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Writing an eCommerce business plan is one of the first steps you should take if you’re thinking about starting an online business. Whether you’re opening an online-only shop or adding an eCommerce component to your brick and mortar store for an omnichannel retail experience, there’s never been a better time to sell online.
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 everything you need to know build, launch and grow an online store with this free guide.
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.
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.
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.
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.
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?
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.
Get to know your customers and competition. Do some soul searching and conduct market research to uncover:
Now it’s time for the less sexy stuff. In this section of your eCommerce business plan you should explain:
Explain what makes your eCommerce shop shine: its products and services. Describe, in detail:
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:
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:
If your business already exists, include information like:
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.
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:
Marketing channels:
Marketing goals and KPIs:
Revenue (projected or actual):
Profit or loss:
Investments:
Budget vs. actuals:
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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For years, you’ve purchased items from online businesses or marketplaces like Etsy, eBay and Amazon and thought to yourself, “I could do something like this, too.”
Starting your own ecommerce business may seem intimidating — writing a business plan, even more so.
However, a business plan allows you to validate your business idea, assess your financial position and create a concrete action plan for how you’ll deliver a product from the original source to the end consumer.
In other words, while the business plan might seem like it’s ultimately meant for other people’s benefit — potential investors, business partners or well-meaning family members who keep pestering you to write one — in reality, the business plan benefits you, the business owner, the most.
You’ll shape the vision and mission for your business and map out how you’ll get there. One study by Harvard Business Review found that entrepreneurs who write a formal business plan are 16% more likely to achieve viability than those who don’t.
An ecommerce business plan is a document that outlines your business purpose and goals, analyzes your industry and competitors and identifies the resources needed to execute your plan.
For example, which suppliers will you work with? What types of products will you stock? Who is your ideal buyer? How will you advertise your business? Can you afford to provide free shipping and still make a profit?
Here’s a step-by-step primer on how to write a business plan for your ecommerce store, what elements to include and how to use your own business plan to increase your chance of success.
Business plans help entrepreneurs maintain focus on their goals and shape the day-to-day running of a new business. The key elements of an ecommerce business plan template describe blueprints for growth, projected timelines and financial goals — clarifying topics like cash flow, expenses, marketing tools and distribution channels.
An executive summary provides a concise rundown of the key points in your business plan. In short, it should summarize your chosen industry, business purpose, competitors, business goals and financial position. Executive summaries average 1-3 pages and are ideally under two pages.
Explain the raison d’être for your startup. What problem will you solve for your customers? Who is the target audience? Where do you want your business to be in one, five, or 10 years?
Here are the main elements of an executive summary:
The problem statement or business opportunity : Describe a pain point or gap in the market that you are uniquely qualified to fill. (“As someone who used to own a convenience store, I heard many of my customers complain about the lack of healthy food options while traveling domestically.”)
Your business idea : State how you plan to approach the problem (“XYZ is a ready-to-eat meal company that lets travelers order and pack healthy meals ahead of trips so they can avoid eating fast food.”)
Company history : Describe what milestones you have achieved. Are you already working with suppliers? What is your current revenue? (“In 2021, XYZ fulfilled over 10,000 orders, generating $150,000 in revenue.”)
Industry and market analysis : Outline the trends in the market that affect your business, market size, and demand for your product. (“In 2022, the global health and wellness food market was valued at $841 billion and is projected to increase to one trillion by 2026.”)
Competition : Explain who your competitors are, outline their strengths and weaknesses, and make it clear how you will differentiate.
Timeline for key milestones : Project when you plan to achieve goals like breaking even, launching an IPO, or other key milestones.
Financial plan (if you are seeking funding from investors or banks).
Set short- and long-term goals for your business, such as achieving a certain amount of revenue or testing a new product idea. Business goals can be general and high-level or they can focus on specific, measurable actions (SMART goals).
The most realistic goal-setting approach is to set short-term goals as stepping stones to your long-term goals. For example, your short-term goal to decrease website bounce rate by 25% within 12 weeks might help you reach the long-term goal of growing conversions by 50% within one year.
Timeframes for short-term goals can range from a few hours to a year, while long-term goals generally take 1-5 years to achieve.
Outline your product offerings and specify where you’ll source each item. Some ecommerce businesses manufacture products in-house. Others work with wholesalers, manufacturers or print-on-demand businesses to resell their products.
Curate a tight product line that demonstrates your value proposition. Why should someone buy from your online store rather than another brand? Why would someone choose your products over a substitute if you don't produce goods in-house?
Ecommerce companies sell three types of products: goods, services and digital products. Tell your readers what you intend to sell and why. List each item and its purpose. For each, you want to answer the question “why?” Why are you choosing to offer these specific products and services? How do you plan on fulfilling orders?
If you’re offering a service, explain what you do and where. Are you local? Do you travel to your customers? Will you partner with similar service providers in other areas?
How will customers access the item if you're offering a digital product? Will they download software or education videos from your site? Will they pay a subscription or usage-based fee? What about licensing requirements? Mention intellectual property ownership (if applicable) including trademarks, patents and copyrights.
Describe your ideal customer. Define your product or service from their point of view. What problems does your product solve for them? What benefits or features do customers look for when shopping for that product type?
Create customer profiles that summarize your target audience in terms of demographics (age, location, gender, etc) and psychographics (pain points, interests, buying patterns). Consider creating customer segments based on shared characteristics if you cater to a wide audience.
Demographic data should include the following points:
Education level.
Relationship status.
Occupation.
Meanwhile, discover your target customer’s motivations, needs and wants as much as possible. Psychographic data should include the following points:
Outline your sales channels, both future and existing. For example, your main point-of-sale might be your ecommerce site. Be sure to include stats on site traffic and conversions so readers know how your site is performing.
Still, you might also offer your products online on marketplaces like eBay, Amazon and Etsy. Explain how each of these channels is performing and how you’re optimizing them for product discoverability and conversions (eg: following SEO best practices, using high-quality images, highlighting user-generated content).
Tell your brand's story , its purpose, and how the company was founded. In addition to the company description, provide details on how you currently run the business. List your business partners and employees and describe the business's legal structure.
The best brand names are memorable and communicate the essence of your business. Brand names gain icon status because they represent an excellent product or service, so don’t obsess over it.
That said, the right brand name can be your brand’s most valuable asset, driving differentiation and speeding acceptance. In fact, 71% of consumers prefer to buy from brands they recognize.
If you’re struggling to come up with a name, try using an online brand name generator as a jumping-off point. Remember, you’re not locked into a single brand name forever.
Describe the legal structure of your business. Is it a sole proprietorship, LLC, an S-Corp or a partnership? Consider speaking to an accountant if you’re not sure. Who is in charge of the business? List founders and officers and their contributions (both capital and expertise) to the company. Who works for the company? Include an org chart that illustrates who currently works for the business and the roles you plan to hire for . List their responsibilities, salaries and terms of employment (freelance, full-time, part-time).[
Your business structure]( https://bristax.com.au/business-articles/business-structures/ ) affects how much you pay in taxes, your ability to raise money, the paperwork you must file and your personal liability in the event of business bankruptcy, so this information is important to lenders. Also mention if you have filed or plan to file for any applicable licenses or permits.
Register a unique domain name for your business. A catchy brand name is essential because the domain is less likely to have been claimed by another business. Keep your domain name as short as possible and ensure it includes your brand name for SEO purposes.
Your mission describes the fundamental purpose of your business. It should tell people why the business exists and how it benefits its customers. For example, LinkedIn’s mission statement is “connect the world’s professionals and make them more productive and successful.”
However, be careful not to exaggerate. An overly aspirational mission statement is disingenuous and wishy-washy — no single corporation or small business will single-handedly “change the world.”
A vision statement is a declaration of what you want your business to achieve in the future by fulfilling its purpose. It describes your company’s “why,” while the mission statement describes the “who” and “what” of the business.
Your vision statement should define your values as a business (eg: reducing waste generated by single-use toiletries) and future goals (achieving a zero-waste world by implementing a circular economy).
Tell the story of how you conceived your business idea. Say you’re a former school teacher who discovered your artistic flair from making handmade pottery in your garage on weekends. Describe how your business has grown and changed since you first started it.
List the key personnel in your company. Aside from the founders and executive team, who keeps the business running each day? Here are a few examples:
Company owner — that’s probably you.
CEO — that’s probably also you.
Management team.
Customer service manager.
Logistics manager.
PR and social media specialist.
Advertising manager.
SEO manager.
Copywriters.
Ecommerce businesses face intense competition and are liable to market disruptions because they rely on third parties (suppliers, shipping companies, wholesalers) to deliver a product or service. Knowing the market in and out will help you build a more resilient business.
A market analysis considers your ideal customer (their purchase habits and behaviors), competitors (their strengths and weaknesses), market conditions (industry trends and long-term outlook), and how your business fits into this landscape.
The point of a target market analysis is to:
Identify the most and least valuable markets.
Develop buyer personas.
Find gaps in the market to fill.
Assess the viability of a product or service.
Improve business strategy .
The first step to identifying your target market is determining your total addressable market (TAM) — the maximum market size for your product or service. Who are your customers? What are their demographic and psychographic traits? When and how often will they buy your product?
The best way to obtain a high-level overview of your customer base is to consult your social media and web analytics. These dashboards show where your customers live, their age, gender, general interests and more. You can also use U.S. Census Bureau data to pad up this information.
Analyze the strengths and weaknesses of your current and potential competitors. First, find out who your direct and indirect competitors are. You can perform a Google search of businesses that sell similar products or scope out rivals in your local area.
Here’s what you need to know about your competitors:
What markets and segments they serve.
What benefits they offer.
Why their customers buy from them.
Details of products and services, including pricing and promotional strategies.
Search for publicly available information about your competitors. Aside from that, do some of your own primary research. Visit their website and complete an order or visit their physical outlet.
Next, analyze the information. Is there a segment of the market your competition has overlooked? Is there a product they don’t supply? Did you have a bad customer experience when you walked into the store?
Detail your competitive advantage in your business plan. Don’t just list things that your competitors do — that’s not analysis. The competitive analysis section aims to persuade the reader that you are knowledgeable about the competition and that your business idea has a significant advantage over the competition.
List the products and services you provide and how customers will access them. If you’re selling digital products, will customers have to stream or download the content? Do they pay a subscription fee to access a content platform or do they pay for each individual content piece? If you’re providing a service, will you provide it on physical premises or will you travel to customers’ homes? Will you sell physical products in a physical store or online? What is your website like? List each product, including a short product description and pricing information.
You need a go-to-market strategy if you haven’t already launched your business. How will you spread the word about your business? How and where will you advertise and what is your budget? If you run social media ads, for example, what platforms will you use and who is your target audience? Will you do content marketing and SEO? A thorough marketing plan answers all of these important questions.
Define which channels match your consumer demographic. Do your potential customers spend time on Facebook or do they prefer YouTube? First, figure out where your potential customers are. Next, create attention-grabbing marketing strategies and use them to reach your customer base.
Paid marketing channels
PPC advertising : Advertise on Google’s search engine and pay only once someone clicks on your ad. You can bid for ad placement in the search engine’s sponsored links when someone searches a keyword related to your business offering.
Affiliate marketing : Embed links to another business’s products in your content and receive a commission when someone makes a purchase using your unique affiliate link.
Social media ads : Run paid ads on social media apps and platforms like Facebook, Instagram and YouTube to reach targeted audiences. Ads can use different creatives such as images, videos and GIFs.
Influencer marketing : Work with a popular influencer who will promote your products to their followers. Influencers are paid based on conversions or reach.
Organic marketing channels
Brands must use an organic marketing strategy to build brand awareness and engagement and drive website traffic.
Examples include:
Search engine optimization (SEO) : Optimize your website, web pages and blog posts for maximum discoverability on search engines. This involves doing keyword research for your industry, creating high-quality content that attracts and converts and using keywords in the right places.
Social media posts : Organic social media posts build brand awareness and humanize the brand by providing a behind-the-scenes look at the company and allowing you to share engaging visual content to inspire, educate and entertain.
Blogger networks : Collaborating with trusted bloggers on link exchanges can help you build website backlinks, improving your search engine ranking.
Content marketing : Organic content includes blog posts, white papers, SEO pages, and more. This gives you content to post on social media and improves the discoverability of your website. Websites that publish high-quality content consistently rank higher in search results.
Email marketing : Create email templates for new and potential customers, cart abandonment, promotions and announcements and more.
Logistics and Operations plan
This portion of the business plan covers what you physically need to run your ecommerce company. Basically, it outlines how you’ll manage the flow of goods from the supplier (you or a third party) to the consumer. You cannot start a business without an established supply chain.
Your logistics and operations plan should cover the following:
Suppliers : Where do your raw materials or products come from? Do you work with a manufacturer who produces your product idea or are you reselling products from a supplier, wholesaler or distributor? What is the minimum order value? Do they require payment upfront or after the sale? Do you have a backup supplier in case demand spikes or there is a problem with fulfillment?
Production : Will you create your own products or use a third-party manufacturer or dropshipping company? If you’re creating your own products, where will this be done? What assets and equipment do you need? What are your operating costs?
Shipping and fulfillment : Outline how the product will reach the end consumer. How long will it take you to pack and ship products to customers? Will you use a third-party shipper? Will you ship internationally?
Inventory : How much inventory will you keep on hand and where will you put it? How will you track incoming and outgoing inventory? Do you need warehouse storage space?
The financial section of your business plan is where you prove the feasibility of your business idea and calculate your startup costs. It includes financial projections and statements that show your business’s current financial position and project where you hope to be in the future. This is one of the essential components of the business plan, particularly if you are seeking investment funding, a bank loan or a business partner.
In this document, you’ll forecast the company’s revenues and expenses during a particular period. Total revenue is the sum of both operating and non-operating revenues while total expenses include those incurred by primary and secondary activities.
If you subtract your expenses from your revenue sources, you’ll come up with your bottom line (profit or loss).
A balance sheet helps you calculate how much equity you have in your business. It summarizes your company’s assets (what you own), your liabilities (what you owe) and equity (money invested into the business plus profits).
A balance sheet enables you to calculate your net worth. All of your assets (machinery, inventory, business premises, etc.) go in a column on the left and your liabilities (accounts and wages payable, business loan repayments, business credit card payments, taxes) go in a column on the right. If you subtract your liabilities from your assets, you get your business’ shareholder equity.
This document shows how much cash is generated and spent over a time period. Cash flow determines whether your business is primarily gaining or losing money. Positive cash flow and profit margins are important because it enables your business to repay bank loans, purchase commodities and keep the lights on.
Explore our collection of free resources designed to help you scale smarter and accelerate your online growth from $1 million to $100 million.
Writing a comprehensive business plan is crucial not only for staying on track in the first year or so after launching your business but also for securing funding, finding a business partner and evaluating the viability of your business idea.
Who needs an ecommerce business plan, what are the benefits of creating a business plan, how do i start an ecommerce business with no money, browse additional resources.
Use our guide to easily create the perfect e-commerce business plan. Then download the free template to start building your plan today.
The first step in launching a successful ecommerce business is writing a successful business plan.
A well-crafted business plan can help you establish a path and course of action, build your brand, and access funding opportunities such as business loans from lenders and investors. But how do you create a business plan? And what should it include?
In this guide, we’ll cover what goes into a well-crafted ecommerce business plan and share a template to help you get started in no time.
A business plan is a document that acts as a blueprint to how you’ll launch, run, and grow your ecommerce brand . The plan outlines key elements, such as your product strategy, financial resources, company structure, and more.
You can make your business plan as simple or detailed as you want, but a comprehensive, formal road map ensures your hard-earned investment doesn’t easily disappear.
Plus, having a structured way to lay out your ecommerce business ideas and thoughts makes it easier to share your plan with people who can help you succeed.
Writing a formal ecommerce business plan lets you:
Communicate your goals and vision of the present and future
Have a comprehensive understanding of what it will take to build a successful ecommerce business
Lay out your core value proposition and how you intend to deliver it
Show existing demand for the value you want to offer
Prove your idea is viable in the market
Show potential investors why they should support your business
Offer an easy way to communicate your vision to potential new hires while building their confidence in your business
Give potential partners a way to identify whether your business is a good fit before collaborating with you
Foresee, plan for, and avoid failure and other predictable consequences.
Minimize the risk your company is exposed to, making success more likely
With these points in mind, let’s review the most common elements to include in your plan to create a functional ecommerce business.
What to include in a ecommerce business plan.
Whether you want a lean startup plan featuring the key points of your business or a longer, traditional plan with full details, there are some things you can’t leave out.
Besides a cover page with your business logo , name, and contact details, here are 10 fundamental elements to include in your ecommerce business plan.
Download our Ecommerce business plan to kickstart your start-up or hire a professional freelance business plan writer to help you out.
Write an executive summary to describe your concept and give some context to your business.
This section acts like an elevator pitch and is what people often read first. Give a good overview of the entire plan and how you plan to make the business a success.
Keep it succinct—no longer than a page or two—to entice potential partners and investors to keep reading.
Generally, it’s easier to write the executive summary after you’ve thoroughly researched all aspects of your business.
The executive summary should address essential aspects like:
The overall business concept
Your vision or mission statement
The products or services you plan to offer and their pricing
What differentiates your products or services
Who will manage and work for your business
Your current and/or projected financial standing
How much money you need and what you’ll use it for
The last two points are key for potential investors or lenders. Include the specific amount you need, how you plan to use the money, and how investors will benefit.
Alex McIntosh, CEO and co-founder of Thrive Natural Care , a mission-based skin care brand, proudly states his impact-focused mission on his business plan and ecommerce site.
“There are a lot of great, natural skincare companies out there, but none that have an impact-focused mission,” McIntosh writes in his business plan’s executive summary.
“We are a public benefit corporation, so everything we do has to be mission-centric. Our business plan also puts the customer first, so that informed the products we developed and formulas that work with the skin to support health rather than superficial quick fixes. We also needed to come up with a plan for reaching our customers broadly but also tell our rich and unique story.”
Explore Fiverr’s professional business writing experts to develop a concise executive summary for your ecommerce business.
Introduce your business by explaining who you are and what you plan to do. Potential investors, lenders, or partners want to see how your business is different from other ecommerce companies.
For example, Saie , an online beauty retailer, shares its business idea and why it exists in a few short sentences.
Clarifying these details ensures you highlight your company’s intangible facets, including principles, values, and the culture you want to create.
Give an overview of your industry then describe how your business will succeed. That way, investors or partners can determine whether to work with you and/or invest their money and time.
Some practical things you can cover in this section include:
The history or background of your business
Your business structure (sole proprietorship, limited liability company, or general partnership)
A description of the wider industry and where your business fits into it
Your vision and mission statement
The nature of the business and what you offer
Your target customers and how you’ll provide them with value
Your current team and future hires you might need as you grow (plus experience level and salary estimates)
You’ll cover all these in greater detail later in your plan, so don’t go into excessive detail about them here. Use one or two paragraphs to show why you should be the source of your product or service, why people should choose you over your competitors, and why your vision will succeed.
Keep it clear, simple, and realistic so readers should leave with a solid understanding of your vision, what your business does, and the problem you’re solving.
In this section, you’ll state the goals and objectives you’re trying to achieve and how you intend to achieve those targets.
Define your short-term, medium-term, and long-term goals, ensuring they’re SMART:
Specific : Have clear, specific outcomes in mind.
Measurable : Know what metrics to use to evaluate the accomplishment of your goals.
Achievable : Create a goal you can achieve or accomplish successfully.
Realistic : The goals should be relevant to your business.
Time-based : Have a timeframe for when you want to achieve the goal.
SMART goals ensure you take actionable steps toward improvement, measure your outcomes, and ultimately achieve scalable success.
For example, you could have a short-term goal of decreasing bounce rates by 20% within 10 weeks to reach a long-term goal of growing conversions by 40% within 12 months.
Next, analyze the market you’re entering.
Describe its landscape and identify your target market. Find out the strengths and weaknesses of the market and how your business will fill them.
For example, Erin Banta, co-founder of Pepper Home , an ecommerce business that provides sustainable custom-made home goods, identified a gap in the custom home goods market and built their business plan around it.
“We discovered most shoppers traditionally didn’t have access to custom home goods,” says Banta. “So, we simplified the custom décor ordering process and offer stylish, affordable options to help shoppers dramatically transform a room with just a few key pieces. Our target audience is anyone who wants to personalize their space in a stylish yet affordable way, with both form and function as a priority. Our customization features and best in class product lead times have proven our initial success.”
Market analysis requires some research to get data about:
Your target audience
Market size and dynamics
Potential opportunities
You can find this data online or in places like industry organizations and related publications, reputable news outlets, or government statistics offices.
Market analysis gives you:
Confidence to decide what products to roll out that will sell and give value to your target customers.
Updated information on current industry trends and what the market will look like in the next five years.
Enough data to know about your market and win investor trust.
If you need extra help with market analysis, you can get a market research expert through Fiverr to do it for you.
Conduct a competitive analysis to get and showcase information about competitors in your niche or industry and outline how you’ll set your business apart from theirs.
You can list the names of your direct competitors and specify exactly what you’ll do to differentiate your business and win loyal customers.
NakedWardrobe, a global womenswear brand, differentiates itself in a highly competitive market by offering its target customers affordable, timeless luxury basics.
“In our business plan, we had a shared vision of creating a carefully curated, high-quality clothing brand at an affordable price point,” says Shideh Kaviani, president of NakedWardrobe . “We sought to create affordable luxury basics that are timeless, with the highest quality textiles and fit. Today, we are leading the market in affordable luxury and empowering women to feel confident by providing fashion that feels like second skin.”
Conducting competitive analysis helps you find data about:
Your direct and indirect competitors
The markets and segments your competitors serve
Benefits the competition offers
Their products and services
What competitors’ customers buy from them
Promotional and pricing strategies
Competitors strengths and weaknesses
How you’ll stay ahead of the pack should other businesses enter the fray
You can also conduct your own primary research by visiting their physical stores or sites and completing an order.
Analyze the information you find to identify any market segments or gaps your competitors have overlooked and the user experience on their sites.
Detail everything you find about your competitors and your competitive advantage in the business plan. That way, you’ll persuade the reader that you’re knowledgeable about the competitive landscape and your idea has a clear advantage in the market.
Here’s an example of what a competitor analysis section would look like:
Source: BDC
This section gives an overview of your company, such as its historical background—owners, when it was founded, and legal structure—and how your business is organized.
Include your organizational chart to reflect the team hierarchy (if you have one) and highlight:
Key members of the leadership and management team
People’s individual skills, experience, and functions with the company
Professional gaps you intend to fill with new hires
Here’s what this section would look like when completed:
List the products or services you offer and how your customers will access them.
For instance, if you sell digital products, state whether customers will download or stream the content. If you’ll charge a subscription fee, say whether customers will pay a subscription fee for each content piece or to access the entire content platform.
If you sell physical products online, share what your site will look like and which ecommerce platform you’ll use, and list each product with its description and pricing details.
Share information about your entire product and service range and how they relate to one another to form your whole offering. If possible, show how your offerings will allow you to cross-sell, upsell, and/or retain customers.
Keep this section as simple as possible, highlighting:
The most compelling characteristics of your product or service.
Your prices compared to the competition.
How your products meet your target customers’ needs.
How your offerings enable you to hit your long-term goals and objectives.
Any patents, trademarks, licensing, awards, or copyright information you have.
Future product or service expansions you plan to make.
Potential challenges or threats to your product or service range.
Save any technical details about your product or service for the appendix section of your business plan.
Want to learn about marketing strategy and logistics? Keep reading.
Ready to start selling? Find an ecommerce specialist on Fiverr to grow your store.
In this section, detail how you’ll attract, retain, and grow customers for your business.
Marketing covers a wide range of activities and approaches, so ensure you have a clear structure with enough information to show how your planned marketing activities will work.
Some key things to cover in this section include:
Your unique selling proposition (USP)
Product or service positioning (affordable or premium)
Promotional activities to drive brand awareness and traffic to your site
Distribution channels and order fulfillment processes you’ll use
Together with your customer personas, distill the marketing efforts you plan to undertake into a brief outline of how you’ll reach and attract your ideal customer.
Your ecommerce marketing strategy can include using social media tools, such as Instagram Reels or TikTok videos, print campaigns, loyalty cards, and more—depending on your budget. The plan should resonate with your audience and meet them on the platforms they visit.
“We always knew we would design a service-style business that relied on customer retention, satisfaction, and high touchpoints,” says Michael Green, co-founder of Winona , a female-founded anti-aging wellness center. “We’ve employed a variety of marketing strategies through various platforms to reach target audiences, notably through Facebook and targeted PPC advertising—where our customers browse and shop.”
This section is critical, particularly if you’ll opt for a dropshipping approach to your online business.
Set out everything you need to operate your business, including your suppliers, facilities, inventory, equipment, and more. This shows you’ve thought through each aspect of your product down to fulfillment and potential issues you might run into that could impact the customer experience.
Present a clear picture of how you’ll start the business and manage day-to-day operations, plus details such as costs, delivery options, and estimated timelines.
All the theory you’ve covered so far means little without numbers to back it up.
Include information about your finances—cash flow projections, profit margins, forecasting, and more—to demonstrate your business’s financial viability to potential investors or lenders.
The basics to include are:
Any capital you might already have
Potential sales
Cash-flow projection
Profit margins
Customer acquisition cost
Estimated monthly income and expenditure
Estimated expenses budget divided into fixed and variable costs
Projected balance sheet (assets and liabilities)
Remember, most numbers you’ll include in this section will be based on projections of what you need to start, run, and grow your ecommerce business.
“The most important elements to include in a business plan relate to costs,” says Lou Haverty, owner of Tank Retailer . “You want to accurately estimate your product margins and advertising costs. You want to make the estimated costs higher if possible. If you have a plan that works with higher costs, you give yourself more of a cushion in case you have unexpected costs.”
If you need help structuring your financials section, reach out to Fiverr’s financial consultants to handle the numbers for you.
With the elements and steps above, you can create a thorough ecommerce business plan for your startup that will impress your team, key stakeholders, potential investors, and customers.
If you lack the time or bandwidth to build yours, Fiverr is here to help.
Our digital services marketplace hosts a wide range of experts offering different business services, including writing, financial consulting, legal services, and more. What’s more, you can manage freelancers, project files, and payments for free on the platform.
Sign up to Fiverr to find a business expert who will build and firm up your ecommerce business plan.
Elsier otachi b2b content writer.
Elsier writes data-driven content for tech-led brands and SaaS companies that gets them noticed online and truly delivers value.
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.
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:
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.
Wondering what goes into making a perfect ecommerce business plan? Well, these are the key components you shouldn’t be missing.
There is no definite format for business plans. However, a comprehensive plan accounts for all these components and makes it effective.
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.
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.
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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.
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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?
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.
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.
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.
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:
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:
The decisions you make here will influence the marketing strategy of your online store.
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:
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.
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.
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.
The logistics and operations plan will serve as a policy book for your organization. It will answer every query and doubt regarding the process.
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:
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 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.
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.
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
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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 .
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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.
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.
Here are a few mistakes to avoid while drafting a business plan for your new business:
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.
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:
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May 24, 2022 | 9 min read
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.
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.
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.
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 .
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.
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.
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:
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.
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:
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:
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:
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.
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:
SWOT analyses are about assessing your business’s:
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 :
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.
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:
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.
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:
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.
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.
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).
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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July 6, 2023
Adam Hoeksema
Welcome to the ever-evolving world of ecommerce—a space where countless businesses are launching every day. If you've landed here, we're guessing you too are gearing up to start your own ecom business. Yet, entering ecommerce is not just about setting up a website and listing products—it involves a robust plan that encompasses every aspect from customer acquisition to cash flow forecasting. That's why we've crafted this comprehensive guide. This Ecommerce Business Plan Guide, complete with a sample business plan, should help you check this project off the list.
Although we focus on ecommerce financial models , we know that some of our clients also need a full business plan, so I decided to take a deep dive into the topic. I plan to cover:
How to analyze the competition in ecommerce, how to estimate customer acquisition costs in ecommerce.
With that as our guide, let’s dive in!
It might feel like writing a business plan is a waste of time, and honestly, writing a 40 page plan probably is a waste of time. So why write a business plan? I like to say that you write a business plan primarily because the people with the money (the lenders and investors) are asking for your business plan and projections.
Although I think a business plan could be a good exercise for any ecommerce startup, I know the real impetus for writing a business plan is likely the fact that your potential investors or lenders are asking for one.
I don’t think your business plan needs to be a 100 page dissertation, our ecommerce business plan example is roughly 10 pages. We include the following sections:
We suggest the following business plan sections for your ecommerce business plan:
Analyzing the market for an ecommerce product is a vital step in any business plan. It gives you a better understanding of your potential customers, competitors, and overall market dynamics. Here's a step-by-step guide to help you do this effectively:
I like to use Google Keyword Planner Tool to see how many people are searching for keywords related to the product I plan to sell as a quick and free way to estimate the market size. For example, let’s assume that we are selling a yoga mat. According to Google Keyword Planner Tool there are roughly 90,000 monthly searches for that keyword.
To put some additional rough math to the opportunity, the first organic search result will often get roughly 40% of the clicks, and a solid ecommerce site will have a 3% conversion rate of visit to purchase. So if you ranked first and received roughly 36,000 clicks with a 3% conversion rate you could sell 1,080 mats per month.
Read More: How to Write a Business Plan Competitor Analysis
I like to suggest using Google Trends to see trends in popularity in your market. If we stick with our yoga mat example we can see the following seasonal trends and trend over the last 5 years for the search term yoga mat.
Each of these steps will provide valuable insights that can shape your ecommerce product's marketing strategy, positioning, pricing, and much more. Remember, market analysis is an ongoing process—it needs to be repeated periodically as markets evolve over time.
There are a couple of tools that I like to use when analyzing the competition in ecommerce.
We can also see what keywords are sending the most traffic to that page below where I have highlighted the monthly organic traffic estimate for each keyword.
I like to use Google Keyword Planner Tool to estimate customer acquisition costs as well. As we saw with the Yoga Mat example below the average cost per click to advertise for that keyword was between $0.39 cents and $3.13.
Again if we stick with a 3% conversion rate and assume 50 cents per click that means you are likely to spend roughly $16 to acquire one customer. Not a whole lot of room for margin in this business right? In this case you would need to hope that you can sell multiple products to the same customer over time.
Your customer acquisition costs will be a fundamental assumption in your financial model. Let’s dive into that next.
Just like in any industry, the ecommerce business has its own unique factors that impact financial projections, such as online traffic, conversion rates, and customer acquisition costs. Utilizing an ecommerce financial projection template can simplify the process and increase your confidence. Creating accurate financial projections goes beyond showcasing your ecommerce venture's ability to generate sales; it's about illustrating the financial roadmap to profitability and the realization of your online business goals. To develop precise projections, consider the following key steps:
While financial projections are a critical component of your ecommerce business plan, seek guidance from experienced professionals in the ecommerce industry. Adapt your projections based on real-world insights, leverage industry resources, and stay informed about digital marketing trends and evolving consumer behavior to ensure your financial plan aligns with your goals and positions your ecommerce venture for long-term success.
Explore our E-commerce Business Plan, presented below. If you prefer, you can access a downloadable Google Doc version of this bar business plan template, allowing you to personalize and tailor it to your specific needs. Additionally, a helpful video walkthrough is available, guiding you through the process of customizing the business plan to perfectly align with your unique Ecommerce business.
Executive Summary:
Marketing and Sales Strategy
Operations Plan
Financial Projections
Our ecommerce store, "Eco-Friendly Fashion," aims to provide consumers with stylish and environmentally-friendly clothing options.
Our target customer is the eco-conscious, fashion-forward individual who is looking for sustainable alternatives to fast fashion.
The ecommerce market is growing rapidly, and there is a growing demand for sustainable fashion products. We believe there is a gap in the market for an ecommerce store that offers a wide range of eco-friendly clothing options at affordable prices. Our unique selling proposition is to offer high-quality, stylish clothing that is also environmentally friendly, at a price that is accessible to our target customer.
We plan to launch with a product line of 50 items, including t-shirts, hoodies, and dresses, made from organic cotton and recycled materials. Our products will be manufactured in fair trade factories, ensuring ethical labor practices. Our initial funding will come from personal investments and a small business loan. Our financial projections show that we will break even in the third year of operation and achieve a profit by the fourth year.
Eco-Friendly Fashion is a newly established ecommerce store that will offer a wide range of eco-friendly clothing options for both men and women. The company was founded by two friends, Jane Doe and John Doe, who share a passion for sustainability and fashion. Jane has a background in fashion design and John has experience in ecommerce and marketing.
Eco-Friendly Fashion is a limited liability company (LLC) registered in the state of California. Our team also includes a product sourcing specialist and a freelance graphic designer. Our office and warehouse are located in Los Angeles, CA.
The global ecommerce market is expected to reach $4.9 trillion by 2021, with a significant portion of this growth coming from the fashion industry. Consumers are increasingly turning to ecommerce for their fashion purchases, and there is a growing demand for sustainable fashion products.
Our target customer is the eco-conscious, fashion-forward individual, aged 18-35, with a moderate to high income. This demographic is highly concerned about the environmental impact of their clothing choices and is willing to pay a premium for sustainable fashion options.
Competitors in the eco-friendly fashion market include established brands like Patagonia and smaller, niche brands like Tentree. However, these brands tend to focus on outdoor and athletic wear, rather than everyday fashion, and their products can be expensive. Our competitors in the sustainable everyday fashion market include companies like Reformation and Everlane, but these brands have limited product offerings and their products can also be expensive.
Our marketing and sales strategies will focus on leveraging social media, influencer marketing, and targeted online advertising to reach our target customer. We will also attend sustainable fashion trade shows and events to network and showcase our brand.
Eco-Friendly Fashion will launch with a product line of 50 items, including t-shirts, hoodies, and dresses, made from organic cotton and recycled materials. Our products will be manufactured in fair trade factories, ensuring ethical labor practices. Our products will be designed in-house, with a focus on creating stylish, on-trend pieces that are also environmentally friendly.
Our pricing strategy will be to offer high-quality, stylish clothing at a price that is accessible to our target customer. Our products will be priced slightly higher than fast fashion options, but lower than sustainable fashion competitors like Reformation and Everlane.
We will continuously expand our product line and source new materials and manufacturing partners to ensure we are always offering the latest in sustainable fashion. In addition to our clothing line, we will also offer a recycling program for customers to trade in their old clothing for store credit. This will further demonstrate our commitment to sustainability and encourage customers to make more sustainable fashion choices.
Our plan to grow our ecommerce business and reach our financial targets will follow a 5 pronged marketing approach in order to acquire customers.
Brand Awareness:
Content Marketing:
Email Marketing:
Paid Advertising:
Referral Program:
Eco-Friendly Fashion will operate as an online ecommerce store, with all sales taking place through our website. Our website will feature a user-friendly interface, detailed product descriptions, and multiple payment options. We will also offer free shipping on all orders within the United States, with the option for international shipping at an additional cost.
Our fulfillment and delivery strategies will include partnerships with established logistics companies to ensure efficient and cost-effective shipping. We will also implement a comprehensive returns and exchanges policy to ensure customer satisfaction.
Our ecommerce platform will be powered by Shopify, which offers a range of tools and integrations to manage our website, inventory, and customer data. We will also use a customer relationship management (CRM) system to track customer interactions and improve our marketing and sales strategies.
Our start-up costs will include the cost of product development and manufacturing, website development, marketing, and rent for our office and warehouse. Our initial funding will come from personal investments and a small business loan.
Our financial projections show that we will achieve $75,000 in sales in the first year, increasing to $500,000 in the second year and $1 million in the third year. Our expenses will include product manufacturing, marketing, salaries, and other operating costs. Our projections show that we will break even in the third year of operation and achieve a profit by the fourth year.
To minimize risk, we will continuously monitor our financial performance and adjust our strategies as needed. We will also implement a thorough risk management plan, including carrying appropriate insurance coverage and implementing strong data security measures to protect our customer information.
All of the unique financial projections you see below were generated using ProjectionHub’s Ecommerce financial projection template . Use PH20BP to enjoy a 20% discount on the template.
Eco-Friendly Fashion is poised to fill a gap in the sustainable fashion market, offering a wide range of stylish and environmentally friendly clothing options at affordable prices. With a growing demand for sustainable fashion and our commitment to ethical and sustainable business practices, we are confident in our ability to succeed in the competitive ecommerce market.
Our team is dedicated to offering the highest quality products and customer service, and we are excited to bring our vision of sustainable fashion to life. Our next steps include finalizing our product line and manufacturing partnerships, launching our website, and beginning our marketing and sales efforts.
To start an ecommerce business, you'll need to identify your target market and products, create a business plan, set up an online store or website, source or create products, establish secure payment and shipping methods, and implement marketing strategies to drive traffic and sales.
Popular ecommerce platforms include Shopify, WooCommerce, Magento, and BigCommerce. Consider factors such as ease of use, customization options, scalability, pricing, and integration with other tools or marketplaces when choosing the right platform for your business.
You can drive traffic to your ecommerce website through various strategies, including search engine optimization (SEO), social media marketing, content marketing, influencer partnerships, email marketing, paid advertising, and utilizing marketplace platforms such as Amazon or Etsy.
Essential elements for product descriptions in ecommerce include clear and concise product titles, detailed descriptions highlighting key features and benefits, high-quality product images, pricing information, sizing or specifications, and customer reviews or testimonials, if available.
To optimize the checkout process, streamline the steps involved, offer guest checkout options, provide multiple payment methods, ensure security and trust indicators, display shipping options and costs upfront, minimize form fields, and offer incentives such as discounts or free shipping for completing a purchase.
Adam is the Co-founder of ProjectionHub which helps entrepreneurs create financial projections for potential investors, lenders and internal business planning. Since 2012, over 50,000 entrepreneurs from around the world have used ProjectionHub to help create financial projections.
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Self Storage facilities seem to be popping up all over the place recently and there's no slow down in sight. Follow this step by step to understand the basics of how to get your self storage business started, how much it will cost, and how much you stand to make!
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.
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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Thanks to the evolution of the internet, online retailers can easily create and showcase their products and services through eCommerce websites.
And while potential customers for a brick-and-mortar store are geographically limited, eCommerce stores can serve customers worldwide with the click of a button.
As a result, an eCommerce site expands a company’s business model exponentially and is a sought-after asset.
But when starting your online business (or expanding your existing business model to include an eCommerce website), where do you start?
Online retailers include those with one or two products, all the way up to an online marketplace with millions of products and listings.
The best way to start is often to understand what you need – what your target audience wants – and to find inspiration in other successful eCommerce sites.
For that reason, we’ve compiled a list of 17 online businesses that provide great examples of eCommerce companies. From providing excellent customer service that builds the customer relationship and creating a truly unique online shop to reaching massive global sales, these companies offer an excellent example of success. They can inspire you as you design, build, and market your website.
Before we jump into the case studies of our eCommerce business examples , let’s start by taking a look at the history of eCommerce.
The eCommerce business model on the world wide web began to grow in the early to mid-1990s. By then, the internet (launched in 1991) was becoming more familiar, and using it for commercial purposes was becoming more popular. Amazon, a now hugely recognizable online retailer , debuted online in 1995.
The general public’s awareness and use of the internet played a big role in the opportunity for online stores . After all, you can’t have a successful eCommerce platform without potential customers.
But, one of the challenges facing e-commerce businesses was how to safely and securely take payments online.
The customer experience was important – and trusting this new mobile commerce would require an extra emphasis on security protocols. The development of DSL and HTTPS standards played a big role in securing online transactions and growing ecommerce business in general.
The year 2000 marked a considerable increase in the eCommerce industry – now that safety measures were in place and familiarity was high.
Google Adwords also debuted in 2000, boosting the organic search engine options with paid marketing campaigns directed at driving more traffic.
Since 2000, more and more retailers have joined and listed their products and services online , to the extent that today, more than 95% of Americans have purchased something through eCommerce transactions!
Whether you’re a business owner building a consumer-to-business or business-to-consumer shop, online stores have made a successful business model on various eCommerce platforms .
We’re reviewing a list of 17 case studies of eCommerce businesses that have done it right.
We’re talking about everything from building a visually beautiful online store with high-quality product images and integrating a successful online store into an existing business model to disrupting an entire industry with a unique approach to content or influencer relationships. These ecommerce companies have achieved record retail eCommerce sales and are leaders in the ecommerce market that can inspire you as you begin your online journey.
The Pearl Source is an eCommerce store and one of the brick-and-mortar retailers on our list , as they have a showroom in Los Angeles, CA. The Pearl Source sells pearls and fine jewelry directly to consumers through its business models.
During a recent holiday season, The Pearl Source decided to increase the effort invested in their sales channels and run calculated ads that would target three unique audiences. The first group was a lookalike group on Facebook that mimicked consumers who had visited the online store. The second group was those who had visited the store but not purchased, and the third group was consumers who had added a product to the cart but had not completed the purchase.
The ads integrated product photos, an easy call to action button (meaning the prospect could be back on the website and browsing with just a few clicks), and a 15% off coupon. Once on the website, options displayed products and included a live chat to help solidify the sale.
The results were impressive, and the ads returned a 43% conversion rate, adding more than $64,000 in sales, almost 600 new customers , and a curated list for future marketing and email campaigns. Click here to learn more.
Bellroy is an Australia-based accessories company that sells small leather goods like wallets and phone cases . The business sells well in China through a distributor, but the numbers weren’t growing as quickly as Bellroy would like, and quality control wasn’t high. Customers were frustrated, and feedback from the third-party store wasn’t positive.
As a result, Bellroy decided to rebuild the online business and develop it with data to ensure sufficient online sales. The team worked to create a solid business plan driven by data from the five biggest competitors, the best products by profit margin, and more. It was also essential to launch the site in time for a Chinese holiday that represented significant sales opportunities.
Their ecommerce business plan included a UX design centered around customer experience , a clean website design, new content and fresh images that resonated with the consumer, strategy advertising, and a relevant social presence to the local audience.
As a result, the eCommerce business has significantly improved positive brand awareness, satisfaction, and overall revenue. To learn more, click here .
Envelopes.com faced a problem that most eCommerce businesses face, the abandoned cart or consumers exiting the website before completing a purchase. They focused on consumers who had an account but didn’t finish the final steps, which they assumed demonstrated a genuine intent to purchase.
General follow-up wasn’t the goal; the team wanted to find the best time to follow up , so they tested different options, including some sent the following day at 11 am and others 48 hours later. The first test resulted in a conversation rate of 27% and the latter of 40% , a significant difference. The key takeaway here for an eCommerce business is to utilize the email follow-up options available through eCommerce platforms and investigate the data to maximize results. To learn more, click here .
Edible Arrangements is an eCommerce store that sells and delivers fresh fruit arrangements . Although they had an existing email service provider (ESP) , the software was expensive and overcrowded with features the company wasn’t using.
After partnering with a new expert, the decision was made to focus on “segmentation to leverage high-value, email-exclusive offers for both short- and long-term revenue opportunities.” And to capitalize on holidays that were significant sales opportunities for the brand.
As a result of the targeted, email exclusive offers (with featured products and an attention-grabbing image or two) that went out through the campaign, the company saw a 175% increase in sales year over year on Mother’s Day, exceeding the goal by 45%. To learn more, click here .
Beardbrand didn’t just reinvent their eCommerce website; they reinvented the business. By developing a customized model that matched a shift in the industry, this business model grew into an eCommerce giant.
Beardbrand is an interesting case study because they didn’t just focus on one thing and did it well. They created the entire experience around the direct-to-consumer model . They started by truly understanding the buyer persona and crafting experiences around that individual. One unique example of this was in the purchase experience, where consumers are asked if they’d like to subscribe and receive a free gift . Consumer brands often focus on the initial sale and forget the opportunity to turn individual purchases into loyal customers.
Beardbrand also shifted the traditional content marketing model by creating the content first and then launching the e-commerce business. These are just a couple of ways (and reasons) that the business model sees record success. Click here to learn more.
Casper Mattress is one of the inspiring e-commerce companies because it not only disrupted the mattress industry, it did so by connecting with the consumer on a new level. They learned about the consumer they served and tapped into the ideals of being progressive, supporting sustainability, and more.
How did Casper Mattress manage to create loyal customers who need a mattress? They made a product that could be delivered in a revolutionary way and limited options to ensure easy buying decisions (only three choices eliminate the need for a store full of mock beds). This business model not only made it easier to get a mattress from Casper than from the competition, but it also connected with consumers on a deeper level. It resulted in customers that not only choose to buy for convenience but want to buy because of culture. To learn more, click here .
Amerisleep is another mattress and business-to-consumer model . When conversions were under expectations for this eCommerce business, they addressed content and went to work on creating a new copy.
Instead of talking about how great the product was, they talked about the life-changing effects of its product . And while you don’t typically think of a mattress as an urgent purchase, the new consumer-first copy created that with a sense of loss for every night without a new mattress.
The result was a 13% increase in conversions , resulting in millions of dollars, and a timely reminder to always create a copy with your consumer in mind. To learn more, click here .
Frank Body is a coffee-based skincare line that has exploded thanks to great products and the use of social media, influencer marketing, email marketing campaigns, and more. This eCommerce business didn’t start with huge funding , so they relied on what they had, a passion for what they did, and a great connection with consumers who would produce beautiful images (and coveted social proof).
Unlike big ad campaigns, Frank Body used its eCommerce platforms to reach people and to get the word out through social posts and tags that grew the brand to where it is today. Even though revenue is more than eight figures annually , Instagram is still a significant source of income, proving that you don’t always have to follow the typical business model that requires upfront capital and big ad spend budgets. Click here to learn more.
Man Crates is a gifting business that was created to make gift giving to men easier. One of the great things that set Man Crates apart is creating content that matches the consumer’s search intent. Since organic traffic makes up a large part of the site visitors, Man Crates make sure that what you see directly results from what you searched for (complete with an enticing image for each) .
In addition, Man Crates skips the large sections of copy on the main pages and focuses on storytelling around each product . This not only helps describe the product but always helps the consumers remember it if they don’t make the purchase right away. To learn more, click here .
Sunski operates in the fashion industry as a purveyor of fashion-forward sunglasses. While content, new products, and other traditional efforts helped this company become one of the top eCommerce platforms, the unique approach to growth came in the form of PPC.
According to its partner, “we were able to completely reimagine their goals and illustrate through data a better way to manage PPC ads toward business profitability instead of ROAS.” This and other efforts resulted in a 176% increase in PPC revenue and a 346% increase in non-branded traffic . To learn more, click here .
BUDAPESTER is a German online eCommerce business that sells designer bags, shoes, and more. While the eCommerce platform received a high level of traffic, conversions were low, and improvements were needed.
One of the surprises came from data that suggested conversions from mobile devices were significantly lower than average . Another finding indicated that unique selling propositions weren’t displayed clearly , leading to high drop-offs. After creating changes to the e-commerce software, the results were an increase in conversions by more than 10% and almost 30% on mobile . To learn more, click here .
Company Folders is a printing compan y in the eCommerce industry that had unique challenges due to its potential ordering customizations that exceeded 15 million options. And with business-to-business and business-to-consumers using the site, the need for simplicity was high.
After carefully updating the eCommerce platform to provide a more intuitive quoting and ordering system, the increase in completed quote requests was more staggering, at more than 67% . To learn more, click here .
Kettlebell Kings is a unique eCommerce platform that sells not only physical products but also digital offerings. Because the focus was on the physical options, the eCommerce business model failed to support the digital component properly.
The team went to work to restructure the page for a more natural progression through all of the offerings and improve content from graphics to copy . The result was a 151% increase in sales conversions and approximately a 35% increase in monthly recurring revenue . Click here to learn more.
Away is a great example of an eCommerce business model that brings a product to market entirely differently . While technically, this eCommerce business sells luggage, they really position themselves as storytellers that celebrate the joy of traveling and making memories.
Away approached traditional eCommerce business models and decided to enter the market first with a collection of travel stories from industry professionals in a book titled The Places We Return To. The book garnered attention, and orders included a coupon for Away products . Away continued with consumer-focused content and published a magazine full of high-quality images that shared the brand story visually. This unique approach established Away as one of the best eCommerce companies . To learn more, click here .
MVMT approached social proof as an asset to be cultivated and managed before influencer marketing was understood. The business started by approaching content creators on Instagram whose visuals lined up with the brands and began reaching out to create influencer relationships.
But the company didn’t stop there and continued integrating the influencer’s significance into its business model, tracking key metrics for every creator relationship and investing in software to track ROI statistics. The results speak for themselves, with more than 39k pieces of influencer content created for the brand and 100k affiliate code conversions . To learn more, click here .
MeUndies, like many businesses, was born out of a need . And in this case, it was men’s underwear that fit well and was easy to buy. Unlike the business-to-business model, MeUndies decided to go straight to the consumer, making it easy to access and get the underwear you want and need without the hassle.
Like other popular eCommerce brands (think Dollar Shave Club and Fabletics), MeUndies offers a subscription model, but it doesn’t require commitment . MeUndies goes beyond convenience and diverts significant efforts into ensuring inclusivity, community, and sustainability. These values are evident across social platforms and through influencer partnerships (and user-generated content), further solidifying brand loyalty. To learn more, click here .
Skullcandy found that sometimes investing in the “best eCommerce platform” or sophisticated tools isn’t a benefit if it becomes cumbersome to make changes without relying on external partners. As a result, Skullcandy moved away from software like Salesforce and sought out a partner that would work to develop a two-way relationship that afforded more flexibility and agility to grow as needed.
With their new business plan, Skullcandy moved the website to BigCommerce and was excited about the possibilities that came with open APIs and unlimited integration potential, including those with social media platforms. As a result, Skullcandy saw a more than 100% increase in year-over-year traffic and a 146% increase in revenue . Their sleek website design and clean product page made visitors all the more likely to buy their products. Click here to learn more.
According to research, the future of eCommerce is bright. Consumers are less inclined to battle outdated shopping malls and fight for parking, instead opting to use apps and websites.
It is estimated that global eCommerce sales will reach 8.1 trillion dollars by 2026 , and this growth is being driven by several different factors. So whether you are a consumer, a business-to-business retailer, or a consumer-to-consumer retailer, there is an exciting future ahead for you in the world of eCommerce.
From B2B commerce to consumer-to-consumer sales, and everything in between, all types of eCommerce have an exciting future ahead. Whether you are launching a dropshipping startup or a full-scale B2C ecommerce storefront, all types of ecommerce business models are expected to enjoy continued growth. The same goes for affiliate marketing and wholesaling.
If you’re ready to start an eCommerce store , you may be wondering how to address inventory management or find the best eCommerce platform. But as you can see from our list above, running successful eCommerce businesses is much more than the day-to-day logistics.
It’s thinking differently about consumer content, SEO, culture, values, and even the software that will support your needs as you grow your eCommerce business .
It’s important to consider your customer base’s culture and values. What are they looking for in an online shopping experience? What do they consider important? You must ensure that your content, site, and overall marketing strategy reflect those values.
At the same time, you need to consider the software that will support your eCommerce business. What works for a small business may not work for a larger business . You need to find the right software that can grow with your business.
Not only does running a successful online business require good marketing skills, but you also have to know which website builders are right for you and your brand. BigCommerce is currently ranked number one, but it all depends on the needs of your business. Other platforms like Shopify or Wix could provide the functionality you need. Some entrepreneurs even get their start on marketplaces like eBay or Etsy, before setting off on their own.
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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.
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.
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.
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.
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.
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.
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.
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?
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 .
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.
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.
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.
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!
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.
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.
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.
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.
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.
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.
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.
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.
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.
Writing a business plan is a crucial step in starting an ecommerce business. Not only does it provide structure and guidance for the future, but it also helps to create funding opportunities and attract potential investors. For aspiring ecommerce owners, having access to a sample ecommerce business plan can be especially helpful in providing direction and gaining insight into how to draft their own ecommerce business plan.
Download our Ultimate Ecommerce Business Plan Template
Having a thorough business plan in place is critical for any successful ecommerce venture. It will serve as the foundation for your operations, setting out the goals and objectives that will help guide your decisions and actions. A well-written business plan can give you clarity on realistic financial projections and help you secure financing from lenders or investors. An ecommerce business plan example can be a great resource to draw upon when creating your own plan, making sure that all the key components are included in your document.
The ecommerce business plan sample below will give you an idea of what one should look like. It is not as comprehensive and successful in raising capital for your ecommerce business as Growthink’s Ultimate Ecommerce Business Plan Template , but it can help you write an ecommerce business plan of your own.
Table of contents, executive summary, company overview, industry analysis, customer analysis, competitive analysis, marketing plan, operations plan, management team, financial plan.
Welcome to ClickCart Emporium, your new go-to ecommerce destination based in the vibrant city of Oklahoma City, OK. Our mission is to revolutionize the local ecommerce landscape by providing an unparalleled online shopping experience. With our comprehensive suite of services, we cater to a wide range of customer needs, ensuring secure payment processing, timely delivery, and a user-friendly online retail platform. Our dedication to excellence and our commitment to the Oklahoma City community drive us to serve you better, making online shopping convenient, secure, and enjoyable.
Our confidence in becoming the leading ecommerce platform in Oklahoma City is anchored in our founder’s previous success in the ecommerce industry, combined with our unwavering commitment to superior service. Since our launch on January 4, 2024, ClickCart Emporium has achieved significant milestones, including the development of a distinctive brand identity, securing an ideal operational base, and laying a strong foundation for our future growth. These accomplishments reflect our dedication to excellence and our strategic approach to becoming your preferred online shopping destination.
The Ecommerce industry in the United States, currently valued at over $600 billion, is on an exponential growth trajectory, with projections estimating its value to reach $1 trillion by 2025. This growth is driven by increased internet access, rising disposable incomes, and the proliferation of digital devices, alongside consumer preferences shifting towards online shopping for its convenience and variety. ClickCart Emporium is poised to leverage these trends, offering exceptional customer service and a diverse product range, positioning us to carve out a successful niche within this competitive and rapidly expanding market, especially in Oklahoma City, OK.
ClickCart Emporium targets a diverse customer base in Oklahoma City, focusing on busy professionals, parents, elderly shoppers, tech-savvy millennials, Gen Z, and small business owners. Our platform caters to their varying needs with a wide range of products, convenient and reliable delivery options, and an easy-to-navigate interface. By tailoring our marketing strategies, especially through social media and influencer partnerships, we aim to engage these segments effectively, ensuring a seamless and efficient online shopping experience that meets their everyday needs and preferences.
Our main competitors include Liquidfish, 1stPride, and Plenty of Pixels, each offering unique digital solutions targeting different customer segments in Oklahoma City, OK. Despite their strengths, ClickCart Emporium differentiates itself through superior customer service, an intuitive shopping platform, and leveraging cutting-edge technology to offer an expansive product range. Our focus on competitive pricing, exclusive deals, and personalized support ensures a seamless shopping experience, setting us apart as a leader in the ecommerce market.
At ClickCart Emporium, we offer an integrated suite of ecommerce services, including a user-friendly online retail platform, secure payment processing, and efficient logistics and fulfillment services, all designed to empower businesses and delight consumers. Our competitive pricing strategy and comprehensive service offerings are tailored to meet the diverse needs of our customers in Oklahoma City, OK. Our promotional strategy is multifaceted, encompassing SEO, PPC, social media marketing, email marketing, community engagement, and influencer partnerships. These efforts aim to enhance our visibility, drive traffic, and foster a strong community around our brand, ensuring ClickCart Emporium becomes a household name in the local ecommerce scene.
To ensure ClickCart Emporium’s success, our operations focus on maintaining a user-friendly website, real-time inventory management, efficient order processing, and seamless coordination with shipping partners. We prioritize customer support across multiple channels and implement secure payment systems to enhance the shopping experience. Our operational strategy includes regular analysis of customer data and market trends, enabling us to refine our product offerings and marketing strategies continually. By focusing on these key operational processes and milestones, we aim to achieve operational excellence and sustain our growth trajectory.
Our management team combines expertise in ecommerce, digital marketing, logistics, and customer service, driving ClickCart Emporium towards achieving its mission. With a solid track record in the industry and a shared vision for innovation and excellence, our team is committed to providing the best online shopping experience in Oklahoma City, ensuring that ClickCart Emporium stands out in the competitive ecommerce landscape.
Welcome to ClickCart Emporium, a new Ecommerce venture based right here in Oklahoma City, OK. As a local ecommerce business, we noticed a gap in the market for high-quality online shopping experiences tailored to our community’s needs. Recognizing this, we set out to create an ecommerce platform that not only serves Oklahoma City but also sets the standard for what local online shopping should look like.
At ClickCart Emporium, we offer a comprehensive suite of ecommerce solutions. Our primary offering is an online retail platform designed to bring the convenience of shopping online to our local customers, providing them with a wide range of products at their fingertips. To complement this, we offer payment processing services, ensuring a seamless transaction experience. Recognizing the importance of timely delivery, we also specialize in ecommerce logistics and fulfillment. These services work in tandem to provide a smooth and enjoyable shopping experience from browsing to delivery.
Our operations are deeply rooted in Oklahoma City, OK. This strategic location allows us to stay closely connected with our community and understand the unique needs of our customers better. Serving the Oklahoma City area is not just a business decision; it’s a commitment to enriching our local economy and providing value to our neighbors.
ClickCart Emporium is poised for success for several reasons. Our founder brings valuable experience from previously running a successful ecommerce business, imparting a wealth of knowledge and industry insights that are instrumental to our operations. Moreover, our commitment to delivering superior ecommerce services positions us ahead of the competition, ensuring that we meet and exceed the expectations of our customers.
Since our inception on January 4, 2024, ClickCart Emporium has made significant strides as a Limited Liability Company. We’ve developed a unique and recognizable brand, starting with the design of our logo and the creative development of our company name. Additionally, we secured a great location that supports our logistics and fulfillment operations, laying a solid foundation for our business. These accomplishments, though early, are indicative of our dedication to building a successful and sustainable ecommerce platform for Oklahoma City.
The Ecommerce industry in the United States is currently valued at over $600 billion, making it one of the largest and fastest-growing sectors in the country. With the rise of online shopping and the convenience it offers consumers, Ecommerce sales have been steadily increasing year over year. Experts predict that the market will continue to grow at a rapid pace, reaching over $1 trillion by 2025.
One of the key trends in the Ecommerce industry is the shift towards mobile shopping. With more and more consumers using their smartphones and tablets to make purchases online, businesses that provide a seamless mobile shopping experience are poised for success. ClickCart Emporium, being a new Ecommerce platform, can take advantage of this trend by ensuring their website is mobile-friendly and easy to navigate on all devices.
Another trend in the Ecommerce industry is the increasing demand for personalized shopping experiences. Consumers are looking for tailored product recommendations, exclusive deals, and customized shopping features. ClickCart Emporium can set itself apart from competitors by offering personalized recommendations based on customer preferences and purchase history, creating a unique and engaging shopping experience for its customers in Oklahoma City, OK.
Below is a description of our target customers and their core needs.
ClickCart Emporium will primarily target local residents seeking a convenient and efficient online shopping experience. This segment includes busy professionals, parents needing to juggle work and family commitments, and elderly individuals who prefer the safety and comfort of home shopping. The focus will be on offering a wide range of products tailored to their everyday needs, from groceries to household essentials.
The business will also cater to tech-savvy millennials and Gen Z consumers who are always on the lookout for the latest trends and unique products. These younger customers value fast, reliable delivery and an easy-to-navigate website or app interface. ClickCart Emporium will tailor its marketing strategies to engage this demographic through social media channels and influencer partnerships.
In addition to the above, ClickCart Emporium will target small business owners in Oklahoma City who require bulk purchases for their operations. This segment is in need of a reliable partner that can provide a variety of products at competitive prices with the convenience of scheduled deliveries. The platform will offer business accounts with features such as order tracking, purchase history, and volume discounts.
ClickCart Emporium steps into the market to fulfill the growing demand for high-quality eCommerce services among residents who seek the convenience of online shopping. Customers expect a seamless shopping experience that combines ease of use with a wide selection of products. By focusing on user experience and inventory diversity, ClickCart Emporium meets these expectations head-on, ensuring that every visit to the site is both enjoyable and fruitful.
In addition to providing an extensive range of products, ClickCart Emporium understands the importance of reliable customer service and fast, accurate delivery. Shoppers value quick responses to inquiries and appreciate the peace of mind that comes with knowing their purchases will arrive on time and in perfect condition. This level of service builds trust and loyalty, encouraging repeat visits and long-term relationships with customers.
Moreover, ClickCart Emporium recognizes the significance of offering competitive prices without compromising on quality. Consumers are always on the lookout for the best deals online, and by ensuring that prices are attractive, ClickCart Emporium positions itself as a go-to destination for savvy shoppers. This approach not only satisfies the need for affordability but also reinforces the value proposition of shopping with ClickCart Emporium.
ClickCart Emporium’s competitors include the following companies:
Liquidfish specializes in offering comprehensive digital solutions including website development, digital marketing, and custom software development. Their services are tailored towards businesses looking to establish or enhance their online presence. Price points for their services vary depending on the complexity and scope of the project, making them accessible to a wide range of businesses.
While specific revenue figures are not publicly available, Liquidfish is recognized for its robust client portfolio across various sectors, indicating a healthy financial standing. The company operates primarily from its headquarters in Oklahoma City, OK, but serves clients across the United States. This broad geographic coverage is a key strength, as it allows Liquidfish to cater to a diverse client base.
Key strengths of Liquidfish include its comprehensive service offering and its ability to deliver customized digital solutions. However, its primary weakness lies in the highly competitive market of digital services, where differentiation can be challenging.
1stPride offers a range of ecommerce services, focusing on website design, online marketing, and SEO optimization. Their services are designed to help businesses improve their online sales and visibility. The company adopts a competitive pricing strategy, which makes it an attractive option for small to medium-sized businesses.
1stPride operates mainly within the Oklahoma City area, targeting local businesses aiming to expand their online footprint. Although they have a strong local presence, their geographical reach is more limited compared to other competitors. This focus on a local customer base both serves as a strength, providing personalized services, and a weakness, limiting potential market expansion.
Their key strength lies in their local market knowledge and personalized customer service. However, their limited geographical reach and the challenge of scaling their services can be seen as weaknesses.
Plenty of Pixels specializes in website design and development, offering customizable packages to meet the needs of various businesses. Their pricing model is transparent, with clear tiers based on the complexity and features of the website, catering to both startups and established businesses. The company prides itself on its efficient project delivery and post-launch support.
Although primarily based in Oklahoma City, OK, Plenty of Pixels serves clients nationwide, leveraging digital communication tools to manage projects remotely. This allows them to tap into a larger market, despite their physical location. Their ability to serve clients across the country is a significant strength, broadening their potential customer base.
The key strengths of Plenty of Pixels include their flexible pricing model and nationwide service coverage. However, their focus on website services means they might not offer as comprehensive a digital solution set as some competitors, which could be seen as a weakness in a market that favors full-service agencies.
At ClickCart Emporium, we pride ourselves on providing unparalleled ecommerce services that set us apart from our competition. Our secret lies in our commitment to understanding the unique needs of our customers in Oklahoma City, ensuring that we offer personalized shopping experiences tailored to their preferences. We leverage advanced technology to streamline the shopping process, making it faster, more intuitive, and user-friendly. This approach not only enhances customer satisfaction but also fosters loyalty, as shoppers know they can expect a seamless experience every time they visit our platform.
Beyond merely offering a wide range of products, we differentiate ourselves by integrating cutting-edge features such as AI-powered recommendations and real-time inventory updates, which significantly improve the shopping experience. Our customer service is second to none, providing round-the-clock support to address any queries or concerns promptly. Additionally, our logistics and delivery system is optimized for efficiency, ensuring that orders are processed and delivered faster than any other service in the area. This comprehensive approach to ecommerce positions us not just as a shopping platform, but as a reliable partner for our customers, making their online shopping journey enjoyable and hassle-free.
Our marketing plan, included below, details our products/services, pricing and promotions plan.
ClickCart Emporium emerges as a comprehensive solution for both businesses and consumers, offering a suite of services designed to streamline the online shopping experience. At the heart of its offerings is an online retail platform that serves as a marketplace for a wide range of products. This platform connects sellers with buyers, facilitating easy access to an array of items from the comfort of one’s home. The average selling price for products on this platform varies widely depending on the category and value of the items, but ClickCart Emporium ensures competitive pricing to attract a broad customer base.
In addition to facilitating sales through its online retail platform, ClickCart Emporium offers payment processing services. This crucial service ensures secure and efficient transactions between buyers and sellers, employing state-of-the-art encryption and security measures to protect all parties involved. The company charges a nominal fee for these services, typically a percentage of the transaction value. This fee averages around 2.9% + 30 cents per transaction, aligning with industry standards and ensuring that sellers can affordably access secure payment processing capabilities.
Understanding the importance of logistics in e-commerce, ClickCart Emporium also provides e-commerce logistics and fulfillment services. This comprehensive service covers everything from warehousing and inventory management to order fulfillment and shipping. By handling these logistical aspects, ClickCart Emporium enables sellers to focus on their products and sales, rather than the complexities of distribution. Pricing for these services is tailored to the specific needs of each seller, but businesses can expect competitive rates that reflect the efficiency and value of the logistics solutions provided.
Overall, ClickCart Emporium positions itself as a key player in the e-commerce sector by offering an integrated platform that not only connects buyers and sellers but also provides essential services like payment processing and logistics. Through competitive pricing and a commitment to quality, ClickCart Emporium aims to foster a vibrant online marketplace that meets the needs of a diverse customer base.
ClickCart Emporium embarks on an ambitious journey to captivate the hearts and wallets of customers in Oklahoma City, OK, with a blend of innovative and traditional promotional methods tailored to the digital age. Recognizing the power of online presence, the emporium will leverage online marketing as its spearhead strategy. Through this approach, ClickCart Emporium expects to build a robust digital footprint that resonates with its target audience, driving both traffic and sales.
Diving deeper into online marketing, the company will utilize social media platforms extensively. Platforms such as Facebook, Instagram, and Twitter will become arenas where ClickCart Emporium engages with its audience. Regular posts, interactive stories, and targeted ads will serve to inform, entertain, and persuade potential customers. Moreover, the emporium will harness the power of influencer marketing, partnering with local influencers in Oklahoma City to tap into their followers and gain credibility quickly.
Email marketing will also play a crucial role in ClickCart Emporium’s promotional strategy. By collecting emails from potential customers through sign-ups and promotions, the emporium will send out newsletters, exclusive offers, and updates about new products or services. This personalized approach expects to not only drive sales but also foster a sense of community among its customers.
Search Engine Optimization (SEO) will ensure that ClickCart Emporium appears at the top of search results when potential customers look for related products or services online. By optimizing its website content with relevant keywords, the emporium expects to attract more organic traffic, thereby reducing its reliance on paid advertising in the long run.
ClickCart Emporium will not limit itself to online methods alone. Local events and sponsorships will serve as an excellent opportunity to increase brand visibility and engagement within the community. Participating in or sponsoring local events, fairs, and festivals will allow the emporium to showcase its brand and products in a more personal and interactive setting.
Loyalty programs will be introduced to reward returning customers, encouraging repeat business and word-of-mouth referrals. These programs will offer discounts, special offers, and early access to new products, cultivating a loyal customer base that feels valued and appreciated.
In conclusion, ClickCart Emporium will employ a multifaceted promotional strategy that combines the reach and efficiency of online marketing with the personal touch of local engagement and customer loyalty programs. Through these efforts, the emporium expects to attract and retain customers, setting a strong foundation for growth in Oklahoma City, OK.
Our Operations Plan details:
To ensure the success of ClickCart Emporium, there are several key day-to-day operational processes that we will perform.
ClickCart Emporium expects to complete the following milestones in the coming months in order to ensure its success:
ClickCart Emporium management team, which includes the following members, has the experience and expertise to successfully execute on our business plan:
Lily Young brings a wealth of experience to ClickCart Emporium, having previously led an ecommerce business to notable success. Her entrepreneurial spirit and deep understanding of digital marketplaces equip her with the unique insights needed to navigate the complex landscape of online retail. Lily’s leadership style is characterized by a focus on innovation, customer satisfaction, and operational efficiency. Her track record of building cohesive teams and fostering a culture of excellence makes her an invaluable asset to ClickCart Emporium. Under Lily’s guidance, the company is poised to achieve its goals and make a lasting impact in the ecommerce arena.
ClickCart Emporium’s financial strategy is designed to support our growth objectives, ensuring we have the necessary resources to expand our operations, enhance our service offerings, and achieve our goal of becoming the leading ecommerce platform in Oklahoma City. Our plan outlines the investment needed to fuel our strategic initiatives, focusing on technology upgrades, marketing efforts, and operational efficiencies to drive revenue growth and profitability.
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Download our Ecommerce Business Plan PDF here. This is a free ecommerce business plan example to help you get started on your own ecommerce plan.
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BUSINESS STRATEGIES
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.
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.
An eCommerce business plan is structured similarly to a traditional business plan. However, it will detail things like your website builder, eCommerce merchandising methods , sales channels, fulfillment process, ecommerce metrics and goals that are distinct to building an online store and running it successfully.
Here’s a breakdown of what you should include in your plan and how to create it:
Write your executive summary
Include your company name, description, and domain
Perform eCommerce market analysis
List the products you’re selling and why
Plot your operations plan
Set out your marketing and advertising plan
Lay out your financial plan
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?
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.
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).
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.
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?
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.
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.
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.
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Starting an ecommerce business can be an exciting time, but it can also be a bit overwhelming. You have a great idea, but how will you turn it into a successful business? This is where a business plan comes into play. It will guide you through each step of growing your business. It helps you understand who your customers are, how you'll reach them and how you'll manage your money. Plus, when you have a formal business plan, you're 260% more likely to get your business off the ground and see it grow .
One of the first steps when building a business plan for your ecommerce start-up is understanding your market. You'll start by looking at market trends. This can look like researching the overall growth of ecommerce sales to see where the market is heading. For example, global ecommerce sales are projected to hit a whopping $6.33 trillion in 2024 . There's a big opportunity out there, but it also means you need to watch out for competition.
Look at what others in your space are doing well and if there are any gaps for improvement that you can fill. This can help you find a unique angle and offer something different to stand out in the market. About 89% of consumers check online reviews before making a purchase . Take this time to understand how your competitors are being perceived -- this can help you pinpoint what your future customers value.
This is where you’ll highlight what makes your business unique. What are the products or services you offer? What sets them apart from your competition? Standing out from your competitors can help you attract your ideal customers and build strong brand loyalty. Customers will stick around longer to support your business when you offer something no one else is providing. By this point, you'll also know what matters most to your customers so you can show them how your business solves their problems.
Next, you’ll be figuring out the main channels that will help you reach your target audience. These channels can include social media , email campaigns , SEO , or paid ads. About half of shoppers say they find new products while scrolling through social media , so if your audience spends a lot of time there, it’s a great place to start. The key is to choose the channels that your customers already use and trust so your message resonates with them in the places they’re most likely to engage.
This section is a quick snapshot of your business. Here, you will state your legal structure. Are you a limited liability company (LLC), corporation, sole proprietorship or partnership? Each comes with pros and cons; therefore, it's important to know exactly what each one involves to help you choose the one that sets your business up for success.
LLCs are often the best choice for ecommerce businesses since they offer a great balance between simplicity and protection. If you ever face legal issues, your personal savings and property are generally safe. In the company overview, you will also mention who owns the business and what your mission is.
Next, outline the key parts of your daily operations, like order fulfillment , customer service, and inventory management. These systems keep everything running smoothly, which helps keep your customers coming back .
Your financial plan should cover startup costs, expected revenue, and any funding needed for growth . Include how much money you'll need, where it will come from, and how you’ll use it. You could start an ecommerce business with as little as $500 to $1000 ; however, utilizing proper marketing and advertising will likely cost more. Planning for these expenses will give you a better chance at creating a successful and sustainable business.
Lastly is the executive summary. This will be the first part of your business plan , but it's typically written last. This section is a quick overview of your business’s main goals, mission, and strategy. You'll highlight what your business aims to achieve, who your target market is, and the opportunity you're seizing.
This is also the area to include a snapshot of your financial projections , like your expected revenue and funding needs , to give a clear picture of your business’s potential. Keep it short and focused! This is your chance to grab attention and show why your business is worth investing in.
When you build a business plan for your ecommerce startup, you know exactly what you’re offering and who you’re offering it to. You’ll have a better idea of who your competitors are and how you can stand out from the crowd. Take the time to get it right, and you’ll be ready to turn your great idea into a thriving ecommerce business.
As an experienced content and creative writer with over 3 years in the business, Paig Stafford has a knack for understanding and creating digestible content for technical and finance fields across early-stage technology start-up incubators to software companies to personal development applications. In her free time, she enjoys baking desserts and playing computer games
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Discover 10 ecommerce business examples disrupting the traditional retail model and shaping the future of shopping.
Ecommerce has exploded in popularity over the past decade, with more and more entrepreneurs launching online stores. The ecommerce industry is diverse, encompassing everything from multinational corporations to solo entrepreneurs selling handmade goods . While the potential rewards of ecommerce are high, building a successful online business is far from simple.
The ecommerce landscape is competitive, fast-paced, and requires constant innovation. Aspiring entrepreneurs can learn a great deal from studying existing online businesses. This article highlights 10 real-world, ecommerce business examples across various industries and business models .
An ecommerce business is a company that sells products or services online, allowing customers to purchase items on the web. Also known as an online store or digital storefront, an ecommerce business enables transactions to occur over the Internet using tools like shopping carts , payment gateways , and order management systems .
Ecommerce businesses tend to have lower overhead costs than brick-and-mortar retail , and because they do not have as many geographical limits, they can expand their reach to potential customers outside their regions and worldwide. Ecommerce businesses may own the end-to-end online shopping experience from product listings to checkout on their branded websites, or have stores on online marketplaces like Amazon and Etsy.
You can categorize ecommerce businesses based on who they sell to and how they reach customers. Understanding these key ecommerce business models provides insights into how different online stores operate:
Ecommerce has revolutionized online shopping, enabling companies to sell products to consumers across the globe, a contrast from the brick-and-mortar store model. By leveraging ecommerce platforms and an ecommerce business model, companies can build successful online stores and branded ecommerce companies. Here are 10 case studies of successful ecommerce businesses:
Founded in 2014 by Tim Brown and Joey Zwillinger, Allbirds sells sustainable footwear made from natural materials like Merino wool and eucalyptus fiber. Allbirds employs a direct-to-consumer model, focusing on sustainable materials and online-first retailing through its ecommerce store (though it has physical stores as well). The brand uses social media platforms to advertise to its consumer base, occasionally dabbling in traditional advertising, like billboards.
Founded by Steve and Kim Sorensen, BlenderBottle launched in 2000 and makes shaker bottles, gym bags, and other fitness accessories targeted at workout buffs. One of the company’s best-known products is its leak-proof blender ball bottles. BlenderBottle employs a successful hybrid model, selling products directly through its ecommerce site, as well as on online platforms and at physical department stores.
In 2000, Sara Blakely founded Spanx from her apartment. The company initially sold slimming, shaping, and supportive undergarments for women. Spanx has since expanded its collection to include activewear, workwear, and loungewear, diversifying beyond its original product line. Blakely’s early marketing efforts targeted department store sales representatives to get her products placed in stores. However, Spanx quickly embraced ecommerce, directly reaching consumers online with its size-inclusive range.
Founded by Eirin Bryett and Wez Bryett, Princess Polly is an Australian online retailer that launched in 2010 and has since expanded to the US. Princess Polly has become a fashion industry vanguard, offering the latest fashion, targeting Gen Z consumers. The company sells trendy women’s apparel, shoes, and accessories and relies heavily on influencer marketing and social media for brand awareness .
Founded by Mackenzie Yeates, Benjamin Sehl, and Rami Helali in 2015, Kotn sells sustainable premium cotton basics including apparel and home décor fabrics. With its focus on quality, sustainability, and working with the communities it sources from, Kotn has become a celebrated B Corporation (a certification given to for-profit companies that have a strong positive social or environmental impact) that sells quality products both through its online and physical stores.
Launched in 2014, Leesa sells direct-to-consumer mattresses and bedding essentials online. Cofounded by David Wolfe and Jamie Diamonstein, Leesa is a mattress-in-a-box industry pioneer that challenges the conventional mattress showroom business model with an online sales strategy.
Though the company only sells its products online, potential customers can try the mattresses at West Elm and Pottery Barn stores in select locations. The company also allows customers to test out mattresses for 100 days with free returns.
Founded in 2012 by Ben Francis in the UK, Gymshark sells high-performance athletic apparel targeted toward exercise enthusiasts. Gymshark disrupted the fitness apparel industry by building a solid brand ambassador community and social media influencer base online, encroaching on traditional athletic wear stores with its social media-savvy approach.
The company leveraged ecommerce to scale up rapidly, growing from a screen-printing operation in a garage to a leading fitness apparel brand. Though the brand does have one physical store in London, it sells products in 180 countries through its websites.
Fable , founded in 2019 by Joe Parenteau, Tina Luu, and Max Tims, is a Canadian ecommerce company specializing in ethically crafted dinnerware . Fable differentiates itself in the homeware space with a direct-to-consumer approach, offering ethically produced products directly to customers, circumventing traditional home goods stores. Emphasizing sustainability and community involvement, Fable commits to eco-friendly practices and regularly collaborates with artists on collections.
Started in 2014 by Rich and Vicki Fulop, Brooklinen sells home linens and loungewear to customers online. The husband-and-wife duo behind the brand upended the luxury bedding market by selling high-quality linens at accessible prices directly to consumers through its online platform. However, the brand is expanding its B2B operations to meet the increasing demand for large wholesale orders .
Founded in 2015 by Noura Sakkijha, Mejuri sells fine jewelry directly to customers online. With its DTC model and affordable prices, Mejuri aims to democratize luxury and challenge the high markup of conventional jewelry stores. As part of its growth strategy, the brand relies heavily on social media marketing and brand partnerships with influencers .
How do you start an ecommerce business.
Starting an ecommerce business requires choosing a product niche, registering your business , building a website, setting up payment processing, and managing shipping and fulfillment .
There are many kinds of profitable ecommerce businesses. You can sell directly to consumers (DTC), to other businesses (B2B), or lean into a consumer-to-consumer (C2C) model. The success of an ecommerce business depends on various factors like finding a niche product or service, honing in on a target audience, and attaining operational efficiency.
Ecommerce businesses generate revenue through various models, including B2C with sales directly to consumers, DTC for brand-centric sales to consumers, B2B providing products for other companies, C2B where consumers offer value to businesses, and C2C where customers transact amongst themselves.
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Sep 4, 2024
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If you’ve got an exciting concept for an e-commerce venture, it’s crucial to develop a business plan tailored to your online store. This plan will play a pivotal role in ensuring that your vision has the necessary resources to thrive and generate profits. By crafting a comprehensive business plan for your online retail operation, you can effectively pinpoint your target audience, set clear monthly and quarterly sales targets, and significantly enhance the prospects of achieving long-term success in the e-commerce industry.
As a business plan writer and consultant , I’ve authored over 15,000 business plans for various enterprises, many of which have gone on to achieve substantial growth and success. In this article, I offer insights based on my experience and expertise in creating an e-commerce business plan.
An ecommerce business plan is a comprehensive document that outlines the goals, strategies, and financial projections of an online business. It serves as a roadmap for the business, guiding entrepreneurs in making informed decisions and attracting investors.
An executive summary serves as a succinct, one-to-two-page overview of your business, meticulously crafted to inform stakeholders about the essential elements of your comprehensive business plan. It’s a window into your business’s aspirations, strategies, and financial projections, providing a clear roadmap for decision-making and attracting potential investors.
An ecommerce business plan executive summary can look something like this:
Here’s a complete guide on how to write an effective executive summary with examples.
Business overview section beckons for meticulous attention to detail, as it showcases the very essence of your business – your product or service. It’s the stage upon which your offering takes center stage, captivating the audience with its unique value proposition and compelling features. Begin by painting a vivid overview of what you’re bringing to the market, piquing the interest of potential customers and investors alike.
A business overview of Pet Planet online store may look something like this:
Here are 14 profitable eCommerce business ideas you can start today!
Having established the foundation of your business and its purpose, it’s time to embark on a deeper exploration of your plan. The spotlight now falls upon the products and services that will form the cornerstone of your venture. Begin by meticulously listing each offering, accompanied by a clear explanation of its purpose. Address the fundamental question of ‘why’ – why have you chosen to offer these specific products and services ? What unique value do they bring to the market?
Once the products and services have been comprehensively described, it’s time to illuminate the pricing model that will govern your offerings. Assign a clear cost to each service, considering factors such as production costs, market demand, and competitive pricing. Determining pricing, especially for a startup, can be a complex endeavor. Fortunately, sales pricing calculators can serve as valuable allies in identifying the optimal pricing strategy .
A explain your offerings of smart home products may look something like this:
For your E-store business, download this ecommerce business plan template now.
A comprehensive market analysis serves as a compass, guiding your business through the intricate terrain of the marketplace. It begins with a deep understanding of your target audience, delving into their demographics, preferences, and purchasing behaviors. This knowledge empowers you to tailor your products, services, and marketing strategies to resonate with their needs and aspirations.
Here is how analyze the market in our ecommerce business plan.
How to Write Products and Services Section of Business Plan
You have a great business idea. We can help you turn it into a perfect business plan..
An ecommerce business’s marketing plan is its secret weapon, guiding it towards brand awareness, target audience reach , and enhanced sales and revenue. This plan revolves around positioning strategy, acquisition channels, and tools and technology. Positioning strategy determines how you will differentiate yourself in the market, while acquisition channels identify how your target audience discovers your business.
Finally, tools and technology harness the power of innovation to enhance your reach, automate tasks, and gain valuable insights into customer behavior. By crafting and implementing a comprehensive marketing plan , you can effectively build brand awareness, attract your target audience, and drive growth and profitability for your ecommerce venture.
How to Write the Marketing Plan in Ecommerce Business Plan?
Importance of an ecommerce business plan.
The significance of an ecommerce business plan cannot be overstated. It plays a pivotal role in:
Revenue projections can be determined by conducting market research, analyzing industry trends, evaluating your target market size, and considering your pricing strategy. Additionally, factors such as marketing efforts, customer acquisition rates, and competition should be taken into account.
Managing operating expenses effectively involves careful budgeting, identifying cost-saving opportunities, negotiating with suppliers, optimizing operational processes, and regularly reviewing expenses. It’s important to strike a balance between controlling costs without compromising the quality of your products or services.
Funding options for an eCommerce business may include self-funding, loans from financial institutions, angel investors, venture capital, crowdfunding platforms, or partnerships. Consider your business’s financial needs, growth plans, and potential risks when exploring funding options.
The break-even point is the point at which your total revenue matches your total expenses, resulting in neither profit nor loss. It can be calculated by dividing your fixed costs by the contribution margin (selling price per unit minus variable costs per unit). This calculation helps you determine the minimum sales volume required to cover costs.
Tracking CAC and CLV is crucial for understanding the effectiveness of your marketing and sales efforts. CAC helps determine the cost of acquiring a new customer, while CLV estimates the value a customer brings to your business over their lifetime. By analyzing these metrics, you can optimize your marketing strategies and ensure that the cost of acquiring customers aligns with their long-term value.
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Strategize your marketing plan. Create a sales plan. Outline legal notes and financial considerations. 1. Give an executive summary. An executive summary is a one-to-two-page overview of your business. The purpose of an executive summary is to let stakeholders know what the business plan will contain.
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.
Ecommerce Business Plan Example. Below is an example business plan that we've written for a fictional cookware business. You can see how it breaks down the most important parts of a business - overall business model, competitive advantages, messaging guidelines, target audiences, budgets, key personnel - in a highly summarized, accessible ...
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.
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 ...
Nike is a popular consumer products company that designs, develops, and markets their product line of footwear, apparel, equipment, and accessory products worldwide. It designs athletic, casual, and leisure footwear for men, women, and children. Nike's footwear products include running, training, basketball, football, soccer, sport-inspired ...
Step 1: Define Your Business Concept. When writing a business plan for your new business, begin by clearly articulating your eCommerce business concept. This is like a company overview. Outline not only the products or services you plan to offer but also the underlying mission and vision that drive your business.
E-commerce business plans give an overview of what the management team expects to accomplish with the business and offer reasons why the readers should consider investing. This e-commerce business plan template is tailored specifically to e-commerce businesses, and all you need to do is add the details of your company.
Ecommerce Business Plan Template. Below are the 10 sections a sample ecommerce business plan should include: Executive Summary. Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.
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, ...
An ecommerce business plan is a document that outlines your business purpose and goals, analyzes your industry and competitors and identifies the resources needed to execute your plan. ... For example, your short-term goal to decrease website bounce rate by 25% within 12 weeks might help you reach the long-term goal of growing conversions by 50 ...
Writing a formal ecommerce business plan lets you: Communicate your goals and vision of the present and future. Have a comprehensive understanding of what it will take to build a successful ecommerce business. Lay out your core value proposition and how you intend to deliver it.
How the business works: First, you set up an online store and find a supplier willing to dropship their products for you. You then add the supplier's products to your store and set your own prices. When a customer places an order, you forward it to the supplier, who then ships the product directly to the customer.
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.
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. Industry. Business structure (e.g. sole proprietor, partnership, LLC) Vision, mission statement, and value proposition.
Analyzing the market for an ecommerce product is a vital step in any business plan. It gives you a better understanding of your potential customers, competitors, and overall market dynamics. Here's a step-by-step guide to help you do this effectively: Identify Your Target Audience: Understanding who will buy your product is crucial.
E-commerce business plan examples. 1. Draft an executive summary. An executive summary outlines everything included in your business plan. It's the first section of your plan—which makes it important because it should capture the reader's attention and entice them to read through the rest of your ideas.
Instead of shooting for the moon right away, set out the stepping stones for the stakeholders to easily understand your business objectives. Ecommerce Business Plan Examples 1. Maple Ecommerce Plan. This sample plan, provided on LinkedIn, is for a fictional company called Maple, an online store that sells exclusive Apple products.
Away. Away is a great example of an eCommerce business model that brings a product to market entirely differently. While technically, this eCommerce business sells luggage, they really position themselves as storytellers that celebrate the joy of traveling and making memories.
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.
For aspiring ecommerce owners, having access to a sample ecommerce business plan can be especially helpful in providing direction and gaining insight into how to draft their own ecommerce business plan. Download our Ultimate Ecommerce Business Plan Template. Having a thorough business plan in place is critical for any successful ecommerce venture.
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. ... For example, many companies manufacture and sell hair and body ...
One of the first steps when building a business plan for your ecommerce start-up is understanding your market. You'll start by looking at market trends. This can look like researching the overall growth of ecommerce sales to see where the market is heading. For example, global ecommerce sales are projected to hit a whopping $6.33 trillion in ...
An ecommerce business is a company that sells products or services online, allowing customers to purchase items on the web. Also known as an online store or digital storefront, an ecommerce business enables transactions to occur over the Internet using tools like shopping carts, payment gateways, and order management systems.
Tips for Writing an Effective Ecommerce Business Plan. Conduct Thorough Research: Gather comprehensive data and insights into your target market, competitors, and industry trends. Set Realistic Goals: Establish achievable and measurable goals that align with your business's resources and capabilities. Update Regularly: Review and update your ...