys sharing her ideas to make writing and learning fun.

How to Write an Ecommerce Business Plan [Examples & Template]

If you have a promising idea for an online e-commerce business , it’s important to create an e-commerce business plan to ensure your vision has enough stock to be profitable.

Having a business plan for your online store will help you define your target market, establish your monthly and quarterly sales goals, and increase the likelihood of long-term e-commerce success.

In this post, we’ll go over an online store business plan and how you can create one for your e-commerce startup. Let’s get started.

What is an e-commerce business plan?

An e-commerce business plan is a document that outlines your business and its goals, analyzes your industry and competitors, and identifies the resources needed to execute your plan. It also lists the e-commerce retailers you’ll use to distribute your products and the marketing strategies you’ll use to drive sales.

Whether a company operates as a startup or has years of operations and growth under its belt, an e-commerce business plan is essential for evaluating a business and determining areas of improvement.

An e-commerce business plan is essential, with increasing numbers of shoppers conducting business online. It’s estimated this number has reached over 2 billion . An e-commerce business plan keeps you organized and is useful when seeking investors who need to understand your company.

So, let’s dive into some examples of e-commerce business plans and what goes into writing one using our free template .

E-commerce Business Plan Template

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Free eCommerce Business Plan Template & Guide

Are you thinking about creating an online shop? If you think it is as simple as setting it up and starting to wait for clients to come, you are quite wrong.  You need a business plan for your online store. 

Even if you are not a startup and you don’t need to get people to invest thousands of dollars in your project, the business plan is still essential to put your best foot forward.

Having a business plan for your online shop will save you a lot of headaches,  such as finding out that your online shop doesn’t sell as you expected.

In today’s article, we will show you the main points that your eCommerce business plan must include so you can start working on it today.

Are you ready to jumpstart your online shop? Download our FREE business plan template to help you get started with your eCommerce!

Let’s get to it!

Why do you need an eCommerce business plan?

There are two types of actions in life:

• Those that bring gratification first and pain later.
• Those that bring pain first and gratification later.

When we have an idea, what we want is to get it off the ground as quickly as possible. We can picture ourselves killing it with our e-commerce shop and what we don’t feel like is wasting time on writing down a business plan.

“Everything is in my head!” you’ll hear.

Creating a good eCommerce business plan is one of those actions that bring pain first, but that leads to huge rewards afterwards.

An online store business plan can help you earn lots of money, or save it, if while creating it you realize that your project wasn’t as perfect as you thought.

Another reason to do it is that you may need to show it to someone: investors, banks, or even friends.

In any case, let’s take a look at the key points that it has to cover.

1. Executive Summary

It is the first thing your supposed investors would read if you were looking for funding since  it is the synopsis of your eCommerce business plan.  This summary creates a first impression for your project and this is why many entrepreneurs make the mistake of making it too long or overwriting it with extravagant words. Experts actually recommend consolidating it. Just  one sheet of paper summarizing every section of the business plan  for your online store should be enough. Although it is typically placed at the beginning, it should be  the last section to be written .

What the executive summary should include:

• Idea presentation: In one or two sentences it has to define your project, the value proposal, and the main competitive advantage.
• Who is behind the idea: A good idea needs the support of a good entrepreneur. It is time to introduce yourself, but don’t overuse the standard CV formula. Be honest, creative, and original.
• Basic information: This is your planned name, the legal status it will acquire, location, and foreseen scope. You can show this as a chart to make it easier to read .

One of the issues that are not always analyzed in depth is the matter of the legal requirements. It shows that you have read them and that you can resolve them easily. Include them briefly, and then you can go into more details if necessary.

2. Description of the Company

The goal of this section is to identify the competitive advantage of your online shop so that you can make use of it in the future. You must reflect the company’s identity by defining:

• Mission:  the reason behind your shop’s existence, the role it plays in the market, who is it directed toward, and what its differential factor is.
• Vision:  the objectives that you want to achieve long term, which must be both realistic and ambitious so they can be motivating.
• Values:  the universal ethical principles that you want your shop to be identified with. Only choose those values that you will be committed to upholding with every action you take.

At this point it will be helpful if you do a SWOT analysis.

We’re going to take a quick look at what’s behind those letters.

A SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats) allows you to carry out an external and internal assessment of both positive and negative points of your project.

It is a matrix where each quadrant includes one of the letters.

On one side, the external factors are analyzed:

• Threats: These represent what could happen or what already exists in the market that may be a trouble for the project.
• Opportunities: These could be change of legislation or any other favorable situation, whatever the reason may be.

These are factors that don’t depend on the business itself, but rather that the business either exploits them or foresees the risks.

The internal aspects:

• Weaknesses: These are our weakest points. We may not master the technical part or we may have a lack of resources.
• Strengths: What are we good at and how does that give us an advantage over competitors?

If we had to define the relation between the SWOT analysis and the eCommerce business plan in a sentence, it would be this:

The online shop business plan should show that the strengths outweigh the weaknesses and that, at the same time, they are strong enough to combat the threats and exploit the opportunities.

Now let’s jump into the next point.

3. Environment analysis

Once you have completed the SWOT analysis it will be really easy to complete this one.

A business plan for an online shop should include an analysis of the environment, which we are going to divide into three types:

A. Competition

If you are thinking that the existence of competitors is a negative point, you are wrong.

A lack of competitors would be even worse since it would mean that there is not enough demand.

Your online store business plan should show that there are competitors, but not enough as to be a threat: turn it into an opportunity!

Analyze the main competitors and repeat the strengths and weaknesses process which each of them. This will give you a very clear scenario to see where exactly you can surpass them.

Finding out who your competitors are is very easy with the Internet. Have a look on Google at the best-positioned pages and the ones with the most authority for your main keywords. In addition, analyze the behavior of your ideal client and find out what they visit and what they buy.

At this point you have to dig deep into the legal aspects within your market.

B. Legislation

A modification to the law may mean both a risk and an opportunity.

C. Technology

For some sectors, it would be essential to stay up to date regarding the technological level of the market.

Summarize the main tools that you need:

• Do they require investment? Will it be just one or will it be recurrent?
• Do you have the necessary knowledge to use them?
• Will you need to hire a third party?

The business plan for your online shop should answer those questions.

If you want to further develop this point, you can include a sociological or cultural analysis, but be careful not to include too much irrelevant information because it won’t help you achieve your goals.

Download Your FREE eCommerce Business Plan Template Here

4. Products and Services

What is my product going to offer to clients? This is the fundamental question you need to ask yourself at this stage of your business plan for your online shop. Your target clients and the problems you are going to solve for them must be crystal clear. If there are similar products in the market, clearly  establish what your added value is  compared to the other options.

Again, you can use a table. The table will show your products, their price, and the estimated profits.

If you are looking for funding, what matters to the risk analyst regarding your eCommerce business plan is not the price. What really matter is why users will be willing to purchase and how much you’ll be getting from it.

Talk about pricing strategies and expenses. A company that has 100% control over where its money goes is already on the right path.

5. Marketing Plan

We have already shown how and what we offer to our webpage visitors.  This section includes every action planned in order to get sales.

Another common mistake, both online and offline, is to put too much effort into getting it ready and then just “opening the door” and waiting.

In a physical shop, at least passersby will see you, but for an online one that is just starting up, there is not even a street.

Bear in mind that a website, at the beginning, is located in a desert with nobody around. Telling your friends and family to visit you will make it look better at the beginning, but the real struggle is to make strangers come and make a purchase.

The marketing plan within the online shop business plan should answer the following question:

How are we going to get constant visits to the shop?

Indeed, if this is not the most important part, it’s close. Gaining visibility is a slow process that must be planned.

A good marketing plan  starts with a thorough analysis of the market  . Identifying your direct competitors and deciding which strategies you will implement to try to overcome them will be essential. In addition, this section will include  which channels you will use to convey your message  and to get leads that will become clients.

• Email marketing
• Social networks
• Videomarketing and YouTube.
• Content marketing
• Ecommerce marketing
• Paid traffic with AdWords or Facebook Ads.

Don’t forget to clearly state how you’ll use each of them.

6. Operational Planning

The operational planning includes your  daily tasks as a entrepreneur.  You must establish basic things such as your work schedule, your location, your daily tasks timetable, and your product stock.

If reflects the task-flow from your e-commerce shop and how they’ll be divided.

If you are the only person in charge, you need to show what your routine will be.

Bear in mind that at the beginning you will have more tasks related to promoting and growing, but after some time you will have others to do:

• Manage returns
• Offer support
• Deal with unforeseen events
• Manage the stock
• Negotiate with suppliers

Surely you will have to go through it again in the future , but  it is important to have an initial idea on paper,  and then make small modifications down the line.

By doing this you, will show that everything is under control in your online store business plan. 😉

7. Financial projections

Once you’ve gotten to this point, you will have to think about  where you want to see your shop in 1, 3, and 5 years time .

For those who don’t know where they are going, no wind is favorable.

That’s even truer for an e-commerce or an online business.

The reason for doing this is to give you a direction for moving towards your goals and, most importantly, to ask yourself how are you planning on achieving them. Based on this fact and when you start getting your first sales, you should  establish which percentage of the profits you are going to reinvest  into making your business grow.

Making an accurate prediction about your profits is difficult—and the person reading your report will know this—but at least you are showing that you have worked on it. Just don’t write figures without a rhyme or reason.

8. Funding Application

This is the last step of your eCommerce business plan, in the case that you need external funding. It should include the amount of money you need and the exact ways that you plan on making use of it.

Put yourself in the investor’s shoes. Imagine that you are the one who is going to invest your money and think about what information you will like to read.

You may know the idea, the risks, the opportunity, and how to exploit it, but the other person doesn’t.

Be careful with the language you use—be precise and specific, and avoid vague expressions like:

“My experience and my multifaceted profile give me everything I need to comprehensively manage the business that I need your money to start.”

If you are only specific about the amount of money that you need, forget about the funding.

Use a chronogram in order to show your online store business plan visually. It is easier to understand it if it comes with a graphic instead of just having a bare text.

This may not be necessary since you can start with a budget based on the popular  family and friends funding  in addition to your own funds.

Remember that the three Fs (Friends, Fools, and Family) will help you get started, but they can’t be the foundation of your strategy.

How to present your online store business plan

You already know how to  create your eCommerce business plan step by step  and now it’s time to take action. Remember that it is just a document and that you can write yourself with just a bit of time. As you can see, you don’t need to have studied business administration at university to be able to write your own online shop business plan.

You don’t need to be a graphic designer. The important part is the content—don’t steal its thunder with an opulent presentation.

Once you have a rough draft with all of the information, bring into a Google Doc or Word document and save it as a PDF.

Just like with other aspects, less is more.

Business Plan Examples

To wrap things up, here you can download lots of examples of business plan templates.

Use the examples carefully. Each project is different and if you just copy-paste it, the result will be a boring, non-informative text.

Get inspired by the business plan templates and this post, then create your own version and make people fall in love of your idea.

eCommerce Business Plan FAQs 1. What should be included in an eCommerce business plan?

An eCommerce business plan should encompass key elements such as a detailed market analysis, competitive landscape assessment, financial projections, marketing strategies, and a comprehensive operational plan.

2. How much money do I need to start an eCommerce business?

The required capital to initiate an eCommerce business varies, but it generally involves expenses for product sourcing, website development, marketing, and initial operational costs. A detailed financial plan can provide a clearer estimate based on your business model and scale.

3. How to start an eCommerce business?

Initiating an eCommerce business involves several steps. Begin by conducting market research, selecting a niche, creating a business plan, registering your business, setting up an online store, sourcing or creating products, implementing secure payment options, and establishing a marketing strategy. Consistent effort in each step is crucial for a successful start.

4. Is online eCommerce business profitable?

The profitability of an online eCommerce business depends on various factors, including the chosen niche, market demand, competition, and effective management. A well-planned business strategy, quality products or services, and efficient marketing can contribute significantly to the profitability of your online venture.

Start Writing Your Online Store Business Plan Today

Do you remember what we starting off talking about?

The things bring in the most profits are the ones that require effort before you see any rewards.

Don’t forget that when creating your eCommerce business plan. That way, you’ll do it with the love and attention it deserves.

Also think about the fact that the main beneficiary is you. It is also true that it will open the doors to funding, but you don’t want funding for a project that isn’t viable.

An online shop business plan will help you in two ways: to get to know your project more deeply and, if it is viable, to gain the resources to make it work.

And don’t worry about the difficulty of writing it. It doesn’t matter whether it is about a clothes shop, a shoe shop, or a shop that sells fishing equipment. You are the person who best knows the project and that is you need to have is knowledge about your project and your sector, as well as a  general strategic vision . 

This is the first step towards creating the online shop you dream of, so what are you waiting for? Download our FREE business plan template to help you get started with your eCommerce! Good luck!

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How to Write an E-Commerce Business Plan?

This blog is created to help you determine if your e-commerce business idea is feasible. To identify questions and problems you will face, in converting your idea into reality, and to prepare for starting your e-commerce business.

We feature all the essential aspects you must consider, before you start your e-Commerce business. This will allow you to predict problems, before they happen, and keep you from losing your shirt on dog business ideas.

What should you include in your e-commerce business plan?

Here are the 10 sections that you should include in your business plan:

• Executive Summary : The first section is your executive summary which is essentially the introduction to your business plan.
• Company Analysis : Then the next section is your company analysis which gives a little more background.
• Industry Analysis : Next up is your industry analysis when you talk about your market and trends.
• Customer Analysis : The fourth section of your business plan is your customer analysis where you go more in-depth about your target market.
• Competitive Analysis : The fifth section is your competitive analysis where you provide an analysis of your competition including what differentiates you from your competitors.
• Marketing Plan : The sixth section is your marketing plan where you lay out your marketing strategy .
• Operations Plan : The seventh section of your business plan is your operations plan where you explain how you actually run or will run your business.
• Management Team : The next section of the management team is where you provide bios of your team.
• Financial Plan : The ninth section is your financial plan in which you give financial forecasts.
• Appendix : Finally, the tenth and last section of your business plan is your appendix where you provide any additional supporting information.

5 Key Factors To Develop Your E-Commerce Business Plan

It may feel very difficult trying to think about how to approach your business plan. This is the five different elements if you are sitting down to trying to plan exactly what you want:

1- Industry

Number one what you need to think about is the industry. If you’re starting an e-commerce business you need to think about what type of industry do i want to get into. For example, you may want to get into retail, fashion or selling toys. Research that industry. What you need to do is think about “How big is that industry?” and “How quickly it’s growing?”.

There are certain things that you can do to try and get this information. For example, searching online to see how big the industry is. Is it growing? What are the key trends within there? That will give you an idea of how many potential customers there are and how big the industry is.

2- Product or Service

The second thing we want to talk to you about is your product or your service offering. Thinking about what you are trying to sell and how you’re going to sell it.

If you’re going to sell a product online, then you need to think about creating a prototype as quickly as possible and getting it out there into the market. That is kind of the same thing as well if you’re trying to offer a service, a coaching course or something.

The reason why you want to create a prototype is because you want to try and refine it and as much as you can before it goes to the finalized product.

3- Competition

The third thing you want to look at is your competition. You want to try and understand who’s currently in the market today, who are the small and big players. In a market when it’s very competitive there is a lot of competition. You want to have a look at what they’re offering and how they’re offering it. This will give you an insight and as to how to approach it.

What you need to be careful of in this element though is to not copy. Make sure that you’re looking at what’s existing out there but you’re also differentiating yourself. So, think about what it is that you can offer that other people aren’t offering already or what it is that someone else is offering that you can change a little bit or add value to make it even better.

Sometimes there may not be any competition. So, within a market you have different phases and different stages. If what you’re launching is very good then it is likely that people will want to enter the market.

4- Customers/Consumers

The fourth thing we want to talk about is your customers and your consumers . Your customer might not be equal to your consumer and you need to think about “Do the people who buy it use it?”

Another question you want to ask yourself is trying to understand exactly who they are and where they hang out. To define your customers, you need to think about:

• Who are they?
• How to split that out into a profile?
• What gender are they?
• What income do they have?
• Where do they locate?
• What brands do they like?
• What specific things do they like to do?
• What hobbies do they like to do?

Try to think about it as a bit of a simple profile of one person and you need to have a couple of those to try and understand exactly who your target audience is. A lot of people talk about target audiences and it may be quite difficult to target an audience when you don’t know who they are.

Also, have a think about where they are hanging out. Obviously in a well-precovered way if they are going to certain events or conferences. Have a think about how you can specifically target them. If you are selling a product online, it’s best to kind of use online methods to have the global reach that you want.

You also want to think about very specifically the geographical locations of where your customers are. And do you really want to target the whole world at the beginning or do you want to target specific markets like the US or the UK market.

This is very important for online sales especially if you have a product because you need to think about the cost of shipping and also the logistics behind that.

5- Suppliers

Finally, the fifth thing we want to talk about is your suppliers. When you refine your product and when you’re working with your suppliers to get your product in place, you need to think about if the supplier should be local or international.

If you’re working with a local supplier and (it’s probably best if you start off that way) this means that the supplier and your conversation and with them and your working relationship with them will be a lot quicker. Even though it may cost a bit more if you’re developing your own product or if you have a product already existing and you’re enhancing it.

The reason why you should choose local suppliers at the beginning if you’re starting out is obviously because of the time that we mentioned earlier. If you think about it from a timing perspective and you choose a supplier in China for example, and you live in the UK then you will have a mismatch.

That’s because if you think about it, the products that it takes to ship from China to the UK at best may be the quickest of the week. However if you have a local supplier which is within your own country then the shipping may take a day. So, that’s kind of five days or four days there you’re already delaying your product from one end to another.

If you think about it from a longevity perspective and you want to go back and forth with your supplier that time is crucial. Something that may take you a month to develop and you’re working with offshore suppliers that could take you months to develop.

Thinking about the kind of the postage and the delivery is one key element that will probably determine your supplier to be local at first.

The other thing you need to think about is the cost. If you are also looking at trying to put your own packaging onto something, then think about how that could work. There are suppliers nowadays that allow integration. So, if you send them your personalized packaging, then they can put stuff in there for you.

There are also suppliers which do the whole end-to-end for you. For example, if you are looking at print on demand businesses then that would be something that. Certain businesses would do the end-to-end. So, once they receive the order they would make the products. They would also pack it and then ship it and deliver it to your customer.

Final Words

Writing a comprehensive business plan is essential to evaluate the viability of your business idea. When you record what you want to achieve, you are more likely to turn your vision into reality. Take time to find out what makes your products different, and be mindful of how you will find customers.

When you’re ready to create your eCommerce store, turn to Shopiroller’s eCommerce platform. Contact us to learn more.

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More From Forbes

A step-by-step guide to acquiring and consolidating e-commerce brands.

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Alexandre Bonvin is the founder and CEO of Audacia Group .

To say that e-commerce is growing rapidly would be an understatement. The global e-commerce market is expected to reach $6.3 trillion this year and $8.1 trillion by 2026. Online sales. Online sales growth, which accelerated significantly during the pandemic, slowed in 2022—yet e-commerce is still projected to make up 41% of global retail sales by 2027 , compared with only 18% in 2017.

My company specializes in acquiring and consolidating promising e-commerce companies, helping them prepare for their next phase of growth. After managing many successful acquisitions, I’ve learned valuable lessons and developed a step-by-step guide for other entrepreneurs interested in taking a similar path.

Why Adopt A Build-And-Buy Model?

The e-commerce sector is ripe with opportunities for acquisition and consolidation, offering a clear path for growth. By acquiring established brands and optimizing their performance, you can create a synergistic ecosystem where each brand benefits from shared resources while maintaining its unique identity and customer base. The build-and-buy model can also help you unlock hidden potential in brands that may otherwise be constrained by their standalone operations.

Once you’ve developed an internal playbook for certain actions—rolling out a product in a new country, for example, you can easily repeat the process and scale other brands more quickly in the future. You’ll already know how to acquire a VAT number or which provider to use for third-party logistics, so you won’t have to reinvent the wheel.

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Key advantages we’ve identified from this model include:

• Faster market entry and product diversification.

• Rapid scaling by pooling competencies and leveraging existing business structures.

• Value creation through optimizing and integrating underperforming brands.

Four Steps For Build-And-Buy Success

1. establish acquisition criteria.

When considering potential acquisitions, look beyond immediate gains and focus on long-term success. It’s good to be selective and emphasize quality over quantity. Prioritize established, profitable e-commerce brands with a strong unique selling proposition and multiple products that complement your existing portfolio. For example, you might be interested in acquiring a competitor in the same industry or a brand in a market you want to expand into.

Evaluate the brand's potential for both longevity and international growth; a fad that lasts only for a season or two won’t be a good investment. Other attributes to look for are a scalable, sustainable business model, positive cash flow and overall financial health.

2. Reduce Costs

One of the biggest advantages of the build-and-buy model is saving time and money by leveraging economies of scale. Centralize services, such as logistics, customer support and digital marketing across all of your acquired brands, reducing the burden on individual companies. Use increased order volumes and service needs to negotiate better rates with suppliers and providers. Every efficiency improvement you make is a step toward greater cost reduction.

I also recommend streamlining product lines to focus on high-quality, high-margin items. You may not be able to beat competitors on low prices, but if they are selling poor-quality products, you can set your brand apart with premium offerings.

3. Minimize Administrative Tasks

Reduce the burden on your brands’ internal teams by unifying all administrative tasks under one umbrella. In my experience, e-commerce brand founders want to concentrate on developing and selling their products, not on admin functions, including HR, accounting and vendor management. By taking these responsibilities off their plates, you give them the headspace they need to focus on their core activities and brand development.

Create a centralized management system for seamlessly handling multiple brands, and automate repetitive tasks with software. Outsourcing activities that are best handled by specialty experts, such as third-party logistics, also helps you maximize efficiency and cost-effectiveness.

4. Focus On Brand Development

Every brand you acquire has a story behind it, especially if it has been in the market for years. Lean into telling each brand’s story in ways that engage potential customers and create unique experiences for them.

Encourage business unit leaders to ask why people are coming to their store. What are they looking for in a product? What purpose or experience are they seeking? For instance, one of our e-commerce brands is a sticker company, and most of its customers are mothers buying stickers for their children. We want to design a fun, creative experience on the brand's website, where moms can interact with the products and envision how they can use these stickers in craft projects with their kids.

Invest in improving all facets of customer experience. Before buying from an online store, customers typically read reviews—and if they’re mostly negative, they’ll likely move on without purchasing. Prioritize offering excellent customer support and on-time delivery to improve the overall shopping experience.

E-commerce will continue to shape the future of retail—and acquiring and consolidating established e-commerce brands opens up countless exciting opportunities. Foster a culture of innovation and collaboration within brand teams, and promote the exchange of ideas across all departments and brands. Working together and sharing both resources and long-term goals will contribute to your collective success.

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