e commerce website business plan

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

Published: April 03, 2024

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

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

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

What is an e-commerce business plan?

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

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

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

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

Free Business Plan Template

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

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

How to Write an Ecommerce Business Plan

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

1. Give an executive summary.

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

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How to Make an Ecommerce Business Plan for Your Startup

Darren DeMatas

August 21, 2024

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

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

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

Why You Should Create a Business Plan

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

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

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

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

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

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

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

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

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

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

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

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

How to Start an Ecommerce Business Plan

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

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

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

What are you selling?

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

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

Who are you selling to?

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

How are you sourcing your product?

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

Additional References

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

Executive Summary

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

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

Business Model

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

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

Monetization Strategy

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

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

Product/Industry

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

For example, “Vegan Skincare Products.”

Target Market

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

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

Sales Channel

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

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

Business Overview

This next section covers your company overview.

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

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

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

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

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

Company Type

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

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

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

Domain Name

This section is where you list your domain name.

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

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

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

Value Proposition

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

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

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

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

Pay special attention to all the sensory words !

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

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

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

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

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

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

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

Brand Traits

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

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

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

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

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

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

Competitive Market Analysis

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

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

Market Segment

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

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

Niche Selection

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

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

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

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

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

Competitive Analysis

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

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

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

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

Industry reports

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

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

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

Here’s an example:

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

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

Competition

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

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

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

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

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

Keyword Research

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

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

Trade shows

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

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

General Industry

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

Products and Offers

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

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

Different types of products

Some of the different types of products include the following:

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

The various types of niches include the following:

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

Existing products

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

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

Future product pipeline

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

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

These product offerings will include the following:

• Core product

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

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

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

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

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

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

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

Marketing Plan and Operations

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

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

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

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

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

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

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

Paid Marketing

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

Organic Marketing

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

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

How much should you spend to acquire a customer?

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

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

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

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

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

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

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

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

Choosing The Right Technology

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

Some of the different elements include:

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

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

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

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

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

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

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

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

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

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

Financial Plan

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

What are the key elements of an ecommerce business plan?

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

How do I create a budget for my ecommerce business?

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

How do I find the right product to sell?

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

How can I differentiate my product from competitors?

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

Wrapping Up Your Business Plan

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

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

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

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How to Write the Ultimate eCommerce Business Plan

• by Lightspeed

minute read

Writing an eCommerce business plan is one of the first steps you should take if you’re thinking about starting an online business. Whether you’re opening an online-only shop or adding an eCommerce component to your brick and mortar store for an omnichannel retail experience, there’s never been a better time to sell online. 

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

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

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

All your eCommerce questions answered, and more

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

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

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

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

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

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

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

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

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

How to make an eCommerce business plan

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

Summary 

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

Company introduction

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

What does your business do?

What problem does it solve, and how?

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

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

Market research

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

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

Company structure

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

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

Products and services

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

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

Marketing strategy

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

Your marketing strategy should include:

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

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

If your business is pre-revenue, include:

• Revenue projections
• Funding information
• Expected costs

If your business already exists, include information like:

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

The ultimate eCommerce business plan template

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

Executive summary 

Company name:

Founders/leadership team:

Products/services:

Target market:

Marketing strategies:

Business model:

Mission statement:

Company values:

Ideal customer:

Market size:

Competitive analysis:

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

Legal structure:

Leadership team:

Organizational chart:

Product/service 1:

Product/service 2:

Product/service 3:

Pricing, positioning and profit margins:

Manufacturing/supply chain:

Intellectual property claims:

SWOT analysis:

• Weaknesses:
• Opportunities:

Marketing channels:

Marketing goals and KPIs:

Revenue (projected or actual):

Profit or loss:

Investments:

Budget vs. actuals: 

eCommerce business plans turn dreams into action

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

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

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

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How To Create The Perfect Ecommerce Business Plan (Examples & Templates)

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.

Expert Evidence

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

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

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

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

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

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

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

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

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

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

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

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

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

But first, let’s begin with the fundamentals.

What is an Ecommerce Business Plan?

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

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

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

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

Why Do You Need An Ecommerce Business Plan?

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

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

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

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

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

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

How To Create The Perfect Ecommerce Business Plan

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

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

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Step 1: Draft an executive summary

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

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

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

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

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

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

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

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

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

Tips for an effective executive summary:

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

Step 2: Company description

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

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

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

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

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

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

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

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

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

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Step 3: Describe your products and services

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

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

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

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

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

Step 4: Conduct market analysis

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

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

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

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

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

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

This brings us to marketing.

Components of a strong market analysis:

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

Step 5: Draft your marketing plan

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

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

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

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

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

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

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

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

Step 6: Define sales and customer service processes

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

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

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

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

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

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

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

Step 7: Create a supply chain strategy

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

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

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

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

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

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

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

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

Step 8: Identify legal frameworks

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

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

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

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

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

Step 9: Define financial requirements

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

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

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

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

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

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

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

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

This helps potential investors conduct a cost-benefit analysis.

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

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

With this section, you conclude your ecommerce business plan.

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

Start on the Right Foot With The Best Ecommerce Platform

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

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

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

• 1. Subbly — Best for subscription-based ecommerce models
• 2. Wix eCommerce — Best for non-technical users
• 3. Shopify — Best for a range of integrations
• 4. Ecwid by Lightspeed — Best for social media selling
• 5. Adobe Commerce — Best for data-driven companies
• 6. Sana Commerce Cloud — Best ecommerce platform for B2B sales
• 7. Volusion — Best customer service
• 8. ShopWired — Best for buy-now-pay-later purchasing
• 9. Shift4Shop — Best free template library
• 10. WooCommerce — Best ecommerce plug-in for Wordpress

Use The Ecommerce Business Plan to Guide Your Actions

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

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

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

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

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

Ecommerce Business Plan FAQs

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

Is ecommerce a profitable business?

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

Do I need a business plan for an ecommerce business?

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

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• Business plans

Ecommerce Business Plan Template

Used 5,221 times

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

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Prepared by:

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

​ [Sender.Title] [Sender.Company] ​

​ [Sender.Phone] [Sender.Email] ​

Business Overview

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

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

Products and Services

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

Website Design

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

About section explaining the company's mission

Database of products

Shopping cart system

Help and FAQ pages

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

Management Team

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

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

Industry Analysis

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

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

Customer Analysis

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

The demographics of these customers are as follows:

The average income of $XX, XXX

XX% work in (industry)

XX% (married/single)

The median age of XX years

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

Competitor Analysis

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

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

Competitive Advantage

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

There are a limited number of competitors.

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

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

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

Marketing Strategy

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

Brand Strategy

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

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

Promotional Strategy

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

Pricing Strategy

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

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

Operational Plan

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

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

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

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

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

Financial Projections

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

Specifically, these funds will be used as follows:

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

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

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

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Your rating will help others.

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How To Start an Ecommerce Business in 2024

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

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

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

Start an ecommerce business in 5 steps

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

1. Find product opportunities and choose what to sell

Finding a product to sell

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

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

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

Evaluating your idea

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

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

Obtaining your product

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

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

Sell your retail products online

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

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

2. Thoroughly research your competition and write a business plan

Research your competition

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

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

Writing a business plan

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

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

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

Choose an online business name

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

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

Creating a logo

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

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

Understanding search engine optimization (SEO)

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

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

Building your store

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

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

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

Choosing your sales channels

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

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

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

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

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

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

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

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

• Starting up Starts Here: The Shopify Store Launch Checklist

5. Launch your business

Acquiring your first customer

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

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

Marketing your store

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

Email marketing essentials

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

Driving traffic from social

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

Driving traffic and conversions from paid ads

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

Optimizing for higher conversion rates

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

Using analytics to uncover insights

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

How much does it cost to start an ecommerce business?

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

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

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

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

Expense categories include:

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

In the first year, business owners spent:

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

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

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

5 tips for starting an ecommerce store

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

1. Forget about year-one profitability

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

2. Know your target audience

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

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

3. Sell an in-demand product

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

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

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

Two places to find market demand are:

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

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

4. Experiment with marketing and advertising

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

Test different online marketing tactics like:

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

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

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

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

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

5. Invest in outreach and link building

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

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

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

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

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

Start your ecommerce store

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

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

Illustration by Cornelia Li

Million-dollar ideas start here

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

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

Ecommerce business FAQ

What is ecommerce business.

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

How to start an ecommerce business?

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

What are the 4 types of ecommerce businesses?

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

Is ecommerce a profitable online business?

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

Is it hard to start your own ecommerce business?

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

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Creating a Stellar Ecommerce Business Plan for Your Online Store

Choose the Right Ecommerce Platform

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.

How to Create An Ecommerce Business Plan

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 executive summary.

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.

What does your business do?

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).

What goals does your business want to achieve?

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.

What products do you sell?

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.

Who is your audience?

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:

Where are you going to sell your products?

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).

Identify your company overview.

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.

Business structure

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.

Domain name

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).

Background information

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.

Your team and key people

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.

Conduct market research.

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 .

Market opportunities

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.

Competitive analysis

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.

Products and services

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.

Develop a marketing plan.

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.

Marketing channels

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?

Establish a financial plan.

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.

Income statement

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).

Balance sheet

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.

Cash-flow statement

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.

How to Increase Ecommerce Sales

Explore our collection of free resources designed to help you scale smarter and accelerate your online growth from $1 million to $100 million.

The Final Word

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.

FAQs About Ecommerce Business Plans

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.

May 24, 2022 | 9 min read

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

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

I get it—after all, I did it myself.

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

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

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

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

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

Basics of Writing an E-Commerce Business Plan

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

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

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

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

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

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

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

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

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

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

1. Understanding the Competitive Landscape

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

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

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

2. Getting to Know Your Audience

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

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

All of that will help inform your messaging .

3. Locating Potential Investors

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

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

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

4. Finding Your Niche

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

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

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

5. Sourcing Fresh Talent

Admittedly, recruitment might not be on your immediate agenda.

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

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

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

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

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

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

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

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

Section 1: Executive Summary

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

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

Generally, you should look to answer the following questions:

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

Section 2: Company Overview

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

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

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

Section 3: Market Analysis

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

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

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

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

The Size of Your Market

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

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

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

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

Your Competitors

No e-commerce brand is an island.

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

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

SWOT Analysis

SWOT analyses are about assessing your business’s:

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

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

Section 4: Products & Services

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

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

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

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

Section 5: Marketing Plan

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

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

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

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

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

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

Section 6: Logistics & Operations Plan

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

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

Section 7: Financial Plan

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

Income Statement

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

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

Balance Sheet

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

Cash Flow Statement

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

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

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

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

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

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

Emil Kristensen

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

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Ultimate Guide to Writing an Ecommerce Business Plan (+ Template)

• Author : Gaurav Nagani

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

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

How to create a defensible eCommerce business plan

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

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

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

How To Write an Ecommerce Business Plan in 9 Steps

1. draft an executive summary.

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

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

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

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

2. Describe your company (Qualitative)

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

Consider these key points:

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

3. List your products and services

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

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

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

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

4. Analyze your target audience

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

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

5. Outline the management and organization

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

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

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

6. Perform customer segmentation

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

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

7. Define a marketing plan

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

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

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

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

8. Provide a logistics and operations plan

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

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

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

9. Make a financial plan

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

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

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

7 tips for creating a small business plan

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

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

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

1. Know your audience

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

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

2. Have a clear goal

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

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

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

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

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

3. Invest time in research

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

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

4. Keep it short and to the point

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

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

5. Keep the tone, style, and voice consistent

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

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

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

6. Use a business plan template

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

Try business plan software

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

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

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

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

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7 steps to creating a captivating ecommerce business plan

Use our free template to attract investment to your ecommerce business

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What is an ecommerce business plan?

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:

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

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

1 - Create an executive summary

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

Vision and mission

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

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

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

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

Business objectives

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

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

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

Key metrics

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

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

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

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

2 - Company overview

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

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

This section should include:

Company description

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

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

Business model

A business model outlines whether:

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

Unique selling proposition (USP)

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

Management structure

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

3 - Describe your product and services

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

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

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

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

4 - Conduct competitive analysis

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

Identify direct competitors

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

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

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

Identify indirect competitors

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

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

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

Uncover competitive advantages

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

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

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

5 - Develop a marketing plan

Your marketing plan should outline four main topics:

Positioning strategy

• Acquisition channels

Tools and technology

Goals and evaluation.

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

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

To create a positioning strategy, you must:

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

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

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

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

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

Marketing channels

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

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

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

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

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

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

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

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

6 - Plan your finances

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

Here’s how you can start to do that:

Online store development costs

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

Operating expenses

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

Revenue projections

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

Break-even analysis

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

7 - Use the ecommerce business plan to secure funding

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

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

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

Personal savings

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

Bootstrapping

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

Angel investors

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

Venture capital

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

Crowdfunding

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

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

Grants and competitions

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

1- Create your online store

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

Find the right development team

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

Choose the platform

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

Select features and functionalities

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

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

Set development timeline

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

2 - Perform an internal SWOT analysis

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

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

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

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

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

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

Opportunities

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

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

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

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

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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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BUSINESS STRATEGIES

How to create a defensible eCommerce business plan

• 10 min read

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

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

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

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

What is an eCommerce business plan?

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

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

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

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

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

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

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

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

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

How to create an eCommerce business plan

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

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

Write your executive summary  

Include your company name, description, and domain  

Perform eCommerce market analysis  

List the products you’re selling and why  

Plot your operations plan  

Set out your marketing and advertising plan  

Lay out your financial plan  

01. Write your executive summary

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

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

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

02. Include your company name and description

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

Your description can include things like:

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

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

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

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

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

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

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

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

03. Perform eCommerce market analysis

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

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

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

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

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

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

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

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

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

05. Plot your operations plan

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

Here’s a breakdown of information you can include.

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

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

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

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

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

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

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

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

06. Set out your marketing and advertising plan

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

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

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

Social media ads

Content marketing/SEO

Organic social media

Email marketing

Influencer marketing

Promos/discounts

Affiliate marketing

Loyalty programs

Events/pop-ups/ flash sales /trade shows

Radio or TV

Brand partnerships

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

07. Lay out your financial plan

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

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

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

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

Consider including these elements within your ecommerce financial plan:

Startup cost

Income and expenses

Balance sheet

Cash flow statement

Break even point

Customer acquisition cost

Key assumptions

Financial projects for next five years

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

Ecommerce business plan FAQ

Why do i need an ecommerce business plan.

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

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

Related posts.

7 types of eCommerce you need to know to succeed

What are eCommerce KPIs and how to track them?

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

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Table of Contents

1. Define your e-commerce business idea

2. set up your business, 3. source or develop your products, 4. set up your e-commerce website, 5. figure out order fulfillment, 6. market your e-commerce business, how much does it cost to start an e-commerce business, tips for starting an e-commerce business .

An e-commerce business sells goods, services and funds over the internet. Starting an e-commerce business is a lot like starting any company: You’ll need to create a business plan, get licenses and permits and set up dedicated finances. You’ll also need to choose an e-commerce website builder , source your products and market to online customers.

Follow these six steps to get your e-commerce business up and running.

The first step in starting any business is to hone your idea. Online business ideas can include selling physical or digital products as well as professional services. Whatever you choose, you’ll want to define your e-commerce business model and write a business plan that outlines your niche.

During this process, you’ll start to ask a lot of questions: How will you get your products or services to your customers? What sort of licenses or permits do you need? How much will it cost to get your business up and running — and how will you foot that bill? Your business plan should answer these questions and provide a road map for the coming months.

More resources to help shape your idea:

What is e-commerce? Understanding how it works  

Our picks for the best business plan software

Can your business idea actually make money?

Once you've solidified your e-commerce business idea, the next step is to set your company up for success.

This includes back-office steps like:

Choosing a business structure . There are benefits and drawbacks to each of these entity types, so talking to an attorney may be helpful as you choose the one that’s right for you.

Naming your business. Consult your local secretary of state's website as well as the U.S. Patent and Trademark Office to ensure that you're not choosing a name that belongs to another company. Check to see if your potential business domain name is available as well.

Applying for an employer identification number (EIN) . You can get an EIN from the IRS for free online or by mail, fax or phone. Not all businesses need an EIN, but having one can help you separate your personal and business finances.

Opening a business checking account . NerdWallet recommends all business owners have a dedicated bank account for their business.

Getting licenses and permits your city or state requires. This probably includes a business license, and if you perform services, you may also need an occupational license. Check your state or local government website for requirements for your area.

Answers as you set up your business:

Do you need a business license to sell online?

What’s the difference between an LLC and a sole proprietorship?

Our picks for the best free business checking accounts

Shopify Ecommerce

Next, you'll need to source the products you're going to sell. If you’re selling physical products, you may need to make them yourself or work with a manufacturer.

A key decision at this point: Are you going to order products in bulk and keep inventory in stock? If so, you’ll need to think about storage space and raising capital to order goods upfront. However, you’ll have the power to ship items yourself.

Other businesses choose to rely on dropshipping , in which products are manufactured or sourced at the time the order is placed. In general, dropshipping may keep your overhead costs lower, but it can be more difficult to manage since inventory levels and shipping will be out of your hands.

Other options for sourcing e-commerce products include:

White-labeling, or ordering items in bulk from a manufacturer and then branding them with your company’s identity.

Print-on-demand, or paying a third party to print your company’s designs on merchandise like T-shirts, mugs and posters. Print-on-demand normally functions like dropshipping, in that a customer places their order, then the manufacturer creates the product and ships it directly to the customer.

Retail arbitrage, or buying discounted items from retail sellers and listing them in your own store at a markup. 

If you're selling professional services, you might just have to describe and list what you offer on your business website. Still, you’ll need to figure out how much to charge and decide how many clients you can see each day or week.

More to help you develop products:

16 e-commerce business ideas

How to find products to sell on Amazon

How to make money on Shopify

Your e-commerce website will be your storefront. It’s where your customers will learn about you and your business, browse your products and make purchases.

The easiest way to set up a website is to use an online store builder . These platforms can walk you through the process of launching your website, from buying a domain name to managing your inventory to taking credit card payments.

Popular e-commerce website builders include Shopify , Squarespace , Square Online and BigCommerce .

If you’re a very small business or just experimenting with online sales, a free e-commerce website builder may be a good place to start. But to list unlimited products and access more robust suites of tools — which can help with things like shipping label printing, order management and sales analytics — you’ll typically need to spring for a subscription.

In general, many online store builders should be simple enough for someone without web development experience to navigate. But most offer the option to pay a professional designer or developer if you don’t want to build the website on your own.

The best e-commerce platform for you fits into your budget and is appropriate for your skill level.

Choosing the right website builder:

Our picks for the best e-commerce website builders

Wix vs. Squarespace: Head-to-head comparison

Shopify vs. Square Online: Head-to-head comparison

Order fulfillment is the process of getting customers’ purchases in their hands.

Most e-commerce website builders offer shipping label printing, which is the first step in the fulfillment process. Some also offer the ability to add shipping costs onto customers’ orders at checkout.

If you choose to handle order fulfillment yourself, research shipping rates so you have a sense of how much it’ll cost. Look for an online store builder that can help make the shipping process easier or research shipping software providers like Shippo .

Note, too, that e-commerce may connect you to customers across the world. If there are places you’re not willing to ship to, make that clear on your website.

If you don’t want to manage order fulfillment, you can outsource it to an e-commerce fulfillment center or use a service like Fulfillment by Amazon. Fees for fulfillment services vary depending on the size of your products, how far they’re traveling and how much you’re shipping.

More to help you manage orders and inventory:

Our picks for the best inventory management software

What is just-in-time inventory?

Shipping services that integrate with WooCommerce

Now that you've started your online store , you're ready to start serving customers — as long as they can find your products.

Your small-business marketing strategy might include:

Omnichannel commerce , in which you list your products on third-party marketplaces like Amazon and Instagram. Some e-commerce website builders can help facilitate this.

Influencer marketing, in which you pay popular social media creators to plug your products. 

Social media content or paid social media ads.

Optimizing your business website for search engines.

Sending email campaigns to past and future customers.

Many e-commerce website builders include some marketing features, which can help you do things like create social media ads or send emails to customers when they’ve abandoned their carts.

But if you want to develop more sophisticated campaigns, consider investing in marketing software . These tools can help you create email templates and campaigns, text customers, keep track of how individual customers are responding to your emails and more.

More help with marketing:

20 free marketing ideas for small businesses

Online marketing strategies and tips

Content marketing for small businesses

The cost of starting an e-commerce business can vary widely depending on what you’re planning to sell and in what volume. Your expenses may include:

Your e-commerce website. Subscription plans for online store builders generally start around $25 to $30 per month when billed annually. You may also need to spring for a domain name if your e-commerce website builder doesn’t include one — and make note of annual fees to keep your URL registered. 

Payment processing fees. In general, the company that provides your payment processing will take a cut of around 3% from each online sale. 

Stocking up. If you plan to order inventory in bulk, be prepared for significant upfront costs — even before you’ve started generating revenue. Inventory financing may be able to help you bridge the gap.

Order fulfillment. In general, you’ll pay a third-party service to fulfill each order, with rates varying depending on item size and weight. The more customers buy at once, the less you’ll have to pay per item. Order fulfillment services may also include warehousing, for which you’ll pay a per-item storage cost. 

Warehousing. If you’re buying more inventory than you can keep in your home or garage but not using an order fulfillment service that provides storage, you may need to spring for warehouse space of your own.

General costs of running a business. These could include monthly or annual fees for accounting software , business insurance , any employees or contractors you plan to hire and more. You may also need to set aside money for small-business taxes .

» MORE: NerdWallet's list of the best accounting software for Amazon sellers

As with launching any business, starting an e-commerce business can feel overwhelming. Here are some tips for managing the transition.

1. Start simple

If you’re not certain e-commerce is the right path for you, set up an online store with low overhead first. This may mean starting with the free version of an e-commerce website builder, ordering a small amount of inventory or selling only one or two types of products. 

Starting small can limit how much startup funding you need and make it easier to pivot if your first idea doesn’t land. As your business starts to get traction, you can trade up to a more robust e-commerce platform and expand your product line.

2. Cultivate a loyal customer base

Your e-commerce business needs customers who appreciate your products enough to buy them more than once and, ideally, customers who will promote them to their networks.

Establishing a strong brand presence on social media can help you build a following. But the more information you can gather from your customers, the more you can market directly to them, whether that means creating an email marketing campaign, sending discount codes through text message or letting them know where your booth will be at an event in their region.

3. Invest in multichannel selling

Loyal customers may be willing to visit your website frequently. But to reach new ones, you might have to meet them where they are — which might be on Amazon, Instagram, TikTok or elsewhere. Start with the platforms where your customers are most likely to be, launch those integrations and then see how they perform. You can add platforms later if they fit into your business strategy. 

Keep in mind that selling in person is a channel, too. Craft fairs, local shops and industry or trade events may help you connect with new customers while generating some revenue.

A version of this article originally appeared on JustBusiness, a subsidiary of NerdWallet.

On a similar note...

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

How to Write E-commerce Business Plan + Template

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

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

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

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

Key Takeaways

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

Why do you need an Ecommerce business plan?

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

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

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

Key components of an ecommerce business plan

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

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

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

How to Write an Ecommerce Business Plan: A Complete Guide

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

1. Get an Ecommerce business plan template

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

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

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

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

Need Assistance Writing a Ecommerce Business Plan?

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

Start Planning Now

2. Write an executive summary

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

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

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

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

Say goodbye to boring templates

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Plans starting from $7/month

3. Create a company overview section

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

So what does this section include?

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

4. Conduct a competitive and market analysis

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

Target market and market opportunities

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

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

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

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

Competitive analysis

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

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

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

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

5. Detail your products and services

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

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

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

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

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

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

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

6. Develop a sales and marketing plan

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

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

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

Try answering the following to form an efficient sales plan:

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

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

Marketing strategy

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

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

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

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

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

7. Introduce your management team

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

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

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

8. Outline your operational plan

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

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

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

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

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

9. Prepare financial projections

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

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

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

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

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

Ecommerce Industry Highlights 2023

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

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

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

Related Ecommerce Resources

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

Download a sample ecommerce business plan

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

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

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

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

Write your business plan with Upmetrics

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

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

Get started now.

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

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

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

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

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

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

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

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

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

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

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

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

About the Author

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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Home » Building Online Stores » Ecommerce Business Plan Template: How to Make a Business Plan

Ecommerce Business Plan Template: How to Make a Business Plan

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Written and researched by:

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.

What is an Ecommerce Business Plan?

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.

Why Create an Ecommerce Business Plan?

There are plenty of benefits to creating a comprehensive business plan for your online store:

• Gaining a deeper understanding of your business – your blockers, biggest assets, and most lucrative opportunities.
• Understanding the state of the market, and where you want to position your ecommerce store within it.
• Planning for what’s ahead – getting to grips with industry trends, and how they might affect your burgeoning business.
• Testing how viable your ecommerce store’s idea and concept is, and any weak points inherent in the premise.
• Assessing the outlay required – be it time, effort, or money, this is useful for understanding the scope of the work that lies ahead.
• Obtaining funding – business plans are, after all, super useful for selling the idea of your online store to potential investors.
• Clarifying your strategies for marketing, logistics, and finance, as well as exactly who your target audience is. Making your business idea a little more tangible – it’s starting to feel real now!

Ecommerce Business Plan Template

Ready to start penning your plan?

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.

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:

• What your business does
• What goals you want to achieve
• What product or service you’re selling
• Where you’re selling
• Who you’re targeting
• Who your competitors are
• How you plan to make money
• How you’ll implement the business plan that follows

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!

Company Overview

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:

• Details of your products/services – what are you planning to sell?
• Your company’s key details – your name, tagline, logo, and any top-level branding information.
• Your key individuals – your founder(s), CEO, and COOs.
• Its legal structure: have you set up as a partnership, or a Limited Liability Company (LLC)?
• Your vision, mission , and values. Beyond making money, what does your ecommerce store stand for? What do you believe in – and what higher purpose gets your staff up and out of bed in the morning?

Market Analysis

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:

• Market size
• Current competitors
• Any gaps, opportunities, and threats

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.

Customer Research

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.

Advice from the Experts

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.

Marketing Plan

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:

• Your marketing goals
• KPIs: such as engagement rates, traffic, conversion rate
• Key channels: email, SEO content, paid SEM marketing
• Your key marketing tactics: will you focus on social media, or plow your resources into influencer marketing? Perhaps a blend of both?

Need some digital marketing tips to add clarity and clout to your marketing plan? Our comprehensive guide has you covered.

Logistics Plan

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:

• Where you’ll source your products
• How (and where) you’ll store those products
• How you’ll deal with orders
• How you’ll fulfill orders – in-house, or via a 3PL (third-party logistics) supplier?
• How you’ll handle deliveries, and which shipping provider you’ll partner with
• How you’ll deal with returns

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.

Financial Plan

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:

• How you’ll fund your store’s start-up costs
• How you’ll price your products
• How much profit you’ll make on each product sold
• Financial projections
• Income statement
• Balance sheet

Do I Need a Business Plan?

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:

• New ecommerce stores
• Businesses seeking investment
• Businesses looking to expand into new markets
• Ventures attempting to increase their share of an existing market

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:

• Executive summary
• Company overview
• Market analysis
• Customer research
• Marketing plan
• Logistics plan
• Financial 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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Ecommerce Business Plan Guide + Sample

July 6, 2023

Adam Hoeksema

Welcome to the ever-evolving world of ecommerce—a space where countless businesses are launching every day. If you've landed here, we're guessing you too are gearing up to start your own ecom business. Yet, entering ecommerce is not just about setting up a website and listing products—it involves a robust plan that encompasses every aspect from customer acquisition to cash flow forecasting. That's why we've crafted this comprehensive guide. This Ecommerce Business Plan Guide, complete with a sample business plan, should help you check this project off the list. 

Although we focus on ecommerce financial models , we know that some of our clients also need a full business plan, so I decided to take a deep dive into the topic.  I plan to cover:

• Why write a business plan for an ecommerce business?
• What to include in an ecommerce business plan?
• Ecommerce business plan outline

How to Analyze the Market for an Ecommerce Product?

How to analyze the competition in ecommerce, how to estimate customer acquisition costs in ecommerce.

• How to Create Financial Projections for an Ecommerce Brand?
• Example Ecommerce Business Plan?

Ecommerce Business Plan FAQs

With that as our guide, let’s dive in!

Why write a business plan for an ecommerce business? 

It might feel like writing a business plan is a waste of time, and honestly, writing a 40 page plan probably is a waste of time.  So why write a business plan?  I like to say that you write a business plan primarily because the people with the money (the lenders and investors) are asking for your business plan and projections.  

Although I think a business plan could be a good exercise for any ecommerce startup, I know the real impetus for writing a business plan is likely the fact that your potential investors or lenders are asking for one.  

What to include in an ecommerce business plan? 

I don’t think your business plan needs to be a 100 page dissertation, our ecommerce business plan example is roughly 10 pages.  We include the following sections:

Ecommerce Business Plan Outline

We suggest the following business plan sections for your ecommerce business plan:

• Executive Summary
• Company Description
• Market Analysis
• Product and Service Offerings
• Marketing Plan & Customer Acquisition
• Operating Plan
• Financial Plan

Analyzing the market for an ecommerce product is a vital step in any business plan. It gives you a better understanding of your potential customers, competitors, and overall market dynamics. Here's a step-by-step guide to help you do this effectively:

• Identify Your Target Audience: Understanding who will buy your product is crucial. Segment your audience based on demographic and psychographic factors. This might include age, gender, location, lifestyle, interests, income, and more. Analyzing these factors will give you a clear picture of who your customers are and what they need.
• Market Size Estimation: Determine the size of your potential market. This involves looking at the number of potential customers who might be interested in your product. Market size can be categorized into three segments: total available market (TAM), serviceable available market (SAM), and serviceable obtainable market (SOM).

I like to use Google Keyword Planner Tool to see how many people are searching for keywords related to the product I plan to sell as a quick and free way to estimate the market size.  For example, let’s assume that we are selling a yoga mat.  According to Google Keyword Planner Tool there are roughly 90,000 monthly searches for that keyword. 

To put some additional rough math to the opportunity, the first organic search result will often get roughly 40% of the clicks, and a solid ecommerce site will have a 3% conversion rate of visit to purchase.  So if you ranked first and received roughly 36,000 clicks with a 3% conversion rate you could sell 1,080 mats per month. 

• Competitor Analysis: Understanding your competitors is as important as understanding your customers. Identify your direct and indirect competitors, analyze their products, pricing, marketing strategies, customer reviews, and their market share. This will help you identify gaps in the market that you can exploit.

Read More: How to Write a Business Plan Competitor Analysis

• Trend Analysis: Investigate current market trends related to your product. Look at the growth of the market, customer preferences and behavior, and the impact of technology and environmental factors.

I like to suggest using Google Trends to see trends in popularity in your market.  If we stick with our yoga mat example we can see the following seasonal trends and trend over the last 5 years for the search term yoga mat. 

• SWOT Analysis: Carry out a SWOT analysis - strengths, weaknesses, opportunities, and threats related to your ecommerce product. This analysis will help you understand your product's position in the market.
• Pricing Analysis: Understand the pricing strategies of your competitors and the pricing willingness of your potential customers. It will help you to set a competitive and profitable price for your product.
• Regulatory Environment: Check the regulatory environment related to your product. It includes legal regulations, trade policies, and standards that might impact your ecommerce business.
• Customer Behavior and Preferences: With the help of analytics and customer feedback, understand what drives customer behavior. Consider their shopping habits, their product preferences, and what influences their buying decisions.

Each of these steps will provide valuable insights that can shape your ecommerce product's marketing strategy, positioning, pricing, and much more. Remember, market analysis is an ongoing process—it needs to be repeated periodically as markets evolve over time.

There are a couple of tools that I like to use when analyzing the competition in ecommerce.  

• Google’s Ads Transparency Tool – with this tool you can simply enter in the domain name of a competitor and Google will show you all of the ads that they are running.  This is a nifty way to get an idea of ads that might be working well and areas you might be able to compete. 
• Ahrefs – Ahrefs will allow you to look up a competitor’s website and you can see how much organic traffic they are getting and exactly what keywords are sending that traffic. For example, REI ranks 3 rd organically for the keyword “yoga mats” so we looked up their Yoga Mats page on Ahrefs and found that they receive roughly 2,200 organic visits per month to that page:

We can also see what keywords are sending the most traffic to that page below where I have highlighted the monthly organic traffic estimate for each keyword. 

I like to use Google Keyword Planner Tool to estimate customer acquisition costs as well.  As we saw with the Yoga Mat example below the average cost per click to advertise for that keyword was between $0.39 cents and $3.13.   

Again if we stick with a 3% conversion rate and assume 50 cents per click that means you are likely to spend roughly $16 to acquire one customer.  Not a whole lot of room for margin in this business right?  In this case you would need to hope that you can sell multiple products to the same customer over time.  

Your customer acquisition costs will be a fundamental assumption in your financial model.  Let’s dive into that next. 

How to Create Financial Projections for a Bar Business Plan

Just like in any industry, the ecommerce business has its own unique factors that impact financial projections, such as online traffic, conversion rates, and customer acquisition costs. Utilizing an ecommerce financial projection template can simplify the process and increase your confidence. Creating accurate financial projections goes beyond showcasing your ecommerce venture's ability to generate sales; it's about illustrating the financial roadmap to profitability and the realization of your online business goals. To develop precise projections, consider the following key steps:

• Estimate startup costs for your ecommerce business, including website development or platform setup, inventory acquisition, branding and marketing expenses, and initial fulfillment and shipping costs.
• Forecast revenue based on projected online traffic, conversion rates, average order value, and potential growth in customer base.
• Project costs related to product sourcing or manufacturing, packaging, shipping, and fulfillment services.
• Estimate operating expenses like website maintenance, hosting fees, digital marketing expenses, customer support, and administrative costs.
• Calculate the capital needed to launch and sustain your ecommerce business, covering initial expenses and providing working capital for continued growth.

While financial projections are a critical component of your ecommerce business plan, seek guidance from experienced professionals in the ecommerce industry. Adapt your projections based on real-world insights, leverage industry resources, and stay informed about digital marketing trends and evolving consumer behavior to ensure your financial plan aligns with your goals and positions your ecommerce venture for long-term success.

Example Ecommerce Business Plan

Explore our E-commerce Business Plan, presented below. If you prefer, you can access a downloadable Google Doc version of this bar business plan template, allowing you to personalize and tailor it to your specific needs. Additionally, a helpful video walkthrough is available, guiding you through the process of customizing the business plan to perfectly align with your unique Ecommerce business.

Table of Contents

Executive Summary:

• Business Description
• SWOT Analysis

Marketing and Sales Strategy

• Branding and Identity
• Website, menu, and social media platforms
• Marketing materials and promotional items
• Marketing mix

Operations Plan

• Organizational Structure:
• Location and Facility:
• SOP (Standard Operating Procedures):
• Health and safety protocols:

Financial Projections

• Startup Costs and Use of Funds
• Annual Sales, Gross Profit and Net Profit
• Key Financial Ratios
• Income Statement at a Glance
• Income Statement Annual Summary
• Cash Flow Statement Annual Summary
• Balance Sheet Annual Summary

I. Executive Summary

Our ecommerce store, "Eco-Friendly Fashion," aims to provide consumers with stylish and environmentally-friendly clothing options. 

Our target customer is the eco-conscious, fashion-forward individual who is looking for sustainable alternatives to fast fashion.

The ecommerce market is growing rapidly, and there is a growing demand for sustainable fashion products. We believe there is a gap in the market for an ecommerce store that offers a wide range of eco-friendly clothing options at affordable prices. Our unique selling proposition is to offer high-quality, stylish clothing that is also environmentally friendly, at a price that is accessible to our target customer.

We plan to launch with a product line of 50 items, including t-shirts, hoodies, and dresses, made from organic cotton and recycled materials. Our products will be manufactured in fair trade factories, ensuring ethical labor practices. Our initial funding will come from personal investments and a small business loan. Our financial projections show that we will break even in the third year of operation and achieve a profit by the fourth year.

II. Company Description

Eco-Friendly Fashion is a newly established ecommerce store that will offer a wide range of eco-friendly clothing options for both men and women. The company was founded by two friends, Jane Doe and John Doe, who share a passion for sustainability and fashion. Jane has a background in fashion design and John has experience in ecommerce and marketing.

Eco-Friendly Fashion is a limited liability company (LLC) registered in the state of California. Our team also includes a product sourcing specialist and a freelance graphic designer. Our office and warehouse are located in Los Angeles, CA.

III. Market Analysis

The global ecommerce market is expected to reach $4.9 trillion by 2021, with a significant portion of this growth coming from the fashion industry. Consumers are increasingly turning to ecommerce for their fashion purchases, and there is a growing demand for sustainable fashion products.

Our target customer is the eco-conscious, fashion-forward individual, aged 18-35, with a moderate to high income. This demographic is highly concerned about the environmental impact of their clothing choices and is willing to pay a premium for sustainable fashion options.

Competitors in the eco-friendly fashion market include established brands like Patagonia and smaller, niche brands like Tentree. However, these brands tend to focus on outdoor and athletic wear, rather than everyday fashion, and their products can be expensive. Our competitors in the sustainable everyday fashion market include companies like Reformation and Everlane, but these brands have limited product offerings and their products can also be expensive.

Our marketing and sales strategies will focus on leveraging social media, influencer marketing, and targeted online advertising to reach our target customer. We will also attend sustainable fashion trade shows and events to network and showcase our brand.

IV. Product and Service Offerings

Eco-Friendly Fashion will launch with a product line of 50 items, including t-shirts, hoodies, and dresses, made from organic cotton and recycled materials. Our products will be manufactured in fair trade factories, ensuring ethical labor practices. Our products will be designed in-house, with a focus on creating stylish, on-trend pieces that are also environmentally friendly.

Our pricing strategy will be to offer high-quality, stylish clothing at a price that is accessible to our target customer. Our products will be priced slightly higher than fast fashion options, but lower than sustainable fashion competitors like Reformation and Everlane.

We will continuously expand our product line and source new materials and manufacturing partners to ensure we are always offering the latest in sustainable fashion. In addition to our clothing line, we will also offer a recycling program for customers to trade in their old clothing for store credit. This will further demonstrate our commitment to sustainability and encourage customers to make more sustainable fashion choices.

V. Marketing Plan & Customer Acquisition

Our plan to grow our ecommerce business and reach our financial targets will follow a 5 pronged marketing approach in order to acquire customers. 

Brand Awareness:

• Partner with influencers and bloggers in the sustainable fashion and lifestyle space to feature your products and increase brand exposure.
• Utilize social media platforms such as Instagram and Facebook to showcase your products and educate your audience on the importance of environmentally responsible and ethically sourced apparel.
• Participate in local events and festivals that align with your values to increase visibility and connect with potential customers in person.

Content Marketing:

• Create a blog that features articles on sustainable fashion and how your products are made in an environmentally responsible and ethical manner.
• Offer styling tips and suggestions for incorporating eco-friendly fashion into everyday outfits to engage and educate your audience.
• Share customer testimonials and reviews on your website and social media channels to build trust and credibility with potential customers.

Email Marketing:

• Build an email list by offering an incentive such as a discount code to customers who sign up.
• Send newsletters that include information on new product launches, sales, and events.
• Use email automation to send abandoned cart reminders and follow-up emails to potential customers who have shown interest in your products.

Paid Advertising:

• Utilize targeted Facebook and Instagram ads to reach a wider audience and drive traffic to your website.
• Partner with eco-friendly and sustainable lifestyle websites to run display ads and reach potential customers who are already interested in these topics.
• Consider using Google Ads to target customers who are actively searching for environmentally responsible and ethically sourced apparel.

Referral Program:

• Encourage satisfied customers to refer friends and family by offering a discount code or other incentive for each successful referral.

VI. Operating Plan

Eco-Friendly Fashion will operate as an online ecommerce store, with all sales taking place through our website. Our website will feature a user-friendly interface, detailed product descriptions, and multiple payment options. We will also offer free shipping on all orders within the United States, with the option for international shipping at an additional cost.

Our fulfillment and delivery strategies will include partnerships with established logistics companies to ensure efficient and cost-effective shipping. We will also implement a comprehensive returns and exchanges policy to ensure customer satisfaction.

Our ecommerce platform will be powered by Shopify, which offers a range of tools and integrations to manage our website, inventory, and customer data. We will also use a customer relationship management (CRM) system to track customer interactions and improve our marketing and sales strategies.

VII. Financial Plan

Our start-up costs will include the cost of product development and manufacturing, website development, marketing, and rent for our office and warehouse. Our initial funding will come from personal investments and a small business loan.

Our financial projections show that we will achieve $75,000 in sales in the first year, increasing to $500,000 in the second year and $1 million in the third year. Our expenses will include product manufacturing, marketing, salaries, and other operating costs. Our projections show that we will break even in the third year of operation and achieve a profit by the fourth year.

To minimize risk, we will continuously monitor our financial performance and adjust our strategies as needed. We will also implement a thorough risk management plan, including carrying appropriate insurance coverage and implementing strong data security measures to protect our customer information.

All of the unique financial projections you see below were generated using ProjectionHub’s Ecommerce financial projection template . Use PH20BP to enjoy a 20% discount on the template. 

Startup Costs:

Projected Financial Summary:

Annual Sales, Gross Profit and Net Profit:

Key Financial Ratios:

Watch how to create financial projections for your very own ecommerce business:

Income Statement:

Balance Sheet:

Cash Flow Statement:

VIII. Conclusion

Eco-Friendly Fashion is poised to fill a gap in the sustainable fashion market, offering a wide range of stylish and environmentally friendly clothing options at affordable prices. With a growing demand for sustainable fashion and our commitment to ethical and sustainable business practices, we are confident in our ability to succeed in the competitive ecommerce market.

Our team is dedicated to offering the highest quality products and customer service, and we are excited to bring our vision of sustainable fashion to life. Our next steps include finalizing our product line and manufacturing partnerships, launching our website, and beginning our marketing and sales efforts.

How do I start an ecommerce business?

To start an ecommerce business, you'll need to identify your target market and products, create a business plan, set up an online store or website, source or create products, establish secure payment and shipping methods, and implement marketing strategies to drive traffic and sales.

Which ecommerce platform should I use for my online store?

Popular ecommerce platforms include Shopify, WooCommerce, Magento, and BigCommerce. Consider factors such as ease of use, customization options, scalability, pricing, and integration with other tools or marketplaces when choosing the right platform for your business.

How can I drive traffic to my ecommerce website?

You can drive traffic to your ecommerce website through various strategies, including search engine optimization (SEO), social media marketing, content marketing, influencer partnerships, email marketing, paid advertising, and utilizing marketplace platforms such as Amazon or Etsy.

What are the essential elements to include in product descriptions for ecommerce?

Essential elements for product descriptions in ecommerce include clear and concise product titles, detailed descriptions highlighting key features and benefits, high-quality product images, pricing information, sizing or specifications, and customer reviews or testimonials, if available.

How can I optimize the checkout process to increase conversions?

To optimize the checkout process, streamline the steps involved, offer guest checkout options, provide multiple payment methods, ensure security and trust indicators, display shipping options and costs upfront, minimize form fields, and offer incentives such as discounts or free shipping for completing a purchase.

About the Author

Adam is the Co-founder of ProjectionHub which helps entrepreneurs create financial projections for potential investors, lenders and internal business planning. Since 2012, over 50,000 entrepreneurs from around the world have used ProjectionHub to help create financial projections.

Other Stories to Check out

How to start a non-emergency medical transportation business.

This article is a guide on learning more about how to start a non-emergency medical transportation business and the key financial assumptions necessary to create reliable financial projections.

5 Key Tips to Make Your Startup Business Plan Shine for an SBA Loan

Learn 5 key tips to make your startup business plan stand out and secure an SBA loan, from demonstrating market potential to creating realistic financial projections.

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Learn practical steps to increase your SBA loan approval odds. This guide offers 8 straightforward strategies from an experienced SBA loan officer.

Have some questions? Let us know and we'll be in touch.

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How to write an effective ecommerce business plan [2024]

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Start selling products with Gelato

Updated Jan 15 2024

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

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

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

Main takeaways from this article:

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

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

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

How to write a successful ecommerce business plan

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

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

1. Write an executive summary

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

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

Your mission statement.

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

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

Your market research and competitive analysis.

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

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

The sales and marketing channels you plan to utilize.

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

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

2. Provide a business overview

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

Business name

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

Company purpose

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

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

Mission statement

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

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

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

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

Business model

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

Do you plan to go it alone or hire employees to help? If you intend to hire employees, you'll definitely want to look into registering as a business, which you can do online through companies like IncFile or ZenBusiness .

3. Describe your products

Now it's time to get into the product section of your ecommerce business plan. This is where you'll describe what type of products and services you intend to offer.

Do you want to sell custom t-shirts or turn your original artwork into wall art or custom phone cases ? Consider the type of products trending among your target audience and start to think about the price points at which you'll offer them.

4. Perform a market analysis

Taking the time to get to know your target audience will provide essential clues for success when it comes to everything from product selection to marketing strategies. Conduct market research into a few key areas to get to know your ideal customer and your direct and indirect competitors.

Research your target market

Your target market, aka "target audience," is simply the type of people most likely to be interested in your product. They generally share specific traits such as age, life stage, occupation, interests, common challenges, or other demographics.

For example, if you decided to sell performance tank tops , your target audience might be "female athletes who live in warmer climates." If your shop focused more on "urban-dwelling parents who care about the environment," you might choose to offer custom organic t-shirts for kids instead.

Create customer personas

A buyer persona is a fictional representation of your ideal customer that you develop to help you get to know them better. For instance, say you created a persona called "Jan the yoga fan" who was in her mid-20s, lived in an urban environment, and cared about doing eco-friendly shopping.

By targeting this persona, you might offer products like reusable water bottles , custom tote bags that Jan could use for shopping or even 100% biodegradable phone cases . Hubspot has a great persona creator that you can use for free!

Get to know the competition

Now it's time to do a little competitive analysis to determine who you're against! Conducting a competitive analysis involves studying other businesses that sell products similar to your own to get an idea of what they're selling, at what prices, and how they're attracting customers.

By studying everything from their marketing strategy to their product, you'll be able to analyze what's working and what isn't. This can give you valuable insights into everything from potential gaps you may be able to fill to what is and isn't working among your shared target market.

5. Create a marketing plan

If there's one section you don't want to skip when writing a business plan, it's this one. No matter how much better your product is than your competition's, it's unlikely to matter if potential customers have never heard of you.

Marketing efforts are incredibly important when it comes to getting the word out about your business. A marketing plan includes a detailed summary of all the marketing strategies you plan to use to reach your audience and may include ideas like:

Conducting organic and paid social media marketing campaigns using software like SproutSocial or HootSuite .

Collecting emails to set up a newsletter or email marketing strategy with tools like ConstantContact or MailChimp .

Using your own blog or webpage for content marketing.

Using search engine optimization ( SEO ) to rank higher in search engine results.

Learning to use free tools like Google Analytics or Google Trends to measure the results of your marketing plan and conduct market analysis.

6. Establish a sales strategy

Your ecommerce business plan should also detail your sales strategy, such as whether you plan to offer subscriptions or operate on a traditional sales model. Equally important is deciding where you're going to set up shop.

Do you plan to start an ecommerce business on an online marketplace like Etsy or build your ecommerce site using tools like Shopify or WooCommerce ? Take the time to research here, as each approach comes with its own business and financial considerations.

7. Devise a logistics plan

Now comes one of the most potentially tricky parts of starting an online business - figuring out how to source materials, fulfill orders, and deliver them to your customers. Do you and your staff plan to handle all business operations and shipping aspects, or do you plan to work with a print on demand service like Gelato?

In case you're unfamiliar, print on demand is a business model that involves partnering with a reputable POD provider like Gelato. After you sign up for a free Gelato account , you simply upload your custom designs and let us know which of our high-quality products you'd like to feature.

Use one of our easy integrations to connect your Gelato account to your online store, and when a customer makes an order, we'll handle everything from order fulfillment to delivery. POD can be a cost-effective way to launch an ecommerce business without ever having to worry about managing inventory, dealing with shipping, or investing in pricey product creation tools.

8. Plan your finances

Now that you've got a better idea of your ecommerce business plan, it's time to make a financial plan. This is where you'll take into account everything from the cost of your company's digital storefront and marketing plan to any overhead costs or POD service charges.

By outlining realistic costs and financial projections, you'll avoid surprises on your income statement down the line. While it tends to cost much less to launch an ecommerce business than a traditional retail store, it's vital to ensure you can factor your overhead costs into your retail prices.

Start an ecommerce business with minimal effort

Creating your business plan is the first step in becoming a successful online retailer. Want to launch a competitive online store with minimal startup costs?

Learn more about how partnering with Gelato can help you make your business plans a reality. We make it possible for creators everywhere to launch their own online business without ever having to buy any materials until a product is already sold.

Ecommerce business FAQs

How profitable is an ecommerce business.

While market research indicates that ecommerce will make up 24% of all retail sales by 2026, how much profit each retailer can make is a little trickier to nail down. Much like traditional businesses, the profit margins of individual sellers can vary widely.

How much money you're able to make from your ecommerce business will largely depend on everything from your business plan to your marketing strategy. That's why developing detailed ecommerce business plans is important before launching your online business.

Do I need a business plan for an ecommerce business?

While there are no rules that say you must create a business strategy before launching an ecommerce business, it will make your life a lot easier. Making important decisions in the early stages will save you a great deal of time and money, not to mention help you dodge potentially costly mistakes.

Where can I find a free ecommerce business plan template?

There are now several great templates out there that can help guide you through creating your own ecommerce business plan. Hubspot offers a great one, and Canva has a wide variety of choices if you're looking for something snazzy.

How to Create an Ecommerce Business Plan in 2023

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Do you need to launch an ultra practical online business? It all starts with a pre-meditated ecommerce business plan. At first glance, this feels like a superficial blueprint for most starters.

But here's the deal.

You need an executive summary of everything you're about to do in order to convert your objectives into actual results. From the onset, you must put your thoughts on paper. It doesn't matter how smart you are. I'm pretty sure that Jeff Bezos of the retail giant, Amazon, sat down to sketch his master plan at some point during the initial stages.

What does this imply?

If you sort all the salient pointers for your online business accordingly, this will undoubtedly, funnel your future goals towards the right direction.

Goes without saying that any ecommerce business ought to have an online store that matches its precise niche . As long as you have a product to sell, drafting a roadmap to your ecommerce store's success isn't that much of a hassle.

So let's cut the chase.

In this article:

Is an ecommerce business plan worthwhile, do a product market research, choose the right sales channel, streamline your order fulfillment process, shape up your marketing campaigns, create a sound financial plan, identify your business model.

Absolutely Yes!

Let me persuade you further. Any business startup, no matter small or big, needs some sort of manifesto, for lack of a better phrase. In actual sense, a sound ecommerce business plan helps you mitigate any future shortcomings. You should think of it as a pacesetter. It provides you with the most appropriate pointers on how to run a successful online enterprise.

A well-articulated ecommerce blueprint is a practical idea if you don't have adequate funding to start off your business. Still not convinced?

Let me explain how.

Provided that your business plan is distinctive and logical, you can pitch it to financiers or make arrangements for crowdfunding if the idea requires an immense capital input. If making your prospective ecommerce startup your full-time job is within the bounds of possibility, then a sensibly analyzed business plan is a must-have for any newbie.

More often than not, an online business operates in the same fashion as brick and mortar stores. The only disparity is it may not need a physical location. Bear in mind, the fact that the merchant needs to do some extra logistics planning and marketing as well.  So there's absolutely no excuse for not having a manageable business plan in check.

So what needs to be done?

This guide is fine-tuned to illustrate all the qualities of a money minting ecommerce business masterplan .

👉 To give an executive summary, here's a painstaking breakdown of the rightful pointers we'll shortly look at:

• Carrying out a scrupulous market research
• Marketing your business
• Financial Planning
• Choosing the right sales channel
• Identifying the appropriate business model

Let's take a look.

To get things started on the right foot, you need to plan ahead before spending a penny on whatever demands that your online business has. With the prevalence of brilliant research tools, a merchant can now do an intensive market analysis without any constraints. How else would you know your suitable target audience?

Let's face it.

Whether you're a small business or an enterprise-level setup, the need to identify the most accurate demographics is pretty inevitable. Above all, the acute competition in the ecommerce industry is never easy. As stiff as it tends to be, there are techniques to help you cut all corners. In fact,  in a competent, or rather, proficient manner.

No matter the kind of niche you want to hang on, there are salients tools you ought to upskill yourself with. As a matter of fact,  that's a rule of thumb while structuring your business plan. So here are some of the elementary hacks to use for your market analysis;

Use Google Trends

To put it into context, Google Trends is, unquestionably, a feature-rich tool that hooks you up with the winning keywords. It calculates the popularity which a particular key phrase has garnered over time. Google Trends generates this graphical data in real-time and filters the same information as per the preset demographics.

So that begs the pertinent question.

How exactly do I make best out of this exceptional tool? As a merchant looking forward to starting a new ecommerce business, this is a means to fetch potential customers.

Please allow me to illustrate.

Suppose you want to sell some type of ‘ sportswear ‘on your online store, this tool allows you to view its interset by a value between 0-100. It has options that help you filter data according to the region and duration of time, respectively.

The logic here is that Google Trends uses search queries to sort the trending products and services. That aside, there's a comparison feature that contrasts several search phrases. With such data-driven information at hand, a merchant gets to make well-informed decisions while creating SEO focused content to market their products or services.

Google Trends feeds you with industry-focused reports that abundantly, help you out with marketing campaigns. So long as you catch sight of most applicable keywords, boosting your ads engagement is absolutely a no-brainer.

Do a Small Physical Survey

There are lots of bricks and clicks stores selling a wide range of products in the market. By Bricks and Clicks, I mean those that do have both physical and online stores. There's so much to learn from such retail setups.

In a resourceful way, this strategy gives you a smooth learning curve while inventing your ecommerce business plan . That way, you get to bank on sharp insights that help you make realistic prospects for your future online business. Doing a survey is as easy as walking in a storefront that owns an online store and asking the requisite questions.

👉 Practically speaking, here's what should be on your checklist:

• How often does a specific product get returning customers?
• Which are the best selling products in their online store?
• Find out the worst-selling products as well.
• What's the average order value for this category of products?

Make the perfect use of Google Analytics

Yet another instrumental tool that you need to incorporate while figuring out what your ecommerce business plan ought to entail.

So what's the deal with Google Analytics ?

Well, there's so much to bargain on. This tool keeps you conscious of where exactly to keep more focus on. Once you set up your online marketing campaigns, this tool feeds you with exclusive data as regards to how each ad performs.  Otherwise stated, Google Analitycs allows you to find out which audience reacts to your campaigns. It integrates with your sales channel ( Shopify , Volusion , WooCommerce , and others) via a Google ID.

This tool shows you the stats in reference to where exactly your online store gets its traffic from. Along the same line, you get to discern between those ads which convert as well as those that don't.  The Keyword planner, on the other side, gives you a projection report of high ranking keyphrases.

The Keyword planner helps you make good strides for your B2C website. In particular, you get to boost your sites SEO via your blog.

👉 In other words, Google Analytics is, without fault, the most idealistic tool that helps you with:

• Calculating the total number of new visits to your online store
• Shows the average session time. This is the duration which a visitor spends on your ecommerce site.
• Allows the user to view the location where most visits come from. You get to push your campaigns to the right demographics(target audience).

Know who your competitors are

Needless to say that this part is quite inevitable in any kind of online business. You're not alone in the market. That being the case, you need to what your rivals do best.

And not only that.

👉 Your quest to come up with the most accurate results need to be inclined to the following:

• Have a deep run on how your competitors sort out their product descriptions
• You need to compare their pricing techniques.
• How responsive are their product pages? Do they load quite fast?
• Consider having a snippet of the feedback from customers

Thereby, your business model operates on a great volume of descriptive information. That gives you the roadmap to fill the market gap. Making such a fundamental exercise sort of oversimplifies your strategy to beat the already existing competition.

At the moment, there are so many avenues to count on. The list is actually endless. Indeed, this is the most fascinating part of running your online business.

Forget about the retail giants such as Amazon, eBay or even Alibaba. There are other suitable 3rd party salse channels on taking center stage.

But don't get it twisted.

Not that there's anything wrong with Amazon and the likes. Which we'll look into shortly, as a matter of fact. But just in case Amazon sounds thrilling to you, you'll have to part with $39.95 each month to get hold of an Amazon seller account . The deal is, you need to consider what your specific needs are.

👉 Choose a sales channel that allows you to:

• Import products in bulk together with their descriptions
• Connect to the most prolific and niche-oriented themes
• Run an actionable blog section
• Sell on social media platforms
• Work with real-time reports
• Do marketing  campaigns

Surprisingly, there are a couple of shopping cart channels that are built to streamline such needs.

So let's briefly touch on some of these notable sales options:

As things currently stand, Shopify seems like the quintessential ecommerce platform for starters. The reason being that Shopify's pricing model works out for merchants looking to open up small online stores. It has plans starting from $9 to $299 per month. It's still a competent cart solution for retailers who deal with massive volumes of sales. The enterprise plan allows you to reach your maximum potential in a far-reaching way (have a look at our Shopify reviews ).

While sketching your online store's plan, you don't want to crack your head over any sort of web development tasks. I'd recommend Shopify to a newbie who's not alive to any coding skills. Unlike other tangled solutions such as Magneto or WordPress, Shopify's user interface, is sort of plug and play.

What strikes me most is its integration prowess. Shopify's marketplace makes you want to sit back and wait for your financial projections to mature up in an automated manner.

If you have vested interests in dropshipping , for instance, this is the way to go. In fact, there are lots of Shopify dropshipping apps that will let you make a decent ROI. The DSers app (full DSers review ), for example, allows you to sync products together with their descriptions and variants to your Shopify store. DSers allows you to import products from the popular AliExpress .

💡 Other significant apps include Spocket (full Spocket review ), Printful (full Printiful review ), Spreadr App , and much more.

WooCommerce

If you've used or at least, heard of WordPress , then probably WooCommerce shouldn't sound strange to you. Technically, it's a WordPress plugin that is e-commerce oriented. Since it syncs with the WordPress CMS system, this gives you full autonomy over your online store.

That's the bright side part of it.

However, WooCommerce requires some extra skills while dealing with hosting, domain, theme adjustments, and the likes. (read our full WooCommerce Review )

Aside from the basics, this sales channel allows you to;

• set shipping rates
• import products in bulk via a CSV file
• Integrate with payment processors like Stripe

I'd recommend this channel if you really want to boot up your SEO. The reason is pretty simple. WordPress is a champ at it. For B2C setups, you can never go wrong with it's blogging functionality.

Weebly is a pretty solid alternative to work with more precisely if you want to run a simple online store. Well, it's not as versatile as Shopify or Magneto , but it's a good starter pack if you're working on a low budget.

This website builder has drag and drop tools that are quite easy to learn for a beginner. Weebly's pricing is notably budget-friendly and has plans that meet various types of demands. The price for the plans starts from $5 – $38  per month if paid annually.

Other well-built 3rd party sales channels include;

• BigCommerce ( full review)
• PrestaShop ( review )
• Squarespace

This is what builds or breaks your ecommerce business. If you don't deliver ordered items to your customers on time, the aftermath could be sickening. You don't want to deal with chargebacks and derailing reviews from frustrated clients.

The ingredient to always have to customers return to your checkout button is having a sensible order fulfillment criteria in place. The good part about it is that there are well-founded companies to help you deal with that. While picking the most reliable sales channel, it's thrifty and forehanded to pick one which integrates with remarkable carrier companies.

Let's presume that you're dropshipping products from AliExpress , which is, as you may know, based in China. In this case, you may want to work with reliable carrier services. Moreover, the shipping speed is of great essence here. You need to bank on big carriers such as;

Alternatively, you can try out predominant 3rd party order fulfillment services such as ShipBob (read our ShipBob review ), ShipWire, or ShipMonk, just to name a few verified solutions. Besides that, here's another tried and tested approach to a successful order fulfillment process;

This is a robust channel that a merchant can use to potentially make revenue that is up to the mark. With over 6 million 3rd party sellers , there's definitely more to decipher about these numbers. This guide will actually teach you everything from scratch. Needless to say that it's one of the most pressed on fulfillment services in the world.

The Amazon FBA which stands for ‘Fulfillment By Amazon' is an option you can put to test. Basically, this model is designed to process all customers' orders on the retailer's behalf. For this to happen promptly, you need to send your products to Amazon's warehouses, or if you like, fulfillment centers. Thereafter, Amazon picks, packs, and sends the ordered items to your customers.

What makes Amazon FBA a choice for most serious merchants, is the convenience it sets forth whenever one needs to scale their business. Amazon has multiple warehouses which makes it feasible to ship ordered items globally. That's a huge plus for your business and future revenue prospects.

In order to beat your competitors, you need to boost your store's visibility. But that just doesn't happen by doing the bare minimum. A merchant needs to do a conclusive analysis and figure out which marketing options draw more attention to the target audience.

A marketing campaign is one of the most purposeful and resolute technique to drive immense traffic towards your online business. And not just ordinary traffic. The end goal is to have insightful traffic that translates to fulfilling conversions.

For that to happen, you need to ask yourself the right questions. This should be on  your checklist;

• Where do most of my customers come from? (location)
• What's their age demographics
• Do they prefer online shopping over a storefront?
• How much are they willing to spend on my products?

Such kind of information allows you to tweak your marketing techniques. As you may know, a merchant can custom-make their target customer base. Hence, you end up with potential visitors who are most likely going to make a purchase.

Without further ado, let's have a look at some of the conventional marketing techniques;

Email Marketing

I wouldn't term it at the most reinforced marketing option per se, but email marketing still scores fairly well in the world of advertisement. Email marketing is now an automated method you can try out to keep customers in your pockets.

Choosing the best service for your email campaigns can turn out to be a bit daunting. Before jumping into any emailing tool, you need to have these specifications in your mind;

• Choose one that automates your customers' subscription notifications.
• Has a dashboard with email editing features.
• Comes with flexible plans that allow scalability.
• Has professional reporting and analytics tools.
• Gives you access to incredible CRM (Customer Relationship Management) tools.

For this to happen, I'd recommend that you choose any of these tools;

• ActiveCampaign
• GetResponse

Please read this guide to get an overview of the newfangled email marketing services.

The gladdening part about Google Ads is that it allows you to set your own budget. This tool creates visibility for your business. Customers who search for related keywords get to see what your online store has to offer.

For as low as $150 per month, this solution allows you to reach out to relevant customers. You get to choose a specific period which you want your targeted ads to run. Just like other marketing campaign tools, Google Ads allows you to customize how you want the ads to appear.

Instagram & Facebook Advertising

I must say that there's so much potential from these two ends. However, be careful not to spend up to the last coin only to end up with sluggish results.

These two social channels are good with marketing no matter how small your brand is. Thankfully, you can create shoppable posts at the convenience of your sales channel.

There are two avenues that you can explore here. You can either opt to go with paid ads or work with influencers. Choose an influencer who's crafty enough to tap into your audiences' emotions. Potential shoppers need to get the impression of how your product solves their problems.

These two channels allow you to run an array of ads ranging from photos, videos, stories, and much more. If you don't know how to go about these options, then your bait will certainly miss the fish. If you can spare some time to make some eye-catching videos and post them on your store's accounts.

As another option, a merchant can choose to run organic posts on the site's official page. This alternative is absolutely free. You only need active internet for that.

Customer Loyalty Program

This is one of the most common ways to maintain repeated customers. You can decide to create promo codes, do retargeting ads, offer discounts if customers refer their friends to make a purchase, and so on. A stable customer loyalty program can help your business be operational for decades.

Print Marketing

This is an easy strategy to start off with if you feel like paid ads are somewhat expensive. It's as simple as branding merchandise with your brand's logo and using creative promotional inserts.

Organic Marketing

This method doesn't need you to invest so much to achieve any projected outcome. You can run a blog and produce SEO focused content to reach your target audience. Although this might take so much of your time, it equally boosts your conversions in a far-reaching way.

To run a successful blog, you don't just need an ordinary CMS (Content Management System) . It must be one with essential tools to help you strikingly rank high on the search engine. An all-inclusive software like WordPress is a perfect example in such a scenario.

What does a blog have to do with my online store?

You might ask yourself.

Well, running a blog is one of the most promising channels a merchant can use to introduce a ‘call to action'. It's an easy peasy way to persuade readers to buy your products.

Practically, you can put ‘buy buttons' in your articles to direct customers to your online store. You need to create good content to convince your readers. That comes to fruition only if you know how to engage your audience with what they can actually relate to.

I'm pretty sure that you must be alive to the fact that WordPress is free to use and also an open-source platform. This means that you can actually joyride a couple of its functionalities. To improve your site's SEO, you can set noticeable meta descriptions, insert backlinks, and set appropriate keyphrases.

If you intend to target a population from the younger demographics, you ought to run a marketing strategy which they're more affiliated with. In this case, Instagram tends to be more associated with Millenials.

I don't necessarily need to emphasize the fact that you need to work with a budget. If this is left unattended to, your business is more likely going to crumble in the near future. A merchant ought to be sharp about the start-up costs and any extras that they might have to incur in the long run.

Assuming that you're going to run your online business alone, setting a budget that fits your wallet shouldn't be a demanding exercise. You need to maintain a streamlined cash flow in your business dealings. To keep off from discrepancies, it's doubtless that you need a high-standard accounting tool.  Most of this software charge a few bucks for its services. Not much, that I can give you some sort of guarantee.

As a matter of fact, the likes of Intuit Quickbooks and Xero are ideal for bookkeeping and any other accounting needs. By use of such tools, you get to stay ahead of your priorities by maintaining a sound financial plan.

So let's see what you should put into deep consideration;

Projected Earnings

This gives you a sneak peek of the amount of revenue you should anticipate. But you just can't take a wild guess to know exactly how much you'll generate over time. Since you're the CEO of your e-commerce business, you need to be a wise bookkeeper. Act like you have 10 years experience as a professional accountant, even though you're not close to being one. But if you are, that's a huge plus.

Figuring out what your gross revenue amounts to isn't enough. There's more work to be done in order to narrow down to accurate projections. Once you do the math and come up with the total sales, it's pretty obvious that you need to deduct all expenses. Finally, you get to know the actual profit yield.

And that's how a viable financial projection works.

To make a more intelligible projection, you can use business planning software to remove all forms of complexities. Small businesses can use apps like LivePlan , Bizplan or Enloop to account for their business forecasts.

Recurring Expenses

If you're going to depend on 3rd party SaaS services to run your business, then it's patent that you need to pay for the monthly plans. An online business owner must factor in what the sales channel charges on a periodic basis. Shopify, for instance, charges $29 each month for its Basic plan.

But that's not all.

There are extra plugins which integrate with your store to boost its overall perfomance. Some of these extensions have premium plans. That aside, you'll have to set a budget for your marketing campaigns as discussed earlier on. Besides, a merchant whose business is at an enterprise level requires elite-level services from the marketing tools.

Paid advertising, in particular, is often a recurring expense that needs to appear in your financial books of accounts.

You don't expect to thrive over your rivals by clinging on a free trial plan. With the acute competition in the ecommerce setups, there's more to making huge revenue than merely putting basic efforts to your online store.

If you want to run a winning online business, you better use a theme that's sort of intertwined to your niche. Furthermore, you need to brace yourself with some extra bucks so as to access a fully functional theme. Realistically,  a professional WordPress theme would roughly cost you about $200 or even more.

Magneto, on the other hand, is a sales channel that needs some tender care. It has a knotty learning curve since it's designed to run ecommerce businesses that have scaled to an industrial level. In order to make adjustments on Magneto's functionality, you might have to spend on web development experts.

Payment Processing

Since you'll be running an online business, thus handling payments from customers, you need to work with a cloud-based POS system. One which integrates with processors such as Stripe , PayPal , Square, just to mention a few notable ones. A merchant service provider like Shopify has its own POS app which works perfectly well for all their retail needs.

This solution uses a tiered technique on each of its plans to calculate the processing fees. The pricier the plan, the lesser the processing fees.

To further illustrate, Shopify's Basic plan charges 2.9% + 30 cents per sale transaction. Its counterpart WooCommerce charges the same amount for all the credit card transactions.

No matter how old this phrase is, here's the moral of the story.

To get your business into good financial shape, you need to be mindful of the processing fees. Be keen to choose an ecommerce platform which has multichannel functionality yet with low processing fees. This allows you to greatly maximize your profit on each sale transaction.

Fulfillment Expenses

As noted earlier, there are a couple of ways to go about this process. If you want to offer free shipping to your customers, pick a solution that rewards you the most. Most drop shippers tend to include the shipping costs in the selling price. If that's the case, choose reliable carrier services to avoid future chargeback claims.

Also, go with one that has an efficient management team. Amazon's FBA can serve as a pretty solid order fulfillment service. The same goes for services such as ShipWire or ShipMonk.

If you decide to do premium shipping, then you'll have to elevate your pricing index formula. Contrastingly, if your products are somewhat expensive, customers might shy off from making a purchase.

Other Operational Costs

Just like a brick and mortar store, you'll definitely incur some extra expenses while running your online business in a bid to boost productivity. If you're running a large online store, it's prudent to have some technical assistance. That costs money. Depending on the size of your ecommerce business, you might incur some accounting expenses and business taxes too.

Not to mention hosting services if you go with a sales channel that isn't self-hosted. Besides that, there are premium integrations which come with monthly recurring costs.

The earlier you realize which category your ecommerce business plan falls into, the better for your future projections. The trendsetting business models are not the same as those that used to reign a couple of years ago. Many thanks to the cumulative progression in technology and shopping trends.

For an online merchant, this brings on board, diverse ways of doing business across borders.

The end result?

Your online business setup generates more revenue like never before. With such kind of innovation in the realm of running an ecommerce business, numerous opportunities are created. It's no wonder that there is an uncountable number of niches which potential online store owners can venture into.

Before we even delve further into these ecommerce oriented business models, let's have a recap of the long-established, or put differently, the traditional ones;

Business-to-Consumer (B2C)

B2C setups are those which sell products and services, or both, to the end buyer. That simple. It's one of the most prevalent methods in the sphere of ecommerce. Most merchants use this method to sell products to consumers since it requires fewer efforts than B2B(Business-to-Business).

The Business-to-Consumer approach is highly preferable for products that have a lower market value. Under ordinary circumstances, it's easier for buyers to make up their minds on a pair of shoes over an accounting software. At least, owing to the fact that the latter is a recurring expense, which they have to incur periodically.

The B2C model is mobile-friendly and helps you optimize your online store's perfomance.

Business-to-Business(B2B)

Unlike B2C, B2B transactions occur between two businesses entities. In other instances, the buyer is usually the end-user. But most-predominantly, the buyer makes the purchase and later on resells the products to the consumer at a retail price.

This framework is now more focused on B2B ecommerce businesses which are well versant with niche markets.

Consumer-to-Business(C2B)

This structure allows individuals to sell products and services to companies. In ecommerce, a business buys such a product or service so as to aggressively compete in the market.

Let's use a typical illustration. Consumers who let's say own blogs can allow companies to advertise products in their sites. Of course, this comes with a price.

Moreover, there are Business models that focus on ecommerce setups.

They include;

Direct-to-Consumer(D2C)

If you want to cut the middleman, this is the right model to use for your ecommerce business. It's a tried and tested technique that connects businesses to customers in an unconventional manner.

Subscription services

In e-commerce, this is the kind of business that offers a type of service to consumers. Examples include; online magazines, streaming services, online classes, gym and club memberships, the list is endless. In return, the merchant collects recurring payments on a periodic basis and at a preset date from the consumer.

Wholesaling

As the name suggests, the wholesaler sells products to a retailer in bulk. A perfect marketplace to source wholesalers is Alibaba. The same goes for AliExpress, which is its subsidiary retail site. The latter is compatible with both the B2B and B2C model since consumers can make a direct purchase from AliExpress. A merchant can also opt to open a seller account here.

Dropshipping

This model is on the mainstream in the e-commerce industry. A merchant, otherwise known as a drop shipper, markets a product that is later fulfilled to the customer by a 3rd party supplier. The drop shipper, who is more of a middleman, virtually displays the products via a sales channel and adjusts the pricing to make a small profit on each sale.

Everything considered it's rightful to say that coming up with a detailed e-commerce plan isn't baffling whatsoever. The catch is, a merchant needs to make some sort of fusion between their business needs and the above-discussed blueprint. So long as you have an idea of what products to sell online, the initial stages of launching your business should be a no brainer.

Also, you don't want to go a little overboard with your startup costs. As you may know, that might slow down the launching process. To kick off with bargain-priced e-commerce sales channels, you can try out plans from solutions such as Shopify , WooCommerce , or even BigCommerce.

In a nutshell, having a full-proof e-commerce business plan sort of guarantees you systematic progress towards your future goals. This guide gives you a comprehensive analysis of what you need to have in your bucket list. If you feel unbalanced while sketching your plan, don't feel shy to drop a query in the comment box below.

Compare the best ecommerce platforms

Bogdan Rancea

Bogdan is a founding member of Inspired Mag, having accumulated almost 6 years of experience over this period. In his spare time he likes to study classical music and explore visual arts. He’s quite obsessed with fixies as well. He owns 5 already.

Comments 4 Responses

Thanks for in depth guide. Really wonderful article.

You’re welcome Sanjay!

Thanks Meaghan Brophy for your very detailed guide. I also would like to add a quick point as my takeaway. It all starts with a pre-meditated ecommerce business plan. At first glance, this feels like a superficial blueprint for most starters. But here’s the deal. You need an executive summary of everything you’re about to do in order to convert your objectives into actual results. From the onset, you must put your thoughts on paper. The key is to start it. Planning is very important. But be aware to not overdo it.

Thanks for sharing you thoughts, we’re really glad you liked the article!

Comments are closed.

Sample Ecommerce Business Plan

Writing a business plan is a crucial step in starting an ecommerce business. Not only does it provide structure and guidance for the future, but it also helps to create funding opportunities and attract potential investors. For aspiring ecommerce owners, having access to a sample ecommerce business plan can be especially helpful in providing direction and gaining insight into how to draft their own ecommerce business plan.

Download our Ultimate Ecommerce Business Plan Template

Having a thorough business plan in place is critical for any successful ecommerce venture. It will serve as the foundation for your operations, setting out the goals and objectives that will help guide your decisions and actions. A well-written business plan can give you clarity on realistic financial projections and help you secure financing from lenders or investors. An ecommerce business plan example can be a great resource to draw upon when creating your own plan, making sure that all the key components are included in your document.

The ecommerce business plan sample below will give you an idea of what one should look like. It is not as comprehensive and successful in raising capital for your ecommerce business as Growthink’s Ultimate Ecommerce Business Plan Template , but it can help you write an ecommerce business plan of your own.

Ecommerce Business Plan – ClickCart Emporium

Table of contents, executive summary, company overview, industry analysis, customer analysis, competitive analysis, marketing plan, operations plan, management team, financial plan.

Welcome to ClickCart Emporium, your new go-to ecommerce destination based in the vibrant city of Oklahoma City, OK. Our mission is to revolutionize the local ecommerce landscape by providing an unparalleled online shopping experience. With our comprehensive suite of services, we cater to a wide range of customer needs, ensuring secure payment processing, timely delivery, and a user-friendly online retail platform. Our dedication to excellence and our commitment to the Oklahoma City community drive us to serve you better, making online shopping convenient, secure, and enjoyable.

Our confidence in becoming the leading ecommerce platform in Oklahoma City is anchored in our founder’s previous success in the ecommerce industry, combined with our unwavering commitment to superior service. Since our launch on January 4, 2024, ClickCart Emporium has achieved significant milestones, including the development of a distinctive brand identity, securing an ideal operational base, and laying a strong foundation for our future growth. These accomplishments reflect our dedication to excellence and our strategic approach to becoming your preferred online shopping destination.

The Ecommerce industry in the United States, currently valued at over $600 billion, is on an exponential growth trajectory, with projections estimating its value to reach $1 trillion by 2025. This growth is driven by increased internet access, rising disposable incomes, and the proliferation of digital devices, alongside consumer preferences shifting towards online shopping for its convenience and variety. ClickCart Emporium is poised to leverage these trends, offering exceptional customer service and a diverse product range, positioning us to carve out a successful niche within this competitive and rapidly expanding market, especially in Oklahoma City, OK.

ClickCart Emporium targets a diverse customer base in Oklahoma City, focusing on busy professionals, parents, elderly shoppers, tech-savvy millennials, Gen Z, and small business owners. Our platform caters to their varying needs with a wide range of products, convenient and reliable delivery options, and an easy-to-navigate interface. By tailoring our marketing strategies, especially through social media and influencer partnerships, we aim to engage these segments effectively, ensuring a seamless and efficient online shopping experience that meets their everyday needs and preferences.

Our main competitors include Liquidfish, 1stPride, and Plenty of Pixels, each offering unique digital solutions targeting different customer segments in Oklahoma City, OK. Despite their strengths, ClickCart Emporium differentiates itself through superior customer service, an intuitive shopping platform, and leveraging cutting-edge technology to offer an expansive product range. Our focus on competitive pricing, exclusive deals, and personalized support ensures a seamless shopping experience, setting us apart as a leader in the ecommerce market.

At ClickCart Emporium, we offer an integrated suite of ecommerce services, including a user-friendly online retail platform, secure payment processing, and efficient logistics and fulfillment services, all designed to empower businesses and delight consumers. Our competitive pricing strategy and comprehensive service offerings are tailored to meet the diverse needs of our customers in Oklahoma City, OK. Our promotional strategy is multifaceted, encompassing SEO, PPC, social media marketing, email marketing, community engagement, and influencer partnerships. These efforts aim to enhance our visibility, drive traffic, and foster a strong community around our brand, ensuring ClickCart Emporium becomes a household name in the local ecommerce scene.

To ensure ClickCart Emporium’s success, our operations focus on maintaining a user-friendly website, real-time inventory management, efficient order processing, and seamless coordination with shipping partners. We prioritize customer support across multiple channels and implement secure payment systems to enhance the shopping experience. Our operational strategy includes regular analysis of customer data and market trends, enabling us to refine our product offerings and marketing strategies continually. By focusing on these key operational processes and milestones, we aim to achieve operational excellence and sustain our growth trajectory.

Our management team combines expertise in ecommerce, digital marketing, logistics, and customer service, driving ClickCart Emporium towards achieving its mission. With a solid track record in the industry and a shared vision for innovation and excellence, our team is committed to providing the best online shopping experience in Oklahoma City, ensuring that ClickCart Emporium stands out in the competitive ecommerce landscape.

Welcome to ClickCart Emporium, a new Ecommerce venture based right here in Oklahoma City, OK. As a local ecommerce business, we noticed a gap in the market for high-quality online shopping experiences tailored to our community’s needs. Recognizing this, we set out to create an ecommerce platform that not only serves Oklahoma City but also sets the standard for what local online shopping should look like.

At ClickCart Emporium, we offer a comprehensive suite of ecommerce solutions. Our primary offering is an online retail platform designed to bring the convenience of shopping online to our local customers, providing them with a wide range of products at their fingertips. To complement this, we offer payment processing services, ensuring a seamless transaction experience. Recognizing the importance of timely delivery, we also specialize in ecommerce logistics and fulfillment. These services work in tandem to provide a smooth and enjoyable shopping experience from browsing to delivery.

Our operations are deeply rooted in Oklahoma City, OK. This strategic location allows us to stay closely connected with our community and understand the unique needs of our customers better. Serving the Oklahoma City area is not just a business decision; it’s a commitment to enriching our local economy and providing value to our neighbors.

ClickCart Emporium is poised for success for several reasons. Our founder brings valuable experience from previously running a successful ecommerce business, imparting a wealth of knowledge and industry insights that are instrumental to our operations. Moreover, our commitment to delivering superior ecommerce services positions us ahead of the competition, ensuring that we meet and exceed the expectations of our customers.

Since our inception on January 4, 2024, ClickCart Emporium has made significant strides as a Limited Liability Company. We’ve developed a unique and recognizable brand, starting with the design of our logo and the creative development of our company name. Additionally, we secured a great location that supports our logistics and fulfillment operations, laying a solid foundation for our business. These accomplishments, though early, are indicative of our dedication to building a successful and sustainable ecommerce platform for Oklahoma City.

The Ecommerce industry in the United States is currently valued at over $600 billion, making it one of the largest and fastest-growing sectors in the country. With the rise of online shopping and the convenience it offers consumers, Ecommerce sales have been steadily increasing year over year. Experts predict that the market will continue to grow at a rapid pace, reaching over $1 trillion by 2025.

One of the key trends in the Ecommerce industry is the shift towards mobile shopping. With more and more consumers using their smartphones and tablets to make purchases online, businesses that provide a seamless mobile shopping experience are poised for success. ClickCart Emporium, being a new Ecommerce platform, can take advantage of this trend by ensuring their website is mobile-friendly and easy to navigate on all devices.

Another trend in the Ecommerce industry is the increasing demand for personalized shopping experiences. Consumers are looking for tailored product recommendations, exclusive deals, and customized shopping features. ClickCart Emporium can set itself apart from competitors by offering personalized recommendations based on customer preferences and purchase history, creating a unique and engaging shopping experience for its customers in Oklahoma City, OK.

Below is a description of our target customers and their core needs.

Target Customers

ClickCart Emporium will primarily target local residents seeking a convenient and efficient online shopping experience. This segment includes busy professionals, parents needing to juggle work and family commitments, and elderly individuals who prefer the safety and comfort of home shopping. The focus will be on offering a wide range of products tailored to their everyday needs, from groceries to household essentials.

The business will also cater to tech-savvy millennials and Gen Z consumers who are always on the lookout for the latest trends and unique products. These younger customers value fast, reliable delivery and an easy-to-navigate website or app interface. ClickCart Emporium will tailor its marketing strategies to engage this demographic through social media channels and influencer partnerships.

In addition to the above, ClickCart Emporium will target small business owners in Oklahoma City who require bulk purchases for their operations. This segment is in need of a reliable partner that can provide a variety of products at competitive prices with the convenience of scheduled deliveries. The platform will offer business accounts with features such as order tracking, purchase history, and volume discounts.

Customer Needs

ClickCart Emporium steps into the market to fulfill the growing demand for high-quality eCommerce services among residents who seek the convenience of online shopping. Customers expect a seamless shopping experience that combines ease of use with a wide selection of products. By focusing on user experience and inventory diversity, ClickCart Emporium meets these expectations head-on, ensuring that every visit to the site is both enjoyable and fruitful.

In addition to providing an extensive range of products, ClickCart Emporium understands the importance of reliable customer service and fast, accurate delivery. Shoppers value quick responses to inquiries and appreciate the peace of mind that comes with knowing their purchases will arrive on time and in perfect condition. This level of service builds trust and loyalty, encouraging repeat visits and long-term relationships with customers.

Moreover, ClickCart Emporium recognizes the significance of offering competitive prices without compromising on quality. Consumers are always on the lookout for the best deals online, and by ensuring that prices are attractive, ClickCart Emporium positions itself as a go-to destination for savvy shoppers. This approach not only satisfies the need for affordability but also reinforces the value proposition of shopping with ClickCart Emporium.

ClickCart Emporium’s competitors include the following companies:

Liquidfish specializes in offering comprehensive digital solutions including website development, digital marketing, and custom software development. Their services are tailored towards businesses looking to establish or enhance their online presence. Price points for their services vary depending on the complexity and scope of the project, making them accessible to a wide range of businesses.

While specific revenue figures are not publicly available, Liquidfish is recognized for its robust client portfolio across various sectors, indicating a healthy financial standing. The company operates primarily from its headquarters in Oklahoma City, OK, but serves clients across the United States. This broad geographic coverage is a key strength, as it allows Liquidfish to cater to a diverse client base.

Key strengths of Liquidfish include its comprehensive service offering and its ability to deliver customized digital solutions. However, its primary weakness lies in the highly competitive market of digital services, where differentiation can be challenging.

1stPride offers a range of ecommerce services, focusing on website design, online marketing, and SEO optimization. Their services are designed to help businesses improve their online sales and visibility. The company adopts a competitive pricing strategy, which makes it an attractive option for small to medium-sized businesses.

1stPride operates mainly within the Oklahoma City area, targeting local businesses aiming to expand their online footprint. Although they have a strong local presence, their geographical reach is more limited compared to other competitors. This focus on a local customer base both serves as a strength, providing personalized services, and a weakness, limiting potential market expansion.

Their key strength lies in their local market knowledge and personalized customer service. However, their limited geographical reach and the challenge of scaling their services can be seen as weaknesses.

Plenty of Pixels specializes in website design and development, offering customizable packages to meet the needs of various businesses. Their pricing model is transparent, with clear tiers based on the complexity and features of the website, catering to both startups and established businesses. The company prides itself on its efficient project delivery and post-launch support.

Although primarily based in Oklahoma City, OK, Plenty of Pixels serves clients nationwide, leveraging digital communication tools to manage projects remotely. This allows them to tap into a larger market, despite their physical location. Their ability to serve clients across the country is a significant strength, broadening their potential customer base.

The key strengths of Plenty of Pixels include their flexible pricing model and nationwide service coverage. However, their focus on website services means they might not offer as comprehensive a digital solution set as some competitors, which could be seen as a weakness in a market that favors full-service agencies.

Competitive Advantages

At ClickCart Emporium, we pride ourselves on providing unparalleled ecommerce services that set us apart from our competition. Our secret lies in our commitment to understanding the unique needs of our customers in Oklahoma City, ensuring that we offer personalized shopping experiences tailored to their preferences. We leverage advanced technology to streamline the shopping process, making it faster, more intuitive, and user-friendly. This approach not only enhances customer satisfaction but also fosters loyalty, as shoppers know they can expect a seamless experience every time they visit our platform.

Beyond merely offering a wide range of products, we differentiate ourselves by integrating cutting-edge features such as AI-powered recommendations and real-time inventory updates, which significantly improve the shopping experience. Our customer service is second to none, providing round-the-clock support to address any queries or concerns promptly. Additionally, our logistics and delivery system is optimized for efficiency, ensuring that orders are processed and delivered faster than any other service in the area. This comprehensive approach to ecommerce positions us not just as a shopping platform, but as a reliable partner for our customers, making their online shopping journey enjoyable and hassle-free.

Our marketing plan, included below, details our products/services, pricing and promotions plan.

Products and Services

ClickCart Emporium emerges as a comprehensive solution for both businesses and consumers, offering a suite of services designed to streamline the online shopping experience. At the heart of its offerings is an online retail platform that serves as a marketplace for a wide range of products. This platform connects sellers with buyers, facilitating easy access to an array of items from the comfort of one’s home. The average selling price for products on this platform varies widely depending on the category and value of the items, but ClickCart Emporium ensures competitive pricing to attract a broad customer base.

In addition to facilitating sales through its online retail platform, ClickCart Emporium offers payment processing services. This crucial service ensures secure and efficient transactions between buyers and sellers, employing state-of-the-art encryption and security measures to protect all parties involved. The company charges a nominal fee for these services, typically a percentage of the transaction value. This fee averages around 2.9% + 30 cents per transaction, aligning with industry standards and ensuring that sellers can affordably access secure payment processing capabilities.

Understanding the importance of logistics in e-commerce, ClickCart Emporium also provides e-commerce logistics and fulfillment services. This comprehensive service covers everything from warehousing and inventory management to order fulfillment and shipping. By handling these logistical aspects, ClickCart Emporium enables sellers to focus on their products and sales, rather than the complexities of distribution. Pricing for these services is tailored to the specific needs of each seller, but businesses can expect competitive rates that reflect the efficiency and value of the logistics solutions provided.

Overall, ClickCart Emporium positions itself as a key player in the e-commerce sector by offering an integrated platform that not only connects buyers and sellers but also provides essential services like payment processing and logistics. Through competitive pricing and a commitment to quality, ClickCart Emporium aims to foster a vibrant online marketplace that meets the needs of a diverse customer base.

Promotions Plan

ClickCart Emporium embarks on an ambitious journey to captivate the hearts and wallets of customers in Oklahoma City, OK, with a blend of innovative and traditional promotional methods tailored to the digital age. Recognizing the power of online presence, the emporium will leverage online marketing as its spearhead strategy. Through this approach, ClickCart Emporium expects to build a robust digital footprint that resonates with its target audience, driving both traffic and sales.

Diving deeper into online marketing, the company will utilize social media platforms extensively. Platforms such as Facebook, Instagram, and Twitter will become arenas where ClickCart Emporium engages with its audience. Regular posts, interactive stories, and targeted ads will serve to inform, entertain, and persuade potential customers. Moreover, the emporium will harness the power of influencer marketing, partnering with local influencers in Oklahoma City to tap into their followers and gain credibility quickly.

Email marketing will also play a crucial role in ClickCart Emporium’s promotional strategy. By collecting emails from potential customers through sign-ups and promotions, the emporium will send out newsletters, exclusive offers, and updates about new products or services. This personalized approach expects to not only drive sales but also foster a sense of community among its customers.

Search Engine Optimization (SEO) will ensure that ClickCart Emporium appears at the top of search results when potential customers look for related products or services online. By optimizing its website content with relevant keywords, the emporium expects to attract more organic traffic, thereby reducing its reliance on paid advertising in the long run.

ClickCart Emporium will not limit itself to online methods alone. Local events and sponsorships will serve as an excellent opportunity to increase brand visibility and engagement within the community. Participating in or sponsoring local events, fairs, and festivals will allow the emporium to showcase its brand and products in a more personal and interactive setting.

Loyalty programs will be introduced to reward returning customers, encouraging repeat business and word-of-mouth referrals. These programs will offer discounts, special offers, and early access to new products, cultivating a loyal customer base that feels valued and appreciated.

In conclusion, ClickCart Emporium will employ a multifaceted promotional strategy that combines the reach and efficiency of online marketing with the personal touch of local engagement and customer loyalty programs. Through these efforts, the emporium expects to attract and retain customers, setting a strong foundation for growth in Oklahoma City, OK.

Our Operations Plan details:

• The key day-to-day processes that our business performs to serve our customers
• The key business milestones that our company expects to accomplish as we grow

Key Operational Processes

To ensure the success of ClickCart Emporium, there are several key day-to-day operational processes that we will perform.

• Maintain a user-friendly and up-to-date website interface to ensure customers can easily browse, search for products, and complete purchases.
• Monitor inventory levels in real-time to ensure stock availability aligns with website listings and restock products as needed to meet customer demand.
• Process orders efficiently, from confirmation to packaging, ensuring accuracy in order fulfillment to minimize errors and returns.
• Coordinate with shipping partners for timely delivery of products, offering customers tracking information to ensure transparency and improve customer satisfaction.
• Offer customer support through multiple channels (e.g., chat, email, phone) to address inquiries, resolve issues, and provide assistance throughout the buying process.
• Implement and maintain secure payment processing systems to protect customer data and ensure a smooth checkout experience.
• Analyze website traffic and customer purchase data to understand customer preferences, improve product offerings, and tailor marketing strategies.
• Engage in digital marketing efforts, including SEO, social media marketing, and email campaigns, to attract new customers and retain existing ones.
• Collect and act on customer feedback to continually improve the shopping experience and address any shortcomings in products or services.
• Conduct regular financial reviews to monitor profitability, manage expenses, and adjust pricing strategies as necessary to remain competitive.

ClickCart Emporium expects to complete the following milestones in the coming months in order to ensure its success:

• Secure a reliable supply chain: Establish agreements with suppliers and distributors to ensure a steady supply of products. This not only assures product availability but also helps in negotiating better terms and prices, reducing the cost of goods sold.
• Develop and launch the ecommerce platform: This involves finalizing the website design, ensuring user-friendly navigation, and implementing secure payment gateways. A smooth, secure, and convenient shopping experience is crucial for customer retention and acquisition.
• Implement an initial marketing strategy: This should include a mix of digital marketing tactics such as SEO, social media marketing, and email campaigns to build brand awareness and drive traffic to the new ecommerce platform.
• Establish customer service protocols: Develop a robust customer service framework that includes clear return policies, a responsive support team, and a feedback system. Excellent customer service not only enhances customer satisfaction but also builds trust and loyalty.
• Launch our ecommerce business: Officially open the online store for business. This involves ensuring all operational, logistical, and marketing systems are in place and functioning correctly to handle orders and customer inquiries.
• Monitor and optimize operations: After launch, closely monitor all aspects of the business from website performance, order fulfillment efficiency, to customer feedback. Use this data to make informed decisions on operational improvements and optimizations.
• Expand product offerings: Based on initial customer feedback and sales data, gradually introduce new products or variations to meet demand and attract a wider audience. This helps in keeping the product catalog fresh and engaging for return customers.
• Get to $15,000/month in revenue: Achieve this financial milestone through a combination of increasing traffic to the website, improving conversion rates, and expanding the customer base. It signifies a stable demand for the products and a growing business.
• Build partnerships and collaborations: Establish partnerships with complementary brands or platforms to expand reach and tap into new customer segments. Collaborations can also open up opportunities for exclusive products or marketing campaigns.
• Implement a customer loyalty program: To encourage repeat business and foster a loyal customer base, introduce a loyalty program that rewards customers for their purchases, referrals, or engagement with the brand.

ClickCart Emporium management team, which includes the following members, has the experience and expertise to successfully execute on our business plan:

Lily Young, CEO

Lily Young brings a wealth of experience to ClickCart Emporium, having previously led an ecommerce business to notable success. Her entrepreneurial spirit and deep understanding of digital marketplaces equip her with the unique insights needed to navigate the complex landscape of online retail. Lily’s leadership style is characterized by a focus on innovation, customer satisfaction, and operational efficiency. Her track record of building cohesive teams and fostering a culture of excellence makes her an invaluable asset to ClickCart Emporium. Under Lily’s guidance, the company is poised to achieve its goals and make a lasting impact in the ecommerce arena.

ClickCart Emporium’s financial strategy is designed to support our growth objectives, ensuring we have the necessary resources to expand our operations, enhance our service offerings, and achieve our goal of becoming the leading ecommerce platform in Oklahoma City. Our plan outlines the investment needed to fuel our strategic initiatives, focusing on technology upgrades, marketing efforts, and operational efficiencies to drive revenue growth and profitability.

Financial Statements

Balance sheet.

[insert balance sheet]

Income Statement

[insert income statement]

Cash Flow Statement

[insert cash flow statement]

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E-Commerce Start-Up Business Plan

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NoHassleReturn.com

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.

Competition`

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.

Expectations

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. 

Financial Highlights by Year

Financing needed.

We need $50,000 to start. We will get that from the two owners to start $25,000 each.

Problem & Solution

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.

Target Market

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.

Competition

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.

Our Advantages

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

• Increase revenues! NoHassleReturn.com turns the systemic problem of product returns into new selling opportunities.
• Enhance customer satisfaction and retention with the quick and easy return process and boost repeat sales! NoHassleReturn.com provides the opportunity to instantly deal with returns, save bad sales, and turn unhappy customers into loyal patrons.
• Improve customer service with a simple, trouble-free way to return merchandise! NoHassleReturn.com makes it easy for consumers to return products and follow return procedures.
• Simplify the shipping hassle for consumers! NoHassleReturn.com provides the option to print a shipping label since pre-printed labels sometimes get lost or misplaced, which provides added convenience and peace of mind to consumers.
• Improve inventory management and logistics! NoHassleReturn.com immediately alerts you when your customer initiates the return process so that you can act on it right then, not when the merchandise arrives at your door.
• Fine-tune your internal efficiencies and product offerings! NoHassleReturn.com provides you with invaluable new data on all your product returns by customer group, product category, etc., so you can analyze your operations better.
• Enhance your image! NoHassleReturn.com underscores your customer orientation, which you can use to promote your business.

Consumers Advantages

• Return merchandise with ease! NoHassleReturn.com provides one centralized online location with a simple and trouble-free way to return merchandise in just a few easy steps.
• Buy online, return online! No need to call in or email your merchant if authorization is required–NoHassleReturn.com does the communication for you.
• No need to look up every single merchant for return policies every time! NoHassleReturn.com summarizes it for your particular item and makes sure the return time frames are followed.
• Generate a shipping label! NoHassleReturn.com generates a shipping label for you so that you do not have to worry about misplacing the pre-printed label or spending extra time at a shipping company’s counter if the pre-printed label is not included.
• Reduce or eliminate shipping costs! Through strategic alliances, NoHassleReturn.com reduces or completely eliminates the cost of shipping.
• Keep track of your returns! If you would like, NoHassleReturn.com will remind you to ship the claimed item and will maintain a file of your returns for your records.
• Increase awareness in the community! NoHassleReturn.com serves as a "returned merchandise credit bureau," providing discrete information to consumers on merchants and to merchants on consumers.
• Cross reference marketing leads! NoHassleReturn.com maintains a database of purchases that help custom-target online buyers in a more efficient way.
• Improve the overall image of the online merchant! NoHassleReturn.com enhances customer service of online merchants and overall customer satisfaction by simplifying and streamlining the return process.

Keys to Success

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.

• Retrieve all pertinent information on a participating merchant.
• Match appropriate return procedures against the returning item.
• Present procedures to the consumer in the most concise format.
• Provide reference to the merchant’s entire return policies if requested.
• Inform the merchant of the entire transaction as it occurs.
• Gain authorization from the merchant to return merchandise if needed.
• Present the merchant’s website to consumer for selling opportunities.
• Provide confirmation emails to the customer of the actions taking place if requested.
• Interact with the merchant’s database for further customer details if needed.
• Maintain a record of the transactions for the company’s own database.
• Develop successful relationships with online merchants to facilitate exchange of information.
• Develop strategic alliances with online merchants, shipping companies, and credit card issuers to negotiate reduction or elimination of the shipping costs to consumers on returned merchandise.
• Design, maintain, and promote a user-friendly website, the corporate trademark, that offers an easy and trouble-free merchandise return procedure for consumers.

Marketing & Sales

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 & Metrics

Milestones table.

Key Metrics

Our Key Metrics: 

• Active clients
• Active client leads
• Monitor Facebook and Twitter and reach out to customers who tweet at us or about us
• Easy to understand website and have a online chat and telephone number for questions 
• # of referrals from strategic alliances 
• # of customer who use us month after month 
• # of returns handled and from which company 
• cost of processing returns, make it as streamlined and well thought out as possible 

Ownership & Structure

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.

• Board of Directors : oversees the overall strategic direction and progress of the company. Specific areas include operational soundness, financial stability, and long-term well-being of the corporation.
• President : responsibilities include strategic guidance of the enterprise, exploration of expansion opportunities, and strategic alliance facilitation and management.
• Chief Executive Officer : the main responsibility is to maintain a strategic fit between the corporate resources and external factors. Responsibilities include running of the overall day-to-day operations, technological and operational soundness, and financial stability.
• Director of Finance and Operations : responsibilities include financial oversight, safeguarding of assets, and human resources management.
• Director of Information Technology : responsibilities include overall technological efficiency, software development, and information control.
• Director of Sales and Marketing : responsibilities include sales generation, marketing programs development, and public relations.

Management Team

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.

Personnel Table

Financial Plan investor-ready personnel plan .">

Key assumptions.

• $4.1 million investment
• Status quo in market developments related to returns as part of traditional commerce is online commerce.
• Competition as we foresee it in the plan. 

Revenue by Year

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

Sources of Funds

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. 

Projected Profit & Loss

Projected Balance Sheet

Projected Cash Flow Statement

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The 8 Best Ecommerce Platforms for Small Businesses in 2023

• August 26, 2024
• by steven-austin

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.

How We Evaluated the Top Ecommerce Platforms

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.

The 8 Best Ecommerce Platforms for Small Businesses

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.

• Basic Shopify: $29/month
• Shopify: $79/month
• Advanced Shopify: $299/month

Transaction fees are 2.4% + $0.30 per transaction with Shopify Payments.

• Extremely user-friendly and quick to set up
• Huge theme store with lots of customization options
• Integrates with virtually any app you need
• Scales to enterprise-level stores
• Transaction fees slightly higher than some competitors
• Can get pricey once you add apps

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.

2. Square Online — Best for Unified In-Person + Online Sales

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.

• Basic Square Online Store: Free
• Square Online Store: $29/month

Credit card processing fees are 2.6% + $0.10 per online transaction.

• Extremely easy to set up if you use Square POS
• Syncs online and in-person inventory, customers, etc.
• No transaction fees beyond payment processing
• Solid built-in features like pickup and delivery
• Less flexibility and customization than some platforms
• Must process payments through Square

Square Online Store excels at helping small business sell on multiple channels using one seamlessly integrated system.

3. BigCommerce — Scalable Solution with No Transaction Fees

Designed to support fast-growing brands from the start, BigCommerce combines powerful enterprise-grade capabilities with an affordable pricing structure.

• Standard BigCommerce: $29.95/month
• Plus BigCommerce: $79.95/month
• Pro BigCommerce: $249.95/month

No additional transaction fees beyond payment processing rates.

• Very customizable without coding
• Built to support serious growth
• No hidden transaction fees
• Great analytics and reporting
• Can feel overwhelming for brand new sellers
• Limited payment gateway options on lower plans

For ecommerce businesses expecting significant growth right out the gate, BigCommerce offers robust tools to scale.

4. Wix — Best for Building Your Website + Online Store

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.

• Basic Wix Stores: $23/month
• Unlimited Wix Stores: $38/month

Credit card processing is 3.5% + $0.20 per transaction through Wix Payments.

• Drag and drop website builder is super easy to use
• 500+ multi-page store templates
• Very customizable design
• Great Support team
• Some built-in store features lacking vs. pure ecommerce platforms
• Transaction fees slightly higher

Wix empowers entrepreneurs of all tech levels to create the full website + store they envision.

5. WooCommerce — Top for WordPress Users

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.

• WooCommerce plugin: Free
• Self-hosted WordPress site

Payment processing fees vary by provider.

• Seamlessly integrates with WordPress
• Completely customizable design
• Huge plugin ecosystem for added features
• Very affordable
• Requires self-hosting WordPress site
• Not as user-friendly as true SaaS platforms

If you already use WordPress, definitely check out WooCommerce to convert your site into a store.

6. Shoplazza — Global Selling Made Easy

Looking to sell across multiple regions and languages? Shoplazza streamlines international commerce with automated translation, currency conversion, taxes, and customs documentation tools.

• Venture Shoplazza: $29/month
• Business Shoplazza: $79/month
• Custom Shoplazza: Custom quote

Credit card rates are 2.9% + $0.30 per transaction through Shoplazza Payments.

• One-click global selling in 100+ countries
• Built-in language translation
• Localized checkout experiences
• Global customer service
• Less flexibility for U.S.-focused sellers
• Fewer app integrations than Shopify

The relief of easily entering new markets across the world? Priceless. Let Shoplazza handle the complexity.

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.

• Free plan: $0/month for core features
• Venture plan: $15/month
• Business plan: $35/month

Payment processing rates vary by provider. No added transaction fees.

• Extremely easy to set up
• Generous free plan with no catch
• No transaction fees
• Broad payment gateway support
• Less powerful than paid platforms
• Limited design customization

Ecwid removes all barriers to start selling online for minimal investment.

8. Squarespace — Gorgeous Design with Built-In Commerce

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.

• Personal Squarespace: $16/month
• Business Squarespace: $26/month

Credit card rates are 2.9% + $0.30 per transaction with no additional fees.

• Award winning modern templates
• Seamless ecommerce integration
• Built-in marketing tools
• Top notch analytics
• Limited product variant options
• Fewer advanced store features than pure ecommerce platforms

Squarespace streamlines launching a design-forward online store alongside a stunning website.

Choose the Best Ecommerce Platform For Your Small Business Goals

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.