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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.
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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 .
Get started now.
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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Upmetrics Team
Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more
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If you want to start an Ecommerce business or expand your current one, you need a business plan.
Your Ecommerce business plan will accomplish several key objectives. First, it will help you create goals for your Ecommerce business and give you a roadmap to follow to reach them. It will also help you develop the right strategies to attain your goals. For example, by understanding trends in the Ecommerce industry, the strengths and weaknesses of other ecommerce businesses, and the demographic and psychographic needs of your target market, you can craft better product and marketing strategies.
You can download our Ecommerce Business Plan Template (including a full, customizable financial model) to your computer here.
The following Ecommerce business plan template gives you the key elements to include in a winning business plan for an ecommerce startup or an existing ecommerce business.
Below are links to each of the key sections of a sample ecommerce business plan:
What is an e-commerce business plan, do i need an e-commerce business plan, how often should i update my e-commerce business plan, how do i write an e-commerce business plan.
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Carl Torrence is a Content Marketer at Marketing Digest. His core expertise lies in developing data-driven content for brands, SaaS businesses, and agencies. Carl’s work has been featured in Famous Bloggers, The Inspiring Journal, and AllTopStartups.
Sean is the Senior Editor for The Ecomm Manager. He's spent years getting to know the ecommerce space, from warehouse management and international shipping to web development and ecommerce marketing. A writer at heart (and in actuality), he brings a deep passion for great writing and storytelling to ecommerce topics big and small.
The ecommerce market is full of innovative ventures that started as an ecommerce business plan. This guide tells you how to convert your vision for an ecommerce company into a strategic plan.
Click and Cart Revolution: Ecommerce is massively expanding, now a $6.31 trillion market, expected to rise above $8 trillion by 2026. Online sales are booming, making now a ripe time for starting an ecommerce venture.
Blueprint for Success: An ecommerce business plan is essential, serving as a detailed roadmap for starting, running, and growing an online store. It includes market analysis, product details, and financial strategies to achieve business goals.
Investor's Compass: A well-crafted ecommerce business plan is crucial for attracting investment, showcasing your business model, revenue generation plans, and overall strategy to build brand value and equity in the competitive market.
DIY Business Plan: Creating an ecommerce business plan involves outlining your vision, analyzing the market, and detailing operational strategies. An essential step includes drafting an executive summary that encapsulates the company's mission, history, and unique selling points.
Ecommerce is rapidly growing around the world. We love to buy our little treats and trinkets on the internet.
The industry has reached a market valuation of $6.31 trillion worldwide and is expected to cross $8 trillion by 2026.
In 2023, ecommerce accounted for 20.8% of all retail sales .
The contribution of ecommerce is expected to grow even further to cover 24% of retail sales in 3 years.
This seems like a good time for anyone thinking about starting an ecommerce business. Despite many companies enjoying pieces of this $6 trillion pie, starting an online store is not a piece of cake (pause for laughter...).
As with any other business, you need research and careful planning before jumping into action. That’s exactly what this guide is about.
I will shed light on some basic business concepts, discuss examples, provide insights with statistics, and give you ready-to-use templates for various stages.
But first, let’s begin with the fundamentals.
An ecommerce business plan is a document containing the roadmap for initiating, maintaining, and expanding an online selling company.
This document contains several details that are crucial for establishing your ecommerce business.
It serves to guide the formation of a company and draw insights to make business decisions to achieve short-term and long-term goals.
The ecommerce business plan also contains information about the market, competitors, products, pricing strategy, company finances, supply requirements, etc. The more details you can add to an ecommerce business plan, the better you can execute it.
An ecommerce business plan acts as a roadmap for your online business, helping you navigate the market and scale your brand. It's your ecommerce north star, so to speak.
It helps you analyze the market systematically and develop strategies to stand out from the competition. This plan covers various aspects of your business, such as your goals for marketing, operations, and finances, and shows how these parts are connected.
For example, it can help you see how your marketing budget affects your overall cash flow. You’ll get these insights from the market research and financial sections of your business plan.
If you’re looking for funding, a business plan is essential. Investors use it to assess the feasibility of your business. It outlines your business strategy and makes a strong case for why you need investment.
Entrepreneurs can highlight their operational plans and budget to show how they will run a successful ecommerce store.
Most importantly, it demonstrates the value proposition to potential investors, showing how the company will generate revenue, build brand value, and increase equity.
Let’s look at the step-by-step process for creating an ecommerce business plan.
Each of these stages will help you get a deeper understanding of your business. It'll also help you define your vision through organizational structure and processes. Let’s begin with the executive summary.
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Although this is the first part of an ecommerce business plan, it's better to tackle the executive summary after completing the entire document.
The executive summary gives an overview of the business plan on a single page.
The executive summary presents a company overview and highlights of the most important parts of the document.
It gives a brief overview of what the new business is about and what it sets out to achieve. You will discuss these points in-depth later in the document.
You can use the below template to draft your executive summary:
Why does the company exist? "To provide eco-friendly products that promote sustainable living." | |
Origin and background of the company "Founded in 2010 as a small eco-friendly shop, now expanded to a global online presence." | |
Key leadership figures and their qualifications "Jane Doe, CEO, MBA from Harvard, 15 years in ecommerce." | |
Individuals or entities with a stake in the company "Founders, investors, key employees." | |
Specific market segment the company serves "Eco-conscious consumers aged 25-45." | |
Items the company will sell "Reusable bags, bamboo toothbrushes, eco-friendly cleaning products." | |
Services offered to customers "Subscription boxes, personalized eco-living consultations." | |
What makes the products or services unique "Products made from 100% recycled materials, carbon-neutral shipping." | |
How the company stands out against competitors "Exclusive partnerships with green manufacturers, award-winning customer service." | |
External products or services required "Sustainable packaging suppliers, logistics providers." | |
Future financial outlook "Projected revenue of $1M by year 2, break-even by year 3." | |
Cost and types of resources required "Initial investment of $500K for inventory and marketing." | |
Strategic objectives "Become the leading online retailer for sustainable products within 5 years." |
You will have better clarity regarding some of these aspects after you complete the entire ecommerce business plan.
For instance, you can provide a more accurate competitive analysis after conducting market research.
Similarly, you will have a clear understanding of financial projections and investment requirements after you source potential suppliers.
You can create a rough draft of the executive summary at the beginning. Then you can circle back to it when you have more clarity.
Tips for an effective executive summary:
In this section, you provide details about your brand. At this point, the ecommerce business plan begins to take shape.
Start filling out the details in the template below to describe your company using the examples to help give it some shape.
What will the company do, and how does it help the target customer? Why will the company succeed? "Providing eco-friendly products to promote sustainable living. Our unique products cater to the growing demand for sustainable solutions, ensuring market success." | |
What core values will the company uphold in customer service, operations, and employee management? "Sustainability, Integrity, Innovation, Customer Centricity." | |
What roles are needed to run the company's operations? "CEO, Operations Manager, Marketing Team, Customer Support, Logistics Manager." | |
Where will the company's office be located? "Headquarters in San Francisco, with additional offices in New York and London." | |
What resources does the company already possess? "Established supply chain, experienced management team, proprietary technology, initial funding of $1M." | |
What additional resources are needed for the company to be operational? "Additional funding of $500K, office space, skilled labor, marketing tools, logistics partners." |
In this section, you'll outline what your company will look like and what it'll do.
You'll detail the types of people needed to run the company, along with the resources you already have and the ones you'll need.
For example, if you've already purchased a domain name and registered your company name as a trademark, you can list these as existing resources.
If you still need to develop an ecommerce website, list that under required resources (and find the right ecommerce platform to make your job easier).
This section also provides an overview of your company’s hierarchy and management team. Describe the different departments in your company and the key team members for each one.
You should also specify which operations will be done in-house and which will be outsourced to external agencies .
This part of your business plan will give you a clear picture of your current status and help you identify what you’re missing. Keep in mind, this section may change as you do more research and discover new requirements.
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In this section, you'll define details about the products and services your ecommerce brand will offer. You'll describe what you're offering to your customers.
It includes both products and services. You can use the ecommerce business plan template below to define these aspects.
Various names of your products. : Key characteristics of the product. Unique features of the product. Advantages and benefits for the customer. How the product can be used. Different versions or variations of the product. Manufacturing cost per unit. Selling price of the product. | |
Name of the service. Key characteristics of the service. Who provides the service. Unique features of the service. Advantages and benefits for the customer. Cost to provide the service. Selling price of the service. | |
Name of the product or service being priced. Strategy used to price the product or service (e.g., cost-plus, competitive pricing). Expected profit margin. |
While you might only sell products on your ecommerce platform , you could also be selling services (which many ecommerce platforms allow you to do).
For each product, include a short description and pricing information. Specify whether you're selling physical or digital products, and explain how customers will receive them.
Describe any services you provide, such as digital subscriptions or in-person consultations. Specify how customers will access these services and any relevant pricing information.
This is the most important part of an ecommerce business plan. You must analyze several factors concerning the market segment, competing brands, and competitor products.
You must understand how your products, services, and brand perception compares against the competition .
Use the template below to create a detailed overview of the market you will compete against.
Who are the potential customers? "Eco-conscious millennials aged 25-40, living in urban areas, interested in sustainable living." | |
Create a detailed profile based on different target audiences. "Jane, 30, urban professional, shops online for eco-friendly products, values sustainability and quality." | |
What specific needs does your ecommerce business fulfill? "Providing high-quality, eco-friendly household items." | |
What challenges or problems does your company resolve for customers? "Difficulty finding reliable eco-friendly products at affordable prices." | |
Where are your customers? "Primarily in the US and Europe, with growing interest in Asia and Australia." | |
Brand name of competition. Where does the competitor stand in the market? What are the competitor's strengths? What are the competitor's weaknesses? How is the competitor similar to your business? How is the competitor different from your business? Which marketing channels does the competitor use? |
This analysis will affect several other aspects of your ecommerce business plan.
At this stage, you must analyze the market and decide what place your company can take in the competitive landscape. You can also use other methods for market research, such as SWOT analysis or Porter’s Five Forces analysis.
Regardless of the method, you need an accurate understanding of what your competitors offer and how you can differentiate your ecommerce brand.
This brings us to marketing.
Components of a strong market analysis:
The marketing plan for an ecommerce business primarily depends on three factors.
These are the target audience, customer segmentation, and market forces. You will draw relevant insights from the market analysis to define your marketing plan.
Here's a template to help you define the marketing strategy for your online store.
How will you differentiate your brand in the market? Example: "Positioning as a premium eco-friendly brand that combines sustainability with luxury." | |
Which products are relevant to this audience segment? Example: "Eco-friendly household items." Age, gender, income level, etc. Example: "25-40 years old, both genders, middle to high income." Lifestyle, values, interests. Example: "Values sustainability, enjoys outdoor activities." Where is this audience located? Example: "Urban areas in the US and Europe." What are their main interests? Example: "Eco-friendly living, wellness." What motivates their purchases? Example: "Quality, sustainability, brand reputation." How will they use the product? Example: "Daily household use, gifting." How will the product be positioned for this segment? Example: "Premium quality with eco-friendly credentials." | |
Which marketing channels will you use to reach and acquire new customers? Example: "Instagram, Facebook, Google Ads." Key features of the channel. Example: "Visual content, targeted advertising." Types of content used (e.g., videos, blogs). Example: "Short videos, infographics, sponsored posts." Which stages of the funnel will this channel target? Example: "Awareness, consideration." Which audience segments will you target on this channel? Example: "Eco-conscious millennials." How does the audience behave on this channel? Example: "Engages with visual content, shares posts." Types of campaigns to run on this channel. Example: "Influencer partnerships, seasonal promotions." | |
What tools are necessary for running your ecommerce marketing? Example: "Hootsuite for social media management." Key features of the tool. Example: "Scheduling, analytics, team collaboration." How will the tool be used? Example: "Managing social media posts, tracking engagement." Which channels will the tool connect to? Example: "Instagram, Facebook, Twitter." Is the tool free, paid, or subscription-based? Example: "Subscription-based pricing." |
Your marketing plan should clearly outline how you'll position your brand in the market.
Define the channels you'll use at different stages of the sales funnel. For example, you might use Facebook ads to raise awareness and email marketing to engage existing customers.
Include sections to define your ideal customers using buyer personas. Create different personas for various types of potential customers, associating each persona with a specific product and its use cases.
Finally, list the ecommerce tools you'll need for your marketing efforts, such as automation tools, CRM software , and SEO tools.
Once you know how to attract your audience, the next step in your ecommerce business plan is to define how you'll convert them into customers.
At this stage, you will define several aspects concerning your customers.
These include purchase journeys and after-sales services. This strategy serves as an extension of the marketing plan.
See the template below to define your sales and customer service strategy.
Approaches and techniques used to close sales. Example: "Consultative selling, solution selling." Services provided after the sale to ensure customer satisfaction. Example: "Warranty services, returns processing." | |
Methods used to identify and reach potential customers. Example: "Cold emailing, social media outreach." Locations or platforms where sales transactions occur. Example: "Online store, mobile app, pop-up shops." Tools used to support sales activities. Example: "CRM software, sales automation tools." | |
Methods through which customers find and engage with the business. Example: "SEO, content marketing, social media." | |
Methods through which the business reaches out to potential customers. Example: "Email campaigns, cold calling, direct mail." | |
How sales transactions are processed. Example: "Online payment gateways, mobile payment options." | |
How the company stays in touch with customers post-sale. Example: "Follow-up emails, feedback surveys, loyalty programs." | |
Organization of the sales team. Example: "Sales manager, account executives, sales representatives." | |
Different stages in the customer interaction process. Example: "Pre-sale inquiries, post-sale support, ongoing engagement." Platforms used for customer communication. Example: "Email, live chat, phone support, social media." Tools used to manage customer service. Example: "Helpdesk software, customer feedback tools, knowledge base." Organization of the customer support team. Example: "Support manager, support agents, technical support specialists." |
With this template, you are essentially defining customer experience with your brand. You'll create a strategy for selling the products on different channels.
These include ecommerce websites, marketplaces, affiliate websites, social media, etc. You'll have to define the sales process for each channel.
You must also draft a plan to create memorable customer experiences. This is crucial for developing a community.
It also has a direct impact on sales and revenue. Repeat customers spend 67% more than first-time buyers. Once you have a strategy for acquiring customers, you must build a strategy for delighting and retaining customers.
The supply chain strategy includes the journey of the product from the supplier to the customer.
It includes procurement, manufacturing logistics, warehousing , distribution, order fulfillment , and reverse logistics . Use the template below to create your supply chain strategy.
Where do your products come from? Example: "Local manufacturers, international suppliers." Specific details about one of your procurement sources. Name of the supplier or manufacturer. Example: "ABC Manufacturing Co." What products are sourced from this supplier? Example: "Eco-friendly cleaning products." How much product is sourced? Example: "10,000 units per month." Cost per unit from the supplier. Example: "$2.50 per unit." | |
Time it takes for products to be delivered from suppliers. Example: "2-3 weeks." How will you manage the procured inventory? Amount of inventory held. Example: "50,000 units." Size of the warehouse required. Example: "10,000 sq ft." Locations of warehouses. Example: "San Francisco, New York, London." Primary markets where orders will be fulfilled. Example: "North America, Europe." How will inventory be tracked and managed? Example: "Using an automated inventory management system." How will inventory be replenished? Example: "Just-in-time replenishment based on sales data." | |
How will you move the products through the supply chain? Example: "Using third-party logistics providers." Vendors used for logistics. Example: "FedEx, DHL." Different stages in the movement of inventory. Example: "From manufacturer to warehouse to customer." Methods used to transport goods. Example: "Air, sea, road." How will inventory be distributed to various locations? Example: "Centralized distribution from main warehouse." Process for fulfilling customer orders. Example: "Using automated order processing systems." How will returns be handled? Example: "Setting up a dedicated returns center." Total cost of logistics operations. Example: "$5 per unit." |
In this section of the ecommerce business plan, you will outline how the product will make its way to the customer.
Supply chain management involves everything from sourcing the products from a supplier to shipping the products to the customer.
Alongside the strategy, you also need to define the stages that you will outsource. Creating your supply chain is quite resource intensive.
That's why ecommerce businesses outsource certain aspects to 3PL companies . Some of the commonly outsourced services include distribution and logistics (42%), manufacturing (37%), product finishing (29%), and packaging (23%).
This process accounts for a significant portion of ecommerce expenses. It will also impact several customer-facing aspects of the business. This includes the availability of stock, shipping charges , delivery time, and more.
Hence, you should define a supply chain strategy for speed, efficiency, and cost-effectiveness.
In this section, you will also cover the applicable legal frameworks for running the ecommerce business .
These include business registration, taxation, permits, legal structure, trade laws, etc. Use the template below to define the legal obligations in your ecommerce business plan.
What are the legal and compliance obligations of the company? Example: "Ensuring all business activities comply with federal, state, and local laws." | |
Required business registrations. Example: "Registering the business with the state, obtaining an EIN from the IRS." | |
Necessary product registrations. Example: "FDA registration for food products, CE marking for electronics." | |
Required trade permits. Example: "Import/export permits, health and safety permits." | |
Necessary product licenses. Example: "Licenses for selling specific products such as alcohol or pharmaceuticals." | |
Relevant regulatory bodies. Example: "FDA, FTC, OSHA, local health departments." | |
Business taxes that apply. Example: "Corporate income tax, payroll tax, property tax." | |
Sales taxes that apply. Example: "State and local sales taxes, use tax." | |
Required insurance coverage. Example: "General liability insurance, product liability insurance, workers' compensation insurance." |
You must understand the laws applicable to running an ecommerce business in your region.
If you plan to ship products internationally, you must also understand international shipping laws, customs clearance requirements, import/export regulations, and trade laws in the target market.
This section ensures that your company always remains on the right side of the law.
The final section of an ecommerce business plan is concerned with finances and legal compliances.
The preceding sections will give you estimates regarding different aspects of your ecommerce business.
These include operations, marketing, procurement, logistics, and so on.
Based on these estimates, you will define the financial projections for your ecommerce business. This includes both revenue and expenses.
You can use the template below to define the financial aspects of your business.
How much funds will you need to start the ecommerce business? Example: "Initial capital requirement is $150,000." The . Example: "$150,000." Detailed allocation of the startup budget. Example: "Inventory: $50,000, Marketing: $30,000, Technology: $20,000, Legal and Compliance: $10,000, Miscellaneous: $40,000." | |
What is the annual budget required to run the business? Example: "Annual operating cost is projected at $120,000." The overall annual cost. Example: "$120,000." Detailed allocation of the annual budget. Example: "Salaries: $50,000, Marketing: $20,000, Inventory Restocking: $30,000, Technology: $10,000, Miscellaneous: $10,000." | |
How many products will the company sell each year after initiating? Example: "Projected to sell 10,000 units in the first year." Expected profit margins per product. Example: "20% profit margin." Projected revenue per year. Example: "$200,000 in the first year." | |
How long will it take for the company to recover the investment? Example: "Expected to break even within 18 months." Projected growth in sales and revenue year over year. Example: "20% annual growth rate." Projected annual costs over the years. Example: "$120,000 in the first year, $140,000 in the second year." The point at which revenues will cover costs. Example: "Achieved at $150,000 in sales." Detailed analysis of expected profits and losses over time. Example: "First-year profit: $40,000, second-year profit: $60,000." |
If you pitch the ecommerce business plan to an investor, you must add other details to this section.
These would include funding requirements, funding stages, value offerings, etc. This section of your business plan also sheds light on a company’s assets and liabilities.
You must also clarify what you offer the investors against the funds. This can be equity stake, debt, dividends, and so on.
This helps potential investors conduct a cost-benefit analysis.
You can go a step further and present key elements of cost-benefit analysis for the ecommerce company. This should highlight the short-term and long-term gains for the new business.
You can use this section to show potential investors how your new business will grow in market value based on milestones. These milestones can be defined based on sales, inventory size, revenue, market acquisition, etc.
With this section, you conclude your ecommerce business plan.
You need to revisit the executive summary and ensure it aligns with the rest of the document. It is best to review the entire document a few times to ensure you present a unified vision for starting and running your ecommerce business.
With your fresh business plan in hand, you're ready to get moving on the foundational parts of your ecommerce journey.
To start strong, you want to choose an ecommerce platform that has all the essential features that ensure your business will be a success.
You can also take a peek at what we think are the top ecommerce platforms for a variety of brands, from big to small. Here's our shortlist of the best ones out there:
The purpose of creating an ecommerce business plan is to represent your vision systematically.
This document will shed light on several aspects of your ecommerce business idea. It will also serve as a guide, philosopher, and friend when you launch your company.
If you are pitching your idea to investors, this document will show them the value that your ecommerce business idea can generate for them.
The next step for you is to turn the ecommerce business plan into a company.
You should subscribe to The Ecomm Manager newsletter for more news, trends, tips, and guides related to ecommerce. These articles can help you optimize and expand your business further.
There are always more questions for the end of the post. So, here we are, answering some more questions.
The profitability of ecommerce businesses depends on several factors. This includes market condition, business structure, product demand, revenue model, etc. You can understand the profitability of your ecommerce business idea by checking brands selling similar products. When first starting out, you can cut costs by leveraging tools like free inventory management software . This can help ease the financial burden of being a new business.
A business plan gives structure to an ecommerce business idea. It is a really helpful document for business owners and entrepreneurs. This document helps you measure the viability of the business model, products, marketing strategy, financial plan, legal structure, operations, and other aspects of the company.
Written by Dave Lavinsky
Over the past 20+ years, we have helped over 10,000 entrepreneurs and business owners create business plans to start and grow their ecommerce businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through an ecommerce business plan template step-by-step so you can create your plan today.
Download our Ultimate Ecommerce Business Plan Template here >
An ecommerce business plan is a detailed and comprehensive document that outlines the strategies, objectives, and operational blueprint of an online business. It serves as a roadmap guiding the company’s operations and growth within the dynamic and competitive digital marketplace. The plan typically covers various aspects, including market analysis, target audience identification, product or service offerings, marketing and sales strategies, competitive analysis, financial projections, and risk assessments.
If you’re looking to start an ecommerce business or grow your existing ecommerce business you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your ecommerce business in order to improve your chances of success. Your ecommerce business plan is a living document that should be updated annually as your company grows and changes.
With regards to funding, the main sources of funding for an ecommerce business are bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.
The second most common form of funding for an ecommerce business is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan.
Venture capitalists will fund an ecommerce business but not in its infancy. You will need to first achieve sales traction. Once you do that venture capitalists might invest $2 million to $100 million into your business over time.
Below are the 10 sections a sample ecommerce business plan should include:
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.
The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of ecommerce business you are operating and the status; for example, are you a startup or do you have an ecommerce business that you would like to grow further.
Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the ecommerce business industry. Discuss the type of ecommerce business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.
In your company analysis, you will detail the type of ecommerce business you are operating.
For example, you might operate one of the following types of ecommerce businesses.
Ecommerce businesses based on businesses model:
Ecommerce businesses based on customer model:
In addition to explaining the type of ecommerce business you operate, the Company Analysis section of your business plan needs to provide background on the business.
Include answers to question such as:
In your industry analysis, you need to provide an overview of the ecommerce business.
While this may seem unnecessary, it serves multiple purposes.
First, researching the ecommerce business industry educates you. It helps you understand the market in which you are operating.
Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards subscription businesses, it would be helpful to ensure your plan calls for offering subscription options.
The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.
The following questions should be answered in the industry analysis section of your ecommerce business plan:
The customer analysis section of your ecommerce business plan must detail the customers you serve and/or expect to serve.
The following are examples of customer segments: college students, sports enthusiasts, soccer moms, techies, teens, baby boomers, manufacturing plants, state government agencies, etc.
As you can imagine, the customer segment(s) you choose will have a great impact on the type of ecommerce business you operate. Clearly baby boomers would want a different offering and branding than teens or government agencies.
Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve.
Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.
Don’t you wish there was a faster, easier way to finish your business plan?
With Growthink’s Ultimate Ecommerce Business Plan Template you can finish your plan in just 8 hours or less!
Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.
Direct competitors are other ecommerce businesses.
Indirect competitors are other options that customers have to purchase from you that aren’t direct competitors. This includes offline stores or other ecommerce companies that offer similar products or services. You need to mention such competition to show you understand that not everyone who needs the products or services you provide will frequent a business like yours.
With regards to direct competition, you want to detail the other ecommerce businesses with which you compete. For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:
With regards to the last two questions, think about your answers from the customers’ perspective. And check product review websites to learn what your competitors’ customers like most and least about them.
The final part of your competitive analysis section is to document your areas of competitive advantage. For example:
Think about ways you will outperform your competition and document them in this section of your plan.
Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For an ecommerce business plan, your marketing plan should include the following:
Product/Service : in the product section you should reiterate the type of ecommerce business that you documented in your Company Analysis. Then, detail the specific products and/or services you will be offering.
Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the menu of items you offer/will offer and their prices.
Place : Place refers to the location of your ecommerce business. In general, the place for an online business is well, online. But if there is a physical component to your business, document that here.
Promotions : the final part of your ecommerce business marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:
While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.
Everyday short-term processes include all of the tasks involved in running your ecommerce business such as warehousing, invoicing, serving customers, procuring supplies, etc.
Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to serve your 10,000th customer, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee or launch a new product or service.
To demonstrate your ecommerce business’s ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.
Ideally you and/or your team members have direct experience in the ecommerce business. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.
If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in ecommerce businesses and/or successfully running retail businesses.
Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.
Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.
In developing your income statement, you need to devise assumptions. For example, will you serve 100 customers per day or 200? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.
Balance Sheets : While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $100,000 on building out your ecommerce business, that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100.000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.
Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. For example, let’s say a company approached you with a massive $100,000 contract, that would cost you $50,000 to fulfill. Well, in most cases, you would have to pay that $50,000 now to fulfill the contract. But let’s say the company didn’t pay you for 180 days. During that 180 day period, you could run out of money.
In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing an ecommerce business:
Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include agreements you’ve negotiated with developers, manufacturers and/or employees.
Putting together a business plan for your ecommerce business is a worthwhile endeavor. If you follow the online store business plan template above, by the time you are done, you will truly be an expert. You will really understand the ecommerce business, your competition and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful ecommerce business.
You can download our ecommerce business plan PDF here . This is a business plan template you can use in PDF format to help you get started on your own business plan.
Don’t you wish there was a faster, easier way to finish your Ecommerce business plan?
Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success. Click here to see how Growthink’s business plan advisors can give you a winning business plan.
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.
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Embark on creating your ecommerce business plan, akin to crafting a map for your entrepreneurial journey. Use the provided template as your guide through the maze of market analysis and strategic planning.
Learn how each part, from financial forecasts to competitor analysis, adds to your online success blueprint. Understand the art of making a roadmap that doesn’t only point out your profit route, but also sets your brand for lasting success in the digital realm.
For a sturdy eCommerce business plan, start by studying the market. Understand the industry, competitors, and customer likes. Set your business apart with a unique selling point.
Plan your finances – predict revenues, identify funding needs, and estimate costs. Sketch out a clear marketing plan. Focus on getting and keeping customers, and boosting brand awareness.
Make a flexible operational plan for logistics, customer service , and fulfillment. By including these in your plan, you lay a robust foundation for your eCommerce venture. This ensures strategic growth and staying power in the competitive online market.
1. draft an executive summary.
Starting an eCommerce business plan requires a solid executive summary. It serves as your business roadmap, offering a brief and clear overview of your business, including key elements like your unique selling point, target market, and competitive edge.
This section is crucial as it summarizes your business and can attract investors and stakeholders by showcasing your business’s potential.
A strong executive summary is essential for outlining the core aspects of your eCommerce business and setting the stage for further detailed planning and development.
It provides a snapshot of your business’s strengths and competitive advantages, guiding the reader towards a deeper understanding of your business concept and potential for success.
Let’s take a closer look at conveying the qualitative aspects of your eCommerce business.
Consider these key points:
What products or services will your online store offer? How do these fit with your business plan’s unique selling points?
Setting up your online store requires a clear outline of your product or service. Explain the variety of products you aim to sell and how they meet your target audience’s needs.
Your offerings could be unique items, tailored services, or a mix of both. Ensure your offerings align with your business plan’s vision.
Your products and services are the core of your online store. They play a large role in drawing and keeping customers. Keep your focus on delivering value and effectively meeting customer needs .
To understand your business, dig deep into your target audience’s minds and actions. This will help you build a bond that fits their needs and likes. To effectively study your target audience, try these steps:
For a well-crafted ecommerce business plan, first sketch out the management and organization. This includes the roles you aim to fill and their fit into the overall business plan.
Pinpointing key positions in your firm ensures smooth operations and clear task division. The table below could help organize the roles you aim to fill:
Role | Responsibilities |
---|---|
CEO | Planning strategy and leading business |
Marketing Manager | Creating and executing marketing strategies |
Operations Manager | Overseeing daily operations and logistics |
Defining these roles clearly is crucial for an ecommerce business to align with the broader business plan.
To create a strong ecommerce business plan, first break down your customers. Group them based on what they need and like. This is a key part of your marketing strategy. It helps you reach the right people. Customer segmentation is key to make your business approach fit different customer groups.
Craft your eCommerce business plan with a defined marketing plan. It outlines key marketing strategies to promote your products effectively and reach your target audience.
Your plan should include specific tactics to attract customers. These may be social media campaigns, influencer partnerships, or search engine optimization.
The success of your online business hinges on this plan. It details your marketing strategies, creating a roadmap for engagement with potential customers and sales drive.
A well-thought-out marketing plan is important for standing out in a competitive eCommerce field and building a strong online presence.
In shaping your ecommerce business plan, don’t forget a comprehensive logistics and operations plan. It details how orders will be efficiently fulfilled. This part is crucial to your ecommerce business running smoothly. Remember these five key points when crafting your logistics and operations plan:
Following these steps ensures your business operates without hiccups. It also promises a flawless experience for your customers .
Crafting a strong financial plan is key for your ecommerce business. The plan shows how your business will make money, handle costs, and use resources effectively. It covers topics like startup costs, sales predictions, profit boundaries, and cash flow estimates.
This plan is crucial for getting funding, making savvy decisions, and monitoring your business’s financial health. By grasping the financial parts of your e-commerce business plan, you can identify the funds needed to carry out your plan. Use financial tools and forecasts to build a solid base for your business’s financial triumph.
Adding a thorough financial plan to your overall business plan is central to guaranteeing your e-commerce business’s long-term survival and expansion.
Crafting a small business plan demands a keen understanding of your audience. Tailor your strategy to them for efficacy.
Always keep a clear objective in the crosshairs, directing your choices and deeds.
Dedicate time to research. It affords crucial knowledge, molding a blueprint for your online shop.
Knowing your audience is key in starting an eCommerce business. This helps you shape your products and services to suit their needs. To truly know your audience , take these steps:
To succeed in your small business plan, set clear, measurable goals. They should guide decisions and track progress effectively.
Have distinct business goals that match your target market and unique selling points. Include detailed financial forecasts for realistic growth planning.
Carry out in-depth market research to grasp industry trends and opportunities for setting your business apart. Craft a focused marketing strategy to enhance brand recognition and drive sales .
Set detailed targets linked to your target market, financial forecasts, market research, and marketing plan. This creates a path to success in your e-commerce business plan.
Keep your eyes on these goals to guide your business towards long-term success.
Have you thought about how spending time on deep research can help your small business plan? Doing market research is vital for a good online business strategy. Here are five reasons why time spent on research can aid your small business plan:
For a successful small business plan, be brief. Highlight only the essential details. Short business plans are easy to handle and useful for quick decisions. Keeping it short puts emphasis on key points without overwhelming readers. Include only what’s necessary, focusing on clarity and brevity to convey your business strategy.
Concise plans are ideal for presenting to potential investors, they allow for quick understanding. Writing a concise, to the point business plan makes it easy to digest and a handy reference for your business.
Maintaining uniformity in tone, style, and voice is key when crafting a small business strategy. This ensures a unified and polished representation that resonates with your audience and stakeholders.
To make sure your e-commerce business plan hits the mark and effectively conveys your ideas, heed these pointers:
Use a business plan model for your small business. Go for one designed for e-commerce. Templates give a good system to arrange your ideas. They help cover all key parts of your business strategy. Here’s a simple table to help pick the right model for your e-commerce business plan:
Characteristic | Business Plan Model |
---|---|
Can Change Sections | ✔ |
Financial Forecasts | ✔ |
Market Study | ✔ |
Rival Research | ✔ |
Think about using business plan software for your e-commerce venture. This software makes the process easier and professional. It offers templates you can change to fit your business needs.
It guides you through each step, making sure you cover everything for your e-commerce plan. It lets you enter your data and ideas quickly. This helps create detailed money forecasts, market studies, and operation plans.
In conclusion, creating a robust ecommerce business plan is akin to constructing a strong ship for sailing the expansive oceans of online trade. Set precise objectives, comprehend your market, and devise unique tactics to guide your business to success.
A well-planned strategy is your beacon in the constantly shifting digital environment, directing you towards expansion and profit. Thus, embark with assurance, equipped with a strategy that will enable you to withstand any tempest.
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It’s a fact! Desku is way ahead in terms of offerings and value.
Starting an e-commerce business can be an exhilarating yet challenging journey. To set yourself up for success, you need a solid business plan that outlines your goals, strategies, and financial projections. ClickUp's Business Plan Template for Ecommerce is the ultimate toolkit for entrepreneurs and business owners in the online retail industry. With this template, you can:
Don't leave the success of your e-commerce business to chance. Use ClickUp's Business Plan Template for Ecommerce and take the first step towards building a thriving online retail empire.
When using ClickUp's Business Plan Template for Ecommerce, you'll enjoy a range of benefits that will help you build a successful online retail business:
ClickUp's Business Plan Template for Ecommerce is the perfect tool to help entrepreneurs and business owners in the e-commerce industry outline their objectives, strategies, and financial projections to guide the growth of their online retail business. Here are the main elements of this template:
If you're starting an ecommerce business and need a business plan, don't worry - we've got you covered! Follow these 4 steps to make the most of our Business Plan Template for Ecommerce:
Start by clearly defining your business concept for your ecommerce venture. What products or services will you offer? Who is your target audience? What sets your ecommerce business apart from the competition? Answering these questions will help you lay a solid foundation for your business plan.
Use the Docs feature in ClickUp to outline your business concept and gather your thoughts in one place.
Next, it's time to dive into market research. Identify your target market, analyze your competitors, and assess market trends and opportunities. By understanding your market, you'll be able to position your ecommerce business for success and make informed decisions.
Utilize the Table view in ClickUp to organize and analyze your market research data, such as competitor analysis, customer demographics, and industry trends.
A strong marketing and sales strategy is crucial for the success of your ecommerce business. Define your unique selling proposition, outline your marketing channels, and plan your customer acquisition and retention strategies. Determine how you will reach and engage your target audience, and how you will convert them into loyal customers.
Use the Gantt chart feature in ClickUp to create a timeline for your marketing and sales activities, ensuring that you're staying on track and meeting your goals.
Last but not least, you'll need to outline your financial projections for your ecommerce business. Estimate your startup costs, revenue streams, and expenses. Create a sales forecast and cash flow projection to understand your financial health and plan for growth. This will not only help you attract investors, but also guide your decision-making process.
Utilize the custom fields feature in ClickUp to track and calculate your financial projections, such as revenue, expenses, and profit margins.
By following these 4 steps and using our Business Plan Template for Ecommerce in ClickUp, you'll be well-equipped to launch and grow a successful ecommerce business. Good luck!
Entrepreneurs and business owners in the e-commerce industry can use the Business Plan Template for Ecommerce to outline their objectives, strategies, and financial projections to guide the growth and operations of their online retail business.
First, hit “Add Template” to sign up for ClickUp and add the template to your Workspace. Make sure you designate which Space or location in your Workspace you’d like this template applied.
Next, invite relevant members or guests to your Workspace to start collaborating.
Now you can take advantage of the full potential of this template to create a comprehensive business plan for your e-commerce venture:
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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.
Use our free template to attract investment to your ecommerce business
Ananth Ramanathan
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Benefits of an ecommerce business plan, 7 steps to creating the perfect ecommerce business plan, things to do once your business plan is complete.
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By 2026, almost 24% of all retail purchases will take place online.
As these numbers suggest, today is unarguably the best time to start an ecommerce business. However, if you want to get a slice of this $8 trillion pie, you’re going to need to do some preparation first.
In this blog, I’m going to give you a step-by-step guide to creating an ecommerce business plan. This will not only help you set clear goals but also help you attract investor funding.
Let’s get into it 👇
An ecommerce business plan is a strategic document that outlines your online business’s goals, objectives and operational details. It helps you and your investors understand the business’s direction, competition, marketing strategies and financial requirements.
Simply put, an ecommerce business plan is a structured way to lay out your business idea . It makes it easier to share with investors and people who can help your business succeed. The more details your ecommerce plan has, the better you can accomplish your goals.
Before we dive into the nitty-gritty of creating an ecommerce business plan, let's clarify why it's crucial. A well-constructed ecommerce business plan helps you realise the following benefits:
Now, let's journey into creating your comprehensive ecommerce business plan!👇
The executive summary introduces people to your vision, mission, objectives and key metrics, piquing interest in your business.
Your vision is the North Star you want your ecommerce business to follow. It's the big picture or the end goal.
Your mission is your compass. It directs your daily efforts towards achieving that vision.
For instance, for your ecommerce store, your vision could be to create an online retail empire that revolutionises the shopping experience.
Your mission could be to provide a wide range of high-quality products and services and deliver them with exceptional customer care.
Goals are the milestones on your journey to success. Make them specific, measurable, achievable, relevant and time-bound (SMART).
For instance, you might aim to generate $100,000 in annual revenue in the first 12 months of your ecommerce business. You could use the SMART framework to achieve this goal like so:
These are the measurable data points that will show your business performance. Some examples include customer acquisition cost (CAC), churn rate and user satisfaction scores.
These metrics will be your guide throughout the journey, informing your decisions and strategies.
For your ecommerce business, you'd want to track:
This section of your ecommerce business plan describes exactly what your company does. Here, you’re introducing your business to your potential investors and partners, telling them how it is different from your competitors or other ecommerce companies.
You’ll also need to explain what makes your business unique, your business model, ownership and management structure.
This section should include:
A company description explains what your company does and how it aims to fill the gaps in the current marketplace. Here, you should include the most compelling benefits of your business and how they’ll bring in customers.
Your company description also includes your company’s history, target market and audience, while also describing how you plan to evolve with changing customer preferences.
A business model outlines whether:
This section explains how your business will stand out from the competition and what your plan is to become a leader in the industry. It also answers how your product or service will fulfil the needs of your customers and what problems you’re trying to solve.
The ownership and management structure provides background on your business’s leadership and details about the composition of your workforce.
Now that you’ve described your business and its goals, it’s time to go deeper into your ecommerce business plan. In this section, you’ll describe the range of products or services your online store will offer.
If you plan to offer a wide range of products, then provide a brief description for each product line. Or if you want to sell a select few items, then provide more details about each product, like the cost of manufacturing and selling price. This ensures that potential investors gain a thorough understanding of your product offerings and business ethos.
Product and service descriptions should also clarify for investors whether you manufacture the products, dropship them or source them from a wholesaler. This section is a good place to tell them how your products are superior to the competition and what advantages they provide to your customers.
Finally, mention the payment gateways, courier services or third-party aggregators you’re partnered with to provide the shopping experience to your customers.
Understanding your competitors is essential for any ecommerce business. A thorough competitive analysis helps you:
Identify online stores that are similar to yours, offering comparable services or products. Then analyse their strengths and weaknesses, their market positioning and their user base.
As an ecommerce business, an obvious competitor would be Amazon. After performing a competitor SWOT analysis, you might find the following information:
Aside from your direct competitors, alternative solutions may also be competing for your target audience's time and attention.
For your ecommerce store, you need to consider brick-and-mortar stores as part of your competitive analysis. After researching them, you might find the following information:
With this information, you can determine what sets your online store apart. It could be a better pricing strategy or a niche focus on a specific user segment. Only by understanding your competitive advantage can you gain clarity about your online business's unique value proposition.
Building on who your competitors might be, you could consider these as your competitive advantages:
Your marketing plan should outline four main topics:
Goals and evaluation.
A positioning strategy is a distinct image or perception of a product or service in consumers' minds.
A positioning strategy's goal is to differentiate your product or service from the competition. It aims to create a clear and distinct value proposition for consumers.
To create a positioning strategy, you must:
An effective positioning strategy allows you to occupy a distinct and favourable place in the minds of your consumers. This makes it more memorable and appealing.
For example, footwear brand Crocs was once considered unappealing. But over a period of time, they transformed their brand image by changing their positioning.
Tapping into the rise of ugly-chic fashion trends, Crocs decided to collaborate with luxury brands and influencers in order to reach new audiences.
Today, Crocs has become one of the hottest fashion brands in the world, selling over 850 million pairs of shoes .
In this section, you highlight the marketing channels you’ll use to acquire customers. These are the specific methods that your business will use to reach out to and engage with potential customers.
Here, you’ll shed some light on the tech stack you’re going to use to execute your marketing campaigns.
Many different tools and technologies can help you execute your marketing campaigns. Some of the common tools include:
These are the metrics you typically use to evaluate your marketing efforts. Here, you also need to define the goals you want to achieve through marketing.
Some of the key metrics that you need to consider are:
The clarity of your financial data, including your costs , budgets and revenue projections, is a dealbreaker when it comes to securing investor funding. And while you may need to amend them over time, presenting a clear picture is crucial.
Here’s how you can start to do that:
Estimate the cost of labour, technology, software licences, equipment and other resources. Be detailed in your estimates to avoid unexpected financial surprises.
Forecast your ongoing expenses, such as server hosting, marketing, customer support, maintenance and any other operational costs. A well-prepared budget will help you manage your resources effectively.
Predict your revenue based on user growth and your chosen business model. Don’t be too outlandish with your estimates and consider multiple scenarios, including best-case and worst-case, to understand the range of potential outcomes.
Determine when your online store will start generating enough revenue to cover all its costs. The break-even point is a crucial milestone that indicates the financial sustainability of your ecommerce business.
Once you have your ecommerce business plan, it’s time to use it as a tool to get you the funds you need to develop your online store.
Choosing the right funding source depends on your online store's development stage, funding needs, and the trade-offs you're willing to make in terms of control and equity.
Here are the various avenues you can follow to raise capital for your ecommerce business:
If you have personal savings, this can be an initial source of funding for your ecommerce business. Using your own funds can give you more control and flexibility.
This involves building and growing your ecommerce business without external funding. Bootstrapping may require you to invest your own money, work with a small team and focus on organic growth.
Angel investors are individuals who provide capital to early-stage startups in exchange for equity in the company. Finding the right angel investor can bring not only funding but also valuable expertise and connections.
Venture capital firms invest in startups with high growth potential. They typically provide larger amounts of funding in exchange for equity. Venture capital can fuel rapid expansion, but it also involves giving up a portion of ownership.
Crowdfunding platforms, such as Kickstarter or Indiegogo, allow you to raise funds from a large number of people. They believe in your ecommerce business idea and thus invest in you. In return, backers may receive rewards or early access to your online store.
Traditional bank loans can provide capital for your ecommerce business, but they require repayment with interest. Ensure you have a solid business plan and financial projections to secure a loan.
Some governments, organisations and startup competitions offer grants or prizes for innovative business ideas. These opportunities can provide non-dilutive funding.
Now that you’ve used your ecommerce business plan to secure funding, it’s time to actually start your ecommerce store . Here are the key steps you need to follow:
Depending on your ecommerce store’s complexity, you might need developers, designers, quality assurance experts, project managers and more. Choose individuals or teams with the skills and expertise to execute your vision.
Select the right platforms (e.g., website, app or web app) and technologies that align with your store's objectives. Different platforms offer different advantages and cater to distinct user bases, so choose wisely. Additionally, consider the technology stack and tools required for your ecommerce store development .
Define the core features of your online store. For instance, you might need:
Set milestones and deadlines for your ecommerce store's development phases. A well-structured timeline helps you track progress, manage resources and launch your store on schedule. Be realistic and account for unexpected delays that can occur during development.
To ensure the long-term success of your online store, you need to update your business plans as well as your store’s features and functionalities.
Here, a SWOT analysis can help. This is a simple yet powerful strategic planning tool, helping you evaluate your store’s Strengths, Weaknesses, Opportunities and Threats.
This analysis helps you gain a better understanding of your business’s current position in the market. It also helps you make informed decisions about its future development and capitalise on market developments.
The first step to conducting a SWOT analysis for your ecommerce business is to identify its current strengths. This involves taking an honest and comprehensive look at what your store excels at in its current state.
After identifying your ecommerce business’s strengths, it’s time to acknowledge its weaknesses.
This involves pinpointing areas where your online store needs improvement, allowing you to enhance the overall user experience, usability and value propositions.
Opportunities refer to the external factors and circumstances that you can leverage to your online store’s advantage. This section focuses on recent trends and favourable conditions so your ecommerce business can gain a competitive edge and expand its user base.
Threats have a tendency to lurk in the corner and haunt. Don’t fear them, get them in the front and tackle them individually. Threats can stem from external risks like market risks, financial risks, legal and compliance risks that we need to account for and vary.
By now, you have all the information you need to create a killer ecommerce business plan and a good idea of how you can use it to secure funding.
It’s important to remember, though, that you can’t just set and forget the work you do in this exercise. Instead, you need to continually evolve your plans to meet emerging customer needs. You also should capitalise on any opportunities the market presents.
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Ananth Ramanathan runs Studio Store business at Builder.ai with a mission of digitising a 1M+ micro SMEs in the next 5 years. He oversees the commercial, product, and customer success functions to rapidly scale Studio Store globally. Ananth's an experienced tech business operator, a failed entrepreneur, and an active angel investor.
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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.
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Use this free business plan template to write your business plan quickly and efficiently.
A good business plan is essential to successfully starting your business — and the easiest way to simplify the work of writing a business plan is to start with a business plan template.
You’re already investing time and energy in refining your business model and planning your launch—there’s no need to reinvent the wheel when it comes to writing a business plan. Instead, to help build a complete and effective plan, lean on time-tested structures created by other entrepreneurs and startups.
Ahead, learn what it takes to create a solid business plan and download Shopify's free business plan template to get started on your dream today.
This business plan outline is designed to ensure you’re thinking through all of the important facets of starting a new business. It’s intended to help new business owners and entrepreneurs consider the full scope of running a business and identify functional areas they may not have considered or where they may need to level up their skills as they grow.
That said, it may not include the specific details or structure preferred by a potential investor or lender. If your goal with a business plan is to secure funding , check with your target organizations—typically banks or investors—to see if they have business plan templates you can follow to maximize your chances of success.
Shopify's free business plan template includes seven key elements typically found in the traditional business plan format:
This is a one-page summary of your whole plan, typically written after the rest of the plan is completed. The description section of your executive summary will also cover your management team, business objectives and strategy, and other background information about the brand.
This section of your business plan will answer two fundamental questions: “Who are you?” and “What do you plan to do?” Answering these questions clarifies why your company exists, what sets it apart from others, and why it’s a good investment opportunity. This section will detail the reasons for your business’s existence, its goals, and its guiding principles.
What you sell and the most important features of your products or services. It also includes any plans for intellectual property, like patent filings or copyright. If you do market research for new product lines, it will show up in this section of your business plan.
This section includes everything from estimated market size to your target markets and competitive advantage. It’ll include a competitive analysis of your industry to address competitors’ strengths and weaknesses. Market research is an important part of ensuring you have a viable idea.
How you intend to get the word out about your business, and what strategic decisions you’ve made about things like your pricing strategy. It also covers potential customers’ demographics, your sales plan, and your metrics and milestones for success.
Everything that needs to happen to turn your raw materials into products and get them into the hands of your customers.
It’s important to include a look at your financial projections, including both revenue and expense projections. This section includes templates for three key financial statements: an income statement, a balance sheet, and a cash-flow statement . You can also include whether or not you need a business loan and how much you’ll need.
What do financial projections look like on paper? How do you write an executive summary? What should your company description include? Business plan examples can help answer some of these questions and transform your business idea into an actionable plan.
Inside the template, you'll find a sample business plan featuring a fictional ecommerce business .
The sample is set up to help you get a sense of each section and understand how they apply to the planning and evaluation stages of a business plan. If you’re looking for funding, this example won’t be a complete or formal look at business plans, but it will give you a great place to start and notes about where to expand.
A lean business plan format is a shortened version of your more detailed business plan. It’s helpful when modifying your plan for a specific audience, like investors or new hires.
Also known as a one-page business plan, it includes only the most important, need-to-know information, such as:
💡 Tip: For a step-by-step guide to creating a lean business plan (including a sample business plan), read Shopify's guide on how to create a lean business plan .
It’s tempting to dive right into execution when you’re excited about a new business or side project, but taking the time to write a thorough business plan and get your thoughts on paper allows you to do a number of beneficial things:
A business plan can be as informal or formal as your situation calls for, but even if you’re a fan of the back-of-the-napkin approach to planning, there are some key benefits to starting your plan from an existing outline or simple business plan template.
A blank page can be intimidating to even the most seasoned writers. Using an established business planning process and template can help you get past the inertia of starting your business plan, and it allows you to skip the work of building an outline from scratch. You can always adjust a template to suit your needs.
If you’ve never sat through a business class, you might never have created a SWOT analysis or financial projections. Templates that offer guidance—in plain language—about how to fill in each section can help you navigate sometimes-daunting business jargon and create a complete and effective plan.
In some cases, you may not need to complete every section of a startup business plan template, but its initial structure shows you you’re choosing to omit a section as opposed to forgetting to include it in the first place.
There are some high-level strategic guidelines beyond the advice included in this free business plan template that can help you write an effective, complete plan while minimizing busywork.
If you’re writing a business plan for yourself in order to get clarity on your ideas and your industry as a whole, you may not need to include the same level of detail or polish you would with a business plan you want to send to potential investors. Knowing who will read your plan will help you decide how much time to spend on it.
Understanding the goals of your plan can help you set the right scope. If your goal is to use the plan as a roadmap for growth, you may invest more time in it than if your goal is to understand the competitive landscape of a new industry.
Writing a 10- to 15-page document can feel daunting, so try to tackle one section at a time. Select a couple of sections you feel most confident writing and start there—you can start on the next few sections once those are complete. Jot down bullet-point notes in each section before you start writing to organize your thoughts and streamline the writing process.
Planning is key to the financial success of any type of business , whether you’re a startup, non-profit, or corporation.
To make sure your efforts are focused on the highest-value parts of your own business planning, like clarifying your goals, setting a strategy, and understanding the target market and competitive landscape, lean on a business plan outline to handle the structure and format for you. Even if you eventually omit sections, you’ll save yourself time and energy by starting with a framework already in place.
What is the purpose of a business plan.
The purpose of your business plan is to describe a new business opportunity or an existing one. It clarifies the business strategy, marketing plan, financial forecasts, potential providers, and more information about the company.
If you need help writing a business plan, Shopify’s template is one of the most beginner-friendly options you’ll find. It’s comprehensive, well-written, and helps you fill out every section.
The five essential parts of a traditional business plan include:
There are several free templates for business plans for small business owners available online, including Shopify’s own version.
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Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">, opportunity.
As E-commerce continues to accelerate, so does the problem of merchants and manufacturers needing to process returns. The average rate of returns for Internet-based companies is 9%. In the coming year the value of returned merchandise was $1.5 billion. Every one of these transactions involves financial processing. Many of them require physical shipping of physical goods, plus processing the goods as received. This is a huge hassle.
NoHassleReturn.com strives to position itself as a strategic partnership between online merchants, Web hosting companies and portals, shipping companies, and online payment agents such as credit card issuers. Due to demand aggregation, the strategy will produce reduced or totally free shipping of returned merchandise to consumers. This differentiating element will multiply the consumer acceptance factor and will draw more revenues to all participating companies. The proposed program is therefore a win-win solution to all parties involved. Moreover, the software architecture and website format will be wireless-friendly thus designing the service in such a way that consumers will later be able to easily use it via cellular phones and other personal wireless devices
E-commerce continues to accelerate and the amount of money spent on purchases made through the Internet shows no sign of decline. During the past holiday season (November 20 to December 19), retailers saw online revenues quadruple, jumping 300% to about $11 billion and far exceeding expectations, according to a study by Shop.org and Boston Consulting Group. The study of 30 retailers in such categories as apparel, books and music, home and garden, specialty foods and electronics showed a 270% growth in the number of orders. The study indicated that online sales were growing at 145% annually and it projected online retailer revenues of more than $36 billion for last year. An earlier study conducted by Ernst & Young, before the holiday frenzy, already estimated that total revenues for online retail and consumer products for the calendar year just completed were around $25-30 billion. Currently, the average rate of returns for Internet-based companies is 9%. In the coming year the value of returned merchandise was $1.5 billion. This indicates an amazing opportunity.
The company foresees three types of competition for the services we offer: Direct
If we prove successful, others will follow. Our most worrisome competition would be combining delivery and/or courier services, like something of this type owned or partnered with UPS or FEDEX.
The first competitors to the new service are the online retailers themselves. Since NoHassleReturn.com will need to strike partnerships and strategic agreements with retailers in order to offer its services, they are classified as internal competitors.
With NoHassleReturn.com, at least one selling opportunity will be given to retailers while consumer is on the Web–something a partnership with a carrier cannot provide. Moreover, serving as a demand aggregator NoHassleReturn.com should be able to arrange necessary agreements and provide consumers with greatly reduced, or even free, shipping for all returned merchandise.
Thinking in reverse to the previous paragraph, service providers such as Mail Boxes Etc. and PostNet may try to forge strategic partnerships with numerous online retailers to simplify the return process.
Our mission is to enhance customer service of online merchants, boost their customer retention and increase their sales. We strive to improve the overall image of the online merchant and therefore stimulate growth of online shopping. We put our efforts to increase customer satisfaction when consumers deal with retailers, to enhance the interaction process when retailers communicate with consumers, and to streamline the problem resolution order in all possible ways.
NoHassleReturn.com’s financials are conservative yet quite promising. Once they are up and running and sign up some merchants as customers, NoHassleReturn.com will quickly gain momentum and generate impressive sales.
Financing needed.
We need $50,000 to start. We will get that from the two owners to start $25,000 each.
Problem worth solving, our solution.
NoHassleReturn.com is an e-commerce start-up company positioning itself to become the market leader in offering online merchants and consumers a uniform and trouble-free way to return merchandise purchased online. The company offers a business-to-business solution to online merchants of physical, non-perishable products. The company utilizes a consolidation approach in handling all product returns that allows online merchants to instantly save bad sales, restore customer satisfaction and stimulate repeat sales, while offering consumers a convenient, centralized online location to claim returns. By creating a new service category and utilizing the first-mover advantage, NoHassleReturn.com positions itself for rapid growth and gains a strong opportunity to raise entry barriers for possible competition.
Market size & segments.
E-commerce continues to accelerate and the amount of money spent on purchases made through the Internet shows no sign of decline. During the holiday season (November 20 to December 19), retailers saw online revenues quadruple, jumping 300% to about $11 billion and far exceeding expectations, according to a study by Shop.org and Boston Consulting Group. The study of 30 retailers in such categories as apparel, books and music, home and garden, specialty foods and electronics showed a 270% growth in the number of orders. The study indicated that online sales were growing at 145% annually and it projected online retailer revenues of more than $36 billion for 1999. An earlier study conducted by Ernst & Young, before the holiday frenzy, already estimated that total revenues for online retail and consumer products for the calendar year 1999 were around $25-30 billion.
While a notable amount of positive publicity about the Internet shopping has recently appeared in the media, the number of problems encountered by online shoppers actually increased more dramatically than the sales figures. According to a poll conducted by WebAssured.com, the number of complaints filed between November 25, 1999 and January 13, 2000 was up 404% over the same period last year. Over 62% of the respondents claimed they had experienced at least one problem with an online transaction. Misrepresentation/misinformation and delivering defective products each accounted for at least 22% of all complaints. In the breakdown of types of problems occurred, delivery of a wrong item accounted for 17.2%. These kind of problems ultimately result in product returns that cause additional costs to the consumers and both costs and lost revenues to the retailers.
When a wrong, defective, or misrepresented item was delivered to a consumer, the return process often proved uneasy. According to recent findings by PC Data Online, 30% of all consumers who returned items found the return process difficult. It is apparent that existing return procedures are inadequate and sometimes irritating. The solution, however, does not lie in forcing all online retailers to establish a "no-questions-asked" return policy and to post it clearly at the top of their websites. The entire sequence a consumer has to follow, starting from looking up the procedures on the Web and then having to make a trip to UPS or the Post Office, has to be streamlined. There is clearly a need, as well as an opportunity, for a new service company to improve the overall return process for online shoppers. As a result, the consumer satisfaction will be enhanced and it will translate into increased repeat sales for online retailers.
Market Segmentation
As stated in the previous section, the estimated online retail revenues were around $25-36 billion. Both sources providing the estimates indicated that only merchants selling physical products (books, CDs, electronics, apparel, etc.) were included in the breakdown by category. No mention was made of services such as online hotel reservations, news subscriptions, or online brokerage being included in the total figures. However, it would be advisable to use a more conservative approach when estimating the total revenues of online merchandise sales. Presented below are estimates for Internet retail sales made by National Retail Federation shortly after the 1998 holiday season.
Current alternatives.
Direct Competitors
Based on the current intelligence, there is no independent company out there specializing in a "returned merchandise" service to online consumers. No single company is known to be employing a concept of establishing a single point of presence on the Internet for consumers to claim returns. The current situation allows the new company to gain the first-mover advantage and build entry barriers for any possible new entrants.
Internal Competitors
The first competitors to the new service are the online retailers themselves. Since NoHassleReturn.com will need to strike partnerships and strategic agreements with retailers in order to offer its services, they are classified as internal competitors. Retailers may perceive that their internal return procedures are adequate and fully meet customer demands. However, the discussion under the Need Assessment section of this plan clearly indicated that there are significant drawbacks and shortcomings in the return process across the entire industry. Even companies like Amazon.com that touts a quick and easy return policy now sees its customers go to Barnes & Noble superstores to return books. Partnering with brick-and-mortar retailers may be seen as a solution by some e-tailers. However, from the consumer perspective, there still will not be a centralized location to return merchandise, no quick and easy return procedure, and no savings on shipping costs. Consumers may end up having to go from one physical retailer to another to return various items.
Online retailers may try to partner with carriers and service providers such as UPS, Mail Boxes Etc., or Rite Express. Reportedly, eBay.com is working out an agreement with Mail Boxes Etc. to appoint them as a preferred/exclusive service for product returns. eBay.com may receive rebates per shipment for directing its clients to Mail Boxes Etc., but consumers again will have little or no benefit. The standard shipping rates are applied, the choice of carriers is now limited, and online merchants are not informed about product returns ahead of time so that bad sales could be saved. With NoHassleReturn.com, at least one selling opportunity will be given to retailers while consumer is on the Web–something a partnership with a carrier cannot provide. Moreover, serving as a demand aggregator NoHassleReturn.com should be able to arrange necessary agreements and provide consumers with greatly reduced, or even free, shipping for all returned merchandise.
Channel Competitors
Thinking in reverse to the previous paragraph, service providers such as Mail Boxes Etc. and PostNet may try to forge strategic partnerships with numerous online retailers to simplify the return process. But as it was described, online retailers will be shortchanged in overall customer satisfaction, information exchange, total costs, and additional selling opportunities. Consumers, on the other hand, will lose out on the limited number of "exclusive" carriers for particular retailers, and uniform simplicity in the return process will not be achieved. Moreover, both Mail Boxes Etc. and PostNet combined do not have sufficient physical presence in the market.
Carriers such as UPS and FedEx may try to enter the arena. Those organizations have extensive networks of facilities, experience in shipping, and a track record of quality. The U.S. Postal Service has recently started a TV advertising campaign of a service for online merchants that allows consumers to print return labels online. This is a step towards addressing the shipping end of the return problem, but it falls short of saving bad sales and creating new selling opportunities for merchants. No single shipping company can fully provide the range of benefits the proposed company can. NoHassleReturn.com will be able to arrange strategic alliances with numerous carriers and even play one against the other in negotiating rate reductions and preferential service terms for both merchants and consumers. Being a smaller company with a focus on the e-commerce community, it will also have a greater degree of flexibility in adjusting to customer needs.
At NoHassleReturn.com, we feel we provide a value-added service to a variety of consumers. By having a safe and easy-to-use return service, the company benefits more people than simply the average customer.
Merchants Advantages
Consumers Advantages
In order for the company to operate, a number of specific ingredients are needed. Following are things to put in place before the service can be offered.
Marketing plan.
Because the company’s service is a business-to-business program, it will be initially promoted to online merchants by direct sales force. Personal selling will be necessary to reach decision makers within online organizations. At first, contacts will be made with Internet service providers, such as America Online, that host online stores and shops. America Online claims to have 20% of the total Internet service provider market in the U.S. Therefore, arranging a strategic partnership where NoHassleReturn.com becomes the preferred or exclusive choice for all returned merchandise bought at AOL.com shops will be invaluable for establishing a well-recognized brand and building up entry barriers for any possible competition. Ideally, a company’s banner with a notation "For an Easy, Trouble-Free Product Return Click Here" will be visibly displayed throughout the shopping section of AOL.com. Portals such as Yahoo! will be approached as well. Reportedly, Yahoo! hosts nearly 6,000 merchants where it charges each merchant at least $100 to $300 per month. Arranging a strategic partnership with Yahoo! will provide a strong leverage in negotiating return contracts with individual merchants. Similar to that of America Online, the company’s banner will be displayed throughout the entire shopping section of Yahoo!
Large online merchants such as Amazon.com and Buy.com will be targeted by the direct sales force during the first stage as well. Those companies have already achieved significant volumes of sales–and therefore product returns–and will find the uniform return process of much benefit to them. Strong "category killers" such as eToys and CDnow are also first sales targets. Auction houses such as eBay.com and uBid.com will be approached with a service offer for products sold to consumers by merchants and direct manufacturers.
Wherever possible, smaller online retailers will be personally approached by the sales force. To stimulate awareness and service penetration among smaller players, industrial marketing techniques will be utilized. Those will include advertising in specialized publications such as Internet World and Red Herring, as well as referral fees for retailers who already use the service. Email campaigns will be used to reach decision makers at smaller companies. The email messages will have an invitation to the NoHassleReturn.com website where a specially designed presentation will explain the benefits of the new service. An invitation to be contacted by a service consultant to discuss details will be included.
The company plans to offer its services right before Thanksgiving 2000. In order to stimulate a quicker adoption of the services, the remainder of the year 2000 will be offered free of charge.
It is estimated that the initial expenses to hire a sales force and a customer service unit of up to five people during the first year will be close to $400,000. Another $200,000 will be needed for sales program development, marketing activities, and training (excludes advertising). The initial compensation package for sales force will include a nominal base salary and a progressive commission structure. This should ensure that during the early stage of the company’s growth not only that sales targets are met, but also that customer (customer here means merchant) satisfaction and retention are fully addressed. The sales force will initially be located at the corporate headquarters. A territorial approach will later be implemented, with sales people located in regions. After one year, sales force members will split into two distinct groups. The first group will include pure sales people, the "go-getters" who will be placed in regions and will work on pure commissions. The commission structure will become more progressive and rewarding for such individuals, including a bonus structure. The estimate for an average commission paid on sales is approximately 5-10%. The second group will include client care professionals who will concentrate on customer satisfaction and retention to ensure the continuity of the program. These individuals will remain at the headquarters and will have a base salary with a bonus structure. The base salary for client care professionals is in the mid-five figures. Industrial advertising and promotional expenses in 2000 are estimated at $250,000.
It is also a possibility to sell the services to merchants via the Internet hosting service providers, portals, and software developers. Those companies will then serve as distributors and agents, compensated on commissions. This approach will eliminate the need for a large sales force. The final layout will depend on how quickly agreements with companies such as America Online and Amazon.com are negotiated, how aggressively they will be able to promote the services, and on what conditions.
The following diagram describes the customer approach (customer here means merchant).
Service consultants are the direct sales force that approaches prospective customers with service offers. Once a customer has been signed, a service consultant will only approach the client with new service offers and product upgrades. A client care professional is then assigned to each customer to deal with all customer service issues. Each customer will be advised to direct all service inquiries to the professional. A professional will also proactively call on customers to ensure high quality of service and customer satisfaction. The consultants and professionals will have direct communication lines between themselves to ensure open information exchange and a quick and efficient problem-resolution culture. This structure will guarantee an aggressive sales approach, client-oriented service, and efficient post-sales support.
NoHassleReturn.com will strive to eliminate the shipping costs to consumers by means of strategic agreements with online merchants, shipping companies, and credit card companies. As stated in the last quote, 58% of all product returns were due to merchants’ faults, hence merchants will have to reimburse shipping costs to consumers in those cases. NoHassleReturn.com therefore proposes that 65% of a given shipping cost should be allocated to corresponding merchants. Due to demand aggregation, the company will be able to negotiate a shipping rate discount with companies such as UPS or FedEx. Hence 20% of shipping costs should be allocated to shipping companies in a form of a discount. Credit card issuers such as Chase and BancOne currently offer a 5% rebate to consumers on purchases with selected online merchants. It is therefore feasible to arrange an agreement with credit card companies and/or issuers to include a 5% shipping cost rebate on all returned merchandise. Since product returns are only 9% of all purchases, it will not represent a large cost to credit card companies to add this differentiating feature to their products. These allocations in total will cover 90% of the shipping cost. The remaining 10% will be absorbed by NoHassleReturn.com via a special "instant rebate."
NoHassleReturn.com will charge merchants a program fee that will average only 0.5% of a given merchant’s total sales. Also, the company will charge a low per-claim fee of 12% of each item’s listed price (each item that has been claimed through the company’s website). However, of the 12% charged per item, up to 4% will be instantly given back to merchants to cover the remaining portion of the shipping cost. The previous table indicates that the 4% rebate is sufficient to cover the remainder of the shipping cost in the first product category. It is actually far more than sufficient in other product categories (refer to ASC Coverage Ratio). NoHassleReturn.com can then decide whether to offer merchants a reimbursement of the remaining portion of shipping costs only or a flat 4% "instant rebate" regardless of shipping costs. For the purpose of this business plan and financial projections, a flat 4% "instant rebate" was used thus reducing the per-claim fee from 12% to 8% across the board.
As it was stated in a prior chapter, retailers should see an average sales increase of at least 15% due to the service offered by the company. On the other hand, based on the proposed pricing structure the service should not cost merchants more than 1.5% of their total revenues. The cost-benefit ratio of 10 will be a strong promotional point for NoHassleReturn.com.
While it is a possibility to charge merchants commissions on all sales made through the company’s website (when consumers claim their returns), it would not capture all sales stimulated by the company. The program will increase consumer satisfaction and loyalty. However, when consumers start buying more due to the program’s effect but dealing directly with the merchant, the company will not receive any commissions and will in effect be giving its services away for free. Hence both fees charged should fully reflect the benefits of the easy-return procedure, early information on all returning items, restored customer satisfaction, selling opportunities created during the claim process, and all repeat sales thereafter.
The company also plans to draw revenues from advertising on its website, but for the purpose of this business plan advertising revenues will be considered negligible. A fee/rebate agreement may be arranged with such companies as UPS and Mail Boxes Etc. for bringing customers to them for shipping needs. Other revenue generating activities such as affiliate programs with VISA, American Express, or Citibank can be arranged to promote certain credit cards as a preferred method of payment online. Those revenues will also be omitted in the financial projections. Once the company has generated a sufficient customer database, it may also market information to retailers and other organizations for a fee. Any fees and payments NoHassleReturn.com could generate from consulting activities in the field of product returns will not be included in the financial projections either.
The service positioning in the eyes of online merchants is imperative to the success of the enterprise. The service proposed by the company is a business-to-business solution offered to online merchants of physical, non-perishable products. However, because online consumers will deal directly with the company via its website, the proposed solution also incorporates some features of a business-to-consumer service. It is therefore of utmost importance to clearly define what this company offers is a customer service & customer satisfaction program for online merchants. The most unique feature is that the proposed company takes the systemic problem of product returns and turns it into new selling opportunities for online merchants.
It is also important to note that NoHassleReturn.com does not try to position itself as a competitor to any incumbents with a similar service, online merchants, or shipping companies. The proposed company strives to position itself as a strategic partner to all parties participating in handling product returns. If nothing else, NoHassleReturn.com should be viewed as an outsourcing company to online merchants with the core competency and focus in handling returned merchandise.
The service offered by NoHassleReturn.com is designed to enhance customer retention and loyalty by offering an easy and trouble-free merchandise return process to online shoppers. According to Jupiter Communications, the goal of the 1999 holiday season was not about generating impressive sales, but rather securing long-term relationships. Retailers now need to focus on retention and loyalty. NoHassleReturn.com will help to achieve just that through establishing lasting, productive relationships with online merchants. Providing an easy, uniform, and trouble-free return process to all online shoppers will enhance the overall image of online merchants. While the number of retailers continues to grow, consumers will not have to look up every single one to find out about return policies and later keep abreast for possible changes. A centralized Internet location–the company’s website–will retrieve, summarize, and present the appropriate policies. Based on product information, it will make sure the correct procedures are used. The company’s banner with a notation "For an Easy, Trouble-Free Product Return Click Here" will be placed visibly on retailers’ websites and will serve as a symbol of customer orientation and care.
Moreover, the shipping process will be streamlined. Customers will be able to generate a shipping label on the company’s website thus reducing the hassle at the shipper’s counter. Although some online retailers already supply pre-printed shipping labels for sold items, customers sometimes lose, or throw away, those labels when they first see and like the products they ordered. Shortly after they may change their mind and would like to return a particular item, but the label is gone. With the proposed program, the label is always available online so that consumers can have peace of mind and also reduce the amount of documents they need to keep just in case. The service therefore offers a dual benefit to consumers. The retailers may then choose to stop including a pre-printed return label with every outgoing shipment thus reducing costs of selling. From a shipping company’s perspective, the shipping process is streamlined because the online-generated label will have all the necessary information, possibly including a tracking number if it is going to be shipped by UPS. That way consumers do not have to spend time at UPS counters filling out forms–both a customer service and operations improvement for UPS. NoHassleReturn.com will be a strategic merger between online merchants, carriers, and their partners targeted at overall improvement of customer satisfaction and ultimately the bottom line of merchants.
Another important feature of NoHassleReturn.com is that shipping of returned merchandise should be free of charge to consumers. (Means of achieving it are discussed in more detail in the Pricing and Revenue Generation section.) This differentiating feature will tremendously increase the consumer acceptance factor of the proposed service. The fact that products purchased online can be returned in an easy and trouble-free way, and that shipping is also free, will help expand the entire online shopping industry. The added convenience and peace of mind consumers will gain with NoHassleReturn.com will translate into more shopping with those online merchants that participate in the NoHassleReturn.com program.
When customers go through the sequence of online entries on the company’s website, the retailer whose product is being claimed for return will be offered at least one selling opportunity. At the end of the sequence the retailer will be able to target the consumer with any new sales offers as its website will appear onscreen. Should an exchange or replacement be preferred by the customer during the online return process, the retailer will receive an additional selling opportunity as its website will appear with offers during that step. These opportunities will translate into more sales for retailers. This will also stimulate customer retention, which means repeat sales. All in all, the program will increase customer satisfaction and generate more sales.
The program has a number of unique features. First, it alerts the retailer that a particular customer is claiming a particular product for return as it happens. That way the retailer knows about it as it occurs and not when the merchandise arrives at its warehouse. This allows to plan ahead. Since 9% of all products are returned, this feature offers useful information to better handle logistics and inventory.
Secondly, and more importantly, by asking consumers during the online sequence why they want to return a particular item merchants gain an invaluable piece of information. If the reason for return is defective product (30% of all reported returns), the retailer can save the sale and turn an unhappy customer into a delighted one by sending a new item right away. If the reason for return is wrong color, wrong size, or wrong product altogether (28% of all reported returns), the retailer may choose to send the correct product right then, thus instantly restoring customer satisfaction and saving a bad sale. It will be up to the retailer to decide on payment and credit terms of the exchange. These benefits ultimately translate into increased customer retention, reduced costs, more sales, and improved bottom line.
It is estimated that the program will generate an average sales increase for merchants of at least 15%. Online shopping is still at the early stage of consumer adoption. As stated earlier, about half the people who have not shopped online cited the cost and hassle of returns as a significant factor for not shopping online. Another recent survey found that 89% of online buyers said that return policies influenced their decision to shop with an online retailer. Consumers demand not only convenience but peace of mind. The proposed program offers both and it should increase the number of online shoppers, thus causing a market expansion for online merchants. The first retailers who implement the proposed program will also be able to differentiate themselves and capture a larger market share in their respective segments. Once embraced by the majority of online merchants, the program will become an industry standard.
It is important to note that during the entire process the company will not ask for, or try to gain access to, consumers’ credit card numbers. This will significantly limit possible liabilities and security/confidentiality concerns.
Milestones table.
Milestone | Due Date | Who’s Responsible | |
---|---|---|---|
Nov 15, 2020 | Founders | ||
Jan 27, 2021 | Founders | ||
June 15, 2021 | Founders | ||
June 21, 2021 | Founders | ||
Sept 13, 2021 | Founders | ||
Jan 17, 2022 | Founders |
Our Key Metrics:
Those activities that are not crucial to the corporate success (i.e. payroll) will be outsourced or subcontracted. Below are brief summaries of major responsibilities for corporate officers.
There are two principals that are responsible for the idea and the progress of the firm up. They recognize as the companies quickly grows, certain positions such as CEO and CFO will need to be filled. The company was founded by Steve Logic and Dan Codder. Steve has spent the last ten years at Federal Express. While at FedEx, Steve was responsible for their logistics system. Steve has the incredible skill of perceiving business needs and creating a solution to address the need. At FedEx, Steve was the architect behind their benchmarked logistic system that has the ability to track customer packages and share the information with the client. What this meant for FedEx is that they could tell the customer exactly where their package is at any one point. This logistics system is the main driver behind FedEx’s exponential growth. Dan Codder is a twenty-year veteran in the computer industry. Self taught, Dan has worked at IBM, Cadence, Tektronix, and several other companies. Dan has the ability to design and write computer code very quickly and accurately. NoHassleReturn.com will leverage Dan’s skills for the completion of their customer service software engine.
2020 | 2021 | 2022 | |
---|---|---|---|
Part-Time Disassembly Crew (4.67) | $159,600 | $162,792 | |
Directors (5) | $180,000 | $325,000 | $490,000 |
Sales Manager (0.67) | $40,800 | $41,616 | |
Sales Group (4) | $216,000 | $220,320 | |
Fulfillment Manager (0.67) | $33,600 | $34,272 | |
Fulfillment Group (4) | $172,800 | $176,256 | |
Marketing manager (0.67) | $42,000 | $42,840 | |
Marketing Group (4) | $216,000 | $220,320 | |
Programmers (4) | $360,000 | $367,200 | |
Programmer Manger (0.67) | $60,000 | $61,200 | |
Social Media Group (2.33) | $327,600 | ||
Social Media Manager (0.33) | $50,400 | ||
Disassembly Team (2.33) | $201,600 | ||
Disassembly Team Manager (0.33) | $34,800 | ||
Website Programmers / Bug Finders (2.33) | $462,000 | ||
Website Programmer Manager (0.33) | $72,000 | ||
Shipping Clerks (2.33) | $218,400 | ||
Shipping Manager (0.33) | $39,600 | ||
Office Admins (2.67) | $288,000 | ||
Totals | $180,000 | $1,625,800 | $3,511,216 |
Key assumptions.
Net profit (or loss) by year, use of funds.
START-UP REQUIREMENTS
Start-up Expenses
Stationery etc. $50
Brochures $450
Insurance $100
Research and development $400
Expensed equipment $1,100
TOTAL START-UP EXPENSES $3,000
The two co-owners will each contribute $25,000, for a total startup of $50,000.
The plan depends on $4.1 million investment in the first month.
2020 | 2021 | 2022 | |
---|---|---|---|
Revenue | $12,012,000 | $37,514,400 | |
Direct Costs | $6,437,760 | $19,702,838 | |
Gross Margin | $5,574,240 | $17,811,562 | |
Gross Margin % | 46% | 47% | |
Operating Expenses | |||
Salaries & Wages | $180,000 | $1,466,200 | $3,348,424 |
Employee Related Expenses | $36,000 | $293,240 | $669,685 |
Sales and marketing | $300,000 | $3,000,000 | $6,000,000 |
Research and Development | $120,000 | $120,000 | $120,000 |
Rent | $240,000 | $240,000 | $240,000 |
Utilities | $60,000 | $60,000 | $60,000 |
Telephone | $28,800 | $28,800 | $28,800 |
Insurance | $144,000 | $144,000 | $144,000 |
Legal | $60,000 | $60,000 | $60,000 |
Equipment Upkeep | $108,000 | $108,000 | $108,000 |
office Supplies | $10,800 | $10,800 | $10,800 |
Total Operating Expenses | $1,287,600 | $5,531,040 | $10,789,709 |
Operating Income | ($1,287,600) | $43,200 | $7,021,853 |
Interest Incurred | |||
Depreciation and Amortization | $309,400 | $369,400 | $369,400 |
Gain or Loss from Sale of Assets | |||
Income Taxes | $0 | $0 | $0 |
Total Expenses | $1,597,000 | $12,338,200 | $30,861,947 |
Net Profit | ($1,597,000) | ($326,200) | $6,652,453 |
Net Profit/Sales | (3%) | 18% |
Starting Balances | 2020 | 2021 | 2022 | |
---|---|---|---|---|
Cash | $1,235,990 | $228,946 | $4,932,050 | |
Accounts Receivable | $1,921,920 | $6,002,304 | ||
Inventory | ||||
Other Current Assets | ||||
Total Current Assets | $1,235,990 | $2,150,866 | $10,934,354 | |
Long-Term Assets | $47,000 | $1,847,000 | $1,847,000 | $1,847,000 |
Accumulated Depreciation | ($309,400) | ($678,800) | ($1,048,200) | |
Total Long-Term Assets | $47,000 | $1,537,600 | $1,168,200 | $798,800 |
Total Assets | $47,000 | $2,773,590 | $3,319,066 | $11,733,154 |
Accounts Payable | $213,590 | $1,085,266 | $2,846,901 | |
Income Taxes Payable | $0 | $0 | $0 | |
Sales Taxes Payable | $0 | $0 | ||
Short-Term Debt | ||||
Prepaid Revenue | ||||
Total Current Liabilities | $213,590 | $1,085,266 | $2,846,901 | |
Long-Term Debt | ||||
Long-Term Liabilities | ||||
Total Liabilities | $213,590 | $1,085,266 | $2,846,901 | |
Paid-In Capital | $50,000 | $4,160,000 | $4,160,000 | $4,160,000 |
Retained Earnings | ($3,000) | ($3,000) | ($1,600,000) | ($1,926,200) |
Earnings | ($1,597,000) | ($326,200) | $6,652,453 | |
Total Owner’s Equity | $47,000 | $2,560,000 | $2,233,800 | $8,886,253 |
Total Liabilities & Equity | $47,000 | $2,773,590 | $3,319,066 | $11,733,154 |
2020 | 2021 | 2022 | |
---|---|---|---|
Net Cash Flow from Operations | |||
Net Profit | ($1,597,000) | ($326,200) | $6,652,453 |
Depreciation & Amortization | $309,400 | $369,400 | $369,400 |
Change in Accounts Receivable | ($1,921,920) | ($4,080,384) | |
Change in Inventory | |||
Change in Accounts Payable | $213,590 | $871,676 | $1,761,635 |
Change in Income Tax Payable | $0 | $0 | $0 |
Change in Sales Tax Payable | $0 | $0 | |
Change in Prepaid Revenue | |||
Net Cash Flow from Operations | ($1,074,010) | ($1,007,044) | $4,703,104 |
Investing & Financing | |||
Assets Purchased or Sold | ($1,800,000) | ||
Net Cash from Investing | ($1,800,000) | ||
Investments Received | $4,110,000 | ||
Dividends & Distributions | |||
Change in Short-Term Debt | |||
Change in Long-Term Debt | |||
Net Cash from Financing | $4,110,000 | ||
Cash at Beginning of Period | $0 | $1,235,990 | $228,946 |
Net Change in Cash | $1,235,990 | ($1,007,044) | $4,703,104 |
Cash at End of Period | $1,235,990 | $228,946 | $4,932,050 |
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A business plan is a blueprint for your business. It sets out where you want to go and how you want to get there.
While you might want to jump right into your ecommerce business and start selling, starting with a business plan is the foundation of a thriving business. Harvard Business Review found businesses that take the time to draft a business plan increase their odds at succeeding by 16 percent. And one study by McKinsey & Company found that 79 percent of executives believe a formal planning process contributes significantly to overall business strategies.
Business plans force you to think critically and strategically and can even help you acquire outside funding for your next big investment.
So, how do you put one together? We’ll go over the different types of business plans, what to include in each section, and a simple business plan template for you to follow.
Business plans are used for different purposes. Sometimes, it’s to get the internal team on the same page, and other times, it’s to attract potential investors. Depending on who’s reading your business plan and what you’re hoping to achieve, you might adapt it to take a different layout. Here are the main types of business plans and what they’re used for:
Executive summary, company description, products and services, industry overview, market analysis, marketing plan, operations and management, financial plan.
This is where you’re introducing your grand idea. What’s the name of the business? Who’s behind it? When was this document prepared? These are all questions the title page should answer.
As far as design goes, keep it simple. Add a company logo (if you have one), but otherwise, keep styling and graphics to a minimum. This is a professional document, not a school project.
We have a lot to cover, and it’s not always necessary to read through every single section. A table of contents makes it easier to find the sections most relevant to the reader or to refer back to sections they want to reread.
The design here should also be simple (you’ll see this is a recurring theme), with a focus on functionality.
Here’s where we start getting into the meat of the business plan. The executive summary is your one-pager, sort of like an elevator pitch. It’s important to hook readers in at this point. If the executive summary doesn’t get them excited, what’s going to motivate them to finish reviewing your plan?
So much to say, so little space to say it. The executive summary needs to be refined and focus on what will get potential investors and lenders jazzed about your idea. What’s so exciting about it? How can you instill faith in your business idea?
Aside from that, it’s important to tease the research you’ve done around making sure this is a viable opportunity. Provide high-level details about:
Tip: Write your executive summary last. Because it’s basically a truncated version of your entire business plan, it’ll be easier to organize your thoughts once you’ve deep-dived into each of the areas below.
Now, it’s time to get into the nitty gritty about your brand – we’re talking really nitty gritty. Details like business name and address, founding date, legal structure, licenses, ownership details, number of employees, and more.
And then the higher-level fun stuff, like company values (an in-depth exploration of your vision and mission), short- and long-term goals, and positioning in the overall market. This is where you show you’ve done your research on competitors .
Here, you define the item that’s going to turn you a profit – in our case, the physical products you plan to dropship. Create a list of each product you plan to offer (and categories, if you have a ton), your pricing strategy and anticipated profit margin, and why customers will want to buy from you.
It’s a good idea to include a bit of information about how products will be manufactured and delivered. Will you be selling direct-to-consumer or through wholesale customers? How will you package and assemble orders? How do the orders get into customers’ hands? And how will you handle returns? These are just a few of the questions you’ll need to answer.
Remember to detail some of the valuable relationships you have in the industry to reinforce your likelihood of success.
This is where we look at the industry as a whole: Who’s operating in the vertical? What do these niche customers want? What are the economic trends for the industry?
Check out sources like Nielsen and Pew Research Center for information about consumer behavior.
You can also look for niche publications to find targeted analyses and reports.
A lot of the research you’ve put together for the above sections will inform your overall market analysis. The market analysis is a summary of the aforementioned, plus more information about your target customer.
When identifying your market, you need to consider if the size of your potential customer base is big enough to generate a profit. Use social media tools like Facebook Audience Insights to estimate the size of your potential customer base. You can also conduct keyword research to get an idea of how many people are searching for your products – and what their projected search volume is for the future.
Not that you know who you’re selling to, it’s time to establish how you’re going to communicate with them. In this section, you need to account for your sales and marketing approach – how you plan to get the word out about your brand and products.
Today’s brands have to use a multichannel approach, reaching potential customers through email , social media, SEO, content, print, and advertising .
Take what you’ve learned about your audience’s pain points and your competitor’s strengths to inform how you’ll communicate your differentiator. Pay special attention to your website and online channels for dropshipping businesses, as these will be the main touchpoints. It’s also a good idea to outline your post-sales customer remarketing and support plan.
Operations and management details the inner workings of your business. A few areas to cover include:
Then, you’ll also want to detail the day-to-day operations. How are orders fulfilled? What tech stack are you using to automate specific tasks? Which reports do you run and how often? What third-party vendors will you be working with? If you’re a new business, include any launch schedules as well.
If you’re presenting your business plan as part of a loan application or other funding request, this is where you make the ask. You’ve already laid why and how your business will be successful, so potential lenders and investors will feel more at ease with the risk. More than a quarter of businesses claim they can’t get the capital they need – you don’t want a poorly written business plan to be the reason you don’t.
Beyond stating and asking for the amount you need, you’ll also need to prove how this extra capital is going to fuel additional growth with your company. Outline where you’ll spend the money, what you’ll be purchasing with it, and how this will generate a return on investment for your biz.
Rounding out your business plan is the appendix. This is where any supporting documentation goes. We tack it on at the end because they can turn a relatively short business plan into an unwieldy, hundreds-of-pages-long document (nobody has time for that).
The appendix is like a reference section. This way, readers who need to validate something from the earlier sections of your business plan can easily navigate to the corresponding documentation.
If your business plan is prepared for a specific entity, include a line that says “Presented to:” followed by the individual and/or company name.
Tip: Keep your executive summary to one or two pages. Remember, this is a highlight reel for what’s to come.
A business plan is necessary not only for third-party individuals, but also for entrepreneurs who need to get their thoughts down on paper. Business plans hold you more accountable and break long-term goals into short-term action plans.
Home » Building Online Stores » Ecommerce Business Plan Template: How to Make a Business Plan
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As the Benjamin Franklin quote goes, “by failing to plan, you’re planning to fail” – and it’s a sentiment that’s just as relevant today just as it was in the 1700s.
Particularly if you’re managing an ecommerce site .
After all, one research project (a collaboration between Forbes, Huffington Post, and Marketing Signals) suggests that a whopping 90% of ecommerce businesses fail in the first 120 days of their existence. So how can yours avoid being part of that short-lived majority?
With an ecommerce business plan, that’s how.
So read on – we’re walking you through what ecommerce business plans are, and why you need one. You’ll find a complete ecommerce business plan template below, too – so you can start planning for your own online enterprise’s future, today.
An ecommerce business plan is a document that outlines your online business’s objectives and strategy. That’s a summary of both your goals and how you plan to achieve them.
A good ecommerce business plan should identify all the potential challenges your online enterprise will face as you chase profitability, scalability, or simply sustainability. They’ll lay out the groundwork, too: including an analysis of the market you’re planning to enter, and the customers you’re intending to target.
And, of course, an ecommerce business plan should get specific. How will you source your products? Which tactics will you use to market them? How will you fund your fledgling business, and maintain cash flow when times get tough?
Though they’re also useful for keeping you on track with your goals, ecommerce business plans are vital for attracting and securing outside investment, too – so it’s important you get yours right.
Food products are an excellent option for selling online, and you find a list of examples here . But remember, you need to factor regulations and food safety requirements into your business plan.
There are plenty of benefits to creating a comprehensive business plan for your online store:
Ready to start penning your plan?
Read on – the ecommerce business plan template below offers a handy framework to get you started.
Like a blurb on the back of a book or an abstract at the start of an academic article, an executive summary is designed to give time-poor readers a concise, compelling overview of your ecommerce business plan’s contents.
While your executive summary should take pride of place at the top of your business plan, you shouldn’t write it until the end. That’s because you’ll figure out more about your ecommerce store’s plans, ambitions, audience, and strategies as you flesh out your plan – and you’ll want these to be reflected in that punchy, persuasive first statement.
So what should an executive summary include for an ecommerce business, exactly?
Here’s a quick (non-executive) summary:
Remember, an executive summary needs to be crisp, clear, and to the point. Don’t waffle on with overlong or unnecessary analysis – you’ll lose your reader’s interest!
With your reader now hooked, it’s time to explain exactly who you are, what you do, and why you do it.
A company overview should include:
Next up in your ecommerce business plan, you’ll need to provide a detailed analysis of the market you’re entering into. This is crucial – after all, if there aren’t any existing market gaps for your business to service, it’ll struggle to make an impact.
Your market analysis should include an exploration of:
To do all this, a SWOT analysis is a pretty good place to start. It stands for Strengths, Weaknesses, Opportunities, and Threats. It’s a form of situational analysis that can help you understand the nature of your business vis a vis the competition.
Who are you planning to sell to? It’s a key question you’ll need to know – and that any potential investors will demand to know – before your ecommerce business gets off the ground.
So, your ecommerce business plan needs to get specific about that sweet slice of the pie you’re targeting. That includes a deep dive into the demographics – specifically, your prospective customers’:
To gain this info, you can conduct market research into the portion of the market most interested in – or most likely to buy – your products or services. That could involve running focus groups, or sending out incentivized surveys.
Top tip: for an even more granular way of conceptualizing your potential customers, create buyer personas . these are fictional depictions or real consumers, with pain points, goals, likes, dislikes, and demographic info all fleshed out..
By tailoring all your messaging to one or more of these personas, you can increase the effectiveness of your comms.
Next up? Details about how you plan to spread the word of your business.
This will include which communication channels you intend to prioritize, which marketing strategies you’ll implement, and which milestones and metrics you’ll use to measure it all.
Your marketing plan should make clear:
Need some digital marketing tips to add clarity and clout to your marketing plan? Our comprehensive guide has you covered.
You know how you’re going to entice your customers to buy from you – but how will you actually get your products to their doorstep once they do?
This is what your ecommerce business plan’s logistics section aims to explain. It’ll include:
3PL suppliers like ShipBob store, sort, pick, pack, and ship your goods – so they can be a fantastic option if you’re a growing business, and outsourcing the fulfillment process makes sense.
As it so often does in the world of commerce, your business plan all boils down to this – the money .
Your financial plan describes how you’ll first fund your business, then keep it afloat. Here, you’ll set out your fiscal stall with a series of projections around cash flow and income. The goal? To convince investors (and, on some level, yourself!) that your business has legs.
Your ecommerce business plan’s financial chapter should include:
Yes. Yes, you do.
It can be easy, as a business that only exists online, to get complacent – to assume that you don’t need a business plan.
‘Business plans are a traditional document,’ you think. ‘They don’t have a place in the world of modern ecommerce businesses.’
Well, guess what? They do – regardless of what you call, or how you classify, your business. But there are certain types of ventures where a comprehensive business plan will be especially useful. Among these are:
Even if your ecommerce store falls into none of these categories, a business plan is always a good idea. It’ll clarify and crystallize your professional goals, hold you accountable to your ambitions, and keep you on track to making your dreams a reality.
In this article, you’ve learned exactly what a business plan is, and why it’s vital for commercial success – particularly for brands of the ecommerce persuasion.
You’re also well-versed in the structure and contents of an ecommerce business plan:
What now? Well, it’s time to get researching and writing. So remember – keep it simple, keep it tight, and make sure it reflects the heart and soul of your business (and all that passion you feel for it, too!).
Putting together a business plan is exciting. It’s that tangible, real expression of your goals and vision for your ecommerce store – so it shouldn’t be a chore. Go enjoy it!
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our free ecommerce business plan template, designed to help you develop a comprehensive and effective plan for your online business. Ecommerce has become an increasingly important part of the retail industry, with more and more consumers choosing to shop online. Whether you're launching a new ecommerce business or looking to expand your existing online presence, a well-crafted business plan is essential to your success. Our ecommerce business plan template is completely free and is designed to guide you through the process of creating a clear and concise plan that outlines your business goals, target audience, marketing strategies, financial projections, and more.
If you're considering launching an ecommerce business, you probably already know that having a solid business plan is essential to your success. Our free template is designed to help you create a comprehensive and effective plan that covers all the key areas of your business, from your target audience and marketing strategies to your financial projections and operations.
Our free ecommerce business plan template is the ideal tool for anyone looking to start or grow an online business. Here are just a few reasons why you should consider using our template:
Our free ecommerce business plan template covers all the key areas of your online business, including:
How to Use Our Ecommerce Business Plan Template
Using our ecommerce business plan template is easy. Simply follow these steps:
The free ecommerce business plan template is a helpful tool for anyone looking to start or grow an online business. With our template, you can create a comprehensive and effective plan that covers all the key areas of your business, ensuring that you're well-positioned for success. So what are you waiting for? Download our free ecommerce business plan template today and start building your dream business!
Q: what is an ecommerce business plan and why do i need one.
A: An ecommerce business plan is a written document that outlines the goals, strategies, and financial projections for an online business. It's important to have a well-crafted ecommerce business plan because it helps you clarify your objectives, identify your target audience, and develop effective marketing strategies. Additionally, a business plan helps you secure funding from investors or financial institutions, and it can serve as a roadmap for your business's growth and development.
A: To create financial projections for your ecommerce business plan, you'll need to gather data on your startup costs, revenue projections, and operating expenses. Some common metrics you'll want to consider include customer acquisition costs, average order value, and customer lifetime value. You'll also need to estimate your operating expenses, such as website hosting fees, shipping costs, and customer service expenses. Once you have this data, you can use it to create realistic revenue and expense projections for your business. It's important to be as accurate as possible in your financial projections, so using a tool like an ecommerce projection template is helpful.
A: To make sure your ecommerce business plan is effective, there are a few key steps you should follow:
By following these steps, you can create an ecommerce business plan that's comprehensive, effective, and tailored to the specific needs of your business.
Collectively, our team has reviewed thousands of business plans and has nearly 20 years of experience making SBA loans. We've also helped more than 50,000 businesses create financial projections across many industries and geographies.
Adam served as Executive Director for a SBA microlender in Indiana for over 10 years helping businesses and reviewing thousands of business plans.
Grace has built hundreds of custom financial models for businesses as well as our projection templates which are used by thousands of businesses every year.
Kyle served as an SBA loan officer for 7 years working directly with startups and business owners to review their business plans, projections, and prepare their loan package.
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Everything you need to plan and pitch your online store
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Ecommerce is booming, and you could be, too. But before you can start your business, you need a business plan.
Our business plan template outlines everything you need to write out the future roadmap of your your company, as well as a rock-solid pitch for banks, investors and potential business partners.
Included in this template:
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Updated: May 4, 2024, 4:37pm
Why business plans are vital, get your free simple business plan template, how to write an effective business plan in 6 steps, frequently asked questions.
While taking many forms and serving many purposes, they all have one thing in common: business plans help you establish your goals and define the means for achieving them. Our simple business plan template covers everything you need to consider when launching a side gig, solo operation or small business. By following this step-by-step process, you might even uncover a few alternate routes to success.
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Whether you’re a first-time solopreneur or a seasoned business owner, the planning process challenges you to examine the costs and tasks involved in bringing a product or service to market. The process can also help you spot new income opportunities and hone in on the most profitable business models.
Though vital, business planning doesn’t have to be a chore. Business plans for lean startups and solopreneurs can simply outline the business concept, sales proposition, target customers and sketch out a plan of action to bring the product or service to market. However, if you’re seeking startup funding or partnership opportunities, you’ll need a write a business plan that details market research, operating costs and revenue forecasting. Whichever startup category you fall into, if you’re at square one, our simple business plan template will point you down the right path.
Copy our free simple business plan template so you can fill in the blanks as we explore each element of your business plan. Need help getting your ideas flowing? You’ll also find several startup scenario examples below.
Download free template as .docx
Whether you need a quick-launch overview or an in-depth plan for investors, any business plan should cover the six key elements outlined in our free template and explained below. The main difference in starting a small business versus an investor-funded business is the market research and operational and financial details needed to support the concept.
Start by declaring a “dream statement” for your business. You can call this your executive summary, vision statement or mission. Whatever the name, the first part of your business plan summarizes your idea by answering five questions. Keep it brief, such as an elevator pitch. You’ll expand these answers in the following sections of the simple business plan template.
These answers come easily if you have a solid concept for your business, but don’t worry if you get stuck. Use the rest of your plan template to brainstorm ideas and tactics. You’ll quickly find these answers and possibly new directions as you explore your ideas and options.
This is where you detail your offer, such as selling products, providing services or both, and why anyone would care. That’s the value proposition. Specifically, you’ll expand on your answers to the first and fourth bullets from your mission/vision.
As you complete this section, you might find that exploring value propositions uncovers marketable business opportunities that you hadn’t yet considered. So spend some time brainstorming the possibilities in this section.
For example, a cottage baker startup specializing in gluten-free or keto-friendly products might be a value proposition that certain audiences care deeply about. Plus, you could expand on that value proposition by offering wedding and other special-occasion cakes that incorporate gluten-free, keto-friendly and traditional cake elements that all guests can enjoy.
Here is where you explore bullet point number three, who your business will benefit. Identifying your ideal customer and exploring a broader audience for your goods or services is essential in defining your sales and marketing strategies, plus it helps fine-tune what you offer.
There are many ways to research potential audiences, but a shortcut is to simply identify a problem that people have that your product or service can solve. If you start from the position of being a problem solver, it’s easy to define your audience and describe the wants and needs of your ideal customer for marketing efforts.
Using the cottage baker startup example, a problem people might have is finding fresh-baked gluten-free or keto-friendly sweets. Examining the wants and needs of these people might reveal a target audience that is health-conscious or possibly dealing with health issues and willing to spend more for hard-to-find items.
However, it’s essential to have a customer base that can support your business. You can be too specialized. For example, our baker startup can attract a broader audience and boost revenue by offering a wider selection of traditional baked goods alongside its gluten-free and keto-focused specialties.
Thanks to our internet-driven economy, startups have many revenue opportunities and can connect with target audiences through various channels. Revenue streams and sales channels also serve as marketing vehicles, so you can cover all three in this section.
Revenue Streams
Revenue streams are the many ways you can make money in your business. In your plan template, list how you’ll make money upon launch, plus include ideas for future expansion. The income possibilities just might surprise you.
For example, our cottage baker startup might consider these revenue streams:
Sales Channels
Sales channels put your revenue streams into action. This section also answers the “where will this happen” question in the second bullet of your vision.
The product sales channels for our cottage bakery example can include:
Channels that support other income streams might include:
Nowadays, the line between marketing and sales channels is blurred. Social media outlets, e-books, websites, blogs and videos serve as both marketing tools and income opportunities. Since most are free and those with advertising options are extremely economical, these are ideal marketing outlets for lean startups.
However, many businesses still find value in traditional advertising such as local radio, television, direct mail, newspapers and magazines. You can include these advertising costs in your simple business plan template to help build a marketing plan and budget.
This section of your simple business plan template explores how to structure and operate your business. Details include the type of business organization your startup will take, roles and responsibilities, supplier logistics and day-to-day operations. Also, include any certifications or permits needed to launch your enterprise in this section.
Our cottage baker example might use a structure and startup plan such as this:
Click to get started.
Your final task is to list forecasted business startup and ongoing costs and profit projections in your simple business plan template. Thanks to free business tools such as Square and free marketing on social media, lean startups can launch with few upfront costs. In many cases, cost of goods, shipping and packaging, business permits and printing for business cards are your only out-of-pocket expenses.
Cost Forecast
Our cottage baker’s forecasted lean startup costs might include:
Business Need | Startup Cost | Ongoing Cost | Source |
---|---|---|---|
Gross Profit Projections
This helps you determine the retail prices and sales volume required to keep your business running and, hopefully, earn income for yourself. Use product research to spot target retail prices for your goods, then subtract your cost of goods, such as hourly rate, raw goods and supplier costs. The total amount is your gross profit per item or service.
Here are some examples of projected gross profits for our cottage baker:
Product | Retail Price | (Cost) | Gross Profit |
---|---|---|---|
Putting careful thought and detail in a business plan is always beneficial, but don’t get so bogged down in planning that you never hit the start button to launch your business . Also, remember that business plans aren’t set in stone. Markets, audiences and technologies change, and so will your goals and means of achieving them. Think of your business plan as a living document and regularly revisit, expand and restructure it as market opportunities and business growth demand.
You can copy our free business plan template and fill in the blanks or customize it in Google Docs, Microsoft Word or another word processing app. This free business plan template includes the six key elements that any entrepreneur needs to consider when launching a new business.
A simple business plan is a one- to two-page overview covering six key elements that any budding entrepreneur needs to consider when launching a startup. These include your vision or mission, product or service offering, target audience, revenue streams and sales channels, structure and operations, and financial forecasts.
Start with our free business plan template that covers the six essential elements of a startup. Once downloaded, you can edit this document in Google Docs or another word processing app and add new sections or subsections to your plan template to meet your specific business plan needs.
When writing out a business plan, you want to make sure that you cover everything related to your concept for the business, an analysis of the industry―including potential customers and an overview of the market for your goods or services―how you plan to execute your vision for the business, how you plan to grow the business if it becomes successful and all financial data around the business, including current cash on hand, potential investors and budget plans for the next few years.
Krista Fabregas is a seasoned eCommerce and online content pro sharing more than 20 years of hands-on know-how with those looking to launch and grow tech-forward businesses. Her expertise includes eCommerce startups and growth, SMB operations and logistics, website platforms, payment systems, side-gig and affiliate income, and multichannel marketing. Krista holds a bachelor's degree in English from The University of Texas at Austin and held senior positions at NASA, a Fortune 100 company, and several online startups.
Starting an online store can be daunting, but with the right ecommerce platform, it doesn‘t have to be. The best ecommerce software makes it easy for even non-technical entrepreneurs to create a professional-looking, responsive website; add products; process payments; manage shipping; track sales; and more—without needing to code anything from scratch.
In this comprehensive guide, we‘ll compare the top 8 ecommerce solutions for small businesses in 2023 based on ease of use, features, customizability, fees, and more. Whether you‘re selling physical products, digital downloads, or both, these platforms can power your online store while keeping costs low.
With so many options on the market, settling on the right ecommerce software for your small business is crucial. We focused on solutions that check the following boxes:
Beginner-friendly. The best ecommerce platforms allow you to create a full-featured online store through an intuitive dashboard—no design or technical skills required.
Affordable pricing. Monthly fees should be reasonable for small businesses on a budget. Transaction fees also vary across platforms.
Customizable design. Pick from beautiful premade themes or customize the look and feel to match your brand.
Built-in payment processing. Accept credit cards and manage transactions without needing third-party services.
Solid integrations. Connect your store to other apps like email marketing, accounting, shipping solutions, and more.
Room to scale. While starting small, the platform should also be able to power your growth over time.
We signed up for trials, built test stores, and evaluated each platform across these criteria to find the top contenders.
1. shopify — the all-in-one favorite.
With over 1 million merchants powered by Shopify, it’s a leader for good reason. The platform shines with an intuitive, flexible interface, wide array of themes, built-in payment processing, and robust app store. Shopify also offers 24/7 customer support to guide you.
Transaction fees are 2.4% + $0.30 per transaction with Shopify Payments.
Overall, Shopify strikes the best balance of ease of use and advanced features for first-time and experienced ecommerce sellers alike. It’s the ideal one-stop solution.
Already use Square’s point of sale system in your brick-and-mortar store? Easily transition to selling online as well with Square Online Store. And managing everything in one unified interface makes running your omnichannel small business a breeze.
Credit card processing fees are 2.6% + $0.10 per online transaction.
Square Online Store excels at helping small business sell on multiple channels using one seamlessly integrated system.
Designed to support fast-growing brands from the start, BigCommerce combines powerful enterprise-grade capabilities with an affordable pricing structure.
No additional transaction fees beyond payment processing rates.
For ecommerce businesses expecting significant growth right out the gate, BigCommerce offers robust tools to scale.
A popular website builder, Wix also enables you to easily add an integrated online store to sell your products. With 500+ designer-made store templates, you can launch a gorgeous site quickly.
Credit card processing is 3.5% + $0.20 per transaction through Wix Payments.
Wix empowers entrepreneurs of all tech levels to create the full website + store they envision.
Already have a WordPress site? Transform it into an ecommerce store with the extremely popular WooCommerce plugin. With 40% of all online stores powered by WooCommerce, it’s a newbie-friendly choice.
Payment processing fees vary by provider.
If you already use WordPress, definitely check out WooCommerce to convert your site into a store.
Looking to sell across multiple regions and languages? Shoplazza streamlines international commerce with automated translation, currency conversion, taxes, and customs documentation tools.
Credit card rates are 2.9% + $0.30 per transaction through Shoplazza Payments.
The relief of easily entering new markets across the world? Priceless. Let Shoplazza handle the complexity.
Want to test selling online at zero upfront cost? Ecwid lets you create a free online store and add it to your website, Facebook, and more. Ideal for dipping a toe into ecommerce before diving all the way in.
Payment processing rates vary by provider. No added transaction fees.
Ecwid removes all barriers to start selling online for minimal investment.
This popular web builder offers ecommerce functionality to open a store directly on your Squarespace site—no third-party platform needed. With sophisticated templates and customization options, you can execute on your creative vision.
Credit card rates are 2.9% + $0.30 per transaction with no additional fees.
Squarespace streamlines launching a design-forward online store alongside a stunning website.
While the solutions above all enable selling online, subtle differences make each ideal for certain business types. As you evaluate platforms, keep these factors in mind:
Product volume: Do you plan to offer a targeted product line vs. vast inventory? Storage and bandwidth caps impact volumes.
Business model : Are you exclusively ecommerce or blended with an in-person store? Omnichannel options simplify unified operations.
Technical abilities : How comfortable are you customizing themes and features beyond presets? Pick an intuitive builder vs. extremely flexible coder platform accordingly.
There’s no one-size-fits all ecommerce software. Define your priorities, weigh the options, and choose the platform that empowers your vision as an entrepreneur. With modern shops easier than ever to create, you can start selling online on your terms.
The world awaits your unique products or services! With the right ecommerce foundation empowering your back end, you can focus on crafting an exceptional customer experience.
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Why You Should Create a Business Plan. We know that starting an ecommerce business is exciting, and it can be tempting to jump right in without constructing a business plan. READ: PLEASE DON'T DO THIS. If you haven't put your ideas, questions and concerns on paper, then you haven't given your business model enough thought.. Taking the time to write a business plan might seem like a lot ...
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.
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.
How to Write an Ecommerce Business Plan: A Complete Guide. From undertaking thorough market research to creating a marketing plan- uncover every detail on writing an effective plan for your online business with this guide. 1. Get an Ecommerce business plan template. Crafting a stellar business plan is a challenge.
The following Ecommerce business plan template gives you the key elements to include in a winning business plan for an ecommerce startup or an existing ecommerce business. Below are links to each of the key sections of a sample ecommerce business plan: I. Executive Summary. II.
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 ...
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 ...
Ecommerce Business Plan Template. Over the past 20+ years, we have helped over 10,000 entrepreneurs and business owners create business plans to start and grow their ecommerce businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through an ecommerce ...
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. Draft an ...
5. Outline the management and organization. For a well-crafted ecommerce business plan, first sketch out the management and organization. This includes the roles you aim to fill and their fit into the overall business plan. Pinpointing key positions in your firm ensures smooth operations and clear task division.
ClickUp's Business Plan Template for Ecommerce is the ultimate toolkit for entrepreneurs and business owners in the online retail industry. With this template, you can: Clearly define your business objectives and target market. Develop effective marketing and sales strategies to drive growth and revenue.
Follow these tips to quickly develop a working business plan from this sample. 1. Don't worry about finding an exact match. We have over 550 sample business plan templates. So, make sure the plan is a close match, but don't get hung up on the details. Your business is unique and will differ from any example or template you come across.
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.
Ananth's an experienced tech business operator, a failed entrepreneur, and an active angel investor. Create an ecommerce business plan in 7 steps: 1 - Executive summary| 2 - Company overview | 3 - Products and services | 4 - Competitive analysis | 5 - ….
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.
Shopify's free business plan template includes seven key elements typically found in the traditional business plan format: 1. Executive summary. This is a one-page summary of your whole plan, typically written after the rest of the plan is completed. The description section of your executive summary will also cover your management team ...
Our Solution. NoHassleReturn.com is an e-commerce start-up company positioning itself to become the market leader in offering online merchants and consumers a uniform and trouble-free way to return merchandise purchased online. The company offers a business-to-business solution to online merchants of physical, non-perishable products.
A business plan is a blueprint for your business. It sets out where you want to go and how you want to get there. While you might want to jump right into your ecommerce business and start selling, starting with a business plan is the foundation of a thriving business. Harvard Business Review found businesses that take the time to draft a business plan increase their odds at succeeding by 16 ...
Read on - the ecommerce business plan template below offers a handy framework to get you started. Executive Summary. Like a blurb on the back of a book or an abstract at the start of an academic article, an executive summary is designed to give time-poor readers a concise, compelling overview of your ecommerce business plan's contents.
Using our ecommerce business plan template is easy. Simply follow these steps: Download our free template: Our template is available for free download. Simply fill out a short form to access the template. Customize the template: Use our template as a starting point, and customize it to suit your specific needs and goals.
Ecommerce is booming, and you could be, too. But before you can start your business, you need a business plan. Our business plan template outlines everything you need to write out the future roadmap of your your company, as well as a rock-solid pitch for banks, investors and potential business partners.
Our simple business plan template covers everything you need to consider when launching a side gig, solo operation or small busi. ... E-commerce platform: An online store such as Shopify, ...
7. Ecwid — Best Free Plan to Start. Want to test selling online at zero upfront cost? Ecwid lets you create a free online store and add it to your website, Facebook, and more. Ideal for dipping a toe into ecommerce before diving all the way in. Pricing: Free plan: $0/month for core features ; Venture plan: $15/month ; Business plan: $35/month