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 .

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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 Create The Perfect Ecommerce Business Plan (Examples & Templates)

Expert Evidence

Sean is the Senior Editor for The Ecomm Manager. He's spent years getting to know the ecommerce space, from warehouse management and international shipping to web development and ecommerce marketing. A writer at heart (and in actuality), he brings a deep passion for great writing and storytelling to ecommerce topics big and small.

The ecommerce market is full of innovative ventures that started as an ecommerce business plan. This guide tells you how to convert your vision for an ecommerce company into a strategic plan.

Click and Cart Revolution: Ecommerce is massively expanding, now a $6.31 trillion market, expected to rise above $8 trillion by 2026. Online sales are booming, making now a ripe time for starting an ecommerce venture.

Blueprint for Success: An ecommerce business plan is essential, serving as a detailed roadmap for starting, running, and growing an online store. It includes market analysis, product details, and financial strategies to achieve business goals.

Investor's Compass: A well-crafted ecommerce business plan is crucial for attracting investment, showcasing your business model, revenue generation plans, and overall strategy to build brand value and equity in the competitive market.

DIY Business Plan: Creating an ecommerce business plan involves outlining your vision, analyzing the market, and detailing operational strategies. An essential step includes drafting an executive summary that encapsulates the company's mission, history, and unique selling points.

Ecommerce is rapidly growing around the world. We love to buy our little treats and trinkets on the internet.

The industry has reached a market valuation of $6.31 trillion worldwide and is expected to cross $8 trillion by 2026.

In 2023, ecommerce accounted for 20.8% of all retail sales .

The contribution of ecommerce is expected to grow even further to cover 24% of retail sales in 3 years.

This seems like a good time for anyone thinking about starting an ecommerce business. Despite many companies enjoying pieces of this $6 trillion pie, starting an online store is not a piece of cake (pause for laughter...).

As with any other business, you need research and careful planning before jumping into action. That’s exactly what this guide is about.

I will shed light on some basic business concepts, discuss examples, provide insights with statistics, and give you ready-to-use templates for various stages.

But first, let’s begin with the fundamentals.

What is an Ecommerce Business Plan?

An ecommerce business plan is a document containing the roadmap for initiating, maintaining, and expanding an online selling company.

This document contains several details that are crucial for establishing your ecommerce business.

It serves to guide the formation of a company and draw insights to make business decisions to achieve short-term and long-term goals.

The ecommerce business plan also contains information about the market, competitors, products, pricing strategy, company finances, supply requirements, etc. The more details you can add to an ecommerce business plan, the better you can execute it.

Why Do You Need An Ecommerce Business Plan?

An ecommerce business plan acts as a roadmap for your online business, helping you navigate the market and scale your brand. It's your ecommerce north star, so to speak.

It helps you analyze the market systematically and develop strategies to stand out from the competition. This plan covers various aspects of your business, such as your goals for marketing, operations, and finances, and shows how these parts are connected.

For example, it can help you see how your marketing budget affects your overall cash flow. You’ll get these insights from the market research and financial sections of your business plan.

If you’re looking for funding, a business plan is essential. Investors use it to assess the feasibility of your business. It outlines your business strategy and makes a strong case for why you need investment.

Entrepreneurs can highlight their operational plans and budget to show how they will run a successful ecommerce store.

Most importantly, it demonstrates the value proposition to potential investors, showing how the company will generate revenue, build brand value, and increase equity.

How To Create The Perfect Ecommerce Business Plan

Let’s look at the step-by-step process for creating an ecommerce business plan.

Each of these stages will help you get a deeper understanding of your business. It'll also help you define your vision through organizational structure and processes. Let’s begin with the executive summary.

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Step 1: Draft an executive summary

Although this is the first part of an ecommerce business plan, it's better to tackle the executive summary after completing the entire document.

The executive summary gives an overview of the business plan on a single page.

The executive summary presents a company overview and highlights of the most important parts of the document.

It gives a brief overview of what the new business is about and what it sets out to achieve. You will discuss these points in-depth later in the document.

You can use the below template to draft your executive summary:

You will have better clarity regarding some of these aspects after you complete the entire ecommerce business plan.

For instance, you can provide a more accurate competitive analysis after conducting market research.

Similarly, you will have a clear understanding of financial projections and investment requirements after you source potential suppliers.

You can create a rough draft of the executive summary at the beginning. Then you can circle back to it when you have more clarity.

Tips for an effective executive summary:

• Conciseness: Keep it brief yet comprehensive. Aim for one to two pages.
• Highlight key points: Focus on the most critical aspects of your plan, such as your business model, market opportunity, and financial projections.
• Engaging language: Use clear and engaging language to make a compelling case.

Step 2: Company description

In this section, you provide details about your brand. At this point, the ecommerce business plan begins to take shape.

Start filling out the details in the template below to describe your company using the examples to help give it some shape.

In this section, you'll outline what your company will look like and what it'll do.

You'll detail the types of people needed to run the company, along with the resources you already have and the ones you'll need.

For example, if you've already purchased a domain name and registered your company name as a trademark, you can list these as existing resources.

If you still need to develop an ecommerce website, list that under required resources (and find the right ecommerce platform to make your job easier).

This section also provides an overview of your company’s hierarchy and management team. Describe the different departments in your company and the key team members for each one.

You should also specify which operations will be done in-house and which will be outsourced to external agencies .

This part of your business plan will give you a clear picture of your current status and help you identify what you’re missing. Keep in mind, this section may change as you do more research and discover new requirements.

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Step 3: Describe your products and services

In this section, you'll define details about the products and services your ecommerce brand will offer. You'll describe what you're offering to your customers.

It includes both products and services. You can use the ecommerce business plan template below to define these aspects.

While you might only sell products on your ecommerce platform , you could also be selling services (which many ecommerce platforms allow you to do).

For each product, include a short description and pricing information. Specify whether you're selling physical or digital products, and explain how customers will receive them.

Describe any services you provide, such as digital subscriptions or in-person consultations. Specify how customers will access these services and any relevant pricing information.

Step 4: Conduct market analysis

This is the most important part of an ecommerce business plan. You must analyze several factors concerning the market segment, competing brands, and competitor products.

You must understand how your products, services, and brand perception compares against the competition .

Use the template below to create a detailed overview of the market you will compete against.

This analysis will affect several other aspects of your ecommerce business plan.

At this stage, you must analyze the market and decide what place your company can take in the competitive landscape. You can also use other methods for market research, such as SWOT analysis or Porter’s Five Forces analysis.

Regardless of the method, you need an accurate understanding of what your competitors offer and how you can differentiate your ecommerce brand.

This brings us to marketing.

Components of a strong market analysis:

• Industry overview: Provide updated statistics and trends in the ecommerce industry. For example, global ecommerce revenue is expected to reach $4.1 billion USD in 2024 .
• Target market: Define your ideal customer with specific demographics and psychographics.
• Competitive Analysis: Analyze your direct and indirect competitors. Tools like SEMrush and Ahrefs can provide insights into competitor strategies and performance.

Step 5: Draft your marketing plan

The marketing plan for an ecommerce business primarily depends on three factors.

These are the target audience, customer segmentation, and market forces. You will draw relevant insights from the market analysis to define your marketing plan.

Here's a template to help you define the marketing strategy for your online store.

Your marketing plan should clearly outline how you'll position your brand in the market.

Define the channels you'll use at different stages of the sales funnel. For example, you might use Facebook ads to raise awareness and email marketing to engage existing customers.

Include sections to define your ideal customers using buyer personas. Create different personas for various types of potential customers, associating each persona with a specific product and its use cases.

Finally, list the ecommerce tools you'll need for your marketing efforts, such as automation tools, CRM software , and SEO tools.

Once you know how to attract your audience, the next step in your ecommerce business plan is to define how you'll convert them into customers.

Step 6: Define sales and customer service processes

At this stage, you will define several aspects concerning your customers.

These include purchase journeys and after-sales services. This strategy serves as an extension of the marketing plan.

See the template below to define your sales and customer service strategy.

With this template, you are essentially defining customer experience with your brand. You'll create a strategy for selling the products on different channels.

These include ecommerce websites, marketplaces, affiliate websites, social media, etc. You'll have to define the sales process for each channel.

You must also draft a plan to create memorable customer experiences. This is crucial for developing a community.

It also has a direct impact on sales and revenue. Repeat customers spend 67% more than first-time buyers. Once you have a strategy for acquiring customers, you must build a strategy for delighting and retaining customers.

Step 7: Create a supply chain strategy

The supply chain strategy includes the journey of the product from the supplier to the customer.

It includes procurement, manufacturing logistics, warehousing , distribution, order fulfillment , and reverse logistics . Use the template below to create your supply chain strategy.

In this section of the ecommerce business plan, you will outline how the product will make its way to the customer.

Supply chain management involves everything from sourcing the products from a supplier to shipping the products to the customer.

Alongside the strategy, you also need to define the stages that you will outsource. Creating your supply chain is quite resource intensive.

That's why ecommerce businesses outsource certain aspects to 3PL companies . Some of the commonly outsourced services include distribution and logistics (42%), manufacturing (37%), product finishing (29%), and packaging (23%).

This process accounts for a significant portion of ecommerce expenses. It will also impact several customer-facing aspects of the business. This includes the availability of stock, shipping charges , delivery time, and more.

Hence, you should define a supply chain strategy for speed, efficiency, and cost-effectiveness.

Step 8: Identify legal frameworks

In this section, you will also cover the applicable legal frameworks for running the ecommerce business.

These include business registration, taxation, permits, legal structure, trade laws, etc. Use the template below to define the legal obligations in your ecommerce business plan.

You must understand the laws applicable to running an ecommerce business in your region.

If you plan to ship products internationally, you must also understand international shipping laws, customs clearance requirements, import/export regulations, and trade laws in the target market.

This section ensures that your company always remains on the right side of the law.

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The final section of an ecommerce business plan is concerned with finances and legal compliances.

The preceding sections will give you estimates regarding different aspects of your ecommerce business.

These include operations, marketing, procurement, logistics, and so on.

Based on these estimates, you will define the financial projections for your ecommerce business. This includes both revenue and expenses.

You can use the template below to define the financial aspects of your business.

If you pitch the ecommerce business plan to an investor, you must add other details to this section.

These would include funding requirements, funding stages, value offerings, etc. This section of your business plan also sheds light on a company’s assets and liabilities.

You must also clarify what you offer the investors against the funds. This can be equity stake, debt, dividends, and so on.

This helps potential investors conduct a cost-benefit analysis.

You can go a step further and present key elements of cost-benefit analysis for the ecommerce company. This should highlight the short-term and long-term gains for the new business.

You can use this section to show potential investors how your new business will grow in market value based on milestones. These milestones can be defined based on sales, inventory size, revenue, market acquisition, etc.

With this section, you conclude your ecommerce business plan.

You need to revisit the executive summary and ensure it aligns with the rest of the document. It is best to review the entire document a few times to ensure you present a unified vision for starting and running your ecommerce business.

Start on the Right Foot With The Best Ecommerce Platform

With your fresh business plan in hand, you're ready to get moving on the foundational parts of your ecommerce journey.

To start strong, you want to choose an ecommerce platform that has all the essential features that ensure your business will be a success.

You can also take a peek at what we think are the top ecommerce platforms for a variety of brands, from big to small. Here's our shortlist of the best ones out there:

• 1. Subbly — Best for subscription-based ecommerce models
• 2. Wix eCommerce — Best for non-technical users
• 3. Ecwid by Lightspeed — Best for social media selling
• 4. Adobe Commerce — Best for data-driven companies
• 5. Shopify — Best for a range of integrations
• 6. Sana Commerce Cloud — Best ecommerce platform for B2B sales
• 7. Volusion — Best customer service
• 8. ShopWired — Best for buy-now-pay-later purchasing
• 9. Elastic Path Commerce Cloud — Best for enterprise organizations
• 10. WooCommerce — Best ecommerce plug-in for Wordpress

Use The Ecommerce Business Plan to Guide Your Actions

The purpose of creating an ecommerce business plan is to represent your vision systematically.

This document will shed light on several aspects of your ecommerce business idea. It will also serve as a guide, philosopher, and friend when you launch your company.

If you are pitching your idea to investors, this document will show them the value that your ecommerce business idea can generate for them.

The next step for you is to turn the ecommerce business plan into a company.

You should subscribe to The Ecomm Manager newsletter for more news, trends, tips, and guides related to ecommerce. These articles can help you optimize and expand your business further.

Ecommerce Business Plan FAQs

There are always more questions for the end of the post. So, here we are, answering some more questions.

Is ecommerce a profitable business?

The profitability of ecommerce businesses depends on several factors. This includes market condition, business structure, product demand, revenue model, etc. You can understand the profitability of your ecommerce business idea by checking brands selling similar products. When first starting out, you can cut costs by leveraging tools like free inventory management software . This can help ease the financial burden of being a new business.

Do I need a business plan for an ecommerce business?

A business plan gives structure to an ecommerce business idea. It is a really helpful document for business owners and entrepreneurs. This document helps you measure the viability of the business model, products, marketing strategy, financial plan, legal structure, operations, and other aspects of the company.

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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Embark on creating your ecommerce business plan, akin to crafting a map for your entrepreneurial journey. Use the provided template as your guide through the maze of market analysis and strategic planning.

Learn how each part, from financial forecasts to competitor analysis, adds to your online success blueprint. Understand the art of making a roadmap that doesn’t only point out your profit route, but also sets your brand for lasting success in the digital realm.

How to create a defensible eCommerce business plan

For a sturdy eCommerce business plan, start by studying the market. Understand the industry, competitors, and customer likes. Set your business apart with a unique selling point.

Plan your finances – predict revenues, identify funding needs, and estimate costs. Sketch out a clear marketing plan. Focus on getting and keeping customers, and boosting brand awareness.

Make a flexible operational plan for logistics, customer service , and fulfillment. By including these in your plan, you lay a robust foundation for your eCommerce venture. This ensures strategic growth and staying power in the competitive online market.

How To Write an Ecommerce Business Plan in 9 Steps

1. draft an executive summary.

Starting an eCommerce business plan requires a solid executive summary. It serves as your business roadmap, offering a brief and clear overview of your business, including key elements like your unique selling point, target market, and competitive edge.

This section is crucial as it summarizes your business and can attract investors and stakeholders by showcasing your business’s potential.

A strong executive summary is essential for outlining the core aspects of your eCommerce business and setting the stage for further detailed planning and development.

It provides a snapshot of your business’s strengths and competitive advantages, guiding the reader towards a deeper understanding of your business concept and potential for success.

2. Describe your company (Qualitative)

Let’s take a closer look at conveying the qualitative aspects of your eCommerce business.

Consider these key points:

• Business Model: Give a clear picture of how your business plans to generate profits and maintain itself.
• Business Structure: Outline your company’s organization, including duties and roles.
• Legal Business Structure: Detail the legal framework your business uses.
• Business Overview: Share a brief synopsis of your company’s mission, values, and aims.
• Online Business Concept: Illustrate the distinctive idea that fuels your online business and distinguishes it from rivals.

3. List your products and services

What products or services will your online store offer? How do these fit with your business plan’s unique selling points?

Setting up your online store requires a clear outline of your product or service. Explain the variety of products you aim to sell and how they meet your target audience’s needs.

Your offerings could be unique items, tailored services, or a mix of both. Ensure your offerings align with your business plan’s vision.

Your products and services are the core of your online store. They play a large role in drawing and keeping customers. Keep your focus on delivering value and effectively meeting customer needs .

4. Analyze your target audience

To understand your business, dig deep into your target audience’s minds and actions. This will help you build a bond that fits their needs and likes. To effectively study your target audience, try these steps:

• Do thorough market research. Find out about their demographics, likes, and shopping habits.
• Use surveys, focus groups, and social media analytics. This will help you collect useful insights.
• Split your audience into segments based on shared traits. This will help with targeted marketing tactics .
• Make buyer personas to put a face to your audience and shape your messaging.
• Always keep an eye on and adjust your approach. This will help you keep up with changing consumer trends .

5. Outline the management and organization

For a well-crafted ecommerce business plan, first sketch out the management and organization. This includes the roles you aim to fill and their fit into the overall business plan.

Pinpointing key positions in your firm ensures smooth operations and clear task division. The table below could help organize the roles you aim to fill:

Defining these roles clearly is crucial for an ecommerce business to align with the broader business plan.

6. Perform customer segmentation

To create a strong ecommerce business plan, first break down your customers. Group them based on what they need and like. This is a key part of your marketing strategy. It helps you reach the right people. Customer segmentation is key to make your business approach fit different customer groups.

• Break down customers into groups. You can do this based on age, behavior, or interests.
• Change your marketing messages and product offerings for each group.
• Look at data to see how each customer group buys things.
• Make promotions and campaigns that will attract certain groups.
• Always check and change your customer segmentation strategy to fit market trends.

7. Define a marketing plan

Craft your eCommerce business plan with a defined marketing plan. It outlines key marketing strategies to promote your products effectively and reach your target audience.

Your plan should include specific tactics to attract customers. These may be social media campaigns, influencer partnerships, or search engine optimization.

The success of your online business hinges on this plan. It details your marketing strategies, creating a roadmap for engagement with potential customers and sales drive.

A well-thought-out marketing plan is important for standing out in a competitive eCommerce field and building a strong online presence.

8. Provide a logistics and operations plan

In shaping your ecommerce business plan, don’t forget a comprehensive logistics and operations plan. It details how orders will be efficiently fulfilled. This part is crucial to your ecommerce business running smoothly. Remember these five key points when crafting your logistics and operations plan:

• Make your warehouse layout better for swift order fulfillment
• Create strong ties with trustworthy shipping carriers
• Use inventory management systems for correct stock levels
• Make a returns process that’s easy for customers
• Always check and improve your logistics and operations methods for better efficiency

Following these steps ensures your business operates without hiccups. It also promises a flawless experience for your customers .

9. Make a financial plan

Crafting a strong financial plan is key for your ecommerce business. The plan shows how your business will make money, handle costs, and use resources effectively. It covers topics like startup costs, sales predictions, profit boundaries, and cash flow estimates.

This plan is crucial for getting funding, making savvy decisions, and monitoring your business’s financial health. By grasping the financial parts of your e-commerce business plan, you can identify the funds needed to carry out your plan. Use financial tools and forecasts to build a solid base for your business’s financial triumph.

Adding a thorough financial plan to your overall business plan is central to guaranteeing your e-commerce business’s long-term survival and expansion.

7 tips for creating a small business plan

Crafting a small business plan demands a keen understanding of your audience. Tailor your strategy to them for efficacy.

Always keep a clear objective in the crosshairs, directing your choices and deeds.

Dedicate time to research. It affords crucial knowledge, molding a blueprint for your online shop.

1. Know your audience

Knowing your audience is key in starting an eCommerce business. This helps you shape your products and services to suit their needs. To truly know your audience , take these steps:

• Do deep market research to find your target demographic.
• Study consumer behavior to know their buying habits.
• Use surveys or focus groups to get insights.
• Watch social media interactions to find out customer likes.
• Break down your audience based on traits for custom marketing plans.

2. Have a clear goal

To succeed in your small business plan, set clear, measurable goals. They should guide decisions and track progress effectively.

Have distinct business goals that match your target market and unique selling points. Include detailed financial forecasts for realistic growth planning.

Carry out in-depth market research to grasp industry trends and opportunities for setting your business apart. Craft a focused marketing strategy to enhance brand recognition and drive sales .

Set detailed targets linked to your target market, financial forecasts, market research, and marketing plan. This creates a path to success in your e-commerce business plan.

Keep your eyes on these goals to guide your business towards long-term success.

3. Invest time in research

Have you thought about how spending time on deep research can help your small business plan? Doing market research is vital for a good online business strategy. Here are five reasons why time spent on research can aid your small business plan:

• Knowing the market : Research helps you understand industry trends, rivals, and your audience.
• Smart decision-making : Studying data assists in making wise decisions for your business plan.
• Spotting opportunities and hurdles : Research helps in finding growth areas and challenges.
• Adjusting products/services : Research allows you to understand and meet customer needs.
• Creating strong marketing strategies : Insights from data help in setting up your online business for success in the market.

4. Keep it short and to the point

For a successful small business plan, be brief. Highlight only the essential details. Short business plans are easy to handle and useful for quick decisions. Keeping it short puts emphasis on key points without overwhelming readers. Include only what’s necessary, focusing on clarity and brevity to convey your business strategy.

Concise plans are ideal for presenting to potential investors, they allow for quick understanding. Writing a concise, to the point business plan makes it easy to digest and a handy reference for your business.

5. Keep the tone, style, and voice consistent

Maintaining uniformity in tone, style, and voice is key when crafting a small business strategy. This ensures a unified and polished representation that resonates with your audience and stakeholders.

To make sure your e-commerce business plan hits the mark and effectively conveys your ideas, heed these pointers:

• Stick to a formal language throughout the manuscript.
• Uphold a professional and business-oriented tone.
• Keep the narrative style straightforward and succinct.
• Steer clear of blending informal and formal language.
• Revisit and rectify the strategy for uniformity in tone, style, and voice.

6. Use a business plan template

Use a business plan model for your small business. Go for one designed for e-commerce. Templates give a good system to arrange your ideas. They help cover all key parts of your business strategy. Here’s a simple table to help pick the right model for your e-commerce business plan:

Try business plan software

Think about using business plan software for your e-commerce venture. This software makes the process easier and professional. It offers templates you can change to fit your business needs.

It guides you through each step, making sure you cover everything for your e-commerce plan. It lets you enter your data and ideas quickly. This helps create detailed money forecasts, market studies, and operation plans.

In conclusion, creating a robust ecommerce business plan is akin to constructing a strong ship for sailing the expansive oceans of online trade. Set precise objectives, comprehend your market, and devise unique tactics to guide your business to success.

A well-planned strategy is your beacon in the constantly shifting digital environment, directing you towards expansion and profit. Thus, embark with assurance, equipped with a strategy that will enable you to withstand any tempest.

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7 steps to creating a captivating ecommerce business plan

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By 2026, almost 24% of all retail purchases will take place online.

As these numbers suggest, today is unarguably the best time to start an ecommerce business. However, if you want to get a slice of this $8 trillion pie, you’re going to need to do some preparation first.

In this blog, I’m going to give you a step-by-step guide to creating an ecommerce business plan. This will not only help you set clear goals but also help you attract investor funding.

Let’s get into it 👇

What is an ecommerce business plan?

An ecommerce business plan is a strategic document that outlines your online business’s goals, objectives and operational details. It helps you and your investors understand the business’s direction, competition, marketing strategies and financial requirements.

Simply put, an ecommerce business plan is a structured way to lay out your business idea . It makes it easier to share with investors and people who can help your business succeed. The more details your ecommerce plan has, the better you can accomplish your goals.

Benefits of an ecommerce business plan

Before we dive into the nitty-gritty of creating an ecommerce business plan, let's clarify why it's crucial. A well-constructed ecommerce business plan helps you realise the following benefits:

• Get clarity on your overarching strategy - decide a clear direction of travel for your ecommerce business
• Set goals - monitoring ecommerce business metrics allows you to track your progress and stay focused
• Mitigate risks - by conducting thorough market research and risk analysis, you can identify and address potential pitfalls
• Allocate resources - effectively budget to ensure your online store doesn't run out of steam before reaching the finish line
• Attract investors - if you're seeking funding, a well-crafted ecommerce business plan can be a powerful tool for convincing investors and banks to support your online business

Now, let's journey into creating your comprehensive ecommerce business plan!👇

7 steps to creating the perfect ecommerce business plan

1 - Create an executive summary

The executive summary introduces people to your vision, mission, objectives and key metrics, piquing interest in your business.

Vision and mission

Your vision is the North Star you want your ecommerce business to follow. It's the big picture or the end goal.

Your mission is your compass. It directs your daily efforts towards achieving that vision.

For instance, for your ecommerce store, your vision could be to create an online retail empire that revolutionises the shopping experience.

Your mission could be to provide a wide range of high-quality products and services and deliver them with exceptional customer care.

Business objectives

Goals are the milestones on your journey to success. Make them specific, measurable, achievable, relevant and time-bound (SMART).

For instance, you might aim to generate $100,000 in annual revenue in the first 12 months of your ecommerce business. You could use the SMART framework to achieve this goal like so:

• S - I need to register a 20% average monthly revenue growth to hit my goal
• M - I need to track performance metrics like cost per acquisition, average order value (AOV) and customer lifetime value (CLV). I want to ensure we’re trending in the right direction
• A - I have a deep understanding of the customer base I’m serving and the problems I need to solve for them, meaning my goal is attainable
• R - I need to scale my user base if I want my ecommerce business to be sustainable
• T - I need to split my yearly website visitor goal into quarters to track my progress

Key metrics

These are the measurable data points that will show your business performance. Some examples include customer acquisition cost (CAC), churn rate and user satisfaction scores.

These metrics will be your guide throughout the journey, informing your decisions and strategies.

For your ecommerce business, you'd want to track:

• CAC - aim for $20 or less
• CLV - maintain an average of $100 or more
• Monthly revenue growth - target a 20% month-on-month growth rate
• Churn rate - keep churn below 20% per month

2 - Company overview

This section of your ecommerce business plan describes exactly what your company does. Here, you’re introducing your business to your potential investors and partners, telling them how it is different from your competitors or other ecommerce companies.

You’ll also need to explain what makes your business unique, your business model, ownership and management structure.

This section should include:

Company description

A company description explains what your company does and how it aims to fill the gaps in the current marketplace. Here, you should include the most compelling benefits of your business and how they’ll bring in customers.

Your company description also includes your company’s history, target market and audience, while also describing how you plan to evolve with changing customer preferences.

Business model

A business model outlines whether:

• You’re planning to use a traditional sales model or a subscription model
• You’ll sell directly to customers or source products for other manufacturers
• You’ll operate a business-to-business (B2B) or business-to-customer (B2C) ecommerce store

Unique selling proposition (USP)

This section explains how your business will stand out from the competition and what your plan is to become a leader in the industry. It also answers how your product or service will fulfil the needs of your customers and what problems you’re trying to solve.

Management structure

The ownership and management structure provides background on your business’s leadership and details about the composition of your workforce.

3 - Describe your product and services

Now that you’ve described your business and its goals, it’s time to go deeper into your ecommerce business plan. In this section, you’ll describe the range of products or services your online store will offer.

If you plan to offer a wide range of products, then provide a brief description for each product line. Or if you want to sell a select few items, then provide more details about each product, like the cost of manufacturing and selling price. This ensures that potential investors gain a thorough understanding of your product offerings and business ethos.

Product and service descriptions should also clarify for investors whether you manufacture the products, dropship them or source them from a wholesaler. This section is a good place to tell them how your products are superior to the competition and what advantages they provide to your customers.

Finally, mention the payment gateways, courier services or third-party aggregators you’re partnered with to provide the shopping experience to your customers.

4 - Conduct competitive analysis

Understanding your competitors is essential for any ecommerce business. A thorough competitive analysis helps you:

Identify direct competitors

Identify online stores that are similar to yours, offering comparable services or products. Then analyse their strengths and weaknesses, their market positioning and their user base.

As an ecommerce business, an obvious competitor would be Amazon. After performing a competitor SWOT analysis, you might find the following information:

• Strengths - vast product selection, efficient logistics and a strong brand
• Weaknesses - intense competition, limited personalisation
• Opportunities - expanding into new markets and verticals
• Threats - regulatory challenges, reputation management

Identify indirect competitors

Aside from your direct competitors, alternative solutions may also be competing for your target audience's time and attention.

For your ecommerce store, you need to consider brick-and-mortar stores as part of your competitive analysis. After researching them, you might find the following information:

• Strengths - in-person experience, instant gratification
• Weaknesses - limited product selection, restricted operating hours
• Opportunities - ecommerce integration, enhanced customer service
• Threats - ecommerce competition, evolving consumer behaviour

Uncover competitive advantages

With this information, you can determine what sets your online store apart. It could be a better pricing strategy or a niche focus on a specific user segment. Only by understanding your competitive advantage can you gain clarity about your online business's unique value proposition.

Building on who your competitors might be, you could consider these as your competitive advantages:

• Curated product selection
• Personalised shopping experience
• Superior customer support
• Streamlined mobile shopping
• A loyalty rewards program

5 - Develop a marketing plan

Your marketing plan should outline four main topics:

Positioning strategy

• Acquisition channels

Tools and technology

Goals and evaluation.

A positioning strategy is a distinct image or perception of a product or service in consumers' minds.

A positioning strategy's goal is to differentiate your product or service from the competition. It aims to create a clear and distinct value proposition for consumers.

To create a positioning strategy, you must:

• Define the personality and characteristics of your brand
• Position your products based on the perceived value they offer in relation to their price
• Develop messaging that communicates your unique value proposition
• Ensure consistency across all touchpoints, including messaging, colours, logo etc.

An effective positioning strategy allows you to occupy a distinct and favourable place in the minds of your consumers. This makes it more memorable and appealing.

For example, footwear brand Crocs was once considered unappealing. But over a period of time, they transformed their brand image by changing their positioning.

Tapping into the rise of ugly-chic fashion trends, Crocs decided to collaborate with luxury brands and influencers in order to reach new audiences.

Today, Crocs has become one of the hottest fashion brands in the world, selling over 850 million pairs of shoes .

Marketing channels

In this section, you highlight the marketing channels you’ll use to acquire customers. These are the specific methods that your business will use to reach out to and engage with potential customers.

• Paid advertising - use Google Ads for targeted keyword advertising and product listings; alternatively, you can invest in paid advertising on social media platforms
• Content marketing - develop content that addresses the challenges and needs of your target audience; you should also create informative content about your products and industry trends
• Social media marketing - choose social media platforms where your target audience is active
• Email marketing - create personalised email campaigns for each segment of your target audience
• Influencer marketing - find influencers whose audience matches your target market, collaborating with them to promote your products
• Events and trade show marketing - network and build brand awareness at industry-specific events, trade shows and conferences

Here, you’ll shed some light on the tech stack you’re going to use to execute your marketing campaigns.

Many different tools and technologies can help you execute your marketing campaigns. Some of the common tools include:

• Marketing automation software - automate repetitive tasks, like scheduling social media posts and managing email marketing
• Customer relationship management (CRM) software - manage and analyse data to create personalised customer experiences; you can also track customer’s history of interactions with your brand
• Social media management tools - they help you plan, schedule and analyse social media performance with one platform

These are the metrics you typically use to evaluate your marketing efforts. Here, you also need to define the goals you want to achieve through marketing.

Some of the key metrics that you need to consider are:

• Revenue and sales - use metrics like average order value, total revenue or conversion rate
• Traffic and engagement - look into page views, website traffic or social media followers
• Brand awareness and perception - use metrics like net promoter score (NPS), brand recognition rate or customer satisfaction
• Customer acquisition and retention - for retention look into churn rate, customer lifetime value (CLV) or customer satisfaction

6 - Plan your finances

The clarity of your financial data, including your costs , budgets and revenue projections, is a dealbreaker when it comes to securing investor funding. And while you may need to amend them over time, presenting a clear picture is crucial.

Here’s how you can start to do that:

Online store development costs

Estimate the cost of labour, technology, software licences, equipment and other resources. Be detailed in your estimates to avoid unexpected financial surprises.

Operating expenses

Forecast your ongoing expenses, such as server hosting, marketing, customer support, maintenance and any other operational costs. A well-prepared budget will help you manage your resources effectively.

Revenue projections

Predict your revenue based on user growth and your chosen business model. Don’t be too outlandish with your estimates and consider multiple scenarios, including best-case and worst-case, to understand the range of potential outcomes.

Break-even analysis

Determine when your online store will start generating enough revenue to cover all its costs. The break-even point is a crucial milestone that indicates the financial sustainability of your ecommerce business.

7 - Use the ecommerce business plan to secure funding

Once you have your ecommerce business plan, it’s time to use it as a tool to get you the funds you need to develop your online store.

Choosing the right funding source depends on your online store's development stage, funding needs, and the trade-offs you're willing to make in terms of control and equity.

Here are the various avenues you can follow to raise capital for your ecommerce business:

Personal savings

If you have personal savings, this can be an initial source of funding for your ecommerce business. Using your own funds can give you more control and flexibility.

Bootstrapping

This involves building and growing your ecommerce business without external funding. Bootstrapping may require you to invest your own money, work with a small team and focus on organic growth.

Angel investors

Angel investors are individuals who provide capital to early-stage startups in exchange for equity in the company. Finding the right angel investor can bring not only funding but also valuable expertise and connections.

Venture capital

Venture capital firms invest in startups with high growth potential. They typically provide larger amounts of funding in exchange for equity. Venture capital can fuel rapid expansion, but it also involves giving up a portion of ownership.

Crowdfunding

Crowdfunding platforms, such as Kickstarter or Indiegogo, allow you to raise funds from a large number of people. They believe in your ecommerce business idea and thus invest in you. In return, backers may receive rewards or early access to your online store.

Traditional bank loans can provide capital for your ecommerce business, but they require repayment with interest. Ensure you have a solid business plan and financial projections to secure a loan.

Grants and competitions

Some governments, organisations and startup competitions offer grants or prizes for innovative business ideas. These opportunities can provide non-dilutive funding.

Things to do once your business plan is complete

1- Create your online store

Now that you’ve used your ecommerce business plan to secure funding, it’s time to actually start your ecommerce store . Here are the key steps you need to follow:

Find the right development team

Depending on your ecommerce store’s complexity, you might need developers, designers, quality assurance experts, project managers and more. Choose individuals or teams with the skills and expertise to execute your vision.

Choose the platform

Select the right platforms (e.g., website, app or web app) and technologies that align with your store's objectives. Different platforms offer different advantages and cater to distinct user bases, so choose wisely. Additionally, consider the technology stack and tools required for your ecommerce store development .

Select features and functionalities

Define the core features of your online store. For instance, you might need:

• Secure payment processing
• User-friendly product search and filters
• Product recommendations
• Customer reviews and ratings
• Wish lists and shopping carts
• Order tracking and customer support
• User profiles and loyalty program integration

Set development timeline

Set milestones and deadlines for your ecommerce store's development phases. A well-structured timeline helps you track progress, manage resources and launch your store on schedule. Be realistic and account for unexpected delays that can occur during development.

2 - Perform an internal SWOT analysis

To ensure the long-term success of your online store, you need to update your business plans as well as your store’s features and functionalities.

Here, a SWOT analysis can help. This is a simple yet powerful strategic planning tool, helping you evaluate your store’s Strengths, Weaknesses, Opportunities and Threats.

This analysis helps you gain a better understanding of your business’s current position in the market. It also helps you make informed decisions about its future development and capitalise on market developments.

The first step to conducting a SWOT analysis for your ecommerce business is to identify its current strengths. This involves taking an honest and comprehensive look at what your store excels at in its current state.

After identifying your ecommerce business’s strengths, it’s time to acknowledge its weaknesses.

This involves pinpointing areas where your online store needs improvement, allowing you to enhance the overall user experience, usability and value propositions.

Opportunities

Opportunities refer to the external factors and circumstances that you can leverage to your online store’s advantage. This section focuses on recent trends and favourable conditions so your ecommerce business can gain a competitive edge and expand its user base.

Threats have a tendency to lurk in the corner and haunt. Don’t fear them, get them in the front and tackle them individually. Threats can stem from external risks like market risks, financial risks, legal and compliance risks that we need to account for and vary.

By now, you have all the information you need to create a killer ecommerce business plan and a good idea of how you can use it to secure funding.

It’s important to remember, though, that you can’t just set and forget the work you do in this exercise. Instead, you need to continually evolve your plans to meet emerging customer needs. You also should capitalise on any opportunities the market presents.

If you want more ecommerce inspiration, hit the banner below 👇

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Ananth Ramanathan runs Studio Store business at Builder.ai with a mission of digitising a 1M+ micro SMEs in the next 5 years. He oversees the commercial, product, and customer success functions to rapidly scale Studio Store globally. Ananth's an experienced tech business operator, a failed entrepreneur, and an active angel investor.

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How to create a defensible eCommerce business plan

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, 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.

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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.

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How to Write the Ultimate eCommerce Business Plan

• by Lightspeed

minute read

The numbers don’t lie: since 2014, the number of digital shoppers worldwide has grown from 1.32 billion to 2.14 billion. That’s a 62% increase! Currently a $4.28 trillion market, eCommerce is forecasted to make up a fifth of all retail sales by 2024. If you want a slice of the climbing profits, now is the time to get involved.

An eCommerce business plan can help you steer your online shop in the right direction. Fortunately, you don’t need a business degree to create one. Read on to:

• Learn what a business plan is and why your eCommerce company needs one
• Discover how an eCommerce business plan is different from business plans for other business types
• Learn how to write an eCommerce business plan step by step
• Get access to our free eCommerce business plan template

All your eCommerce questions answered, and more

Learn everything you need to know build, launch and grow an online store with this free guide.

What is a business plan and why does your eCommerce company need one? 

A business plan is a document that outlines the goals of a business and how the business will achieve those goals. While there is no standard format for a business plan, such documents typically cover what the company will do, what problem it will solve, how the business is structured, who the target market is and how the product or service stands out from the competition.

A business plan serves as a roadmap for your company and helps you stay focused. Having one is also useful for attracting investors and business partners, as it shows you’re serious about your business, have done your research, know your industry and have considered the challenges you may face along the way. 

How is an eCommerce business plan different from a business plan for other company types?

While the structure of a business plan for an eCommerce business won’t differ much from a business plan for any other type of company, the business strategy at the core of the plan may differ greatly from that of a traditional retail store.

For example, a traditional retail business plan might describe plans for leasing and designing a storefront. An eCommerce business plan, in contrast, would focus on the company’s digital storefront: its website. One of your business goals for the first year might be identifying the best eCommerce software , rather than finding the perfect space to lease.

Another notable distinction: while a traditional retail business plan might include an organizational chart with many front of house staff members, an eCommerce business plan would emphasize roles in online customer service , fulfillment and marketing.

Now, if you already run a brick and mortar business and are adding an online selling component, you’ll want to cover all of the topics listed above.  

How to make an eCommerce business plan

Now that you understand what a business plan is, why you need one, and what differentiates an eCommerce business plan from a traditional retail business plan, it’s time to get into the good stuff. Read along to learn exactly how to write an eCommerce business plan.

Summary 

This section concisely introduces everything that you’ll be covering in your business plan. Write it last, so that you can source inspiration from the rest of the document.

Company introduction

Explain what your company does and what makes it stand out. Use the company introduction to answer the following questions:

What does your business do?

What problem does it solve, and how?

• What is your business model? (i.e., Who are you selling to and how? Are you a B2B or B2C eCommerce business? Are you direct to consumer, or do you sell products from other manufacturers? Do you rely on a subscription service or traditional sales model?)
• What is your mission statement?
• What are your values?

Going through the exercise of considering these questions and putting your answers into writing will sharpen your focus as a business owner. When opportunities present themselves that don’t align with your values or help you solve your customers’ problems, then you can say no without doubts — or, conversely, you can enthusiastically accept opportunities that align with your vision.

Market research

Get to know your customers and competition. Do some soul searching and conduct market research to uncover:

• Who your ideal customer is. Make this specific. When your brand is distinct enough to “repel” a certain type of customer, it’s also strong enough to make your ideal customer really excited about your products, and to turn them into lifelong customers.
• How big your market is. While there are various ways you can research this figure , rough estimates will go a long way. Let’s say you wanted to start an online care package subscription business for U.S. college students. A quick online search indicates that there are nearly 20 million college students in the U.S. If the average student spends four years in college, that means there are roughly 5 million new students every year who could be receiving care packages. That’s a large market!
• Who your competition is. What other companies are offering similar products and/or to a similar audience?
• What makes your business different from the competition? 
• What advantages and opportunities do you have to be more successful than the competition?

Company structure

Now it’s time for the less sexy stuff. In this section of your eCommerce business plan you should explain:

• What the legal structure of your business is. Is it an LLC, an S-Corporation, a partnership or something else? If you haven’t incorporated your business, do you have plans to do so?
• Who is in charge of the business? List founders and officers and their contributions (in terms of both capital and expertise) to the company.
• Who works for the company? Include an organizational chart that illustrates who currently works for the business, and the roles you plan to hire for.

Products and services

Explain what makes your eCommerce shop shine: its products and services. Describe, in detail:

• What products and services you sell.
• How much you charge for these products and services, and your profit margins on them.
• Where and how you manufacture and source your products.
• How you plan on fulfilling orders. 
• Intellectual property you have ownership of (if any), including trademarks, patents and copyrights.

Marketing strategy

Having great products is fantastic, but that in itself is useless if people don’t know about your products. Include your marketing strategy in your eCommerce business plan to show your team and investors how you’ll get your products in front of customers. 

Your marketing strategy should include:

• A SWOT analysis that explores your business’s strengths, weaknesses, opportunities and threats.
• The marketing channels and tactics you plan to use. Some useful strategies for eCommerce businesses are search engine optimization (SEO), social media commerce , email marketing, partnerships and influencer campaigns.
• Marketing goals and key performance indicators (KPIs) to measure them. How will you measure growth? 

This is the juiciest section of your business plan. It helps you set sales and fundraising goals that will let you explain to investors where you stand financially and why you need their investment. 

If your business is pre-revenue, include:

• Revenue projections
• Funding information
• Expected costs

If your business already exists, include information like:

• Historical and forecasted revenue
• Investments
• A profit and loss statement
• Expenses (supply chain, labor, website hosting, etc.)
• Budget vs. actuals 

The ultimate eCommerce business plan template

Now that you know everything there is to know about how to start an eCommerce business, it’s time to craft your business plan. Follow the template below to set yourself up for success.

Executive summary 

Company name:

Founders/leadership team:

Products/services:

Target market:

Marketing strategies:

Business model:

Mission statement:

Company values:

Ideal customer:

Market size:

Competitive analysis:

What makes your business different from the competition? What are your advantages and opportunities?

Legal structure:

Leadership team:

Organizational chart:

Product/service 1:

Product/service 2:

Product/service 3:

Pricing, positioning and profit margins:

Manufacturing/supply chain:

Intellectual property claims:

SWOT analysis:

• Weaknesses:
• Opportunities:

Marketing channels:

Marketing goals and KPIs:

Revenue (projected or actual):

Profit or loss:

Investments:

Budget vs. actuals: 

eCommerce business plans turn dreams into action

When you record what you want to achieve and how you’re going to achieve it, you’re more likely to turn your vision into a reality. Take the time to think about your business, find out what makes your products different, and be thoughtful about how you’re going to find customers.

When you’re ready to build your eCommerce shop, turn to Lightspeed’s eCommerce platform.  Watch a demo to learn more.

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Lightspeed is a cloud-based commerce platform powering small and medium-sized businesses in over 100 countries around the world. With smart, scalable and dependable point of sale systems, it's an all-in-one solution that helps restaurants and retailers sell across channels, manage operations, engage with consumers, accept payments and grow their business.

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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.

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.

• Sample Business Plans
• Retail, Consumers & E-commerce

How to Write E-commerce Business Plan + Template

So apparently everyone is jumping in to start an ecommerce business. Considering you already have your star product or service ready, you must be very thrilled to launch your business and make your first sale.

However, wait. Is your business plan ready? If you haven’t marked writing a business plan as the most important task on your checklist, you need to do that right away.

We know writing an ecommerce business plan is challenging. As a business owner of this new challenging enterprise, you don’t have much time. But this detailed guide with step-by-step procedures is likely to make the entire process of writing easier for you.

Don’t waste a minute further. Let’s dive right into the topic.

Key Takeaways

• Elements like executive summary, product or service, operations, marketing and sales plan, management team, and financial plan come together to make a compelling business plan.
• Determine marketing strategies for your ecommerce business and lay a clear action plan for building a solid brand image.
• Clearly establish your value propositions, business goals, and objectives to form relevant strategies for your ecommerce company.
• Make financial projections and consider various progressive and aggressive scenarios to establish the feasibility of your business idea.
• Identify the gaps and loopholes in your planning and make changes to your business idea accordingly.

Why do you need an Ecommerce business plan?

A business plan has many more advantages apart from helping you get approved for a business loan. Here are a few potential benefits of having one for your ecommerce company:

• Goals fulfillment: You will have to juggle multiple roles while running your ecommerce store. A well-crafted business plan will offer a roadmap to your business while helping you realize your business goals.
• Business strategies: A  business plan simplifies your business strategy and helps put the strategies for sales, marketing, and operations in perspective.
• Market analysis: A business plan strengthens your stand in the market by compelling you to conduct a detailed market analysis of the industry, competitors, and potential customers.
• Test ideas: An ecommerce plan will help you realize the gaps and errors in your planning. This allows you the luxury to make changes in the business model before investing your money in it.
• Simplifies the finance: A well-structured business plan lays a clear financial plan for your ecommerce business. The figures will help you understand the profitability, costs, and expenses of the company and its viability in monetary terms.

There’s much more to it. A business plan is like a beam of bright light that will make walking through the woods easier. It’s a living document that will evolve as the business grows.

Key components of an ecommerce business plan

Wondering what goes into making a perfect ecommerce business plan? Well, these are the key components you shouldn’t be missing.

• Executive summary: The executive summary will highlight the key details of your entire business plan.
• Business overview: This section will include a brief business overview along with its value proposition, objectives, mission, and vision statement.
• Market analysis: This section will define your potential customers and competition. A detailed industry analysis and competitors analysis will lay a foundation for important business strategies.
• Products and services: Define the products and services you will sell to your ideal customer. Also, offer a brief description of each product.
• Sales and marketing strategy: Highlight your sales and marketing plan to attract your potential customers. From content marketing to social media- include every detail of your strategies here.
• Operations plan: A well-defined plan that will help you run a smooth online business. Clearly defined process for inventory, order fulfillment, sales, storage, etc.
• Management team: A brief introduction of your company’s management team and their expertise in the field.
• Financial plan: Includes detailed financial forecasts and key reports like balance sheet, cash flow, P&L, and investment plan.

There is no definite format for business plans. However, a comprehensive plan accounts for all these components and makes it effective.

How to Write an Ecommerce Business Plan: A Complete Guide

From undertaking thorough market research to creating a marketing plan- uncover every detail on writing an effective plan for your online business with this guide.

1. Get an Ecommerce business plan template

Crafting a stellar business plan is a challenge. However, it can be the most precious reward for your business if you manage to write it comprehensively.

The process of translating your business idea into a business plan is lengthy and time-consuming. One is likely to leave behind an important detail or two without any definite format.

This is why you need an Ecommerce business plan template to write your plan in a structurally organized format. A template will help streamline your thoughts, organize the vision, and bring your ideas to life effortlessly.

Let’s not look elsewhere for a perfect template. Upmetrics business plan template is intuitive and is enriched with relevant examples that can be easily used as a reference while writing your plan.

Need Assistance Writing a Ecommerce Business Plan?

Get Upmetrics’ business plan template, import data directly into the editor, and start editing using Upmetrics AI Assistant.

Start Planning Now

2. Write an executive summary

Executive summary is a concise rundown of key points that summarizes your business plan. Though presented at first, it should be written in the end after you have walked through all the other aspects of planning.

Consider it as a document that will offer a brief insight into your overall business. Investors will read this part and gauge the viability of your business idea. If they find it fascinating and intriguing enough they will read it further in detail.

Add brief details of your ecommerce business, target market, problem, solution, service model, business goals, and financial figures in this section.

Adapt a narrative tone to make it interesting and keep it highly informative. And, most importantly keep it within a limit of 1-2 pages.

Say goodbye to boring templates

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3. Create a company overview section

As the title suggests, this section offers a brief company description of your ecommerce business. You must also include brief details about the company’s history in this section if it’s not a new venture.

So what does this section include?

• Name and location of the business , i.e. location of your warehouse, back end office.
• Type of your Ecommerce business , i.e. B2B, B2C, D2C, C2C, etc.
• Business structure of your e-commerce brand , i.e. sole proprietorship, Partnership, LLC, limited partnership, etc.
• Business goals : Highlight milestones such as sales or revenue goals.
• Mission statement : Describe the fundamental purpose of your business explaining why the business exists. For instance, the mission of First Cry is to offer eco-friendly baby care and maternity items to conscious buyers through its website and listings on a third-party platform.
• Vision statement : It is a declaration of what you want to achieve with your ecommerce business. For instance, First Cry wants to become the preferred brand for baby care products in the markets of North America, Asia, and Europe.

4. Conduct a competitive and market analysis

In this section of competitive and market analysis, you will dive deep into the study of the target market, industry trends, and your competition. Only a thorough understanding of these key elements will help you build a resilient business.

Target market and market opportunities

Begin by determining the Total Addressable Market (TAM) for your products and services. This part of the market analysis will offer a realistic idea of your market size.

Further, strengthen the understanding of your target market by identifying your target audience. Create a buyer persona by considering the psychographic and demographic details of your ideal customer.

Collect data from US census boards, government websites, and industrial publications for solid and foundational market research.

Lastly, identify the market trends and highlight your business strategy to fill the gaps in the existing market.

Competitive analysis

Ecommerce companies operate in a severely competitive marketplace. Understanding your competition will help you safeguard the business against potential threats and risks from your direct and indirect competitors.

Collect the data and analyze your competitors on the grounds of prices, services, quality, product offering, target market, and market size to make conclusive points. Evaluate their strengths and weaknesses using methods like SWOT analysis.

Now, detail the competitive advantage of your products and service offerings. This analysis should reflect that your business idea has a solid advantage over competitors’ offerings.

Focus on quality research. The study of the target market and competition will lay a foundation for crafting efficient business strategies.

5. Detail your products and services

After completing your market analysis, you will create a detailed section for your products and services.

Highlight all the product lines that your online business will offer. Also, mention the products within each product line and the product source.

If you are amongst the ecommerce businesses that sell digital products or services, mention those and explain how the customers will access them.

For instance, an OTT platform offers streaming services to its clients through an application.

Keep this section detailed by adding a brief description of each product and its pricing.

Consider this as a checklist of questions you must answer within this section:

• What are the products of your online store?
• Will you manufacture the products or source them from vendors?
• How will your customers buy the product- Website, application, shopping platforms, etc.
• What will be the pricing of your product offerings?

6. Develop a sales and marketing plan

By now, the readers are aware of the products and services that your online business will offer. It’s now time to tell them your sales and marketing plan.

Millions of ecommerce businesses start every year. But very few manage to crack their desired sales.

In this section, you will make sales strategies to ensure that your desired sales become achievable.

Try answering the following to form an efficient sales plan:

• Sales channels: website, application, ecommerce platforms, subscription box platforms, flash sale sites, etc.
• Sales method: Inbound methods or outbound methods
• Sales personnel: Who will be responsible for product/service sales
• Sales tools: CRM

The decisions you make here will influence the marketing strategy of your online store.

Marketing strategy

Now you need a well-rounded marketing plan to market your online store. After all, marketing is crucial to developing a brand, reaching your target customers, and acquiring sales.

In this section of a business plan, you will highlight the marketing plan for your ecommerce business. Identify the marketing channels that will be most effective for your target customers and design your strategies accordingly.

Here are a few prevalent marketing methods that can help you grow your online store:

• Content marketing: Start writing informative and useful blog posts for your target audience. Focus on principles of SEO and keyword research to grow your reach organically. Also, post guest blogs on websites to increase your chances of reaching a wider audience.
• Social media marketing: Identify the social media platforms that are used the most by your target audience and dedicate your marketing efforts accordingly.
• Email Marketing: Email marketing is the most rewarding marketing channel for thousands of ecommerce businesses out there. Explain how you will build your Email list and draw conversions through them.
• PPC: Design strategies for running paid ads on Google, Facebook, and other platforms and determine your budget for the same.
• Traditional PR: Traditional methods of publications can also help you market your product effectively. If you will be using such methods, highlight the details regarding the same.
• Influencer marketing: Will you hire or barter with influencers to promote your product? If so, define your strategy for the same.

All in all, the marketing plan should clearly define a roadmap to reach your target audience. Also, highlight different marketing tools you will use for your online business.

7. Introduce your management team

Having the right team will help you build a successful ecommerce business. So take your time and figure out the manpower needs for your business.

In this section of your business plan, you will introduce the key management members at your ecommerce store. Define their role, responsibility, experience, expertise, and achievements to prove their suitability in your organization.

Outline the organizational structure of your online store and explain how these people will be responsible for the smooth functioning of your business.

8. Outline your operational plan

Running an ecommerce store is not an easy task. From managing the backend to offering timely deliveries- a lot goes into ensuring smooth business operations.

A solid business plan cannot be complete without a detailed section of operations in it. So take your time and set your operations in line before you start with the store.

Here are a few things that most ecommerce business plans have in common. Consider adding them to your operations plan as well.

• Order fulfillment process: Everything from getting an order to delivery, managing returns, shipment, packaging, exchange, and tracking is defined at this step. Explain how the order will be fulfilled at your online store.
• Manufacturing and quality control: If the products will be manufactured in-house, what will be the manufacturing process? How will you ensure quality? Where will the goods be manufactured? What machinery will you use?
• Suppliers: Who will be your supplier for products and services? What will be the purchase terms? Will there be an agreement or contract? What would be the contingency plan in case of casualty?
• Storage: Will you dropship the products or store them in a warehouse? Where will be the storage located? How will you manage stock? What methods will you use?
• Technology and payment processors: How will the customers pay for online shopping? What payment methods are available for them? What technologies will you use to facilitate payments? How will you secure their personal information?
• Customer service: How can the customers reach you? What will be your order policies? Will there be any customer service team?

The logistics and operations plan will serve as a policy book for your organization. It will answer every query and doubt regarding the process.

9. Prepare financial projections

Now comes the most taxing part of creating a business plan- preparing a financial plan.

A financial plan is crucial because it will help you determine the feasibility of a business idea. Moreover, if you plan to seek funding for your online business, the projections in this plan will compel potential investor’s interest in your business.

Here are a few things to include in your financial plan:

• Startup costs: Estimate the startup costs for your ecommerce business . From website development to inventory costs, licensing fees, security, and software charges- include every cost that will go into establishing your online business.
• Funding source: Determine your funding requirements and what sources will you use to acquire the funds, i.e. business loans, angel investors, friends and family, etc.
• Pricing strategy: Include your pricing plan for the products and services. Consider various overhead and operational costs to determine the final pricing.
• Sales projections: Include your monthly, quarterly, and annual sales projections through different sales channels and also estimate your revenue.
• Income statement: Also known as profit and loss statement, in this key report you will forecast the company’s profit and loss for the next 3-5 years. The difference between a company’s revenue and expenses will give you gross profits and net profits.
• Cash Flow Statement:   A clear documentation of cash that is generated and spent in a business. This will help potential investors understand whether your business will make or lose money.
• Balance sheet: A key summary of your business assets and liabilities that indicates your net worth. Calculate your equity in the business by deducting all the liabilities from your assets.
• Break-even analysis: Break-even will help you evaluate how long before the business will start making money.

Too much of calculations right? Not with the financial forecasting tool from Upmetrics. Simply enter your numbers in the tab and the tool will do all the detailed calculations for you. Import the data from Excel sheets and before you know your projections will be done.

Ecommerce Industry Highlights 2023

Ecommerce is a trillion-dollar industry. It’s indeed a rewarding market for anyone who wants to start an ecommerce business. But before that, you must check out these latest industry highlights of 2023.

• Global market size: The global Ecommerce market size is expected to reach 6.3 trillion dollars in 2023. There is ample room for new businesses to venture into this market.
• Online marketplace : According to Forbes , 24% of total retail purchases will be made online by 2026.
• Market leader: Amazon accounts for 37.8% of Ecommerce sales , which is far more than other ecommerce businesses.
• Cart abandonment: 48% of online shoppers abandon their carts because of extra costs on shipping and taxes. You are likely to lose your potential customers if you fail to consider these aspects.
• Frequency to shop: 79% of online shoppers will shop for something or the other at least once a month. Considering the customer segments, nearly 96% of Gen Z shop at least once a month online.
• Social media commerce: If you think websites and platforms are the only way to reach your potential customers, you are wrong. 96.9 million people in the USA are reported to shop on social media.

The US online marketplace is expected to reach 940.9 billion by 2023 end. There is enough scope for new businesses to emerge and grow in this competitive market space.

Related Ecommerce Resources

• Creating a Successful E-commerce Marketing Plan
• E-commerce Financial Plan
• E-commerce Industry Statistics
• Calculating Your Online Store Startup Budget
• How To Open n E-commerce Business

Download a sample ecommerce business plan

Looking for help to write your business plan? Well, we have something absolutely perfect for you. Download our ecommerce business plan sample pdf and get a detailed guide to write a plan along with relevant examples.

Upmetrics business plan templates are designed specifically for entrepreneurs and business owners who want to write their own business plans. Our templates are modern, intuitive, and easily available to kickstart your plan writing.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

Write your business plan with Upmetrics

All set to start your own ecommerce business? Let’s simplify the entire business planning process for you with Upmetrics. We have more than 400+ customizable sample business plans suited for varying different businesses. With features like AI assistance and financial forecasting, you can bring together an actionable business plan in easy steps.

So whether you are aiming to start a business-to-business or business-to-customer or any other type of ecommerce business, you are well equipped to write the most stellar plan with our business planning app .

Get started now.

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Frequently asked questions, can i get expert help to draft my ecommerce business plan.

Of course, you can. Writing a business plan is not an easy task. You may lose context or can leave behind an important detail while writing. A plan writer can translate your business idea into a plan efficiently with his compelling skills. If not, you can take the help of online tools and search for relevant templates to write your own business plan.

Can I customize my ecommerce business plan as per my business needs?

Absolutely yes. No two ecommerce businesses are the same. The very purpose of a business plan is to address the unique concerns, ideas, and questions relating to your ecommerce business. From executive summary to a financial plan, customize every aspect of your plan with Upmetrics business plan builder.

What are the common mistakes to avoid while crafting an ecommerce business plan?

Here are a few mistakes to avoid while drafting a business plan for your new business:

• Lack of market research
• Inadequate financial planning
• Overlooking the competition
• Not having a clear value proposition
• Undermining the technology needs
• Not considering casualties and emergencies
• Using complex language

Can I create an e-commerce business plan on my own, or should I hire a professional?

Ideally, you should be the one drafting your business plan. This is because no one knows your business better than you yourself and your business partners. So instead of hiring a professional, take the assistance of plan builders and step-by-step guides and create a compelling plan. Upmetrics AI assistant will simplify the writing process by helping you put together a cohesive write-up.

What are some emerging payment technologies to consider in your e-commerce business plan?

If you are planning to start a competitive ecommerce brand, you need to offer a bunch of payment solutions preferred by your target audience. Here are a few payment technologies you must definitely have in your business:

• QR code payments
• Mobile wallet
• Contactless payment
• Real-time payments
• Buy now pay later solutions

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Ecommerce business plan

• Published on April 23, 2024
• by Oguzhan Uyar
• Last updated: 2 months ago

What’s the real anatomy of a winning ecommerce business plan?

Gone are the days of cookie-cutter strategies and one-size-fits-all blueprints. The modern road to ecommerce success? It’s paved with innovative tactics, data-driven decisions, and personalized customer journeys. Looking to elevate your ecommerce game? Discover how to boost online sales in 2024 with cutting-edge strategies, from engaging your ideal customers to turning browsers into devoted buyers.

Sounds complex, right?

Well, buckle up. Today, we’re demystifying what a successful ecommerce business plan truly looks like, giving you exclusive insights that could potentially skyrocket your online sales.

No buzzwords, no fluff – just hard facts and actionable strategies. Game on.

Unveiling the Essential Components of an Ecommerce Business Plan

Executive summary: the first impression.

Consider the executive summary as your ecommerce business plan’s ‘elevator pitch’. Crafted right, it sets the tone and captivates the reader’s attention. The significance of a compelling executive summary cannot be overstated as it encapsulates the essence of your ecommerce business plan.

In a nutshell, an executive summary should include your business concept, financial information, marketing strategy, and an overview of your business goals. It’s like a teaser; if it sparks interest, they’ll delve into the more detailed areas.

Planning Versus Winging It: According to research conducted by Harvard Business Review, entrepreneurs who craft a structured business plan have a 16% higher chance to achieve viability than those who don’t.

Company Description: Your Ecommerce Identity

The company description section is where your business comes to life. This part solidifies your vision, mission, and purpose. A well-curated company description will clarify your company’s identity and set it apart from the rest.

It should cover essential elements like what you sell, your target market, and what differentiates your business from others. Furthermore, your ecommerce goals and how your company aims to achieve these goals should be detailed. What unique selling points (USPs) set your ecommerce business apart? Include it – it’s these details that could make or break potential partnerships, collaborations, or even client investment.

Planning Trends Among Startup Founders: Entrepreneurs aiming for high-growth startups are 7% more inclined to engage in planning, while those with innovative, disruptive concepts also show a slight preference (4%) for planning compared to their counterparts.

The Key Elements of Your Company Description

1. Your company vision, mission, and goals

2. Details of the products or services your ecommerce store or business sells.

3. Your USPs and how they set you apart in the market.

4. Your target market and why your brand is a good fit for them.

5. How do you aim to achieve your business goals and targets?

Indeed, curating a winning ecommerce business plan is no cakewalk. Yet, cutting corners in the executive summary or company description could prove costly in the long run. So, spend considerable time refining these key sections. They not only represent your business but they also communicate your dedication, meticulousness, and professionalism.

Timeframes: A Key Element of Effective Business Planning: Short-term goals can span from just a few hours to a year, while long-term goals typically require 1-5 years for accomplishment.

Crafting a Successful Ecommerce Business Plan: A Step-by-Step Guide

Step 1: market analysis: the foundation of your business model.

Market analysis paints an accurate picture of your industry, competitors, and customers. It’s the source of informed decision-making.

Across the ecommerce world, market analysis maintains a top spot for its vital role in driving profitable conversations and securing a sustainable competitive edge.

Before drafting your ecommerce business plan, conduct thorough market research to build a comprehensive business plan that outlines your business idea and growth potential. This requires analyzing potential customers, sales channels, direct and indirect competitors, and raw materials.

Key elements to feature in your market analysis include:

1. The industry’s outlook and potential

2. Target customer segment definition

3. Evaluation of your competition and your company’s competitive advantage

4. Pricing and sales distribution strategies

This step is crucial in the early stages of your ecommerce business plan templates, so allow plenty of time for thorough research. Make sure these elements align well with your business model. Outlining this section well will pave the way for the rest of your ecommerce business plan.

Step 2: Organization and Management Structure

An effective organization and management structure provides a clear image of your business’s operational framework. It’s the basis for effective internal communication.

– A thorough explanation is worth its weight in gold, positioning your e-commerce enterprise to attract potential investors and talented team members.

Here are key elements to mesh into this part of your business plan:

1. Ownership: Who owns the business?

2. Organizational structure: What are the roles and responsibilities of each team member?

3. Recruitment strategy: How do you plan to draw in and retain top talent?

Remember, transparency is key. A cogent organization and management scheme offers clarity and inspires confidence in your team members and potential investors.

Step 3: Services or Products Line

The Services or Products Line section is all about showcasing what your e-commerce business has to offer. It’s the moment to nab your customer’s attention.

– A detailed explanation of your products and services, or products lets customers and investors alike understand what sets you apart from the crowd.

Key elements to spotlight when sculpting this section include:

1. Detailed descriptions of each product or service

2. Details on product lifecycle and intellectual property rights

3. Research and development activities (if relevant)

This section is your chance to boast, so make sure your descriptions are captivating, informative, and catered to your target audience.

Remember, a winning e-commerce business plan strikes a balance between ambition and realism. Equip your sample ecommerce business plan with strong market analysis, a clear organizational structure, and an enticing product or service line description, and you’re already ahead of the game.

Ecommerce Business Plan Template: A Practical Approach

Online Retail Market: By 2027, 23% of retail purchases are expected to take place online.

Overview of a Standard Ecommerce Business Plan Template

What’s this elusive object known as an ecommerce business plan template? It’s your road map, your compass, your GPS – a comprehensive guide that structures your e-commerce business plan into precise, logical sections. This meticulously crafted tool assists you in organizing and presenting your business aims, tactics, and projected performance. Your strategic initiatives are unlikely to veer off course when you adhere to this structured format.

Benefiting From Tech Advancements: Enhancing Business Impact: By 2023, most businesses leveraging AI for digital commerce will experience a minimum 25% enhancement in either customer satisfaction, revenue, or cost savings.

Importance of using a template? It goes beyond mere formatting and structure. A well-built template leaves no room for overlooking crucial components, ensuring a well-rounded, systematic plan. Your need for writing a business plan could vary – attracting investors, obtaining bank loans, or even just a self-reflective exercise. Regardless, all can benefit from a clear, precise layout that a standard e-commerce business plan template offers.

You might wonder, what goes into a standard e-commerce business plan template. Common elements include an executive summary, a company overview and description, products and/or services, a market analysis, a strategy and implementation section, a web plan summary, and an organization and management team overview. Together, these key sections form a robust narrative about the life of your online business.

Customizing Your Ecommerce Business Plan Template

After understanding the skeleton of a plan template, let’s add meat – it’s customization time. Customizing your template isn’t a daunting task requiring expert coding skills. It’s the art of adapting an existing template to marry rightfully with your business’s unique identity.

Why should you bother about personalizing? No two ecommerce companies are identical. Consider your business – it’s distinct in its products or services, market, operations, and potentially, the very business structure and model itself. By customizing your business plan, you can express these unique aspects lucidly.

How does one go about customization? Here are a few tips. Begin by cataloging the specifics of your online business – the unique selling points, customer base, competition, etc. Then, modify your template to emphasize these aspects. Remember, the template is flexible. Feel free to re-order, add, or eliminate sections to make the plan a better fit for your ecommerce business’s e-commerce venture.

The Power of Visual Appeal in Consumer Decisions: Visual appeal is the primary determinant for 93% of consumers when making purchasing choices.

Now that you have an understanding of a practical approach to an e-commerce business plan template and its effective customization, you’re well on your way to crafting a winning business plan.

Financial Projections in an Ecommerce Business Plan: The Numbers Game

The financial plan is the backbone of your ecommerce business plan. It outlines the financial projections, balance sheet, income statement, and cash flow statement. This section will help you determine the viability of your ecommerce business plans and secure a business loan from potential investors.

Growth Anticipation of the Market: The global e-commerce market is expected to total $6.3 trillion in 2024.

Here are key elements to mesh into this part of your ecommerce business plan:

1. Financial projections and how you aim to achieve them

2. Balance sheet, income statement, and cash flow statement

3. Potential sources of funding and how you plan to use the funds

4. Key performance indicators (KPIs) and how you will measure success

5. Business objectives and how they relate to your financial plan

Remember, a solid ecommerce business plan is essential for establishing an online store and attracting potential investors and business partners. You can write a solid business plan from scratch or use free business plan templates available online. Whatever you choose, a formal business plan is key for the long-term success of your ecommerce company.

Let’s move from our initial practical approach of crafting an ecommerce business plan into playing the numbers game.

Importance of Financial Projections

Assembling the financials should be next on your checklist. These form the backbone of your prospective business, offering a snapshot of your business’s health and creditworthiness. Considering embarking on an ecommerce venture? Discover the essentials of starting your online business , from financial preparations to launching your digital shop.

Why Financial Projections are Crucial

They map out the trajectory of your e-commerce business, offering key stakeholders – from investors to partners – a clear, quantifiable outlook. Here, optimism blends with cold, hard mathematics resulting in an actionable plan and a verifiable measure of success or failure.

Entrepreneurs who are actively seeking external finance are 19% more inclined to craft a business plan compared to those who are not seeking finance.

Key Elements to Include in the Financial Projections Section

Understanding which elements to incorporate within your projections forms the bedrock of your plan. These encompass your sales forecast, projected income statement, cash flow statement, and anticipated balance sheet. These four deliverables paint a comprehensive financial model for your ecommerce venture.

Crafting A Realistic and Attractive Financial Plan

Steering clear of mere speculation, and focusing on tangible data, is the secret to crafting projections that resonate with investors without pushing away potential ones.

Tips on Creating Realistic Yet Attractive Financial Projections

Start with understanding your market size and anticipated market share, before moving on to mapping out your sales forecast, monthly expenses, and operational costs. Use historical data from similar businesses to better model your expectations. Keep in mind that assumptions should be defensible, reasonable, and, above all, believable.

Balancing Optimism and Realism in Financial Projections

While you aim to reflect an ideal scenario, it’s essential to balance your optimism with a healthy dose of realism. Financial projections are not solely about selling your pitch; they also serve as a barometer for your own operational decisions and business strategies.

The numbers game cannot be won overnight but is an evolution in tandem with your business’s development. With this robust financial framework, you stand more confidently on the precipice of shaping your e-commerce venture.

Marketing Strategy for Ecommerce Business Plan: Winning the Market

From the numerical landscape of financial forecasting, let’s now shift gears into an equally crucial arena – your marketing strategy. Here, artistry and data intertwine to form the blueprint of your digital footprint. Your e-commerce venture’s success depends on it, much like how a sculptor needs a plan before carving a masterpiece.

Importance of a Solid Marketing Plan

A robust marketing strategy is not a delightful addition to your business plan but a mission-critical must-have. It’s the roadmap guiding your business to its intended destination – customer satisfaction and business profitability. It helps you understand and connect with your customers, positioning your business in a way that attracts and retains them.

Social Media Influence: 36% of purchasers discover new products through engagement on social media platforms.

Key elements to include in the marketing strategy section are your target market analysis, brand positioning statement, and your key marketing channels. Each of these elements contributes to the overall picture of how you intend to attract and engage with customers.

1. Your target audience and why they are important to your business

2. Your unique selling proposition (USP)

3. Email marketing and its role in your marketing strategy

4. Content marketing and how it will benefit your ecommerce business

5. Search engine optimization (SEO) and its impact on your online visibility

Remember, your marketing plan should be tailored to your target market and should reflect your ecommerce business’s goals and objectives.

Target Market Analysis

Understanding your audience is the first step in crafting an efficient marketing strategy. Your marketing plan outlines how you’ll reach your target audience and potential customers. It details your unique selling proposition, email marketing, content marketing, search engine optimization, and other marketing tools.

Demographics, psychographics, and behavior metrics can provide you with actionable insights into your customers’ needs and expectations.

Who Buys Online? The online shopping demographic divides into four segments, with Generation X comprising 34%, Boomers at 31%, and Millennials at 30%. Online Shopping Trends in the US: In the USA, over three-quarters of Americans shop online, with an expected 11% growth in online retail sales globally from 2023 to 2027.

Brand Positioning

Your brand’s position in the market sets the stage for how customers perceive your e-commerce platform. Crafting a clear, concise positioning statement can differentiate your brand and make it stick in the minds of your customers.

The Power of Successful Brands: As reported by Reuters, 82% of investors see increasing significance in brand strength and name recognition when making investment choices. Plus, 71% of consumers more likely to buy a product or service from a name they recognise.

Key Marketing Channels

Selecting the right marketing channels is more art than science, combining customer insights, competitor analysis, and channel-specific expertise. An effective channel mix can help attract and engage customers across the user journey.

Social Media Influence: Brand social media posts influence and affect 78% of customers.

Crafting a Winning Marketing Strategy

As an e-commerce business owner, your primary objective is to connect with customers wherever they are and however they wish to shop. Achieving this goal begins by crafting a winning marketing strategy that’s tailored to your customers’ wants and your business goals.

Social Media Integration: 40% of retailers incorporate social media into their marketing strategies to boost sales.

Merge Creativity with Data

An impressive marketing strategy finds the balance between creative storytelling and data-driven decision-making. Ensuring your strategies align with actual business goals and KPIs will allow you to chart a winning trajectory.

Align Marketing Strategy with Business Goals and Target Market

Alignment is essential – your marketing strategy should serve as a reflection of your business goals and cater to the needs of your target market. This harmony ensures consistency in brand messaging and touches on the right points that resonate with your target audience.

Remember, a marketing strategy isn’t a static document. It should evolve with your business, always keeping pace with the changing dynamics of your market and customers. Much like an artist refining their masterpiece, your ecommerce company’s in-commerce marketing strategy would need periodic touch-ups and changes to adapt to the evolving market trends and customer preferences. So, put on your marketer’s cap, let the customer data guide you, and use your creative genius to craft a strategy that wins the market.

Your Winning Ecommerce Blueprint

A successful e-commerce business hinges on a robust plan. It involves understanding and identifying your target audience, setting clear business objectives, developing marketing strategies, and committing to exceptional customer service.

Remember, these insights aren’t mere tips — they’re solid strategies and steps designed to give your e-commerce business a competitive edge.

Don’t hang about.  Start today  by doing a deep dive into your demographics. Who are they? What do they want? Then, set your objectives. What does success look like for your business? Strategize your marketing. How will you reach your audience? Finally, highlight your roadmap to customer satisfaction.

But before you dive in, consider this: How will these strategies make a tangible difference in your business? Could they be the much-needed catalyst for your e-commerce success? Your journey to a winning business is right there in front of you, all it takes is to make the first step. Will you seize it?

How to start an ecommerce business

How to sell online: Best tips for 2024

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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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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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Coover ❯ Modèles ❯ Comment construire son Business plan ? ❯ Business plan e-commerce : notre modèle gratuit

Business plan e-commerce : notre modèle gratuit

La mise en place d'un business plan est un passage obligatoire dans la vie de tout entrepreneur qui souhaite se lancer dans un projet de e-commerce. Coover vous accompagne dans cette tâche en vous proposant un modèle (excel) de business plan d'un e-commerce gratuit !

Si vous souhaitez bénéficier rapidement d'un modèle déjà pré-complété (fichier Word et Excel) pour votre projet de boulangerie, vous pouvez démarrer gratuitement votre Business Plan sur la plateforme : Angel Start .

Pourquoi faire un business plan e-commerce ?

Ce business plan est un document qui permet de présenter de la manière la plus efficace possible le projet de e-commerce (au moment de la création ou après). Ce document doit permettre de vérifier la viabilité et la solidité de votre projet d'un point de vue stratégique et financier.

Tout d'abord, le business plan est un bon moyen de prendre du recul sur la structure de son projet pour identifier de manière pertinente les tenants et les aboutissants de ce dernier. Egalement, le business plan est un élément très important si vous souhaitez un jour présenter votre projet à des investisseurs . Ces derniers seront très attentifs à la rentabilité de votre projet.

Souvent, un business plan peut se présenter sous la forme de deux fichiers :

• un fichier word qui explique les étapes clés du développement de l'entreprise, ce qui donne des explications économiques et stratégiques du projet.
• un fichier excel qui retrace tous les flux financiers de l'entreprise, ce qui donne une explication financière du projet.

Dans notre modèle, nous nous sommes concentrés sur le fichier excel.

Comment fonctionne notre modèle de business plan vente en ligne ?

Notre modèle est donc un fichier excel. Nous avons considéré qu'il était pertinent de le construire sur la période de 2022 à 2024 avec des résultats mensuels. Si vous souhaitez visualiser votre business plan sur une période différente, notre fichier est bien sûr modifiable mais veuillez mettre les mêmes périodes dans chaque onglets (sinon certains calculs seront mal exécutés). Notre document est constitué de cinq feuilles :

• L'onglet 1 qui retrace la totalité des revenus et des charges de l'entreprise (par exemple l' assurance responsabilité civile )
• L'onglet 2 dans laquelle vous pourrez calculer votre trésorerie. Vous n'avez rien à remplir sur cette feuille, elle est totalement dépendantes des autres
• L'onglet salaires ou vous remplissez selon les différents postes les différentes rémunérations possibles avec des éventuelles évolutions
• L'onglet hypothèses qui sont nécessaires à la construction du business plan pour évaluer les dépenses
• L'onglet politique d'amortissement pour calculer la dotation aux amortissement (mensuelle)

Quels sont les champs de notre template de business plan e-commerce ?

Dans ce business plan, les valeurs que vous devez rentrer se situent dans les cellules surlignées en bleu . Toutes les autres cellules sont dépendantes des bleues et s'adaptent donc en conséquence de vos choix. Il faut être attentif car parfois vous devez remplir des valeurs pour chaque mois de chaque année, parfois pour chaque année et enfin dans certains cas c'est une valeur unique pour les 3 ans. Vous devez donc remplir tous les champs suivants :

• Rythme d'ouverture qui correspond au nombre d'ouverture de bureaux durant la période correspondante
• Chiffre d'affaire brut
• Achat de matière première stockées : cette dépense intervient seulement lors de l'ouverture d'un nouveau bureau
• Loyer, par bureau
• Entretien immobilier, par bureau
• Honoraires comptables, trimestriel
• Marketing et communication : vous remplissez le pourcentage du CA que représente cette dépense. Si, pour votre activité, cette dépense ne se calcule pas de la sorte, vous pouvez entrer d'autres valeurs à la mains pour chaque mois
• Frais bancaires
• Frais de personnel intérimaire (lorsque le personnel est mis à disposition par une entreprise de travail temporaire)
• Charges patronales (entre 25 et 42% du salaire brut)
• Les salaires. Vous pouvez modifier les noms "poste 1", "poste 2"... Si vous voulez modifier les dates, veuillez à bien les écrire de la plus proche à la plus lointaine (en première ligne AC3 la plus proche, ensuite la deuxième plus proche...). Enfin, vous avez aussi la possibilité de préciser d'éventuelles augmentations. Parfois il y a "n/a" car si le poste a été créé en 2023 par exemple, il ne peut pas y avoir d'augmentation en année 2 (donc 2025 par rapport à 2023) car le business plan s'arrête en 2024.
• Voyages & déplacements
• Achat fournitures de bureau, qui correspond à la valeur (unique) rentrée dans les hypothèses.
• Prix des machines ainsi que la durée d'amortissement
• Prix des aménagements, travaux, permis ainsi que la durée d'amortissement
• Prix des équipements informatiques ainsi que la durée d'amortissement
• Prix du mobilier ainsi que la durée d'amortissement

Ces quatre dernières dépenses entrent dans la catégorie des immobilisations corporelles, il faut donc les amortir. Nous vous avons donné des indications pour les durées d'amortissement.

Même si nous avons essayé de construire un modèle complet, sachez tout de même qu' un business plan dépend vraiment de chaque projet et que vous serez donc sûrement amenés à rajouter des dépenses qui vous sont propres.

Si vous voulez rajouter des informations, vous devrez modifier les formules (ajouter une ligne de plus à une somme par exemple) pour que vos valeurs restent vraies.

Quelles sont les valeurs clés du business plan ?

Un des objectifs du business plan est de calculer des valeurs clés qui sont censées être représentatives de la santé de votre entreprise . Si vous présentez votre business plan à des investisseurs, ces derniers seront particulièrement attentifs à ces indications. Certaines de ces valeurs clés sont surlignées en vert (si elles sont positives) ou en rouge (si elles sont négatives). Voici les agrégats intéressants calculés par notre modèle :

• L'EBITDA (earnings before interests, taxes, depreciation and amortization) et EBITDA margin (égale à EBITDA / CA). L'EBITDA est un indicateur qui se rapproche de l'EBE (excédent brut d'exploitation), à la seule différence que l'EBE ne prend pas en compte les dotations aux provisions d'exploitation.
• EBIT (earning before interests and taxes) ou REX (résultat d'exploitation), qui traduit la marge réalisée par l'entreprise sur son activité industrielle et commerciale et EBIT margin (égale à EBIT / CA)
• Trésorerie de fin de mois et cumul de trésorerie

Quelles sont les spécificités d’un business plan vente en ligne ?

En France, de 2014 à 2020, les ventes de e-commerce sont passées de 57 à 112 milliards d'euros de chiffre d'affaires , soit une croissance de 96,5%. Ce secteur explose et attire chaque année de nouveaux entrepreneurs. Dans la partie un peu plus stratégique de votre business plan, nous vous conseillons notamment de détailler votre étude de marché en précisant votre cible . Toujours dans la partie stratégique, cela est valable pour tous les business plans mais spécialement pour ceux concernant un projet e-commerce, il faut que vous donniez un vision claire et précise de votre moyen d'acquisition de clients.

Contrairement à d'autres activités, un projet de e-commerce ne nécessite pas toujours un investissement initial important. C'est aussi un milieu ou vous pouvez "facilement" faire des tests (quelle plateforme est la meilleure, quelle audience réagit le plus...). Au cours de la rédaction de votre business plans, nous vous conseillons de faire des tests par différents moyens (questionnaire en ligne, sondage). Cela vous permettra d'affiner votre stratégie ainsi que vos coûts.

Sur le même thème :

• Business plan : notre modèle gratuit
• Business plan immobilier : notre modèle gratuit
• Business plan chambre d'hôtes : notre modèle gratuit
• Business plan salon de coiffure : notre modèle gratuit
• Business plan food truck : notre modèle gratuit
• Business plan bar : notre modèle gratuit
• Business plan salle de sport : notre modèle gratuit

Avez-vous aimé cet article ?

2 commentaires à "business plan e-commerce : notre modèle gratuit", yang-ushai saotra hervé rabarison, le 6 février 2024.

J'ai besoin d'un business plan pour constitution d'entreprise agroalimentaire de capacité industrielle notamment en matière d'huile végétale à base de soja et tournesol

Pierre Fruchard, le 7 février 2024

Bonjour, Vous pouvez télécharger notre modèle gratuitement et l'adapter par la suite. Cordialement

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How to Start an E-Commerce Business In 2024

Published: Jun 25, 2024, 2:51pm

Reviewed By

Table of Contents

What is e-commerce, types of e-commerce businesses, why start an e-commerce business, 8 steps to start an e-commerce business, 5 tips for running your e-commerce business, bottom line, frequently asked questions (faqs).

E-commerce is more popular today than ever before. Between 2019 and 2023, the number of e-commerce websites increased from 9.2 million to 26.5 million. If you’re looking for a way to earn money online while being your own boss, an e-commerce business may be worthwhile.

While it takes much time, effort, and dedication, it can become a profitable, enjoyable venture. With our handy guide on how to start an e-commerce business, you can hit the ground running and bring a successful e-commerce store to life.

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Before we discuss what it takes to start and run an e-commerce business, let’s define e-commerce. Put simply, e-commerce refers to the buying and selling of products or services online. An e-commerce website acts as a virtual storefront, allowing customers to purchase what they want from their desktop or mobile devices. While brick-and-mortar locations can be attached to e-commerce websites, many e-commerce businesses solely operate online.

In general, e-commerce businesses fall into these four categories:

• Business to customer (B2C): A B2C website sells to individual customers, similar to brick-and-mortar storefronts. Customers can choose a product, check out, and wait for the product to be shipped to them.
• Business-to-business (B2B): A B2B website sells products or services to other companies. It usually receives many bulk and recurring orders.
• Consumer-to-consumer (C2C): A C2C website or marketplace allows customers to sell to one another. Etsy and eBay are popular examples of C2C sites.
• Consumer to business (C2B): A C2B website allows individuals to sell to businesses. Customers can often write reviews, exchange affiliate links, or provide places on their websites in exchange for compensation.

There are a number of benefits to e-commerce stores, including:

• Lower overhead costs: Compared to running a brick-and-mortar store, an e-commerce website is often more affordable. There’s no need to pay for a commercial property and the utility costs that come with it. Instead, you’ll invest in a domain name, web hosting, inventory and digital marketing.
• Chance to reach a broader audience: With an e-commerce store, you don’t have to limit your customer base to where you’re located. Even if you’re in a small town, you may reach customers across the country and world. This can lead to higher profits and greater success.
• Ability to easily scale: It’s much more difficult to grow a business with physical storefronts than one that operates online. If you go the e-commerce route, your website and store can grow as your business grows. You won’t have to open and manage more brick-and-mortar locations.
• Flexibility for customers: In today’s day and age, customers are busy and often lack the time or desire to drive to a store and purchase what they need. If you can serve them through an e-commerce website, they’ll be able to make purchases whenever they want, from the comfort of their own home, office or anywhere with an internet connection. Flexibility can lead to happy customers who return to your store and refer their friends.
• Access to customer data: An e-commerce business can allow you to collect valuable customer data. You may gain insights on your customers’ buying habits and demographics. In addition, you’ll have a better understanding of demand and be able to reduce the risk of understocking or overstocking as a result.

1. Define your e-commerce business idea

First and foremost, figure out what you’re going to sell. Ideally, you’d choose a product or service in a very specific niche. This way, you’ll have less competition and increase your chances of success.

If you decide to sell clothing, for example, you can target young professionals with affordable suits for young children with comfortable formal wear. Make sure that you’re passionate about whatever you’re trying to sell and/or can do or make well.

2. Validate your idea

A business idea is only worth pursuing if you determine it’s actually viable. To do so, consider the following:

• Market-based criteria: Market-based criteria focuses on market factors that will impact your business. It considers market size, competition, target customers and whether your products or services are trends or part of a flat or growing market.
• Product-based criteria: Product-based criteria revolves around your products and services. It examines your potential selling prices, size, weight and durability, how seasonality may affect demand, product regulations and whether your product caters to a passion or solves a pain point.

Both market-based and product-based criteria can help you understand whether your products or services have potential. If you believe that there is a market for your offerings, you can move on to the next steps.

3. Write a business plan

Once you hone in on and validate your business idea, it’s time to create a business plan. Think of your business plan as a blueprint that outlines what you hope to accomplish and how you’ll get there. In general, a business plan involves the following components:

• Executive summary: This is where you discuss your structure, industry, leadership team, and offerings.
• Competitor research: Competitor research is all about your competitors and their tactics.
• Product or service descriptions: Product or service descriptions explain each offer and how customers may benefit.
• Marketing and sales strategy: The marketing and sales section should describe what you’ll do to reach prospective customers and retain the ones you land.
• Financial projections: Here’s where you may want to work with an accountant to estimate your pricing strategy and profit goals.

Learn more: Simple Business Plan Template (2024)

4. Set up your business

After solidifying your e-commerce business idea and finalizing a business plan, you can take the plunge and set up your business. You’ll choose a business structure, name your business, apply for an employer identification number (EIN), and open a business checking account. Getting all the licenses and permits you’ll need to operate legally is also a good idea. For help with the setup process, don’t hesitate to contact an attorney, accountant, or other professionals who can answer any questions and steer you in the right direction.

5. Develop or source your products

Next, you’ll need to develop the products you plan to sell. If these are tangible products, you may make them yourself or leave the task to a manufacturer. At this point, you should decide whether you want to produce or order your products in bulk so you’ll have inventory in stock.

You may decide to start small and only stock a few products until you get a better sense for demand and determine whether bulk inventory makes sense. Another option is dropshipping , which is when products are manufactured and sourced when orders are placed. If you’re selling professional services online, such as graphic design or bookkeeping, you should zero in on what they’ll be and how much you’ll charge for them.

Learn more: How To Start A Dropshipping Business

6. Create your e-commerce website

Your e-commerce website will be one of your most important assets. Customers will visit your site to learn about you, explore your offerings, and, hopefully, make purchases. The easiest way to launch a site is through an e-commerce website builder, such as Shopify or BigCommerce . While every builder is different, most allow you to market your offerings, manage inventory, collect payments, ship orders, access analytics, and more.

If you’re limited on funds or don’t want to invest too much in your business, a free e-commerce platform can be helpful. As your business grows, you may always upgrade to a paid plan or platform. Do your research and compare your options to figure out the best e-commerce tool for your unique budget, preferences, and goals.

7. Figure out order fulfillment

Fulfillment is essential to your e-commerce store because it ensures your customers receive the products or services they paid for. Fortunately, most e-commerce website builders come with shipping label printing, allowing you to add shipping costs at checkout automatically. If you want to take the entire fulfillment process off your plate, you might want to outsource it to a company. Just make sure your potential profits outweigh the fees they’ll charge.

8. Market your e-commerce business

In a perfect world, you’d launch your e-commerce website, and countless customers would run to it. The reality, however, is that you’ll need to find, attract, and convert your target audience. While your marketing plan will depend on your budget, products or services, and capabilities, it may include search engine optimization (SEO), social media marketing, paid search, email marketing, and/or influencer marketing. Regardless of your chosen strategies, be consistent and establish a brand that allows you to stand out from your competitors.

Once you have all your ducks in a row and your e-commerce store is ready for business, keep these tips in mind:

• Focus on customer retention: Retaining a current customer is more accessible and less expensive than landing a new one. That’s why you should keep your customers returning through excellent service, loyalty programs, exclusive discounts and new products and services.
• Optimize your shipping strategy: While an e-commerce store offers many benefits to customers, high shipping costs can turn them off. If possible, offer free shipping or deals for loyal customers or those who spend over a certain amount.
• Offer excellent customer service: In the world of e-commerce, the customer truly is king. That means you must be responsive and cater to customer needs and preferences through friendly agents, live chat and 24/7 availability. Otherwise, your reputation and profits will likely take a hit.
• Diversify your distribution channels: To raise your likelihood of success, go beyond your website and use other channels to sell your offerings. Amazon, social media and affiliate marketing are a few options to consider.
• Upsell and cross-sell: When you upsell, you encourage customers to purchase a higher-end product or service than the one they were considering. A cross-sell is when you encourage customers to buy products that are related to complementary products. Both strategies can boost profits.

An e-commerce business can be advantageous. It may allow you to share your passions, interests or experience with customers near and far while providing some great income. By following the steps and tips listed above, you’ll put yourself on the path to success. Best of luck!

How much does it cost to start an e-commerce business?

Several factors will determine how much you’ll pay to launch an e-commerce business. These include fees for your website, payment processing, stocking, order fulfillment, and warehousing. The general costs of running a business, such as accounting, marketing, and employee payroll, will also affect your overall cost.

What are the three types of e-commerce?

The three main types of e-commerce businesses are B2B, B2C, and C2C. Your products or services will help you determine the suitable business model for your e-commerce store.

Is e-commerce actually profitable?

Just like a business with a physical storefront, an e-commerce business has the potential to be profitable. However, profitability often takes time, so you must be patient before your efforts genuinely pay off.

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Here is a free business plan sample for an e-commerce platform.

If you're passionate about launching an e-commerce platform but are unsure how to initiate your venture, you've landed on the perfect page.

In the content that follows, we will present to you a comprehensive sample business plan tailored for an e-commerce startup.

As you might be aware, a meticulously formulated business plan is a cornerstone of entrepreneurial achievement, as it assists you in outlining your mission, objectives, and tactical approach for your online enterprise.

To craft a compelling plan with ease and precision, you are invited to utilize our e-commerce business plan template. Additionally, our specialists are on standby to provide a complimentary review and refinement of your plan.

How to draft a great business plan for your e-commerce shop?

A good business plan for an e-commerce platform must be tailored to the unique challenges and opportunities of the online retail space.

To start, it's crucial to provide a comprehensive overview of the e-commerce market. This should include current statistics and an analysis of emerging trends, similar to what we've incorporated in our e-commerce business plan template .

Your business plan should articulate your vision clearly, define your target audience (such as niche markets, general consumers, B2B), and establish your platform's unique value proposition (user-friendly interface, specialized product lines, exceptional customer service, etc.).

Market analysis is a key component. You'll need to thoroughly understand the competitive landscape, digital marketing trends, and consumer buying behaviors.

For an e-commerce platform, it's important to detail your product strategy. Explain your catalog - whether you're focusing on a specific category or offering a wide range of products - and how you plan to source and manage your inventory.

The operational plan should outline the technical infrastructure of your platform, including website development, hosting, security measures, payment processing systems, and customer support channels.

Quality assurance, user experience, and data protection are critical factors to emphasize for an e-commerce business.

Discuss your marketing and sales strategy next. How will you drive traffic to your platform and convert visitors into customers? Explore strategies like search engine optimization (SEO), pay-per-click (PPC) advertising, email marketing, and social media engagement.

It's also vital to consider logistics in your business plan, including warehousing, order fulfillment, shipping, and returns management.

The financial section should cover startup costs, revenue projections, operating expenses, and the path to profitability.

E-commerce platforms may have lower overhead than brick-and-mortar stores, but they require significant investment in technology and marketing. Therefore, a detailed financial plan is essential, and you can refer to our financial forecast for an e-commerce platform for guidance.

Compared to traditional business plans, an e-commerce business plan must focus more on digital strategy, cybersecurity, and a seamless customer journey from discovery to delivery.

A comprehensive business plan will not only help you clarify your approach and strategy but also serve as a tool to attract investors or secure loans.

Investors and lenders will look for a robust market analysis, a well-thought-out operational strategy, and realistic financial projections.

By presenting a detailed and substantiated plan, you show your commitment to the success of your e-commerce venture.

To streamline the process and ensure you cover all necessary points, consider using our e-commerce business plan template .

A free example of business plan for an e-commerce platform

Here, we will provide a concise and illustrative example of a business plan for a specific project.

This example aims to provide an overview of the essential components of a business plan. It is important to note that this version is only a summary. As it stands, this business plan is not sufficiently developed to support a profitability strategy or convince a bank to provide financing.

To be effective, the business plan should be significantly more detailed, including up-to-date market data, more persuasive arguments, a thorough market study, a three-year action plan, as well as detailed financial tables such as a projected income statement, projected balance sheet, cash flow budget, and break-even analysis.

All these elements have been thoroughly included by our experts in the business plan template they have designed for an e-commerce platform .

Here, we will follow the same structure as in our business plan template.

Market Opportunity

Market data and figures.

The e-commerce industry has been experiencing exponential growth over the past few years.

As of recent estimates, the global e-commerce market is valued at over 4 trillion dollars, with projections indicating continued expansion as more consumers shift to online shopping.

In the United States alone, there are thousands of e-commerce platforms, contributing to a significant portion of retail sales. In fact, e-commerce sales are expected to surpass 1 trillion dollars in the near future.

These statistics underscore the pivotal role of e-commerce in the modern retail landscape and its substantial impact on the economy.

The e-commerce sector is characterized by dynamic trends and technological advancements that shape consumer behavior.

Mobile commerce, or m-commerce, is on the rise, with an increasing number of transactions being completed on smartphones and tablets.

Artificial intelligence and machine learning are being integrated into e-commerce platforms to personalize shopping experiences, provide product recommendations, and optimize logistics.

Subscription services and loyalty programs are becoming more prevalent, fostering customer retention and recurring revenue streams.

Social commerce is also gaining traction, with platforms leveraging social media networks to facilitate direct sales.

Moreover, consumers are demanding greater transparency and ethical practices from online retailers, leading to a surge in sustainable and eco-friendly products.

These trends highlight the evolving nature of e-commerce and the need for platforms to continuously innovate to meet consumer expectations.

Success Factors

Several factors contribute to the success of an e-commerce platform.

First and foremost, a seamless and user-friendly website interface is crucial for attracting and retaining customers.

A diverse and high-quality product range that meets consumer needs can set a platform apart from its competitors.

Robust and secure payment systems, along with reliable fulfillment and fast shipping, are essential for building consumer trust.

Customer service excellence, including responsive support and hassle-free returns, is vital for positive customer experiences.

Lastly, effective digital marketing strategies, data analytics to understand customer behavior, and the ability to adapt to emerging e-commerce trends are key to driving growth and ensuring the platform's long-term viability.

The Project

Project presentation.

Our e-commerce platform project is designed to cater to the burgeoning market of health-conscious and digitally savvy consumers. By focusing on a niche segment that values convenience, quality, and variety, our platform will offer a diverse range of products, including organic foods, eco-friendly household items, fitness equipment, and wellness supplements. The platform will be accessible from anywhere, providing a seamless shopping experience with user-friendly navigation and secure payment options.

We aim to leverage advanced technology to ensure fast and reliable delivery services, enhancing customer satisfaction and loyalty. Our e-commerce platform will not only simplify the shopping process but also provide informative content to help consumers make well-informed purchasing decisions.

As a digital marketplace, we aspire to become a one-stop-shop for health and wellness needs, making it easier for people to access products that support their lifestyle choices and contribute to their overall well-being.

Value Proposition

The value proposition of our e-commerce platform is centered around convenience, quality, and a personalized shopping experience. We understand the importance of time and ease in the modern consumer's life and are dedicated to providing a hassle-free online shopping environment.

Our commitment to offering a curated selection of health and wellness products ensures that customers can find everything they need in one place, with the confidence that each item has been carefully chosen to align with their values and health goals.

We are dedicated to fostering a community of like-minded individuals who prioritize their health and the environment, and our platform will serve as a resource for education, inspiration, and the latest trends in the health and wellness industry.

By bridging the gap between consumers and high-quality, sustainable products, we aim to empower individuals to make choices that benefit their health and the planet, solidifying our platform as a leader in the online health and wellness space.

Project Owner

The project owner is an entrepreneur with a passion for health, wellness, and technology. With a background in e-commerce and digital marketing, they possess the expertise to create a platform that not only meets the needs of health-conscious consumers but also exceeds their expectations.

Armed with a vision to integrate cutting-edge technology with a curated product selection, the project owner is committed to building an e-commerce platform that stands out for its user-centric approach and dedication to quality.

With a strong belief in the power of community and education, the project owner is determined to provide a space where consumers can not only shop but also learn and connect with others who share their interests in health and sustainability.

Their drive for innovation and excellence in the e-commerce space is the cornerstone of this project, aiming to transform the way consumers approach health and wellness shopping online.

The Market Study

Market segments.

The market segments for this e-commerce platform are diverse and cater to a wide range of consumer needs.

Firstly, there are tech-savvy consumers who prefer the convenience of online shopping and are looking for a wide array of products at competitive prices.

Secondly, there are niche market consumers who are interested in specific categories such as eco-friendly products, rare collectibles, or specialized tech gadgets.

Another segment includes small to medium-sized businesses seeking an online platform to sell their products without the overhead of setting up their own e-commerce infrastructure.

Lastly, bargain hunters and deal-seekers form a significant segment, always on the lookout for discounts, limited-time offers, and exclusive online sales.

SWOT Analysis

A SWOT analysis of this e-commerce platform project highlights several key factors.

Strengths include a user-friendly interface, a wide range of products, strong partnerships with vendors, and robust logistics and customer support systems.

Weaknesses might encompass the high level of competition in the e-commerce space, the challenge of building customer trust, and the reliance on third-party delivery services.

Opportunities can be found in the growing trend of online shopping, the potential for international expansion, and the ability to leverage data analytics for personalized shopping experiences.

Threats include cybersecurity risks, changes in consumer behavior, and the potential for new regulations affecting online commerce.

Competitor Analysis

Competitor analysis in the e-commerce industry indicates a highly competitive environment.

Direct competitors include major e-commerce giants, as well as niche online stores that cater to specific interests or demographics.

These competitors strive to capture market share by offering unique value propositions such as free shipping, extensive product ranges, and loyalty programs.

Potential competitive advantages for our platform could be a curated product selection, exceptional customer service, a seamless mobile experience, and innovative features such as augmented reality shopping.

Understanding the competitive landscape is crucial for carving out a unique position in the market and for developing strategies to attract and retain customers.

Competitive Advantages

Our e-commerce platform's competitive advantages lie in our commitment to providing a seamless and personalized shopping experience.

We offer a carefully selected range of products, ensuring quality and value for our customers.

Our platform's intuitive design and recommendation algorithms help customers discover products that perfectly match their preferences, enhancing their shopping experience.

Additionally, our dedication to customer service excellence, with features like easy returns, real-time support, and a secure payment gateway, fosters trust and loyalty among our user base.

We also prioritize data security and privacy, ensuring that our customers can shop with confidence and peace of mind.

You can also read our articles about: - how to create an e-commerce platform: a complete guide - the customer segments of an e-commerce platform - the competition study for an e-commerce platform

The Strategy

Development plan.

Our three-year development plan for the e-commerce platform is designed to be robust and scalable.

In the first year, we will concentrate on building a strong foundation with a user-friendly website, secure payment gateways, and an efficient logistics system. We will also focus on customer acquisition through targeted digital marketing campaigns.

The second year will be dedicated to expanding our product offerings and integrating advanced features such as AI-based recommendations and personalized shopping experiences.

In the third year, we aim to expand our market reach internationally and form strategic partnerships with major brands and influencers to increase our visibility and credibility.

Throughout this period, we will continuously optimize our operations and customer service to ensure a seamless shopping experience, keeping us ahead of the competition.

Business Model Canvas

The Business Model Canvas for our e-commerce platform focuses on a broad customer segment that includes tech-savvy individuals, convenience seekers, and niche markets with specific product interests.

Our value proposition is centered around providing a vast range of products, competitive pricing, and a hassle-free shopping experience with fast delivery options.

We will drive sales through our online platform, utilizing key resources such as our e-commerce website, customer data analytics, and a robust supply chain network.

Key activities include website management, order fulfillment, and customer support.

Our revenue streams will be generated from direct product sales, subscription services, and potentially advertising from partner brands. Our costs will mainly involve platform development, marketing, and logistics.

Access our complete and editable Business Model Canvas in our business plan template .

Marketing Strategy

Our marketing strategy is built on customer engagement and retention.

We plan to attract customers by offering first-time purchase discounts and a loyalty program. We will also engage in content marketing to educate our audience about the benefits of online shopping and the unique features of our platform.

Collaborations with influencers and strategic partnerships will help us tap into new customer bases.

We will leverage social media, SEO, and email marketing to maintain a strong online presence and keep our customers informed about new products and promotions.

Risk Policy

The risk policy for our e-commerce platform is designed to mitigate risks associated with online transactions, data security, and supply chain disruptions.

We will implement robust cybersecurity measures to protect customer data and prevent fraud. Regular audits and updates to our security protocols will be a priority.

To manage supply chain risks, we will diversify our supplier base and maintain a buffer inventory for high-demand products.

Cost management strategies will be in place to ensure financial stability, and we will have comprehensive insurance coverage to protect against unforeseen events.

Why Our Project is Viable

We are confident in the viability of our e-commerce platform, given the increasing trend towards online shopping and the convenience it offers to consumers.

With a strong commitment to customer satisfaction, a diverse range of products, and a seamless shopping experience, we believe we can capture a significant share of the market.

We are prepared to adapt to the evolving e-commerce landscape and are excited about the potential for growth and innovation in this space.

We look forward to the opportunity to serve customers worldwide and to build a successful and sustainable online business.

You can also read our articles about: - the Business Model Canvas of an e-commerce platform - the marketing strategy for an e-commerce platform

The Financial Plan

Of course, the text presented below is far from sufficient to serve as a solid and credible financial analysis for a bank or potential investor. They expect specific numbers, financial statements, and charts demonstrating the profitability of your project.

All these elements are available in our business plan template for an e-commerce platform and our financial plan for an e-commerce platform .

Initial expenses for our e-commerce platform include the development of a user-friendly website with robust e-commerce capabilities, investment in secure payment processing systems, initial inventory acquisition if applicable, costs associated with establishing a reliable supply chain, and expenses related to branding and launching targeted digital marketing campaigns to attract our target audience.

Our revenue assumptions are based on a thorough analysis of the online shopping trends, consumer preferences for online purchasing, and the potential reach of our e-commerce platform.

We anticipate a steady increase in sales, starting with a conservative estimate and expanding as our platform gains traction and recognition in the market.

The projected income statement outlines expected revenues from our online sales, cost of goods sold (if applicable), fulfillment and shipping costs, and operating expenses (web hosting, marketing, salaries, etc.).

This results in a forecasted net profit that is essential for assessing the long-term profitability of our e-commerce business.

The projected balance sheet will reflect assets such as website development, software, and any inventory, along with liabilities including debts and anticipated operational expenses.

It will provide a snapshot of the financial health of our e-commerce platform at the end of each fiscal period.

Our projected cash flow statement will detail the inflows and outflows of cash, enabling us to predict our financial needs at any point in time. This is crucial for maintaining adequate liquidity and ensuring smooth operations.

The projected financing plan will enumerate the specific sources of funding we intend to tap into to cover our initial costs and support growth.

The working capital requirement for our e-commerce platform will be diligently managed to ensure we have sufficient funds to support day-to-day activities, such as inventory management, customer service, and other operational expenses.

The break-even analysis will determine the sales volume required to cover all our costs, including initial investments, and to begin generating profits.

It will signal the point at which our e-commerce business becomes self-sustaining.

Key performance indicators we will monitor include the customer acquisition cost, conversion rate, average order value, cart abandonment rate, and the return on advertising spend. These metrics will provide insight into customer behavior and the financial performance of our e-commerce platform.

By tracking these indicators, we will be able to make informed decisions and strategically steer our e-commerce business towards success.

If you want to know more about the financial analysis of this type of activity, please read our article about the financial plan for an e-commerce platform .

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MSME Day 2024: ‘MSMEs not merely participants in $300B e-commerce opportunity, they are driving it’

Msmes in india are more than just businesses; they are beacons of creativity and ingenuity. with over 63 million strong, msmes contribute around 30% to the gdp, constitute 48% of the exports, and provide livelihoods to more than 120 million people..

By Saahil Goel

MSME Day 2024: India ’s e-commerce market is experiencing an exhilarating surge, poised to reach an astounding $300 billion by 2030. This remarkable growth is not a mere coincidence but a dynamic force propelled by MSMEs, the backbone of the Indian economy . The days of limited options and location woes are fading fast. In a world where comparing prices across countless sites takes mere seconds, online shopping has become the go-to option for many, eliminating the hassle of visiting multiple stores for their needs.

With over 700 million smartphones now in use across India, affordable data plans, and initiatives like Digital India , digital penetration has reached unprecedented levels, making convenience a top priority for consumers. With just a tap on their smartphones, consumers are greeted by a world of products – not just a generic selection, but one curated with their preferences in mind – delivered right to their doorstep.

The deeper penetration of e-commerce is transforming the shopping experience in remote villages and tier 2 and 3 markets across India. Imagine a mother in a remote village, with a simple tap on her phone, accessing a world of products – from educational toys for her children to the latest saree trends. In the past, residents of these areas faced significant challenges in accessing a wide variety of products, often limited to local stores with restricted inventory.

Today, e-commerce platforms are bridging this gap, offering an extensive range of goods from national and international brands. The convenience of online shopping, coupled with efficient delivery services and reliable payment options, has made it possible for consumers to enjoy the same shopping opportunities as those in urban centers. This widespread accessibility is not only enhancing the quality of life but also stimulating local economies by providing new business opportunities and fostering greater market competition.

Remember the charming local shopkeeper who knew your preferences and shared anecdotes about his wares? Social commerce platforms like Facebook and Instagram have breathed new life into this tradition. MSMEs can now set up virtual storefronts, weaving stories around their handcrafted products and innovative services. They can connect directly with customers, fostering a sense of community and trust. The rise of social commerce isn’t just about transactions; it’s about empowering the entrepreneur to become a storyteller, sharing the passion and heritage behind their brand. This shift in consumer behavior, further accelerated by the pandemic, has sparked a digital shopping revolution, and MSMEs are the fuel propelling it forward.

From Offline to Online: A Journey of Transformation 

A decade ago, the idea of MSMEs thriving online seemed like a distant dream. Many faced significant barriers, from lack of digital literacy and inadequate infrastructure to limited access to capital. The e-commerce landscape was dominated by larger players, leaving little room for smaller businesses to carve out their niche. Of all the MSMEs integrated into e-commerce to date, a mere 12.7% did so between 2011 and 2015, indicating an initial reluctance among MSMEs to adopt e-commerce. However, this integration nearly quadrupled between 2015 and 2019 and has continued to increase steadily since then.

The positive development is due to their determination and the digital transformation wave supported by e-commerce enablement platforms, coupled with government initiatives like Digital India and Make in India, MSMEs have broken through the barriers gatekeeping digital commerce. The same enterprising spirit that inspired the first trader to fit a wheel into their cart now drives shopkeepers in India to move their businesses online. With just a click, products once out of reach are now easily accessible, making distances virtually disappear overnight. Affordable smartphones, widespread internet connectivity, and digital platforms have empowered them to transition from traditional operations to dynamic online businesses. Their success is a testament to their resilience and adaptability.

MSMEs: The Powerhouse of Innovation

MSMEs in India are more than just businesses; they are beacons of creativity and ingenuity. With over 63 million strong, MSMEs contribute around 30% to the GDP, constitute 48% of the exports, and provide livelihoods to more than 120 million people. Their ability to innovate and adapt quickly sets them apart, making them the major fuel source behind India’s economic engine.  

Whether a small-scale artisan integrating traditional craftsmanship with modern designs or a tech-savvy startup developing cutting-edge solutions, MSMEs’ commitment to innovation is inspiring. 

Consider Aadil Qadri for instance, who transformed traditional attars into contemporary fragrances, merging heritage with modern appeal by utilising his digital marketing expertise. By leveraging technologies such as artificial intelligence , machine learning, and blockchain, MSMEs are not just keeping pace with the times—they are shaping the future. Their products and services are meeting local demands and gaining international recognition, showcasing the immense potential of Indian ingenuity.

Going Global: MSMEs on the World Stage

MSMEs are now reaching global audiences. Indian MSMEs are selling products to a global market through international e-commerce platforms like Amazon , eBay, Joom, and Alibaba. Simplified cross-border trade regulations, international payment gateways, and efficient logistics solutions have facilitated this global outreach.

Consider the stories of Jaipur-based jewellery brands, which started as small local businesses and now export handcrafted jewellery worldwide. Kerala’s spice producers, who once catered only to local markets, are now essential to gourmet chefs and food enthusiasts across Europe and North America. These success stories are a testament to the transformative power of e-commerce in propelling Indian MSMEs onto the global stage.

Celebrating MSMEs’ Role in India’s E-commerce Future

The $300 billion opportunity clearly shows that MSMEs are not merely participants in the digital economy; they drive it with innovation, resilience, and a global outlook. A study by the Indian Council for Research on International Economic Relations (ICRIER) revealed that post e-commerce integration, nearly 63% of MSMEs made new investments, with over 40% in software and employee training. This highlights their commitment to continuous improvement and adaptation.

Their story isn’t just about numbers – it’s about defying expectations. Traditionally, larger players dominated e-commerce. However, MSMEs are carving out significant space in different sectors which are often perceived as established brands’ strongholds. For instance, a woman-founded toy brand that came across the idea of educational toys to promote independent learning.

Another example is of a comfort homewear brand. Originating from a family business in Surat, the founders, who were suppliers to major foreign brands, aspired to create a distinct Indian brand. The company has made luxury homeware and loungewear affordable for Indian women. These disruptions highlight their innovative spirit and ability to cater to evolving consumer preferences.

Looking ahead, the focus must be on empowering this digital transformation further. By investing in infrastructure that bridges the digital divide in rural areas, fostering access to credit and financial services, and providing targeted skill development programs, we can unlock the full potential of MSMEs. India’s e-commerce story is being rewritten, not by chance, but by the collective effort and ingenuity of its MSMEs. This is a data-driven revolution with immense potential for economic growth, job creation, and a more inclusive digital future.

Saahil Goel is the MD & CEO of Shiprocket. Views expressed are personal. Reproducing this content without permission is prohibited.

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Fresh2 Group Limited Announces Plan to Implement ADS Ratio Change

New York, NY, June 24, 2024 (GLOBE NEWSWIRE) -- Fresh2 Group Ltd. (NASDAQ: FRES) ("Fresh2" or "the Company"), a B2B e-commerce and supply chain management company within the restaurant and food industry, today announced that it plans to change the ratio of its American depositary shares (“ADSs”) to its Class A ordinary shares from one (1) ADS representing twenty (20) Class A ordinary shares to one (1) ADS representing two hundred (200) Class A ordinary shares (the “ADS Ratio Change”). The ADS Ratio Change is expected to become effective on or about July 10, 2024 (the “Effective Date”).

For the Company’s ADS holders, the ADS Ratio Change will have the same effect as a one-for-ten reverse ADS split. There will be no change to the Company’s Class A ordinary shares. On the Effective Date, registered holders of the Company’s ADSs held in certificated form will be required on a mandatory basis to surrender their certificated ADSs to Citibank, N.A., the depositary bank (the “Depositary”), for cancellation and will receive one (1) new ADS in exchange for every ten (10) existing ADSs surrendered. Holders of uncertificated ADSs in the Direct Registration System (DRS) and The Depository Trust Company (DTC) will have their ADSs automatically exchanged and need not take any action. The exchange of every ten (10) then-held (existing) ADSs for one (1) new ADS will occur automatically at the Effective Date, with the then-held ADSs being cancelled and new ADSs being issued by the Depositary. The Company’s ADSs will continue to be traded on The Nasdaq Capital Market under the ticker symbol “FRES.”

No fractional new ADSs will be issued in connection with the ADS Ratio Change. Instead, fractional entitlements to new ADSs will be aggregated and sold by the Depositary and the net cash proceeds from the sale of the fractional ADS entitlements (after deduction of fees, taxes and expenses) will be distributed to the applicable ADS holders by the Depositary.

As a result of the ADS Ratio Change, the ADS price is expected to increase proportionally, although the Company can give no assurance that the ADS price after the ADS Ratio Change will be equal to or greater than twenty times the ADS price before the change.

About Fresh2 Group Limited

Fresh2 Group Limited is engaged in the business-to-business e-commerce and supply chain sectors. Committed to helping restaurants lower procurement costs and improve efficiency, Fresh2 utilizes an advanced supply chain management system. By applying strategic digital technologies and innovative business models, Fresh2 is driving the online transformation of the restaurant supply industry. Fresh2 aims to refine restaurant operations, adding significant value to the food industry, and building a global network of restaurateurs in the digital age. For more information, visit:  https://fresh2.co/investors .

For investor and media inquiries, please contact:

Phone: +1- 917 397 6890

Email:  [email protected]

Safe Harbor Statement

This announcement contains forward-looking statements as defined under Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, formulated in accordance with the 'safe harbor' provisions of the Private Securities Litigation Reform Act of 1995. These statements, reflecting the Company's projections about its future financial and operational performance, employ terms like 'believes,' 'estimates,' 'anticipates,' 'expects,' 'plans,' 'projects,' 'intends,' 'potential,' 'target,' 'aim,' 'predict,' 'outlook,' 'seek,' 'goal,' 'objective,' 'assume,' 'contemplate,' 'continue,' 'positioned,' 'forecast,' 'likely,' 'may,' 'could,' 'might,' 'will,' 'should,' 'approximately,' and similar expressions to convey the uncertainty of future events or outcomes. These forward-looking statements are based on the Company's current expectations, assumptions, and projections, involving judgments about future economic conditions, competitive landscapes, market dynamics, and business decisions, many of which are inherently challenging to predict accurately and are largely beyond the Company's control. Additionally, these statements are subject to a multitude of known and unknown risks, uncertainties, and other variables that could significantly diverge the Company's actual results from those depicted in any forward-looking statement. These factors include, but are not limited to, varying economic conditions, competitive pressures, and regulatory changes. Because of these and other risks, uncertainties and assumptions, undue reliance should not be placed on these forward-looking statements. In addition, these statements speak only as of the date of this press release and, except as may be required by law, the Company undertakes no obligation to revise or update publicly any forward-looking statements for any reason.

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