standard ecommerce business plan

How to Make an Ecommerce Business Plan for Your Startup

Darren DeMatas

August 21, 2024

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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 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

The essential document for starting a business -- custom built for your needs.

• Outline your idea.
• Pitch to investors.
• Secure funding.
• Get to work!

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E-commerce Business Plan Template

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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 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. Shift4Shop — Best free template library
• 9. WooCommerce — Best ecommerce plug-in for Wordpress
• 10. ShopWired — Best for buy-now-pay-later purchasing

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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How to Write an eCommerce Business Plan + Template

Noah Parsons

10 min. read

Updated May 10, 2024

Free Download:  Sample eCommerce Business Plan Templates

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

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

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

• Why write an eCommerce business plan?

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

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

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

• How to write an eCommerce business plan

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

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

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Executive Summary

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

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

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

Opportunity: Problem and Solution

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

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

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

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

Target Market

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

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

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

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

Marketing and Advertising

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

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

Here are a few tactics you may want to consider:

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

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

Areas you’ll want to cover include:

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

Company & Management

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

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

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

Financial Plan

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

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

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

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

• Ecommerce business plan templates and examples

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

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

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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?

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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.

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3. Create a company overview section

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

So what does this section include?

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

4. Conduct a competitive and market analysis

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

Target market and market opportunities

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

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

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

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

Competitive analysis

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

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

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

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

5. Detail your products and services

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

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

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

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

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

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

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

6. Develop a sales and marketing plan

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

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

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

Try answering the following to form an efficient sales plan:

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

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

Marketing strategy

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

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

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

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

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

7. Introduce your management team

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

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

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

8. Outline your operational plan

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

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

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

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

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

9. Prepare financial projections

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

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

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

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

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

Ecommerce Industry Highlights 2023

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

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

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

Related Ecommerce Resources

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

Download a sample ecommerce business plan

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

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

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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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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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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.

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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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Learning center series

Ecommerce business plan

• Published on April 23, 2024
• by Oguzhan Uyar
• Last updated: 1 month ago

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

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

Sounds complex, right?

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

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

Unveiling the Essential Components of an Ecommerce Business Plan

Executive summary: the first impression.

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

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

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

Company Description: Your Ecommerce Identity

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

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

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

The Key Elements of Your Company Description

1. Your company vision, mission, and goals

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

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

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

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

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

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

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

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

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

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

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

Key elements to feature in your market analysis include:

1. The industry’s outlook and potential

2. Target customer segment definition

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

4. Pricing and sales distribution strategies

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

Step 2: Organization and Management Structure

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

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

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

1. Ownership: Who owns the business?

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

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

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

Step 3: Services or Products Line

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

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

Key elements to spotlight when sculpting this section include:

1. Detailed descriptions of each product or service

2. Details on product lifecycle and intellectual property rights

3. Research and development activities (if relevant)

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

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

Ecommerce Business Plan Template: A Practical Approach

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

Overview of a Standard Ecommerce Business Plan Template

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

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

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

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

Customizing Your Ecommerce Business Plan Template

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

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

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

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

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

Financial Projections in an Ecommerce Business Plan: The Numbers Game

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

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

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

1. Financial projections and how you aim to achieve them

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

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

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

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

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

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

Importance of Financial Projections

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

Why Financial Projections are Crucial

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

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

Key Elements to Include in the Financial Projections Section

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

Crafting A Realistic and Attractive Financial Plan

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

Tips on Creating Realistic Yet Attractive Financial Projections

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

Balancing Optimism and Realism in Financial Projections

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

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

Marketing Strategy for Ecommerce Business Plan: Winning the Market

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

Importance of a Solid Marketing Plan

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

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

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

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

2. Your unique selling proposition (USP)

3. Email marketing and its role in your marketing strategy

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

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

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

Target Market Analysis

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

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

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

Brand Positioning

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

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

Key Marketing Channels

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

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

Crafting a Winning Marketing Strategy

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

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

Merge Creativity with Data

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

Align Marketing Strategy with Business Goals and Target Market

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

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

Your Winning Ecommerce Blueprint

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

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

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

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

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How to write an ecommerce business plan (with examples & templates) 

• Ecommerce unpacked

Ecommerce Unpacked Team Author

Updated: December 7, 2022 11 minute read

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An ecommerce business plan is designed to help you focus on your goals before launching your online store. A cohesive plan can help guide your decision-making process, convince potential investors, and prove the viability of your products or services.

According to the Bureau of Labor Statistics, about 20% of small businesses fail within the first year. Poor planning is often to blame. Without a good roadmap, it’s hard to make good decisions about your products, brand, and customers. 

Ready to craft a winning ecommerce business plan? This article will go over each element you’ll need, and how to create it. Plus, we’ve included links to several ecommerce business plan templates at the bottom of the article .

Key takeaways

• An ecommerce business plan is a key document not only for convincing potential investors and recruiting team members, but also for helping you vet and refine your business idea.
• An ecommerce business plan is a single document that contains your current business strategy for selling online and plans for the future of your business.
• Your business plan is a living document that can (and should) change as your business grows and your strategies evolve.
• There are a number of business plan templates available online, which can serve as starting points.

What is an ecommerce business plan?

An ecommerce business plan is a single document containing both your current business strategy for selling online and a roadmap for the future of your business. If you have a management team, they should have a hand in crafting this document, and you’ll likely share it with a wide variety of people, including potential investors. 

Harvard Business Review advises that entrepreneurs who write business plans are more likely to succeed than those who do not. That said, a business plan should be a living document. As your business grows and changes, your plan should change, too.

How to develop an ecommerce business plan

Your business plan should include the following:

• An executive summary describing your business model
• A business overview describing your mission and purpose
• A market analysis describing your competitors and industry
• A deep description of your products and services
• An analysis of your marketing plans
• A financial plan, including your liabilities and potential expenses

Let’s dig into each element so you can start assembling your plan. 

1. Executive summary

An executive summary outlines your business model in succinct and compelling terms. Use it as a summary of the other items in your business plan and focus on the positives. Make sure to use enticing language to help keep your readers engaged.

Your executive summary should answer the following questions:

• What sets you apart from competitors?
• Do you already have customers and traction in your industry?
• Do you have patents or other proprietary elements?
• Is your marketing plan special in some way?

You can also structure your executive summary by using these general categories:

• An introduction to your company
• The problem your potential customers face
• Your proposed solution
• Why it matters right now

Most executive summaries fit on a single page. It’s okay to go a little longer if needed, but be sure to keep it lean, concise, and engaging.

2. Business or company overview

This section should include a detailed company description. Think of this as a deep dive into who you are, what you do, and what’s motivating you to launch this online business. 

Your business overview should include:

• Your mission statement , stating what your company hopes to accomplish
• A description of your ideal customers , expressing the demographic groups you hope to sell your products or services to
• Your business structure , showing how many employees you have or plan to have, if your business is nonprofit or for-profit, etc.
• Your domain name , which shows how shoppers will find your store online
• Your value proposition , which states what sets you apart from your competitors
• A team profile , laying out who works with you in important positions, such as Customer Service Manager, Marketing Manager, etc.

3. Competitive market analysis

A recent survey by Crayon found that businesses have an average of 25 competitors . In the competitive market analysis section of your business plan, you’ll identify your top competitors and explain why you’re a better choice for your customers.

Consider starting with a SWOT analysis, which examines the following:

• Strengths : What makes your company stronger than the others? You might cite your financing plan, your customers, or any relevant patents you hold. 
• Weaknesses : What might keep you from beating out the competition? This might include product similarity, low funding, or a lack of market recognition.
• Opportunities : What external factors might help you win market share? This might include labor shortages, a favorable economic forecast, or a recent legislative ruling. 
• Threats : What external factors might harm your business? This might include impending taxes, sourcing problems, or a lack of skilled employees.

A SWOT analysis can help your market research, but don’t stop there. You must also dig deep into indirect competitors and similar products to show that you fully understand why your company is set up to succeed. 

4. Explain your products & services 

This section shows what products and services you offer your target customers. 

Get as detailed as you can here. If you’re providing a physical product, explain what it’s made of, how big it is, what makes it useful or unique, how long it takes to make just one, and so on. Make sure to include visuals as well as written information.

If you offer a virtual product, you can use this section to share technical specifications, including the operating system your product needs, how fast it works, what it does, and so on. 

If you’re developing new products, include details on this, too. The more informative this section is, the better. 

5. Marketing plans 

This section shows how you intend to attract customers to your online store once it’s up and running. 

There are a range of marketing tactics to consider, including:

• Social media: You could reach new customers through organic content and paid advertising on social media platforms like Facebook, Instagram, and TikTok. 
• Email marketing: You could tell existing and potential customers about sales and products through email campaigns. 
• Content marketing: You could create blog posts, ebooks, videos, and other forms of content containing information relevant to your target customers. 
• Affiliate marketing: You could partner with relevant influencers (like bloggers, YouTubers, and TikTokers) who can tell their audience about your products or services.  
• Search engine optimization (SEO): You can create content (including product pages) with relevant keywords to help companies like Google find and serve up your store in certain search results. 

Companies tend to spend marketing dollars in predictable ways.

Don’t be afraid to mix up your marketing plan, but make sure to detail why you’ve made each strategic decision, and outline the key performance indicators (KPIs) you plan to use to measure the effectiveness of your marketing efforts. 

6. Financial plan

In this section, you’ll explain your financial projections and liabilities. If you hope to get investors, this is perhaps the most important part of your ecommerce business plan.

In this section, include data about the following:

• Projected revenue: How much will you sell, and at what price point?
• Fixed expenses: How much will you spend on software, staff, and rent?
• Varied expenses: How much does it cost to make and ship your products? Include any costs here that could rise as your product takes off.

Include a current income statement and balance sheet, but also create a six-month and 12-month projection. 

If you’re using credit cards or business loans to fund your startup, include that data here. And if you’re using the business plan to secure financing, describe how you will use that money. 

Why ecommerce stores need a business plan 

These are a few key reasons you should put in the time and effort to create a good ecommerce business plan. 

To guide decision making 

To launch and manage a successful business, you’ll make countless decisions quickly. An effective business plan can help you make better-informed decisions, replacing gut feelings with facts and carefully vetted strategies. 

For example, you’ll know exactly who your potential customers are. And you’ll know just what marketing tools you plan to use to reach that target audience. When it’s time to launch your marketing campaign, this information can help you save time and avoid costly mistakes. 

To prove the viability of a new business

You think you have a great idea for an ecommerce business. But do you have data that suggests this concept is a winner? 

Creating an ecommerce business plan will force you to dive deep into the metrics behind this question. If you emerge confident in your idea, your business plan stands a better chance of convincing others. What’s more, this process can help work out issues that could block your success down the road.

For example: You may believe you’ve hit on a new product your target customers will love. But as you start writing your business plan, you might uncover supply chain issues that could undercut the viability of your business. You can then look for a solution to these issues, or move on in search of another idea. Either way, you’ve avoided a pitfall. 

To communicate ideas to shareholders

Whether you need investors or a loan to get started, your business plan can serve as a funding application. It will lay out how much money you need, how you’ll spend it, and how you plan to get profitable. 

Detailed data can help these others understand why they should help fund your new business.

Sample business plans for ecommerce startups

Below, you’ll find links to several business plan templates. Think of these as examples for inspiration, not as rigid structures to follow. 

Keep in mind that your business plan is about your business, not anyone else’s. While these samples can get you started, you’ll need to write your own unique version.

NoHassleReturn.com business plan

Bplans, a provider of free business plan templates, has a sample business plan for a fictional company called NoHassleReturn.com. It provides an expansive view of how a traditional enterprise organization could shift to an online business model. 

Firstcry.com business plan

Upmetrics.co, a provider of business plan software, created a business plan for a fictional provider of eco-friendly baby supplies. The entire plan comes in at 22 pages, and is packed with data.

Note the financial plan included in this example. The fictional company needs funding, and that ask is detailed in a clear and compelling way. This example also demonstrates how anyone can highlight crucial aspects of an online store, such as funding or staffing.

Lean startup format business plan 

The Small Business Administration created two business plan models, including the so-called “lean startup format,” which is a good fit for ecommerce companies.  

Consider this an ecommerce business plan for entrepreneurs who want to present a high-level summary without digging too deep. 

eGrocery Business Plan

Ecommerce Business Plan Writers designs all sorts of business plan templates. The sample ecommerce business plan for a fictional grocery store caught our eye, as it highlights all of the unique offerings and services this new company might provide. 

Dig deep into this business plan, and you’ll see a section connecting buyers to distributors for fast and convenient deliveries. This is a business-to-consumer plan investors might love. 

Achieve your goals faster with a solid business plan 

It’s easier and more effective to develop a marketing strategy, cohesive hiring program, and production schedule with an ecommerce business plan. Writing one takes time, but doing it can increase your chances of finding success in the ecommerce world. 

FAQs about an ecommerce business plan

Why should i start an ecommerce business.

An ecommerce business often deals with less overhead than a brick-and-mortar store. These businesses also don’t require customers to visit in-person to make a purchase. You can save money on rent, employees, and signage, while your customers benefit from speed and convenience.

What are ecommerce business models?

The most common ecommerce business models include:

• B2C (business to consumer) , in which a business sells products to individuals. This can also include DTC (direct to consumer) in which a business delivers a product directly to the consumer, forgoing distributors or retailers.
• B2B (business to business) , in which a business makes products for other businesses
• B2G (business to government) , in which a business makes products for government clients
• C2B (consumer to business) , in which a consumer makes products sold to businesses

These labels aren’t necessarily exclusive—some companies sell products to businesses as well as consumers. 

How do I start an ecommerce business?

It depends on the ecommerce model you choose. Creating a business plan is a great place to start. From there, you’ll need to register your business, get the proper permits and licenses, develop your products, launch your online store, and market it. 

[1] The True Failure Rate of Small Businesses (Entrepreneur)

[2] 118 Ecommerce Statistics You Need to Know (Similarweb)

[3] When Should Entrepreneurs Write Their Business Plans? (Harvard Business Review)

[4] How to Write an Executive Summary (Inc)

[5] Business Is Becoming More Competitive (DMN)

[6] You Are Doing Your Marketing Wrong (and I Have the Data to Prove It) (Neil Patel)

[7] Top 6 Reasons New Businesses Fail (Investopedia)

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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.

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

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

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

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

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

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

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

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

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

Saves You A Lot Of Time And Money

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

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

Makes You Financially Well-Prepared

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

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

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

A Clear Set of Goals

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

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

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

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

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

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

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

Ecommerce Business Plan Template

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

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

Draft an Executive Summary

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

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

What does your business do?

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

You can also include information about your industry and why you choose that niche. 

For example, if you are a fashion designer, you can tell about yourself and why you decided to start a new line of clothes online instead of going into a traditional retail store or brick-and-mortar stores.

What goals does your business want to achieve?

The first section of this section should include a description of your company, its mission, and its goals. 

All e-commerce businesses start with huge goals, but you must set realistic goals and ensure you achieve them.

What products do you sell?

The third section should explain how you plan to achieve your company's goals in the next five years. 

You can break this into two parts: (1) what products or services will be sold, and (2) where the company plans on selling those products or services.

Who is your audience?

Identify your target market and mention your audience. Choose your product wisely so it sells quickly in the target demographic. 

For example, if you want to sell trendy clothes, better to target GenZs, who are always looking to be fashionable. 

Identify Your Company Overview

Write the brand name of your company in your business plan. 

This will help you create a memorable brand, one of the most important factors for gaining customers' trust. 

Having a strong brand name is also vital because it will help you get your products on shelves and attract new clients and investors.

Business structure

Include all the details about your company's structure or business model, including its legal status and whether it is a private or a public company. 

You should also mention what kind of business entity has been chosen for your company and how many employees currently work for it.

Domain name

Include the domain name for your website in this section of your business plan and any other vital details about it, like who registered it and where it can be found on the Internet (URL). 

You should also include any other relevant information in this section, such as its geographical location.

Your company's mission statement is an integral part of your business plan. It should describe the company's purpose, what it does, and how it will benefit society. 

It should also include a description of how the company can help customers and clients, as well as its goals for the future.

This is a concise statement of what you want to achieve shortly, such as becoming profitable, expanding into new markets, or creating more products and services that are unique to your company.

Background information and Your team

This section should include information about your management team members, their educational background and experience within their fields, skillsets, past work experience, and any other relevant information that will help readers see them as real people rather than just names on a page.

Conduct Market Research

Conducting market analysis and research can help you understand your competition and what it will take to get competitive advantage and succeed in your industry.

Market opportunities

For a business plan to be successful, it must be based on sound assumptions about what will happen when it's launched. Market research allows you to identify potential customers, determine their needs, and determine how to meet them. For example:

• Who are your customers? 
• What do they want from you? 
• What are their problems?
• How much can you charge for the products or services you provide?
• What is the demand for your product or service? 
• What is the supply?
• How many people are interested in buying it? 
• How many people can buy it right now? 
• How many people will buy it in the future?

Competitive analysis

Competition is one of the most critical factors that impact your success as an e-commerce retailer. 

Before launching any new product or service, understanding how other companies compete with yours will help guide pricing and marketing strategy decisions. 

All in all, competitive analysis and market analysis helps identify potential. With this information in hand, you can plan how to better compete against them.

Products and services

Once you've determined all the things people want and need, it's time to figure out how you will provide those things for them through e-commerce sales. 

For anyone to buy anything from an e-commerce store, they have to have information about what they're buying so they know whether or not they should buy something!

Write about your product, how it solves the problem, benefits buyers, and why they should buy it. 

Develop a Marketing Plan

Marketing channels

It would be best to have a marketing plan when making an eCommerce business plan to build brand awareness, reach your target audience, and boost sales and revenue. 

It should contain your marketing strategies, and acquisition channels, tools, and technology to market your various products and services.

In marketing channels, you can mention all the platforms and ways you are willing to use in your marketing efforts, like:

• Direct mail campaign: A direct mail campaign is a great way to target your ideal customers and build brand awareness. It is a very low-cost marketing channel allowing you to reach many people simultaneously.
• Social media: social media can be used to engage with your customers, grow your audiences, and promote your brand.
• Email marketing: email marketing can be used to send out newsletters, product updates, event invitations, etc. Email marketing is also relatively inexpensive compared to other marketing channels.
• Website : the website is an excellent way to promote your business and build trust with potential customers. You can use the website as a digital storefront for products or services sold online only (i.e., digital products). 

The website should contain all relevant information about your company, including sales & services information, testimonials from happy customers, contact information for essential people in the organization such as managers & executives, etc. 

Your website should also be search engine optimized (SEO) to rank high in search engine results pages (SERPs) when people enter keywords like "company name" into the Google search bar or Bing. 

Acquisition channels

Next, let's talk about customer acquisition channels. These are ways of finding new customers without investing money in advertising or promotions. 

The most common ones are search engine optimization (SEO), paid social media ads like Facebook Ads or Google AdWords, guest posting on blogs relevant to your niche, and other organic search engine optimization (SEO).

Tools and Technology

Finally, let's talk about tools and technologies you can use to develop your marketing strategy. 

Many free tools are available online, but if you're serious about growing your business, it's worth investing in some paid ones, such as Offeo, Hubstaff, Semrush, etc.

Establish a Financial Plan

Your company must set up a financial plan detailing all its revenue streams and expenses. 

Income statement

The income statement is a summary of the company's sources of revenue and expenses. 

The income statement shows how much money the company made in a given period, usually one year. 

You can also use it to calculate the company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) and its Net Profit.

Balance sheet

The balance sheet gives you an overview of the company's assets and liabilities, plus any accumulated earnings or losses since the last time an accountant audited it. 

You can use it to calculate a company's cash flow and net worth.

Sales Forecast

The sales forecast is also included in this plan. It shows how many customers are expected to buy from your store each month or over the next year/quarter and how many of those customers will be repeat buyers. 

This information helps ensure that your business has enough money coming in to continue growing and expanding.

Cash-flow statement

Finally, a cash-flow statement helps you understand how much money comes in and goes out each month. 

Any unexpected expenses or costs that come up during the year (like taxes) should also be included in this statement!

Create a Sales Plan

The sales plan is a crucial part of the e-commerce business, as it will determine the company's success. 

The goal of this plan is to show the sales channels you will use, as well as how you define your customers and what they will need to make a purchase. 

You should also include metrics that indicate how well you are doing in terms of making sales.

Here are some things to consider when creating your sales plan:

• What channels will you use to promote your products? 
• Do you want to use social media, or is email better?
• How long do you expect it to take to reach your first customers? If you're going after new customers, how much time do those customers need to take from their lives before they purchase from you?
• What kind of pricing structure will you use for each channel? Will it be fixed or variable? What about the cost of shipping? 
• All three questions are important because they can impact whether or not your customers will buy from you.

Outline Legal Notes and Financial Considerations

In this section, we'll include any legal notes or financial considerations important to your business. This can include things like trademark concerns, privacy policies, and more.

1. Outline Legal Notes

• a. Name of entity
• b. Purpose of entity (to what extent will the entity be used?)
• c. Ownership structure
• d. How do you plan to obtain legal counsel?
• e. Are there any specific laws you are aware of that might affect this project? If so, identify them and explain how they could impact your business plan.

2. Financial Considerations

• a. How will the money be raised? What is the estimated cost of running each part of the business?
• b. What are your expenses related to raising capital? For example, do you need to pay for an accountant or lawyer, or does your company have one? How much does it cost for each person involved in this process?  
• Do you charge for services upfront or based on milestones achieved? Do you consider any other costs associated with starting a new venture?  

For example, if you're hiring someone new, do you need to pay them more than usual during their first few weeks at work because they've been transferred from another department temporarily while this project gets off the ground?  

What other costs might come into play during this phase of development? For example: what would happen if one investor backed out after signing on

FAQs: Ecommerce Business Plans

Who needs an ecommerce business plan.

An eCommerce business plan is a great way to understand the costs of starting an online store. You may not need a formalized business plan if you already have a website or blog. 

But if you don't have any existing clients or customers or have no idea what to expect when launching your e-commerce store, this will help you create a structure that can help guide your decisions along the way.

What are the benefits of creating a business plan?

The benefits include:

• Helping you make intelligent decisions by laying out all the details of your online store in one place;
• Creating a roadmap for your company from start to finish;
• Allowing you to analyze different options for building an online presence; and
• Providing you with an opportunity to find out what others are doing well and how those ideas might work for you.

How do I start an e-commerce business with no money?

E-commerce businesses are built using the internet, which has two parts: content and commerce. 

You need to create content, be it a blog or a website, and then figure out how to get people to buy your product or service. Content can be videos, images, music, etc. 

Is e-commerce a good business to start?

It is an excellent business to start, but only if you have the right experience and skills. 

What are the 6 major e-commerce business models?

The six major e-commerce business models are 

• Business to Consumer (B2C)
• Business to Business (B2B)
• Business to Government (B2G)
• Business to Business to Consumer (B2B2C)
• Consumer to Consumer (C2C)
• Consumer to Business (C2B)

Conclusion: Ecommerce Business Plans

Many e-commerce businesses are in the market since the internet has brought the world to one place. 

While some are doing great, most need help with the right eCommerce business plan for success. 

Developing an eCommerce business plan is a tricky task and must be done carefully. This blog is based on creating an eCommerce business plan template. 

You can find an eCommerce business plan template in this thread. It has many necessary sections, like the executive summary, marketing strategy, and sales forecasts. 

The blog has details about various sections to get a good idea of how to start your research, what to include, and important clauses on managing finances and budgets. 

Create Stunning Videos Easily

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Related articles

How to Build a Business Plan for Your Ecommerce Startup

Starting an ecommerce business can be an exciting time, but it can also be a bit overwhelming. You have a great idea, but how will you turn it into a successful business? This is where a business plan comes into play. It will guide you through each step of growing your business. It helps you understand who your customers are, how you'll reach them and how you'll manage your money. Plus, when you have a formal business plan, you're 260% more likely to get your business off the ground and see it grow .

1️⃣ Market Analysis

One of the first steps when building a business plan for your ecommerce start-up is understanding your market. You'll start by looking at market trends. This can look like researching the overall growth of ecommerce sales to see where the market is heading. For example, global ecommerce sales are projected to hit a whopping $6.33 trillion in 2024 . There's a big opportunity out there, but it also means you need to watch out for competition. 

Look at what others in your space are doing well and if there are any gaps for improvement that you can fill. This can help you find a unique angle and offer something different to stand out in the market. About 89% of consumers check online reviews before making a purchase . Take this time to understand how your competitors are being perceived -- this can help you pinpoint what your future customers value.

2️⃣ Products and Services

This is where you’ll highlight what makes your business unique. What are the products or services you offer? What sets them apart from your competition? Standing out from your competitors can help you attract your ideal customers and build strong brand loyalty. Customers will stick around longer to support your business when you offer something no one else is providing. By this point, you'll also know what matters most to your customers so you can show them how your business solves their problems. 

3️⃣ Marketing Plan

Next, you’ll be figuring out the main channels that will help you reach your target audience. These channels can include social media , email campaigns , SEO , or paid ads. About half of shoppers say they find new products while scrolling through social media , so if your audience spends a lot of time there, it’s a great place to start. The key is to choose the channels that your customers already use and trust so your message resonates with them in the places they’re most likely to engage.

4️⃣ Company Overview

This section is a quick snapshot of your business. Here, you will state your legal structure. Are you a limited liability company (LLC), corporation, sole proprietorship or partnership? Each comes with pros and cons; therefore, it's important to know exactly what each one involves to help you choose the one that sets your business up for success.

LLCs are often the best choice for ecommerce businesses since they offer a great balance between simplicity and protection. If you ever face legal issues, your personal savings and property are generally safe. In the company overview, you will also mention who owns the business and what your mission is. 

5️⃣ Operations & Financial Plan

Next, outline the key parts of your daily operations, like order fulfillment , customer service, and inventory management. These systems keep everything running smoothly, which helps keep your customers coming back .

Your financial plan should cover startup costs, expected revenue, and any funding needed for growth . Include how much money you'll need, where it will come from, and how you’ll use it. You could start an ecommerce business with as little as $500 to $1000 ; however, utilizing proper marketing and advertising will likely cost more. Planning for these expenses will give you a better chance at creating a successful and sustainable business.

6️⃣ Executive Summary

Lastly is the executive summary. This will be the first part of your business plan , but it's typically written last. This section is a quick overview of your business’s main goals, mission, and strategy. You'll highlight what your business aims to achieve, who your target market is, and the opportunity you're seizing. 

This is also the area to include a snapshot of your financial projections , like your expected revenue and funding needs , to give a clear picture of your business’s potential. Keep it short and focused! This is your chance to grab attention and show why your business is worth investing in.

Ready to Start?

When you build a business plan for your ecommerce startup, you know exactly what you’re offering and who you’re offering it to. You’ll have a better idea of who your competitors are and how you can stand out from the crowd. Take the time to get it right, and you’ll be ready to turn your great idea into a thriving ecommerce business.

As an experienced content and creative writer with over 3 years in the business, Paig Stafford has a knack for understanding and creating digestible content for technical and finance fields across early-stage technology start-up incubators to software companies to personal development applications. In her free time, she enjoys baking desserts and playing computer games

Trending content for ecommerce businesses

BUSINESS STRATEGIES

How to start an eCommerce business in 10 steps

• Amanda Bellucco Chatham
• 20 min read

Get started by:  Creating an online store →  |  Getting a domain →

Learning how to start an eCommerce business can be a complex endeavor. To put your business on the path to success, you need more than an idea; you need a plan. This post provides a step-by-step guide to the process of starting a business , from initial inspiration to the first online sale and beyond. 

Ready to start selling? Build your eCommerce website  with Wix.

As with any entrepreneurial venture, careful planning and preparation are essential to your success. Here are the steps to follow to get started with your own eCommerce business: 

Identify your online business niche

Do market research

Select the right product mix

Secure product sources

Write a strong business plan

Set your business name and legal structure

Choose an eCommerce platform

Create your online store

Manage your eCommerce business finances

Market your eCommerce business

01. Identify your online business niche

While it may seem counterintuitive, your chances of making it big in eCommerce are better when you start by thinking small—that is, when you start by defining a niche for your online business.

While it’s helpful to study the general trends, broad categories can be crowded with competitors. As one example, health and personal care is slated for growth to over 13% of the eCommerce market  through 2027 but trying to compete with major drug chains or beauty retailers can prove difficult (if not impossible) for new players.  

Instead of targeting a large, general market, target a niche market. For instance, you could start an eCommerce business that focuses on organic skin care for teens, with a selection of cleansers, moisturizers and sunscreen for acne-prone skin. Finding a product to sell is perhaps the most crucial part of starting an ecommerce business, so make sure to do your research.

It helps to have expertise in your chosen niche. You’ll spend a lot of time researching the right products or services to provide. You’ll dive into every detail of the business. And, at least at first, you’ll likely manage day-to-day operations, so you should be passionate about what your ecommerce business idea . 

Related reading: $300K in 7 days: building a million-dollar beauty subscription business  

02. Do market research

Once you’ve pinpointed an ecommerce business niche or idea, it’s time to research and evaluate your potential market. Not only will you learn more about your audience but you’ll also gather the quantifiable data you need to make revenue projections and calculate costs. To understand the market, consider these strategies:

Identify your audience type :   Are you catering to corporate professionals or individual consumers? The audience you have in mind will help determine th e type of business  you intend to operate. While many eCommerce businesses serve exclusively B2B or B2C customers, some sellers serve both. For example, a gourmet food seller that typically sells to individual consumers may offer corporate gifting services for the holidays. Or, an apparel retailer may provide customization options for bulk orders, enabling companies to print custom uniforms that include their logos. Get familiar with the main ecommerce KPIs before getting started.

Size your market : Build a profile of your ideal customer based on their demographics, geographic location, interests, spending habits and any other salient details. Then use that profile to guide your research into census and market data to arrive at realistic numbers. Your goal is to understand your potential customers better as you gauge the ultimate potential for growth for your eCommerce business. These benchmarks will also help you forecast revenue and demand as accurately as possible until you begin generating sales and have an earnings history to use as a guide.

Immerse yourself in the trade : Follow trade media and individual thought leaders in your chosen category and read up on overall eCommerce trends via publications. The Wix eCommerce Blog  is a great place to get started.

Study the competition : Dive deep into competitor websites, sign up for their email updates and track news coverage on your competitors. Pay attention to how they market themselves, both online and offline. If you can dig up financial reports or earnings, that information can guide your own forecasts and projections.

Ask your audience directly : Use surveys and polls to gather information from your potential customers. Hang out in relevant social media groups and forums and attend in-person events where potential customers congregate. 

03. Select the right product mix

Your niche and your target market will guide decisions about which products to sell or services to offer. Consider, for example, whether your audience would be receptive to curated kits or gift sets, and whether seasonality is a factor.

Price and profit margin are essential to consider, as they determine the potential for your business to scale. A break-even analysis will help you figure out how much of each product you need to sell to recoup your initial costs and begin making a profit. 

When selecting products to sell, you’ll want to consider factors like: 

Product life : Know your expected  product life cycle . This will help you create a multi-year plan for your eCommerce business. Some big-ticket items are built to last decades; buyers who ordered a sofa may not return to your site immediately, unless you offer complementary items. On the other end of the spectrum, replenishable goods like pet food or beauty supplies may inherently attract repeat purchases. For these, you may want to offer bulk discounts or start a subscription box business  to further encourage repeat business. 

Price expectations :   While offering a variety of price points can broaden your appeal with buyers, if your audience is used to purchasing luxury goods, then you may want to limit your selection to top-of-the-line offerings. If you’re a B2B seller, consider whether your corporate clients expect you to offer items in bulk at wholesale  prices. 

Cost of goods sold (COGS) :   As you select products, consider overhead costs and logistics , such as whether items require fancy packaging or “white-glove” delivery and installation. Digital products, by contrast, have no shipping or physical  procurement  requirements. You can calculate COGS with the following formula: beginning inventory + purchased inventory − ending inventory.

Once you have guidelines in place, dive into the specifics. If you need inspiration and want to see what’s trending, turn to competitor websites or search best-selling items on marketplaces like Amazon. Ecommerce tools like Google Trends and Algopix can also help identify hot products. Or, use your favorite SEO or keyword research tool, like Semrush, to find frequently searched products, validate a product concept and/or discover which brands are most frequently searched in your market.

04. Secure product sources and suppliers

Once you have specific items in mind, you’ll need to determine the right product sourcing method. Perhaps you create all of your products by hand and want to keep it that way. Or, maybe you’re interested in dropshipping with a platform like Modalyst , Wix’s native dropshipping solution.

Depending on your budget, resources and preferences, you have a few options to choose from when it comes to sourcing products:

Make goods by hand yourself : Quality is fully within your control, but it can be tricky to scale your business or keep up with high order volumes. 

Hire a manufacturer :   You source products from a third-party manufacturer but sell them under your brand name. Items are made to your specifications, and you retain control over production, pricing and branding. You can make goods efficiently in large quantities, but good communication with your production partner is essential to ensure quality is up to snuff.

Partner with name-brand manufacturers : If you seek products from specific manufacturers or designers, you can contract as an official reseller or dealer and offer those products through your eCommerce site. While your brand will get a boost from the affiliation, you’ll need to price items low enough to compete with other sellers, and some brands may have policies around a product’s minimum advertised price (MAP). Both can cut into margins. Retailers can also create their own branded merchandise via private label  lines in partnership with manufacturers, straddling the manufacturer/retailer divide. Costco’s Kirkland line or Amazon’s AmazonBasics are just two examples of this strategy.

Source from wholesalers : Wholesale suppliers offer catalogs of goods, often from multiple manufacturers. You can find inexpensive products to buy wholesale, which gives you leeway in pricing. On the flip side, products sourced overseas may bring additional delivery costs and tariffs as well as the expense of inventory and warehousing.

Work with dropship suppliers :   Dropshipping  shifts traditional retailer responsibilities to suppliers, enabling you to launch an eCommerce business with minimal upfront investment. You handle the marketing and choose your products, but incoming orders are routed directly to your suppliers, who are responsible for shipping items directly to your customers. You never have to buy and hold inventory, run a warehouse or ship items yourself. On the flip side, you have less control over product quality and delivery, putting your brand in a vulnerable position if suppliers slip up.  Ghost commerce  takes it a step further, where the supplier ships items, yet you maintain your brand’s image and handle customer relations.

It’s important to weigh your options when choosing a product sourcing method, and truly evaluate all of them carefully. Before you make a definitive decision, ask yourself the following questions:

Do you want to customize or brand your products? Because wholesale suppliers produce in bulk, it may be hard to tweak selections to match your criteria. As an intermediate option, some suppliers offer white labeling, which allows you to sell ready-made products with your logo and branding. And if you want to personalize products further, explore print on demand . This is a subset of dropshipping that allows you to offer custom designs on a selection of products created to your specifications as orders come in. 

How much capital do you have to invest in inventory ?   If you’re working with limited startup funds, dropshipping can be a more economical route for launching your brand. 

How complex are your warehousing and fulfillment needs?  If you offer recurring subscription shipments, corporate gifting services or bulk order capabilities, you may need to manage logistics yourself to ensure deliveries are accurate and on time. 

How do your competitors source their products?  While you don’t want to outright copy your competitors, research as much as you can about their processes to identify any potential differentiating advantages they have. Do they have exclusive dealer rights to brand-name merchandise you want to stock? Do they offer products sourced exclusively from sustainable suppliers? 

What is your backup plan if one of your suppliers has issues? Nearly four in 10 shoppers  have abandoned online purchases due to items being out of stock, so take proactive steps to avoid disappointing buyers. Find backup sources of widely available wholesale products, and cover contingencies in your contracts with suppliers. 

How will you scale  your business?  Manufacturing or making your own products gives you the greatest amount of control, but they also make it difficult to meet rising demand. You may need to contract with a new factory altogether, hire staff or find other expensive solutions. For a more flexible option, you may want to consider dropshipping or wholesaling. 

What are your audience’s expectations?  Buyers are prioritizing sustainability more and more. In fact, U.S. consumers are reportedly willing to pay an 11% premium  for products with reduced environmental impact. If your customers expect ethically sourced products, include those factors in your sourcing criteria.

05. Write a strong business plan to validate your idea

Document all the research and planning you’ve done up to this point with a formal eCommerce business plan . Not only does a business plan capture your work in a comprehensive and detailed format, but it also provides a touchstone for keeping your day-to-day operations focused on your mission. The strongest business plans keep teams aligned during launch and lay the foundation for attracting the right business partners and investors. 

While the individual components of a business plan can be tailored to your unique priorities, you should include the following elements to be sure the document is relevant and useful: 

Mission, description and unique selling proposition (USP) : Your business plan should outline the reason your company exists, summarize at a high level what it does and identify what sets your brand apart from others. This information helps you stake your claim in the marketplace and guides future decisions about priorities. In particular, it’s critical to flesh out your  unique selling proposition . Your USP guides your product positioning , helps you to stand out from the competition and identifies partners and consumers who share your values. For example, “plastic-negative” water company and Wix merchant  Mananalu  differentiates its products by supporting a larger cause. Mananalu water is packaged in refillable aluminum bottles, which are easier to recycle than plastic. In addition, each time a consumer buys a Mananalu water, the company pledges to remove a plastic bottle from the ocean waste stream. Shoppers can even buy further “plastic offsets” to support the company’s cause. Climate Neutral certification and “1% for the Planet” membership provide third-party credentials attesting to the company’s commitment to sustainability.

Market and SWOT analysis : Summarize your market research and describe your company’s position relative to the competition. Provide an analysis of strengths, weaknesses, opportunities and threats (SWOT) to pinpoint your areas of greatest potential growth. A realistic analysis will help maintain focus not only as you launch, but as you scale and add new offerings. 

Your offering :   Use your previous research and planning to create a detailed description of your products and/or services, product sourcing and pricing strategy. Describe how this offering aligns with your audience’s needs. In addition, describe your plans for customer service and order fulfillment as crucial components of the brand experience.

Marketing  plans : Describe how you plan to introduce your eCommerce business to your target audience, including which digital channels you’ll prioritize and which technologies you’ll rely on to execute marketing tactics.

Financial forecasts : Using your previous research, build a model forecasting expenses, revenues and growth. To ground your projections in reality, use real-life results from competitors or other businesses in your field. Consult trade publications and category experts for growth benchmarks and formulas to incorporate.

Funding sources : Describe how you’ll secure the startup resources you need, whether through your own savings, private equity, crowdfunding or investors. If you’re presenting your plan to potential funding sources, customize the information to explain the rationale behind your request and describe the benefits of funding your business.

06. Set your business name and legal structure

After you put your business plan together, you’ll need to set up the actual legal framework to support your business.

Start by picking a business name that reflects your brand identity and USP. If you need some inspiration, try researching popular search keywords, brainstorming names related to your niche or playing with different spelling variations. Wix’s free business name generator  can provide more ideas. As you narrow the list, check that the names are:

Easy to read, say, spell and remember

Search-friendly

Available as a website domain 

Not being used by another business (in the U.S., individual states maintain registries of businesses you can check)

Once you have your business name figured out, you’ll need a logo. You can create one yourself, work with a graphic designer or try out the Wix logo maker  for free.

Next, you’ll want to choose the right legal structure for your eCommerce company—a key step in starting a business  of any type. Your overarching business structure will define your liabilities, tax status and more.

Consult with legal professionals and accountants to determine whether a sole proprietorship ,  partnership ,  limited liability company (LLC)  or corporation  is right for you. In the U.S., you’ll also need to register your business and apply for a federal employer identification number (EIN) in order to pay taxes, open a business bank account or obtain financing. You can do this through the IRS’s website for free.

07. Choose an eCommerce platform

At this point, you’re ready to bring your brand to life through building your own ecommerce website . 

The first step is to choose the best eCommerce platform  for your needs. There are dozens of website builders on the market, so evaluate your options carefully. To ensure your eCommerce website development  goes smoothly, look for a platform that provides:

Professional aesthetics : Wix offers hundreds of specialized online store templates  you can customize to reflect your brand.

A domain name : You’ll need a domain name  of your own to match your business name.

Enterprise-grade security : Wix offers a secure infrastructure  with 24/7 security monitoring to protect against data breaches.

Top performance : It’s critical to have web hosting  with the capacity to support a speedy, high-performance site  on both mobile and desktop devices, even during peak sales periods.

Built-in analytics : Wix’s analytics dashboard helps you track key ecommerce metrics , such as website traffic  and generate historical performance reports.

Customizable shopping cart pages : A customizable shopping cart page  will ensure your branding and messaging are consistent throughout the purchase process.

Variety of checkout options : Flexible eCommerce checkout  options should support whichever payment method your customers prefer. Wix Payments is an integrated payment gateway system that can connect to in-store point-of-sale (POS) registers, too and allows you to accept payments on a website.

A content management system : A content management system  (CMS) should ideally support robust product information and brand-building features such as blogs, how-to articles and buying guides.

Back-office functionality : Look for integrated tools that help automate back-office functions, like bookkeeping and order fulfillment. Wix offers ecommerce tools for tasks like inventory management , invoice creation  and more.

A reasonable pricing model : Your platform’s pricing model should make sense financially for your business, both now and in the future. As you research, pay close attention to recurring fees and special surcharges so you understand the total cost. With Wix, you can build a website with eCommerce functionality for as little as $27 per month.

Get ready for launch. Sign up  for Wix today.

08. Create your online store

Regardless of which eCommerce platform you choose, it’s important to research the best practices for designing an online store . Knowing how to make a website  includes the following best practices:

Be clear about what you sell : Make it easy for customers to understand your business and products by using consistent design elements and language throughout the site. Avoid jargon-heavy or overly cutesy names for product categories and individual items; use accurate language that matches the search terms your audience enters. Once shoppers are ready to buy, don’t beat around the bush; use clear calls-to-action like “Shop Now” or “Buy Now.” 

Invest in high-quality imagery : A picture is worth a thousand words, and that’s especially true in eCommerce. Buyers can’t physically touch and try products, so photos and videos help convince them to have faith and click “Buy.” High-quality photos that clearly show details and features are essential, while videos demonstrate products in action and can be repurposed for social platforms like TikTok. 

Showcase user-generated content (UGC) : Buyers trust others like them to communicate authentically about products and services, so find ways to spotlight customer reviews, user-submitted photos and social media comments. The same holds true in the B2B world; 86% of businesses  consider verified reviews a critical factor in purchase decisions when deciding vendors.

Embrace mobile : Transactions on mobile devices already account for four in 10 online sales , and an even higher share of product research occurs on smartphones thanks to their “anywhere, anytime” availability. Your eCommerce site shouldn’t just be mobile-compatible. You should assume the majority of interactions with your brand will occur on the go. Make sure that pages load quickly even when wi-fi isn’t available, and that images render clearly on small screens.

Learn more:

eCommerce vs retail

09. Manage your eCommerce business finances

Once you’ve launched your eCommerce business, you need the tools to track sales, profit and growth. These eCommerce money management tips  offer best practices to ensure you have adequate cash flow from month to month and can keep your business humming along. 

Three things in particular are worth monitoring closely:

Plan for seasonality : Holidays, annual weather patterns and other cyclical influences can cause your income to spike and dive. For example, in the U.S., the final quarter of the year can account for more than 30%  of annual sales for some categories of retailers. Other cycles might be particular to your industry: if you offer bookkeeping or accounting services online, for example, your peak season might end on April 15, the filing deadline for personal income taxes. Accurate forecasting can help predict when sales will pour in so you can manage cash flow to cover leaner months.

Get a handle on fulfillment costs :   If your eCommerce business involves delivering physical goods, be prepared to spend 15% to 20% of net sales on fulfillment costs . Of course, if you provide a virtual service or a downloadable app or software product, you can avoid these costs altogether. If you use dropshippers to fulfill orders instead, you won’t carry those overhead costs yourself, but the suppliers will likely pass them on to you as part of your fees.

Guard against costly chargebacks and returns :   It’s estimated that 17.6% of all online sales are returned . Add in the cost of reverse logistics—where goods are returned to stock for resale or simply discarded—and you’ll want to prevent returns in the first place. Try to create detailed product pages that include fit and sizing guides, compatibility information and materials. In addition, bolster your customer service content to address common questions before purchase; communicate shipping timeframes so consumers don’t cancel orders in transit if they don’t arrive in time. Finally, set a return policy  you can actually afford.

Read more:   SMB online commerce  for acquiring banks and merchant acquirers.

10. Market your eCommerce business

Launching your online store is an achievement, but by no means can you “set it and forget it.” With so many eCommerce websites available, you need to promote your brand to attract new buyers and create incentives that keep customers coming back.

As you allocate your marketing budget to sell more products online , focus on the digital channels you know your audience uses. Follow these strategies: 

Personalize the shopping experience : Seven in 10 consumers  now expect personalized interactions with companies, and businesses meeting that expectation can boost their marketing return on investment (ROI) anywhere from 10-30%. Seek out tools that enable you to automate eCommerce personalization  in email campaigns, product recommendations and post-purchase promotions. For example, with Wix, you can add a “Best Sellers” or “Related Products” gallery  to your product pages.

Boost word-of-mouth buzz : Encouraging customers to create and share reviews is just the start when it comes to building word-of-mouth advocacy for your brand. Create promotions that reward customers for referring friends and family, and post share-worthy takes and exclusive offers on the social media networks that your customers use most. To further boost visibility on social media, consider working with micro-influencers. These personalities may not have millions of followers, but they have devoted audiences whose interests can align closely with your brand offering.  

Prioritize SEO : More than half of consumers  rely on search engines as their top tool for shopping research, so stay up-to-date on best practices for search engine optimization to give your brand the best possible chance at visibility. Develop rich content, optimize for mobile devices, maximize site speed and earn inbound links to improve your rankings. 

Build loyalty :   While it’s natural to devote attention to finding new customers during launch, you also need a plan for keeping the customers you already have. It’s less expensive to build a loyal following than to continually churn through one-time purchasers, and repeat customers tend to outspend new buyers . Consider creating a loyalty program that rewards buyers with perks and exclusive offers based on how much they spend.

Drive more sales with Wix eCommerce marketing .

What is an eCommerce business?

An eCommerce business is a company that sells products or services online. With an online store, you can serve customers around the world, and buyers can browse and make purchases at any time of the day. 

Ecommerce sales have increased faster than other retail businesses in recent years. In the third quarter of 2023, for example, the U.S. Department of Commerce reports that retail eCommerce sales grew 7.6% year over year  to $1.8 billion, compared with 2.3% growth in the overall retail sector. In the past 10 years, eCom merce has grown from 6% to more than 15% of all retail sales, according to the Department of Commerce.

Given this growth, it’s no wonder that merchants of all types now view eCommerce as an essential part of their business. The number of eCommerce websites worldwide nearly tripled   between 2019 and 2023 to 26.5 million.

It’s worth noting that while some eCommerce sellers operate exclusively online, others use their websites to enhance and complement offerings at physical store locations, manufacturing plants or offices. Business-to-consumer (B2C)  eCommerce serves individual retail shoppers, while business-to-business (B2B)  sellers offer products or services to other companies. 

What is an eCommerce website?

Types of eCommerce

Ecommerce advantages and disadvantages

How much does it cost to start an eCommerce business?

The cost of starting an eCommerce business depends on many factors, from the type of products you sell to the features you need to power your online store. But when all is said and done, you could spend anywhere from $5,000 to $50,000 .

That range may seem high—in fact, you may wonder if you could drop a zero from the lower end of the scale. Dropshipping can eliminate upfront inventory and fulfillment costs, and platforms such as Wix offer inexpensive eCommerce site hosting plans and design services. But even with this minimalist approach, you still may need to factor in costs for things like marketing, technology and software, legal and administrative fees, and more.

No matter how much startup capital you have at your disposal, it's important to do your research and plan carefully before starting an eCommerce business. This will help you avoid costly mistakes and increase your chances of success. The potential costs to consider include: 

Business formation and licensure : Setting up your business structure and governance, securing any required licenses and filing registration and tax paperwork can add up to several billable hours from legal and accounting professionals. 

Ecommerce platform : The technology behind your eCommerce website is all-important and should support integrated shipping, payments and marketing from one unified dashboard. Depending on the platform, each module may be priced separately, or you may be charged a single annual fee for all-in-one service.

Products : The upfront cost of your products will vary depending on what you're selling online  and which sourcing method you choose. If you hold inventory, add the overhead expense of storage or warehousing space.

Design, eCommerce photography and copywriting : As you set up your online store, you may wish to enlist professional help with the website design, product photos and written content. If you’re launching in more than one country, you may need to find translation services to ensure product copy is localized accurately.

Customer service : Responsive service is a must for building your brand’s reputation. Make a plan to personally handle incoming questions and requests or hire staff to ensure adequate coverage.

Logistics : If you want to handle order and ecommerce management yourself versus outsourcing to a dropshipper, you need to invest in packaging, staff to pick and pack orders, and contracts with freight carriers or third-party logistics providers to handle deliveries.

Marketing : Even if you don’t allocate budget to paid advertising, you’ll still need to invest hours into setting up social media accounts and optimizing your website for search engines.

Why start an eCommerce business in 2024?

U.S. eCommerce sales are expected to grow 10.5% year over year in 2024 , so there’s no time like the present to get started. Here are just a few reasons to start an eCommerce business this year:

The barriers to entry are (relatively) low :   While launching an eCommerce business successfully does take some initial investment, it’s far less expensive to build a brand online. In the past, shopping technology was prohibitively expensive and required a professional IT staff to manage.

You can earn a profit (relatively) quickly : While you won’t generate millions overnight, the relatively low startup costs and efficiencies of scale you can access via dropshipping means that you may be operating in the black within a year to 18 months. While the size of your profits depend in large part on your category and your wholesale product costs, relevant, high-quality products and superior service can help justify the higher prices that lead to bigger margins.

You can access rapidly-growing global markets : As much as the U.S. represents a huge eCommerce market, other parts of the world are seeing even more exponential growth—and you can sell to these nascent markets without needing a physical presence or local staff. While China is dominant in terms of eCommerce market size and penetration, countries that are potentially more accessible, such as Canada, Mexico and the U.K., are all top global targets to consider .

You can run your business your way :   As the world discovered during the COVID-19 pandemic, digital businesses can be managed remotely. You can route orders to dropshippers and respond to customer service queries on your own time, anywhere—a stark contrast with traditional retail, which tethers you to a store location and requires staff to serve customers during set hours. 

How profitable is an eCommerce business?

The profitability of an ecommerce business is dependent on many factors, including the type of industry and niche you choose. When trying to determine how profitable this business type might be, or how long it might take to reach profitability with an ecommerce business you'll need to consider the following:

Industry and niche

Different industries and niches have varying profit margins. For example, businesses selling high-value products or unique items with low competition, such as luxury or handmade goods, may have higher profit margins than those selling low-priced commodity items such as stationary for example.

Business model

The business model you choose, such as dropshipping, wholesale or manufacturing, directly impacts profitability. Dropshipping, for example, means lower overhead costs especially at the start but may mean lower profit margins. Manufacturing products requires more upfront investment but can also mean higher profit margins especially long term.

Operating costs

Keeping your operating costs low, including website fees, marketing expenses and shipping costs, is crucial for maximizing profitability with an ecommerce business.

Marketing and sales strategies

Effective marketing and sales strategies that drive traffic and conversions are essential for generating revenue from your online store. This also means controlling your Customer acquisition cost (CAC) - the cost of acquiring new customers should be lower than the lifetime value of a customer to ensure profitability. At the same time, increasing your average order value by offering product bundles, upselling or cross-selling can boost the profitability of your business. This also means focusing on customer retention and building strong customer relationships for repeat customers.

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Ecommerce Business Plan in 2023: What Is It and How to Create One?

Table of contents

The idea of starting a business has always been tempting to aspiring business owners, and Covid-19 has fueled the eCommerce trend to the next level.

However, starting a new business can be tough, and maintaining one is much more challenging. It’s not surprising that around 20.4 percent of new businesses had to close after their first year in operation, considering all the risks, challenges, and financial burdens involved in running a business.

So how to avoid business failure after only a short period, even when you believe your business idea is so great and one-of-a-kind in the online market? The secret lies in a solid eCommerce business plan with a clear description and strategy from the start.

In this article, we will guide you through everything you need to know about eCommerce business plan and how you can create a perfect one for your exceptional business idea today.      

What is an eCommerce business plan?

eCommerce business plan is a document that contains every detail contributing to the business’s success.

There is no standard format for an eCommerce business plan, but it normally covers a predefined set of goals and how businesses can achieve these goals by describing in detail business products or services, financial situation, operation model, and many other factors.

Why do you need an eCommerce business plan?

Traditionally, an eCommerce business plan helps investors evaluate your future business and its feasibility when you want to get a loan or raise funds. However, even if starting your online business doesn’t involve funding, creating a comprehensive eCommerce business plan is still essential to lay down the ground and draw a clear direction for your business to follow. 

• Better understand and plan your business 

Every business idea sounds brilliant at first glance, but many turn out to be a huge mistake or a huge debt once you make it into a real business.

No matter how you came up with your eCommerce idea, it’s essential that you thoroughly understand every aspect of it before jumping into the competition.

Drafting an eCommerce business plan is a perfect occasion to help you do that. While fulfilling and completing some documents might sound like a daunting task at first, researching and brainstorming can help you dig deeper into your business idea, plan for the future, and note down a list of what should be done step by step.   

• Identify resources

Once you are sure that your unique idea can turn into a profitable business, it’s time to gather the resources you need to run your business.

eCommerce business plan helps you identify your business’s financial situation and how you will allocate your human resources if you don’t want to run your business solo.

• Know your competitors

When making an eCommerce business plan, you have a great chance to do comprehensive research on the market, as well as other competitors selling the same product or sharing the same business niche. You can learn from their mistakes, advance your product or come up with some idea to compete with them once you are done with your business plan.                                       

Step by step to create an effective eCommerce business plan

1. executive summary.

If you are seeking investors, the executive summary is the most important part of the document as it summarizes your whole business idea and plan. It is also the last section you should write once you have thoroughly reviewed every element of your business plan. 

This part is often one page long, and it contains a high-level summary of your business, but don’t go into details yet. In this section, you might want to give an overview of your business idea, your plan and vision, and how this business is projected to develop soon. The executive summary should be concise enough for a casual reader to understand your business, and attractive enough for investors to keep reading your complete plan. 

In order to write a promising executive summary, here are some common statements you should include along with some examples we have taken from Liquid Culture’s business plan to help you get a better idea of how to write this section:

• Business concept

Liquid Culture will offer creative women’s outdoor clothing, online, that is both functional and beautiful.  

• Objectives and vision

Liquid Culture’s mission is to present consumers with designs, styling, and clothes that energize any outdoor activity. Whether it be snowboarding, running along the beach, or drifting down a river, Liquid Culture has comfortable, durable clothing that will look and feel wonderful.

• Target audience/market

Women’s outdoor wear has grown into a billion-dollar niche in the clothing industry. The popularity of the Internet has launched a number of online stores for women’s outdoor wear but no women’s outdoor company we know of is exclusively selling their products online yet.

• Marketing strategy

The key is amplified word of mouth via social media, with emphasis on content and opinion leaders related to outdoor fashion and women’s health and fitness sites .

• Current and projected financial state

Our projections here indicate we are generating unrealistically high cash balances. We leave that here for now, but with the certainty that actual results will emerge using a lot more expenses than what we project here.

• The team and key people

Larry Wilson and Maggie Granger, co-owners of Liquid Culture, have fifteen years of experience between them in the outdoor garment industry. Maggie has been a senior clothing designer for Manic Woman Clothing for the past seven years.  Larry has been the website administrator for South Face for the past eight years.

In case you are writing this eCommerce business plan for personal use only, you can skip this part since it’s all about summarizing what you have written.       

2. Business description

A business description provides an introduction of your business and dives into the details of everything about your company. In this section, you need to clarify why your business exists, what your plan is for the future, and what you hope to achieve with your business. Some components you should include to do so are:

– Business structure : 

A business structure refers to the legal structure that affects the day-to-day operations of a business.  There are four main business structures that are most common with businesses today. It’s noted that you can change your business structure later as your business grows and expands, though this might require some additional administrative steps.

• Sole proprietorship: This is the most straightforward form of business structure and the simplest to set up and manage, as it involves only one individual – normally the owner who is responsible for all business operations. This business structure is preferred by many new eCommerce startups and businesses with a low finance base and low risk of liability. 
• Partnership: A partnership is a business that contains two or more owners contributing to the company through many factors, such as funding, property, skill, or labor. They work together and share the profits from the company.
• Corporation: This is a complex and expensive business structure to set up since it separates the legal entity from its owners. Two main types of corporations are C-corporation and S-corporation. 
• Limited Liability Company (LLC): LLC is a hybrid business structure with the characteristics of partnerships and corporations.

– Business model: 

This is the company’s core framework for making a profit and delivering value to customers. Common eCommerce business model types are Business to consumers (B2C), Business to business (B2B), Consumer to consumer (C2C), and Consumer to business (C2B).  

– Mission: 

A mission statement defines your company’s purpose or answers the question of why your company exists. It contains one to two sentences and clearly emphasizes your passion and your inner motivation to start this business.

– Vision:

A vision statement helps your reader understand how you want your business to grow, scale, and evolve and how customers can travel with you on the road to success. Your vision statement can be longer than the mission statement, but try to keep it short and to the point. 

Honest Tea seeks to create and promote great-tasting, healthy, organic beverages. We strive to grow our business with the same honesty and integrity we use to craft our recipes, with sustainability and great taste for all. HonestTea ’s vision

– Background information:

How did you come up with that spectacular idea, and how has your business changed, and grown with you since day 1? A short yet realistic business biography is a practical weapon to gain trust and evoke readers’ emotions. 

– Business goal:

You should include a clear business goal in both short and long term, as well as how your business is projected to develop in the future. This section should include as many numbers, figures, and charts as possible. Try to establish goals that are S.M.A.R.T .: s pecific, m easurable, a ttainable, r ealistic, and t ime-bound. 

– Team and key people:

If you plan to run your business solo, probably this part can be left out. In case your business involves other people, you should list out their position in your company, such as company owner, CEO, manager, etc. 

When you are done writing your business description, you have gained a deeper understanding of your own business, especially some intangible facets like your business principles and cultures. 

3. Market research & analysis 

At this stage, you should be focused on analyzing the potential market. This is a key section of your plan as it helps you identify how big is your potential market, the estimated position of your business, and the competitiveness of this business segment as well. Market research helps you validate your eCommerce business idea and help you pick the right marketplace that can help your e-business not only survive but thrive as well. 

• Market opportunities

In order to create sales, choosing the proper market can surely be something you should think about first. Even when you have an excellent product idea, it’s possible that you might struggle to get sales if your market is not yet appropriate. Therefore, market analysis with solid data from reliable sources, such as government statistics, industry reports, and official business sector projection reveal roughly how big and potential your market is. By carefully analyzing these numbers, it’s possible that you can get a general overview of how the industry will grow or decline over the next few years, and make some guesses on the trend if possible.

For example, suppose your product or service is related to the tourism industry. In that case, there is a huge possibility that it will expand and grow in the next few years when Covid-19 has been contained, and the cross-border travel and tourism are more flexible.  

• SWOT analysis

A SWOT analysis identifies the most important factor of your eCommerce business – S trengths, W eaknesses, O pportunities, and T hreats. This kind of analysis helps you quickly look at factors that can affect your business positively and negatively, as well as the opportunities your business can seize when facing industry challenges. 

A SWOT analysis is often broken down into 4 boxes, and each box contains bullet points with the most relevant information, so don’t bother to write full sentences or paragraphs. While strengths and weaknesses are internal factors that come from within your eCommerce business, opportunities and threats rely more on external factors, such as market competitiveness or your competitors.  

• Competitive analysis

When you start your eCommerce business with a unique idea, it’s too easy to think that there will be no competitors on the market since no one has sold this item before. However, even when you enter the market without any direct competitors, keep in mind that there are many indirect ones – those that sell products that can substitute for your items. Therefore, never start a business without doing a thorough competitive analysis. This is essential in identifying the market’s leaders, determining their strategies and success, and what resources your business can utilize to take advantage of them.

Once you have identified all your competitors, list down some baseline for a deep competitive analysis:

• Company name
• Main offerings
• Primary sales channels
• Competition category

You can use this Free competitive analysis template from BigCommerce to keep an organized list of your direct and indirect competitors while making this analysis.   

4. Products and services

This section can be excluded if you believe your product information in the executive summary is enough to help readers visualize your product in detail. However, if you plan to present your eCommerce business plan to find investors, it’s essential that you provide a separate section to describe your products or services in greater detail. 

• Product description: Going into every aspect of your product and service, such as price, quality, and uniqueness if your business focuses on only one product or service. If you sell a wide range of items, include general information about each product. You can describe some future plans on how these products will be upgraded, or how new items on the same line can improve the profitability of the current ones.
• Product sourcing: Where are your products coming from? Do you make them with an in-house team? Are they handmade crafts? Or do you drop ship products from some suppliers ? 
• Life cycle: How long will your product last? Is it a seasonal or daily product? The product life cycle is essential to decide when and how often you will acquire new stock, and what you can do with the old ones. 

Language in this section should show confidence in your products and services because, after all, this is still the core of your eCommerce business idea. You can show off your expertise and experience in this field if you have some. 

5. Customer analysis

Analyze your customer groups to craft an ideal customer profile – the foundation of your marketing plan. Your ideal customer profile should be as specific and descriptive as possible, as many strategic decisions in your business operations will be made based on this profile. Building a customer profile, or buyer persona requires you to think carefully about some of the traits and details of potential customers so that you can divide them into demographic groups. Customer segmentation often includes:

• Their age range
• Neighborhood/ Where they live
• Education level
• Average income
• Behavior patterns
• Values and beliefs

You should gain as much information about your ideal customer as possible. Though this information range can vary greatly depending on your target market and products you sell,  keep the number of buyer persona you create to a minimum because it takes time to craft each persona, and building a customized marketing strategy for each one can cost a huge amount of money. Along with customer general information, you can note down some specific aspects that can hugely influence their decisions to purchase your product or service, or factors that help you build your eCommerce marketing plan better, such as:

• Preferred communication style
• Job responsibilities
• Their goals and objectives
• Their challenges
• Their pain points

HubSpot provides us with a free tool to create a buyer persona that is super easy to use and visualize. You can even download a comprehensive buyer persona’s guide and template here to utilize and access anytime.   

6. Marketing plan

As you have on your hands a great product idea and a detailed picture of your potential customers, an effective marketing plan will be the catalyst to kick off your online business. Your marketing plan is built in close association with your customer analysis and outlines your current strategy, as well as your future plans to expand the market. This is one of the most critical parts of your eCommerce business plan. 

If you find it hard to start as you have never run any marketing campaigns before, start with the basics. 

With any good or service, there are always 4Ps – or the Marketing Mix by Neil Borden that can help you identify key factors of your online business marketing campaign:

• Product: What are you selling and how your product or service can fulfill an existing customer demand?
• Price: How much does your product or service cost? Do you plan on offering some discounts to draw customers? 
• Place: Where will potential customers look for your product?
• Promotion: How will you make your product appealing to consumers?

After having a general idea of how your marketing plan will look like, you should dig deeper into each factor involved.

– Marketing channels : Which channels are you going to utilize to acquire, convert and retain customers? You should explain in detail how these channels are a great match for your plan. All marketing channels fall into two major categories, paid and organic marketing channels. 

• Social media marketing
• Content marketing
• Pay-per-click (PPC)
• Email marketing
• Video advertising
• Affiliate marketing

– Marketing tactics: Which strategy are you going to apply? This is essential to explain how these marketing strategies can go well with your marketing channels to generate massive leads for your business.  

=>> Read more: eCommerce Marketing: Best Practices to Drive Sales

– Marketing technology: Be sure to account for the investment into software and skills you may need to make. Marketing technology can go from eCommerce systems, to social media tools, to for instance CRM with email marketing . Luckily, you can start small and there are tools for each growth stage.

– Marketing goals and KPIs:  KPIs are quantifiable measurements that help evaluate the overall progress of a business. Establishing specific eCommerce KPIs for your marketing plan is essential to gauge the successes and shortcomings of your business over a period of time. Some key KPIs you should pay attention to are:

• Conversion rate
• Site traffic
• Traffic source

7. Logistics and operations 

This section focuses on the supply chain – how you deliver products from suppliers/manufacturers to your customers and plans on how you can prepare for some uncertainty related to logistics issues. If this eCommerce plan is for your own planning purposes, you don’t have to illustrate details in every section as if you are seeking investments. But you need to make solid decisions of many factors, from supplier, warehouse to shipping that impact your day-to-day business workflow. It might seem easy to manage when your business is just starting with a few orders per day, but once you receive massive leads and sales, your operation process should run smoothly and make sure you have everything under control.  

Your logistics and operations plan should cover the following:

• Facility: Where will your business operate? Do you plan to have your own physical locations, or does your business can function online? What equipment (computers, printer, camera, etc) will you need?
• Production: Will your products be produced in-house, or will you rely on a third-party manufacturing company? If you work with a dropshipping company, how long does it take to get your products? What is your plan for the busy holiday season? 
• Suppliers: Where are your products produced? Did you find the source to get the raw materials yet?
• Shipping and fulfillment: eCommerce fulfillment can be an issue if your online business handles a large volume of orders. So will you go with self-fulfillment, or will you use a third-party fulfillment partner? 
• Inventory management: How will you manage and track all your inventory? Do you plan on keeping stocks in-house, and where do you plan to keep them? 

We will calculate the cost later, but this section should be able to give you a solid foundation on your business operations, and which key factors will ultimately affect your budgets. 

8. Financial plan

Here comes the last part and also the backbone of your eCommerce business plan. Your business survival depends greatly on its financial health. Planning your finances is essential to anticipate expenses and profit margins, as well as have a clear view of how to manage your cash flow. If you are in search of investors, this part should contain the highest degree of detail as at the end of the day, everyone wants to work with a business having a foreseeable future. Normally, your financial plan has to include four main sections:

• Income statement

This part illustrates your revenues and expenses over a specific period of time – a month, a quarter, or a year, which helps readers see your company’s bottom line (your profit or loss) during that period. If your online business is not yet launched, you can place a forecast of the same information. 

• Balance sheet

A balance sheet helps you calculate the equity you have in this business. Your business assets (cash, stock, inventory, etc.) should be noted down one column. The other column is your liabilities (debts, accounts, and wages payable, current borrowing, share capital, etc.). If you subtract your liabilities from your assets, you will get your business’s shareholder equity.    

Equity = Assets – Liabilities

• Cash-flow statement

A cash-flow statement is like your income statement but happens in real-time. It indicates exactly when your revenue and expenses go out and come in. Keep a record of your company’s cash flow to adjust the way you do business when you have more money going out than coming in.    

• Financial projections

If your online business has operated for a while, it might be appropriate to include a financial projection. This one is the same as the cash-flow statement, but instead of focusing on your business finance during a specific past time, financial projections help you expect how much money comes into and out of your business during a specific time period in the future. This is a reliable indicator of whether your business can afford to pay off a loan. 

Making a financial plan can be painful and time-consuming, but it is a vital part of any eCommerce business plan. It decides how your business will thrive or go down in the future, so you should spend the most time on this task. You can refer to this financial plan example and template from Shopify when doing this task. 

eCommerce business plan templates

Even when you have learned by heart every section of an eCommerce business plan, creating your plan from scratch can be a daunting task. Therefore, we have collected for you the most easy-to-use yet still comprehensive templates to utilize. These templates offer step-by-step guidance in plain language to help you fulfill the whole template even when you haven’t learned anything about business before. Each template might contain different parts, but the core content is the same. You can either edit them on Google Docs or download a copy on Microsoft Word to edit offline.

• Business Plan Template by Shopify
• Business Plan Template by Hubspot
• Business Plan Template by Sage

eCommerce business plan examples

It’s possible to get lost when planning your eCommerce business, so you should stick with some plan examples and use them as references. Below are some of the best plan examples that we have collected for you from Bplans . Though all companies in these sample plans are made up, they still give you some ideas on how a real eCommerce business plan looks like:

• NoHassleReturn.com business plan sample
• Gaian Adventure Fabrics business plan sample
• Country Crockery business plan sample
• ExpectingU.com business plan sample

Common eCommerce business plan mistakes

Making an eCommerce business plan is the very first step before you start working on your business, so you should try to make it as good as you can.  There are some mistakes you should avoid when making your plan:

• Unrealistic plan: This is one of the most common mistakes you can make when creating your plan. Many aspiring business owners often overvalue their business ideas or underestimate how competitive the market can be. Therefore, try to create a plan that sounds possible with your ability and resources. You can adjust and refine your plan with your upgraded skills and experience as you learn more as an entrepreneur. 
• Missing financial planning: This is a big hole in any business plan if there isn’t a proper financial plan. The numbers are actually the most important part, as they will speak for your business idea and the market it can thrive in. Without calculations and projections, all your plans are considered unrealistic.    
• Bad business ideas: When you are fueled with a new idea, it always sounds great until you discover that the market doesn’t actually need it, or there is no market for you to sell your products. Therefore, in order to make sure you have come up with a sound business idea, it’s essential that you do some serious research, even before you start working on your business plan.  
• False assumptions: If you do not have enough information about the background and characteristics of potential customers, it’s easy to make false assumptions about them, which leads to an invalid business plan.  
• Unbalanced team: Having a great product is not enough to excel your business. A great team does. Many founders think they can handle everything by themselves while they actually lack skills related to business or administration, for example. Gathering a balanced team from the start can help your business plan work smoothly in operation.   

C reate your own eCommerce business plan today

Creating your own eCommerce business plan might require hours of brainstorming and research, but it gives you a comprehensive understanding of your own business and the market. Also, it helps identify clear steps on how to start your business and sets out a solid foundation for success. We hope that this article can help you and other aspiring business owners start working on the ideal plan for your dream eCommerce business today.   

How long should my eCommerce business plan be?

A business plan often ranges from 15 to 50 pages depending on your business situation and personal purposes. For instance, your plan can be around 15 pages if you write it for your own usage, while it can range up to 50 pages if you are trying to find an angel investor. Though there is no requirement for business plan length, it’s advisable that you keep it concise and focus on the most pivotal aspects. 

What is a good eCommerce business plan?

A good business plan should be able to go through all sections that we have mentioned in this blog with an easy-to-understand language. It should be filled with as many numbers and charts as possible, rather than assumptions and hypotheses only.  

How can I know if I need an eCommerce business plan?

A business plan is beneficial for everyone who is running or going to run a business. No matter if you are a start-up, or you have been running your business for a period of time, an eCommerce plan can give you an overview of your own business and discover aspects that need improvement. 

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

An eCommerce business plan shares the same structure as a business plan for other company types. However, the online business strategy and plan might differ greatly from a brick-and-mortar store. For instance, a traditional retail store has to take care of a physical store, while an eCommerce business focuses on its digital storefront – the website.   

Should I write an eCommerce business plan even if I don’t need funding?

Yes. As we have mentioned quite a lot during our article, you still need to write an eCommerce business plan even if it’s for personal purposes only. 

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9 Business Plan Examples to Inspire Your Own (2024)

Need support creating your business plan? Check out these business plan examples for inspiration and guidance.

Any aspiring entrepreneur researching how to start a business will likely be advised to write a business plan. But few resources provide business plan examples to really guide you through writing one of your own.

Here are some real-world and illustrative business plan examples to help you craft your business plan .

Business plan format: 9 examples

The business plan examples in this article follow this template:

• Executive summary
• Company description
• Market analysis
• Products and services
• Marketing plan
• Logistics and operations plan
• Financial plan
• Customer segmentation

1. Executive summary

Your executive summary is a page that gives a high-level overview of the rest of your business plan. While it appears at the beginning, it’s easiest to write this section last, as there are details further in the report you’ll need to include here.

In this free business plan template , the executive summary is four paragraphs and takes a little over half a page. It clearly and efficiently communicates what the business does and what it plans to do, including its business model and target customers.

2. Company description

You might repurpose your company description elsewhere, like on your About page , social media profile pages, or other properties that require a boilerplate description of your small business.

Soap brand ORRIS has a blurb on its About page that could easily be repurposed for the company description section of its business plan.

You can also go more in-depth with your company overview and include the following sections, like in this business plan example for Paw Print Post:

Business structure

This section outlines how you registered your business —as an LLC , sole proprietorship, corporation, or other business type : “Paw Print Post will operate as a sole proprietorship run by the owner, Jane Matthews.”

Nature of the business

“Paw Print Post sells unique, one-of-a-kind digitally printed cards that are customized with a pet’s unique paw prints.”

“Paw Print Post operates primarily in the pet industry and sells goods that could also be categorized as part of the greeting card industry.”

Background information

“Jane Matthews, the founder of Paw Print Post, has a long history in the pet industry and working with animals, and was recently trained as a graphic designer. She’s combining those two loves to capture a niche in the market: unique greeting cards customized with a pet’s paw prints, without needing to resort to the traditional (and messy) options of casting your pet’s prints in plaster or using pet-safe ink to have them stamp their ’signature.’”

Business objectives

“Jane will have Paw Print Post ready to launch at the Big Important Pet Expo in Toronto to get the word out among industry players and consumers alike. After two years in business, Jane aims to drive $150,000 in annual revenue from the sale of Paw Print Post’s signature greeting cards and to have expanded into two new product categories.”

“Jane Matthews is the sole full-time employee of Paw Print Post but hires contractors as needed to support her workflow and fill gaps in her skill set. Notably, Paw Print Post has a standing contract for five hours a week of virtual assistant support with Virtual Assistants Pro.”

Your mission statement may also make an appearance here. Passionfruit shares its mission statement on its company website, and it would also work well in its example business plan.

3. Market analysis

The market analysis consists of research about supply and demand , your target demographics, industry trends, and the competitive landscape. You might run a SWOT analysis and include that in your business plan. 

Here’s an example SWOT analysis for an online tailored-shirt business:

You’ll also want to do a competitive analysis as part of the market research component of your business plan. This will tell you which businesses you’re up against and give you ideas on how to differentiate your brand. A broad competitive analysis might include:

• Target customers
• Unique value proposition , or what sets the products apart
• Sales pitch
• Price points for products
• Shipping policy

4. Products and services

This section of your business plan describes your offerings—which products and services do you sell to your customers? Here’s an example for Paw Print Post that explains its line of custom greeting cards, along with details on what makes its products unique.

5. Marketing plan

It’s always a good idea to develop a marketing plan before you launch your business. Your marketing plan shows how you’ll get the word out about your business, and it’s an essential component of your business plan as well.

The Paw Print Post focuses on four Ps: price, product, promotion, and place. However, you can take a different approach with your marketing plan. Maybe you can pull from your existing marketing strategy , or maybe you break it down by the different marketing channels. Whatever approach you take, your marketing plan should describe how you intend to promote your business and offerings to potential customers.

6. Logistics and operations plan

The Paw Print Post example considered suppliers, production, facilities, equipment, shipping and fulfillment, and inventory. This includes any raw materials needed to produce the products.

7. Financial plan

The financial plan provides a breakdown of sales, revenue, profit, expenses, and other relevant financial metrics related to funding and profiting from your business.

Ecommerce brand Nature’s Candy’s financial plan breaks down predicted revenue, expenses, and net profit in graphs.

It then dives deeper into the financials to include:

• Funding needs
• Projected profit-and-loss statement
• Projected balance sheet
• Projected cash-flow statement

You can use a financial plan spreadsheet to build your own financial statements, including income statement, balance sheet, and cash-flow statement.

8. Customer segmentation

Customer segmentation means dividing your target market into groups based on specific characteristics. These characteristics can be demographics, psychographics, behavior, or geography. Your business plan will provide detailed information on each segment, like its size and growth potential, so you can show why they are valuable to your business. 

Airsign , an eco-friendly vacuum cleaner company, faced the challenge of building a sustainable business model in the competitive home appliance market. They identified three key customer personas to target:

• Design-oriented urban dwellers
• Millennials moving to suburbs
• Older consumers seeking high-quality appliances

The company utilized Shopify’s customer segmentation tools to gain insights and take action to target them. Airsign created targeted segments for specific marketing initiatives.

Put your customer data to work with Shopify’s customer segmentation

Shopify’s built-in segmentation tools help you discover insights about your customers, build segments as targeted as your marketing plans with filters based on your customers’ demographic and behavioral data, and drive sales with timely and personalized emails.

9. Appendix

The appendix provides in-depth data, research, or documentation that supports the claims and projections made in the main business plan. It includes things like market research, finance, résumés, product specs, and legal documents. 

Readers can access detailed info in the appendix, but the main plan stays focused and easy to read. Here’s an example from a fictional clothing brand called Bloom:

Appendix: Bloom Business Plan

Types of business plans, and what to include for each

This lean business plan is meant to be high level and easy to understand at a glance. You’ll want to include all of the same sections in one-page business plan, but make sure they’re truncated and summarized:

• Executive summary: truncated
• Market analysis: summarized
• Products and services: summarized
• Marketing plan: summarized
• Logistics and operations plan: summarized
• Financials: summarized

A startup business plan is for a new business. Typically, these plans are developed and shared to secure funding . As such, there’s a bigger focus on the financials, as well as on other sections that determine viability of your business idea—market research, for example:

• Market analysis: in-depth
• Financials: in-depth

Your internal business plan is meant to keep your team on the same page and aligned toward the same goal:

A strategic, or growth, business plan is a big-picture, long-term look at your business. As such, the forecasts tend to look further into the future, and growth and revenue goals may be higher. Essentially, you want to use all the sections you would in a normal business plan and build upon each:

• Market analysis: comprehensive outlook
• Products and services: for launch and expansion
• Marketing plan: comprehensive outlook
• Logistics and operations plan: comprehensive outlook
• Financials: comprehensive outlook

Feasibility

Your feasibility business plan is sort of a pre-business plan—many refer to it as simply a feasibility study. This plan essentially lays the groundwork and validates that it’s worth the effort to make a full business plan for your idea. As such, it’s mostly centered around research:

Nonprofit business plans are used to attract donors, grants, and partnerships. They focus on what their mission is, how they measure success, and how they get funded. You’ll want to include the following sections in addition to a traditional business plan:

• Organization description
• Need statement
• Programs and services
• Fundraising plan
• Partnerships and collaborations
• Impact measurement

Set yourself up for success as a business owner

Building a good business plan serves as a roadmap you can use for your ecommerce business at launch and as you reach each of your business goals. Business plans create accountability for entrepreneurs and synergy among teams, regardless of your business model .

Kickstart your ecommerce business and set yourself up for success with an intentional business planning process—and with the sample business plans above to guide your own path.

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Business plan examples FAQ

How do i write a simple business plan.

To write a simple business plan, begin with an executive summary that outlines your business and your plans. Follow this with sections detailing your company description, market analysis, organization and management structure, product or service, marketing and sales strategy, and financial projections. Each section should be concise and clearly illustrate your strategies and goals.

What is the best format to write a business plan?

The best business plan format presents your plan in a clear, organized manner, making it easier for potential investors to understand your business model and goals. Always begin with the executive summary and end with financial information or appendices for any additional data.

What are the 4 key elements of a business plan?

• Executive summary: A concise overview of the company’s mission, goals, target audience, and financial objectives.
• Business description: A description of the company’s purpose, operations, products and services, target markets, and competitive landscape.
• Market analysis: An analysis of the industry, market trends, potential customers, and competitors.
• Financial plan: A detailed description of the company’s financial forecasts and strategies.

What are the 3 main points of a business plan?

• Concept: Your concept should explain the purpose of your business and provide an overall summary of what you intend to accomplish.
• Contents: Your content should include details about the products and services you provide, your target market, and your competition.
• Cash flow: Your cash flow section should include information about your expected cash inflows and outflows, such as capital investments, operating costs, and revenue projections.

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The 7 best free website builders

• September 2, 2024
• by steven-austin

The 10 Best Free Website Builders in 2023

If you want to create an online presence, a website is essential. But hiring a professional web developer is out of reach for many small business budgets. That‘s where free website builders come to the rescue.

These DIY website creation platforms allow anyone to build a site with no coding required. Thanks to intuitive drag-and-drop editors and pre-made templates, you don‘t need design experience to craft a custom online space tailored to your needs.

I tested over a dozen top-rated free website builders hands-on, evaluating them across several key criteria:

• Ease of use: How intuitive is the interface for beginners vs. experts?
• Customization: What design tools and template options are available?
• Built-in SEO: Does the platform help optimize sites for search engines?
• Value of free plan: Are core features truly free or locked behind paywalls?
• Focus: Is website building the core offering or an add-on feature?

Based on my extensive testing, I recommend the 10 best free website builders below for all skill levels and use cases.

Best Free Website Builders

1. Google Sites – Best for basic websites like blogs and portfolios

2. Weebly – Best for simple, straightforward sites

3. GetResponse – Best for email-focused businesses

4. Wix – Best all-purpose website builder

5. Dorik – Best for semi-experienced creators wanting design freedom

6. HubSpot CMS – Best for growing small businesses

7. Webflow – Best for experienced designers

8. Site123 – Best for ecommerce sites

9. Strikingly – Best for one-page sites

10. Jimdo – Best for portfolios and online stores

Now let‘s explore the top recommendations in more detail.

1. Google Sites

With Google Sites, the tech giant enters the free website builder ring. As you‘d expect from Google, the editor feels instantly familiar. The workflow resembles Google Docs: build your pages in the browser, then access and share your site right from Google Drive.

Key Features:

• Choose from 12 templates or design your own responsive site
• Easily embed Google apps like Maps, YouTube, and Calendar
• Collaborate with teammates to build and manage your site
• Personal portfolios
• Small business sites
• Internal team sites
• Extremely easy to use
• Deep integration with other Google services
• Completely free with unlimited storage and bandwidth
• Very limited design customization options
• No built-in SEO settings aside from page paths

If you want an ultra-simple site and already live in Google‘s ecosystem, their official website builder is tough to beat—especially given the free price tag. But expect minimal customization capabilities.

Used by over 50 million people worldwide, Weebly is a popular choice for free website building. It shines when it comes to ease of use thanks to an intuitive drag-and-drop editor.

• 100+ professional templates
• Easy drag-and-drop editor
• Mobile optimization tools
• Built-in SEO settings
• Personal sites
• Extremely easy to edit pages visually
• Quality templates for blogs, stores, portfolios, and more
• Less design flexibility than Wix or Webflow

For straightforward sites like online portfolios, Weebly empowers beginners to build a polished online presence with minimal effort. While more advanced users may crave more customization capabilities, it nails the basics.

3. GetResponse

GetResponse may seem like an odd inclusion given it‘s primarily an email marketing platform. But its free website builder stands toe-to-toe with many dedicated site creation tools.

• AI-powered builder customizes sites as you edit
• Mobile editor to optimize sites for any device
• Email capture and newsletter sign up forms
• Basic SEO settings
• Businesses focused on email marketing and lead gen
• Powerful free website building capabilities
• Deep email marketing integrations
• Fairly basic SEO options

For solopreneurs and small teams who rely on email, GetResponse allows you to gather contacts and promote your newsletter straight from your site—all without paying a dime.

Boasting over 200 million users, Wix remains the standard-bearer for free website builders. It earns such popularity by packing an incredible amount of capability into its free tier.

• 500+ designer-made templates
• Drag-and-drop editor with extensive customization options
• Built-in image and video galleries
• SEO app and site analytics
• All-in-one website building
• Sites of any type and complexity
• Extremely customizable without coding
• Asset libraries for images, videos, fonts, and more
• Generous free plan
• Interface has a learning curve for beginners

Whether you‘re showcasing travel photography or launching a small business online, Wix empowers you to realize your web design ambitions without spending a dime. Novices may face a few hurdles scaling the learning curve, but the payoff is immense creative control.

Dorik differentiates itself from other DIY website builders through AI assistance. As you customize design aspects like color schemes, it suggests complementary changes to match your vision.

• AI assistant for design suggestions
• Custom brand kit builder
• Easy own domain connection
• Built-in analytics
• Beginner and intermediate designers
• Brand-forward sites and online portfolios
• AI guidance makes design approachable
• Brand kit builder defines visual identity
• Domain purchase/connection included free
• Less structure than Wix or Webflow

Dorik strikes an ideal balance between customization and ease of use. While not packing as many complex capabilities as some builders, its AI assistant empowers users of any skill level to craft beautiful, on-brand sites.

6. HubSpot CMS

Well-known for its inbound marketing platform, HubSpot also offers a free CMS for building sites. And the quality flies in the face of “you get what you pay for.”

• Flexible framework grows with your business
• Integrates neatly with other HubSpot tools
• Built-in form and pop-up builder
• SEO recommendations
• Businesses outgrowing beginner site builders
• Creates sites primed for scaling
• Lets you build more complex funnels and landing pages
• Trusted brand used by 100,000+ businesses
• Steeper learning curve than Wix or Weebly

If you’ve maxed out the basics of website builders like Wix, HubSpot CMS empowers the next stage of growth with powerful marketing tools baked in.

While not the most beginner-friendly tool, Webflow offers pro-caliber site building capabilities—and brand-new users can join for free.

• Complex animations and interactions
• Extensive design customization
• Built-in CMS for managing site content
• SEO metadata customization
• Experienced website designers
• Sites with advanced functionality
• Professional-quality web design
• Granular control over site elements
• Generous free plan option
• Steeper learning curve than other builders

Webflow delivers almost unprecedented creative control, helping expert users craft complex, interactive sites for free. But expect to invest serious effort mastering its vast toolset.

Site123 differentiates itself by specializing in ecommerce sites for small businesses plus packing expansive customization into its free plan.

• 100+ industry-specific templates
• Built-in online store capabilities
• Email marketing integration
• SEO optimization
• Online stores and ecommerce sites
• Specialized ecommerce design and features
• Custom domains and email included free
• Less all-purpose than some competitors

For fledgling online retail endeavors, Site123 helps you get the basics of ecommerce websites and marketing in place without spending a cent.

9. Strikingly

Strikingly adopts a boldly minimalist approach. As its name suggests, the Strikingly editor lets you publish stylish one-page sites in minutes.

• Tailored one-page site templates
• Simple and distraction-free editing
• Built-in SEO suggestions
• Site analytics dashboard
• One-page portfolios
• Landing pages
• Create basic one-page sites with incredible ease
• Interface prioritizes clarity and simplicity
• Geared exclusively toward one-page designs

Sometimes less truly is more. For compact, focused sites promoting your work, passion projects, or personal brand, Strikingly is my top recommendation thanks to its purpose-built simplicity.

Last up is Jimdo, which stands out for blending ease of use with powerful ecommerce capabilities…even for free members.

• Drag-and-drop store builder
• List unlimited products
• iPad & iPhone app for editing
• SEO features like metadata customization
• Small online stores
• Portfolios with online sales
• Hybrid online retail sites
• Intuitive, beginner-friendly interface
• Robust free ecommerce and blogging builder
• Some useful features require paid tiers

Jimdo strikes an admirable balance: offering beginners a streamlined editing experience while packing in advanced functionality like online selling—capabilities typically reserved for premium site building platforms.

Find the Best Website Builder for You

All the user-friendly website creation platforms above allow you to make a custom, mobile-friendly site for free. Each takes a slightly different approach, but nails the basics of fuss-free DIY web design.

I aimed to showcase a diversity of options fit for complete beginners and expert users alike. The builders toward the top boast the greatest ease of use, while the bottom pack more complex but powerful features.

Review the list to decide which platform best aligns with your skill level and site needs. Fortunately, committing to a specific free website builder doesn‘t lock you in forever. If you outgrow your initial choice, you can easily export your content to transfer to another option later.

Here‘s wishing you the best of luck bringing your web presence vision to life. Let me know in the comments if you have any favorite free website builder discoveries of your own!

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