example ecommerce business plan

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

Published: April 03, 2024

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

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

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

What is an e-commerce business plan?

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

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

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

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

Free Business Plan Template

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

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

How to Write an Ecommerce Business Plan

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

1. Give an executive summary.

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

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How to Make an Ecommerce Business Plan for Your Startup

Darren DeMatas

August 21, 2024

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

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

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

Why You Should Create a Business Plan

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

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

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

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

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

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

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

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

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

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

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

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

How to Start an Ecommerce Business Plan

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

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

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

What are you selling?

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

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

Who are you selling to?

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

How are you sourcing your product?

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

Additional References

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

Executive Summary

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

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

Business Model

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

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

Monetization Strategy

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

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

Product/Industry

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

For example, “Vegan Skincare Products.”

Target Market

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

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

Sales Channel

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

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

Business Overview

This next section covers your company overview.

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

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

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

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

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

Company Type

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

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

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

Domain Name

This section is where you list your domain name.

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

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

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

Value Proposition

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

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

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

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

Pay special attention to all the sensory words !

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

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

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

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

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

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

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

Brand Traits

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

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

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

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

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

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

Competitive Market Analysis

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

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

Market Segment

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

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

Niche Selection

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

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

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

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

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

Competitive Analysis

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

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

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

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

Industry reports

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

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

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

Here’s an example:

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

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

Competition

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

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

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

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

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

Keyword Research

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

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

Trade shows

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

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

General Industry

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

Products and Offers

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

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

Different types of products

Some of the different types of products include the following:

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

The various types of niches include the following:

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

Existing products

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

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

Future product pipeline

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

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

These product offerings will include the following:

• Core product

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

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

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

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

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

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

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

Marketing Plan and Operations

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

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

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

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

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

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

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

Paid Marketing

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

Organic Marketing

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

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

How much should you spend to acquire a customer?

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

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

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

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

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

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

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

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

Choosing The Right Technology

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

Some of the different elements include:

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

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

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

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

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

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

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

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

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

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

Financial Plan

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

What are the key elements of an ecommerce business plan?

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

How do I create a budget for my ecommerce business?

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

How do I find the right product to sell?

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

How can I differentiate my product from competitors?

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

Wrapping Up Your Business Plan

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

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

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

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How To 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.

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

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

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

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

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

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

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

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

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

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

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

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

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

But first, let’s begin with the fundamentals.

What is an Ecommerce Business Plan?

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

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

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

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

Why Do You Need An Ecommerce Business Plan?

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

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

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

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

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

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

How To Create The Perfect Ecommerce Business Plan

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

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

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Step 1: Draft an executive summary

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

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

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

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

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

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

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

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

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

Tips for an effective executive summary:

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

Step 2: Company description

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

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

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

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

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

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

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

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

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

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Step 3: Describe your products and services

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

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

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

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

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

Step 4: Conduct market analysis

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

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

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

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

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

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

This brings us to marketing.

Components of a strong market analysis:

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

Step 5: Draft your marketing plan

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

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

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

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

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

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

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

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

Step 6: Define sales and customer service processes

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

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

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

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

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

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

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

Step 7: Create a supply chain strategy

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

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

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

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

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

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

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

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

Step 8: Identify legal frameworks

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

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

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

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

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

Step 9: Define financial requirements

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

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

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

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

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

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

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

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

This helps potential investors conduct a cost-benefit analysis.

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

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

With this section, you conclude your ecommerce business plan.

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

Start on the Right Foot With The Best Ecommerce Platform

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

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

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

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

Use The Ecommerce Business Plan to Guide Your Actions

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

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

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

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

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

Ecommerce Business Plan FAQs

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

Is ecommerce a profitable business?

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

Do I need a business plan for an ecommerce business?

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

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How to Write E-commerce Business Plan + Template

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

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

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

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

Key Takeaways

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

Why do you need an Ecommerce business plan?

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

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

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

Key components of an ecommerce business plan

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

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

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

How to Write an Ecommerce Business Plan: A Complete Guide

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

1. Get an Ecommerce business plan template

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

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

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

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

Need Assistance Writing a Ecommerce Business Plan?

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

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

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

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

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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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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• 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.

e-Sign with PandaDoc

Prepared by:

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

​ [Sender.Title] [Sender.Company] ​

​ [Sender.Phone] [Sender.Email] ​

Business Overview

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

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

Products and Services

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

Website Design

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

About section explaining the company's mission

Database of products

Shopping cart system

Help and FAQ pages

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

Management Team

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

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

Industry Analysis

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

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

Customer Analysis

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

The demographics of these customers are as follows:

The average income of $XX, XXX

XX% work in (industry)

XX% (married/single)

The median age of XX years

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

Competitor Analysis

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

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

Competitive Advantage

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

There are a limited number of competitors.

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

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

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

Marketing Strategy

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

Brand Strategy

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

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

Promotional Strategy

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

Pricing Strategy

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

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

Operational Plan

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

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

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

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

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

Financial Projections

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

Specifically, these funds will be used as follows:

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

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

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

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Your rating will help others.

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Useful resources

• Featured Templates
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Ecommerce Business Plan

Written by Dave Lavinsky

Ecommerce Business Plan Template

Whether you are planning to start a new ecommerce business or grow your existing ecommerce business, you’ve come to the right place to write an ecommerce business plan.

We have helped over 10,000 entrepreneurs and business owners create ecommerce business plans and many have used them to start or grow their own ecommerce businesses.

Sample Ecommerce Business Plan

Below is a sample of each of the key elements of an ecommerce business plan template to help you write your own business plan:

Executive Summary

Business overview.

TrendyFit.com is a startup ecommerce store that sells fitness clothes and accessories for the young, trendy, and stylish individual who enjoys working out and staying fit. The clothes are unique and designed to fit the latest trends of the most popular online YouTube or TikTok celebrities, yet functional and comfortable for working out at the gym or just hanging out. All products are made in the United States, are made with the highest quality fabric, and come with a money-back customer guarantee if the fit or style doesn’t satisfy the customer. TrendyFit.com is sold exclusively online; no retailers will be carrying any TrendyFit.com products.

TrendyFit.com is owned by Devon Ming. Devon will utilize a dropshipping company to receive all orders placed on TrendyFit.com, fulfill the order, and ship directly to the consumers. Devon will also employ a team of three creative designers to develop the website and social media presence by utilizing targeted social media ads and will recruit social media influencers as brand ambassadors. Devon will also employ a team of two customer service representatives to ensure complete customer satisfaction.

Product Offering

The following are the services to be offered by TrendyFit.com:

• Fitness clothing
• Fitness accessories such as socks, headbands, and wrist wraps
• Foam rollers

Customer Focus

TrendyFit.com will target all fitness enthusiasts and trendsetters in the United States and internationally. The target market will be social media savvy and spend a large portion of their day browsing through their social media sites. The ideal customer will be young, either in high school or college, a working professional, or a gym rat who frequents the trendiest fitness gyms and establishments.

Management Team

Devon Ming is a graduate of Harvard University’s Business School and after graduation, has spent the last three years developing the brand image, vision, and researching products for TrendyFit.com. Devon wanted to utilize his Master’s degree in Business Strategy & Marketing, and has devoted all of his time and energy into launching his ecommerce store.

As CEO of TrendyFit.com, Devon will oversee the strategy and development of the company. He will be in constant communication with the dropshipper, creative team, and customer service representatives. He will also focus on strategic growth and the long term vision of the company.

Success Factors

TrendyFit.com is primed for success by offering the following competitive advantages:

• Most cost-effective trendy fitness apparel option compared to competition.
• Trendiest and most innovative fitness fashion designs available anywhere.
• 100% customer satisfaction money back guarantee with every product sold.
• A portion of all proceeds will go towards socially-conscious causes and non-profit charities.

Financial Highlights

TrendyFit.com is seeking $200,000 in debt financing to launch TrendyFit.com. The funding will be dedicated for the down payment with the dropshipping company, three months of payroll expenses for the creative team and customer service representatives, and any business licensing necessary. There will also be funding dedicated to the social media campaign and website development. The breakout of the funding is below:

• Dropshipper Good Faith Down Payment: $50,000
• Payroll Expenses for Creative Team and Customer Service Reps (3 mos): $60,000
• Social Media Campaign & Website Development: $80,000
• Contingency and any necessary licensing: $10,000

The following graph below outlines the pro forma financial projections for TrendyFit.com.

Company Overview

Who is trendyfit.com.

TrendyFit.com is a startup ecommerce store that sells fitness clothes and accessories for the young, trendy, and stylish individual who enjoys working out and staying fit. The clothes are unique and designed to fit the latest trends of the most popular online YouTube or TikTok celebrities, yet functional and comfortable for working out at the gym or just hanging out. All products are made in the United States and come with a money-back customer guarantee if the fit or style doesn’t satisfy the customer. TrendyFit.com is sold exclusively online; no retailers will be carrying any TrendyFit.com products.

TrendyFit.com is owned by CEO Devon Ming and will be sold exclusively through a dropshipper that has agreed to fulfill all product orders placed by TrendyFit.com and ship within the continental United States in 2-3 business days and within one week to anywhere outside of the continental United States. Devon has placed his pricing model to be competitive with other popular online fitness clothing retailers, but more affordable as the base of his customers will be young and not have as much disposable income as other individuals outside of the target market.

TrendyFit.com History

Devon Ming has spent the last three years developing the brand image, vision, and researching products for TrendyFit.com. After graduating from college with a Master’s degree in Business Strategy & Marketing, Devon has devoted all of his time and energy into launching his ecommerce store.

Since incorporation, TrendyFit.com has achieved the following milestones:

• Registered the domain name TrendyFit.com.
• Developed the brand image, logo, and mission statement for TrendyFit.com.
• Signed a dropshipping agreement with the company who will manufacture, fulfill order, and ship all items sold on TrendyFit.com.
• Began a social media campaign to develop hype for the upcoming brand.

TrendyFit.com Products

TrendyFit.com will offer the following ecommerce products:

Industry Analysis

As a result of a significant shift from traditional retail to online retail, the E-Commerce industry is expected to grow to over $835 billion in the next five years.  Data shows that consumers prefer the convenience of finding, comparing and purchasing products online easily and quickly.

The industry’s main drivers include faster internet speeds,  an increase in mobile internet connections, accelerating per capita disposable income growth and the continued surge in internet traffic volume.

Strong economic conditions will also aid retailers that purchase inventory from overseas, while revenue growth and wage growth are expected to continue their strong trajectory over the next five years as technology continues to boost worker productivity.

The greatest opportunity for growth will come from product categories that were traditionally dominated by brick-and-mortar shopping, including groceries, major appliance products and clothing.

Customer Analysis

Demographic profile of target market.

Customer Segments

TrendyFit.com will primarily target the following customer profiles:

• High school students
• College students
• Young working professionals
• Fitness enthusiasts
• Trendsetters who focus on the fitness industry

Competitive Analysis

TrendyFit.com will face competition from other ecommerce businesses with a similar company profile. A summary of the competitor companies is below.

Direct and Indirect Competitors

Nike is a popular consumer products company that designs, develops, and markets their product line of footwear, apparel, equipment, and accessory products worldwide. It designs athletic, casual, and leisure footwear for men, women, and children. Nike’s footwear products include running, training, basketball, football, soccer, sport-inspired urban shoes, and children’s shoes. Nike, named for the greek goddess of Victory, also markets sports-inspired products for children and various competitive and recreational activities. Nike also sells sportswear under the Converse brand. The company, which generates some 60% of sales outside the US, sells through more than 1,090-owned retail stores worldwide and an e-commerce site, and to thousands of retail accounts, independent distributors, licensees and sales representatives. Customers in North America account for about 40% of total revenue.

Nike is headquartered in Beaverton, Oregon and was initially founded as Blue Ribbon Sports in 1962. The company rebranded as Nike in 1972 and the company went public in 1980.

Under Armour

Under Armour makes performance clothes for doing battle on the sports field and in the gym. The company offered collegiate, National Football League (“NFL”) and National Basketball Association (“NBA”) apparel and accessories, baby and youth apparel, team uniforms, socks, water bottles, eyewear and other specific hard goods equipment that feature performance advantages and functionality similar to our other product offerings. The company also makes technology that helps customers track their fitness. It sells online, by catalog, and through retail and outlet stores worldwide. Under Armour operates worldwide but generates most of its revenue in North America.

Under Armour’s marketing and promotion strategy begins with providing and selling their products to high-performing athletes and teams at the high school, collegiate and professional levels. They execute this strategy through outfitting agreements, professional, club, and collegiate sponsorship, individual athlete and influencer agreements and by providing and selling their products directly to team equipment managers and to individual athletes.

Under Armour was founded in Washington, DC, in 1996 and moved to Baltimore, Maryland, two years later. It promoted apparel specifically for athletes, fabric designed to keep them cool when it is hot and keep them warm when it is cold. It continued focusing on the sports world, inking supplier or licensing deals with the NHL, MLB, and USA Baseball in the early 2000s. Under Armour went public in 2005. The following year the company moved into footwear with a line of football cleats; it eventually became the official footwear supplier to the NFL.

Lululemon athletica inc. is a designer, distributor and retailer of lifestyle inspired athletic apparel and accessories. The Company’s segments include Company-operated stores and direct to consumer. Its apparel assortment includes items such as pants, shorts, tops, and jackets designed for a healthy lifestyle including athletic activities such as yoga, running, training, and other sweaty pursuits. It also offers fitness-related accessories. Its direct to consumer segment includes electronic commerce website www.lululemon.com, other country and region-specific websites, and mobile applications, including mobile applications on in-store devices. Its Company-operated stores include approximately 491 stores. Its Company-operated stores are branded lululemon and Ivivva. The Ivivva branded stores specializes in athletic wear for female youth. It also offers weekly live classes, on-demand workouts and one-on-one personal training through its subsidiary.

Competitive Advantage

TrendyFit.com will be able to offer the following competitive advantages over their competition:

Marketing Plan

Brand & value proposition.

TrendyFit.com will offer the unique value proposition to its clientele:

• All materials are made in the United States and made with the highest quality material.

Promotions Strategy

The promotions strategy for TrendyFit.com is as follows:

Social Media

TrendyFit.com will blow up social media sites with targeted ads and TrendyFit.com will be seen on all major social media sites (Facebook, Instagram, Twitter, YouTube, TikTok, SnapChat, etc.). A large portion of the funding will go towards purchasing targeted ads and having a creative team to develop the social media advertising.

Website & SEO Marketing

Devon’s creative team will also develop a professionally designed and visually appealing website to gear customers to when they click on the social media ad. The website will have a gallery of all the available products, shipping information, return information, FAQ’s, etc. The SEO will also be managed to ensure that anyone searching “trendy fitness apparel” or “trendy clothes for young adults”, will see TrendyFit.com listed at the top of the Bing or Google search engine.

Brand Ambassadors

TrendyFit.com will recruit a team of social media influencers who have over 100k followers on at least one social media site. By having the brand ambassadors post of TrendyFit.com and wear the clothing, TrendyFit.com will gain a massive amount of followers because one of their favorite internet celebrities is wearing the brand. The brand ambassadors will include a code in their post and will be paid a portion of revenue for whomever purchases from TrendyFit.com using that code.

Pricing Strategy

The pricing of TrendyFit.com will be moderate and on par with competitors so customers feel they receive value when purchasing its products.

Operations Plan

The following will be the operations plan of TrendyFit.com.

Operation Functions:

• Devon Ming will be Owner and CEO of TrendyFit.com. He will be in charge of strategy, growth, product design, and dropshipper communication.
• Two Customer Service Representatives to answer customer calls, emails, returns, and any other customer issues.
• Team of three Creative Designers to develop the website, social media posts, photography, SEO, and targeted ad campaigns on social media sites.
• TrendyFit.com will have an agreement in place with a dropshipper who will fulfill all product orders and ship them directly to the consumer. TrendyFit.com will not have its own warehouse, all product inventory and shipping will go through the dropshipper.

Milestones:

TrendyFit.com will have the following milestones completed in the next six months.

6/1/202X – Finalize agreement with dropshipping company for them to receive orders directly from TrendyFit.com website, fulfill them, and ship straight to consumers.

6/10/202X – Hire team of Creative Designers to begin design work on the TrendyFit.com website and social media platforms.

7/15/202X – Begin social media campaign for TrendyFit.com.

8/1/202X – Recruit team of brand ambassadors.

8/15/202X – Hire team of Customer Service Representatives.

9/1/202X – TrendyFit.com website officially launches and goes live. Customers are now able to place orders on TrendyFit.com.

Devon Ming will be the Owner and CEO of TrendyFit.com.

Devon Ming, Owner

Devon Ming is a native of San Jose, California and attended college in Cambridge, Massachusetts at Harvard University. After subsequently being accepted into Harvard’s prestigious business school and graduating, Devon spent the next three years developing the brand image, vision, and researching products for TrendyFit.com. Devon wanted to utilize his Master’s degree in Business Strategy & Marketing, and has devoted all of his time and energy into launching his ecommerce store.

As CEO of TrendyFit.com, Devon will oversee the strategy and development of the company. He will be in constant communication with the dropshipper, creative team, and customer service representatives. He values the customer service representatives as much as the rest of the team because he wants to get involved on customer feedback and any issues they are having. He can then implement those issues and feedback to the creative team and adjust product design if necessary. He will also ensure complete customer satisfaction and make sure the dropshipper is aware of any customer issues with product packaging and delivery.

As TrendyFit.com becomes more and more popular, Devon will be prepared for growth and hire a CFO when necessary and when the company is able to afford to do so. When the company is primed for growth and its dominance in the market is made, Devon and future CFO will strategize on a plan to take the company public.

Financial Plan

Key revenue & costs.

The revenue drivers for TrendyFit.com will be the revenue obtained from all products sold on TrendyFit.com.

The cost drivers will be the cost to maintain the dropshipper per the contract. The dropshipper will receive fees on all products it fulfills and ships. Other cost drivers will be the salaries for the creative team and customer service representatives. Lastly, other cost drivers will be the costs for purchasing targeted ads on various social media sites and maintaining the website.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Number of Initial Visitors to TrendyFit.com per Month: 1,000
• Revenue per Month: $50,000

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Free Business Plan Template PDF for an E-commerce Business

You can download our free e-commerce business plan template PDF here . This is a business plan template you can use in PDF format. You can easily complete your ecommerce business plan using our Ecommerce Business Plan Template here .

Ecommerce Business Plan FAQs

What is an ecommerce business plan.

An e-commerce business plan is a plan to start and/or grow your online business. Among other things, it outlines your business idea , identifies your target customers, presents your marketing strategies and details your financial projections.

What are the Essential Steps to Launch a Successful Ecommerce Business?

Launching an e-commerce business is an exciting venture with the potential for substantial rewards. To maximize your chances of success, follow this strategic roadmap.

1. Conduct In-Depth Market Research: Thoroughly analyze your target market, identify consumer pain points, and discover product gaps. This research will be the cornerstone of your business strategy, informing product selection, pricing, and marketing efforts.

2. Craft a Compelling Business Plan: Develop a solid business plan outlining your business goals, target audience, unique value proposition, business model, sales strategies, and financial projections. This document will serve as your roadmap and a valuable tool for attracting potential investors or securing loans.

3. Choose a Profitable Product Niche: Select a product niche that aligns with your passion and possesses strong market demand. Consider factors such as competition, profit margins, and scalability when making your decision.

4. Build a Strong Brand Identity: Create a memorable brand name, logo, and visual identity that resonates with your target audience. Develop a compelling brand story to foster customer loyalty and emotional connections.

5. Develop a User-Centric E-commerce Store: Design an online store that is visually appealing, easy to navigate, and optimized for conversions. Prioritize fast loading times, clear product descriptions, high-quality images, and secure checkout processes.

6. Source Reliable Suppliers: Establish relationships with reputable suppliers who can provide high-quality products at competitive prices. Consider factors such as order fulfillment times, shipping options, and return policies.

7. Optimize Pricing Strategy: Conduct thorough market research to determine competitive pricing for your products. Implement effective pricing strategies, such as discounts, promotions, and tiered pricing, to maximize revenue and profitability.

8. Masterful Marketing and Promotion: Develop a comprehensive marketing strategy that leverages various sales channels, including social media, search engine optimization (SEO), email marketing, and paid advertising. Create compelling content that engages your target audience and drives traffic to your store.

9. Fulfill Orders Efficiently: Implement a streamlined order fulfillment process to ensure timely and accurate delivery of products. Consider using order management software and partnering with reliable shipping carriers.

10. Prioritize Customer Satisfaction: Build a strong customer support system to address inquiries and resolve issues promptly. Encourage customer feedback and implement improvements based on customer insights.

By following these steps and continuously adapting to market trends, you can build a thriving e-commerce business that generates sustainable profits.

Other Business Plan Templates

Clothing Line Business Plan Template Clothing Store Business Plan Template Beauty Supply Store Bookstore Business Plan Template

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 Template [Updated 2024]

Ecommerce Business Plan Template

If you want to start an Ecommerce business or expand your current one, you need a business plan.

Your Ecommerce business plan will accomplish several key objectives. First, it will help you create goals for your Ecommerce business and give you a roadmap to follow to reach them. It will also help you develop the right strategies to attain your goals. For example, by understanding trends in the Ecommerce industry, the strengths and weaknesses of other ecommerce businesses, and the demographic and psychographic needs of your target market, you can craft better product and marketing strategies.

You can download our Ecommerce Business Plan Template (including a full, customizable financial model) to your computer here.

The following Ecommerce business plan template gives you the key elements to include in a winning business plan for an ecommerce startup or an existing ecommerce business.

Below are links to each of the key sections of a sample ecommerce business plan:

E-commerce Business Plan FAQs

What is an e-commerce business plan, do i need an e-commerce business plan, how often should i update my e-commerce business plan, how do i write an e-commerce business plan.

• Executive Summary - In this section, you will provide an overview of your e-commerce business including highlights from each section of the business plan.
• Company Overview - This section includes a description of your company, its legal form of business, where you are located and/or based out of, who is involved in the venture (both financially and non-financially), who your customers will be, and why a consumer should buy from you instead of a competitor.
• Industry Analysis - Here you will describe the current state of the industry that your business is involved in by providing relevant data. This information will allow you to then describe the competitive landscape, any barriers that may affect entry into this industry, and how your company plans to overcome these obstacles.
• Customer Analysis - Identify who your customer is and why they would buy from you. What is the size of your market? How will you reach your target audience?
• Competitive Analysis - Identify who your major competitors are. What are the different ways that you can differentiate your company from these competitors?
• Marketing Plan - This section should include a description of your target customer, how you will reach them, and what the cost associated with this activity will be.
• Operations Plan - This section should discuss how you will run your day-to-day operations. This includes information such as manufacturing or service delivery, inventory management and any other key issues related to how your company will operate.
• Management Team - This section should be composed of resumes for each member of your management team including any current gaps in their skill sets.
• Financial Plan - This section should include projected income statements, balance sheets and cash flow forecasts for the first three years. You will need to provide both your financials as well as those of any sub companies you are involved in.

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Ecommerce Business Plan Outline

How to Build an Ecommerce Business Plan for Your Startup in 2024 (Template Included)

Use our guide to easily create the perfect e-commerce business plan. Then download the free template to start building your plan today.

The first step in launching a successful  ecommerce  business is writing a successful business plan.

A well-crafted business plan can help you establish a path and course of action, build your brand, and access funding opportunities such as business loans from lenders and investors. But how do you create a business plan? And what should it include? 

In this guide, we’ll cover what goes into a well-crafted ecommerce business plan and share a template to help you get started in no time.

What is a business plan?

A business plan is a document that acts as a blueprint to how you’ll  launch, run, and grow your ecommerce brand . The plan outlines key elements, such as your product strategy, financial resources, company structure, and more. 

You can make your business plan as simple or detailed as you want, but a comprehensive, formal road map ensures your hard-earned investment doesn’t easily disappear.

Plus, having a structured way to lay out your  ecommerce business ideas  and thoughts makes it easier to share your plan with people who can help you succeed.

Writing a formal ecommerce business plan lets you: 

Communicate your goals and vision of the present and future

Have a comprehensive understanding of what it will take to build a successful ecommerce business

Lay out your core value proposition and how you intend to deliver it

Show existing demand for the value you want to offer

Prove your idea is viable in the market

Show potential investors why they should support your business

Offer an easy way to communicate your vision to potential new hires while building their confidence in your business

Give potential partners a way to identify whether your business is a good fit before collaborating with you

Foresee, plan for, and avoid failure and other predictable consequences.

Minimize the risk your company is exposed to, making success more likely

With these points in mind, let’s review the most common elements to include in your plan to create a functional ecommerce business.

Hire ecommerce talent to market your store

What to include in a ecommerce business plan.

Whether you want a lean startup plan featuring the key points of your business or a longer, traditional plan with full details, there are some things you can’t leave out. 

Besides a cover page with your  business logo , name, and contact details, here are 10 fundamental elements to include in your ecommerce business plan. 

Download our Ecommerce business plan to kickstart your start-up or hire a professional freelance business plan writer to help you out.

1. Executive summary

Write an executive summary to describe your concept and give some context to your business. 

This section acts like an elevator pitch and is what people often read first. Give a good overview of the entire plan and how you plan to make the business a success. 

Keep it succinct—no longer than a page or two—to entice potential partners and investors to keep reading.

Generally, it’s easier to write the executive summary after you’ve thoroughly researched all aspects of your business. 

The executive summary should address essential aspects like:

The overall business concept

Your vision or mission statement

The products or services you plan to offer and their pricing

What differentiates your products or services 

Who will manage and work for your business

Your current and/or projected financial standing

How much money you need and what you’ll use it for

The last two points are key for potential investors or lenders. Include the specific amount you need, how you plan to use the money, and how investors will benefit. 

Alex McIntosh, CEO and co-founder of  Thrive Natural Care , a mission-based skin care brand, proudly states his impact-focused mission on his business plan and ecommerce site. 

“There are a lot of great, natural skincare companies out there, but none that have an impact-focused mission,”  McIntosh writes in his business plan’s executive summary. 

“We are a public benefit corporation, so everything we do has to be mission-centric. Our business plan also puts the customer first, so that informed the products we developed and formulas that work with the skin to support health rather than superficial quick fixes. We also needed to come up with a plan for reaching our customers broadly but also tell our rich and unique story.”

Explore Fiverr’s  professional business writing experts  to develop a concise executive summary for your ecommerce business.

2. Business/company description

Introduce your business by explaining who you are and what you plan to do. Potential investors, lenders, or partners want to see how your business is different from other ecommerce companies. 

For example, Saie , an online beauty retailer, shares its business idea and why it exists in a few short sentences. 

Clarifying these details ensures you highlight your company’s intangible facets, including principles, values, and the culture you want to create. 

Give an overview of your industry then describe how your business will succeed. That way, investors or partners can determine whether to work with you and/or invest their money and time.

Some practical things you can cover in this section include: 

The history or background of your business 

Your business structure (sole proprietorship, limited liability company, or general partnership)

A description of the wider industry and where your business fits into it

Your vision and mission statement

The nature of the business and what you offer

Your target customers and how you’ll provide them with value

Your current team and future hires you might need as you grow (plus experience level and salary estimates)

You’ll cover all these in greater detail later in your plan, so don’t go into excessive detail about them here. Use one or two paragraphs to show why you should be the source of your product or service, why people should choose you over your competitors, and why your vision will succeed.

Keep it clear, simple, and realistic so readers should leave with a solid understanding of your vision, what your business does, and the problem you’re solving.

3. Goals and objectives

In this section, you’ll state the goals and objectives you’re trying to achieve and how you intend to achieve those targets.

Define your short-term, medium-term, and long-term goals, ensuring they’re SMART: 

Specific : Have clear, specific outcomes in mind.

Measurable : Know what metrics to use to evaluate the accomplishment of your goals. 

Achievable : Create a goal you can achieve or accomplish successfully.

Realistic : The goals should be relevant to your business.

Time-based : Have a timeframe for when you want to achieve the goal.

SMART goals ensure you take actionable steps toward improvement, measure your outcomes, and ultimately achieve scalable success.

For example, you could have a short-term goal of decreasing bounce rates by 20% within 10 weeks to reach a long-term goal of growing conversions by 40% within 12 months.

4. Market analysis

Next, analyze the market you’re entering. 

Describe its landscape and identify your target market. Find out the strengths and weaknesses of the market and how your business will fill them. 

For example, Erin Banta, co-founder of  Pepper Home , an ecommerce business that provides sustainable custom-made home goods, identified a gap in the custom home goods market and built their business plan around it. 

“We discovered most shoppers traditionally didn’t have access to custom home goods,”  says Banta.  “So, we simplified the custom décor ordering process and offer stylish, affordable options to help shoppers dramatically transform a room with just a few key pieces. Our target audience is anyone who wants to personalize their space in a stylish yet affordable way, with both form and function as a priority. Our customization features and best in class product lead times have proven our initial success.”

Market analysis requires some research to get data about:

Your target audience

Market size and dynamics

Potential opportunities

You can find this data online or in places like industry organizations and related publications, reputable news outlets, or government statistics offices. 

Market analysis gives you:

Confidence to decide what products to roll out that will sell and give value to your target customers. 

Updated information on current industry trends and what the market will look like in the next five years. 

Enough data to know about your market and win investor trust.

If you need extra help with market analysis, you can get a  market research expert  through Fiverr to do it for you.

5. Competitive analysis

Conduct a competitive analysis to get and showcase information about competitors in your niche or industry and outline how you’ll set your business apart from theirs. 

You can list the names of your direct competitors and specify exactly what you’ll do to differentiate your business and win loyal customers. 

NakedWardrobe, a global womenswear brand, differentiates itself in a highly competitive market by offering its target customers affordable, timeless luxury basics.

“In our business plan, we had a shared vision of creating a carefully curated, high-quality clothing brand at an affordable price point,”  says Shideh Kaviani, president of  NakedWardrobe .  “We sought to create affordable luxury basics that are timeless, with the highest quality textiles and fit. Today, we are leading the market in affordable luxury and empowering women to feel confident by providing fashion that feels like second skin.” 

Conducting competitive analysis helps you find data about:

Your direct and indirect competitors

The markets and segments your competitors serve

Benefits the competition offers

Their products and services

What competitors’ customers buy from them

Promotional and pricing strategies

Competitors strengths and weaknesses

How you’ll stay ahead of the pack should other businesses enter the fray

You can also conduct your own primary research by visiting their physical stores or sites and completing an order.

Analyze the information you find to identify any market segments or gaps your competitors have overlooked and the user experience on their sites.

Detail everything you find about your competitors and your competitive advantage in the business plan. That way, you’ll persuade the reader that you’re knowledgeable about the competitive landscape and your idea has a clear advantage in the market.

Here’s an example of what a competitor analysis section would look like:

Source: BDC

6. Organizational structure

This section gives an overview of your company, such as its historical background—owners, when it was founded, and legal structure—and how your business is organized. 

Include your organizational chart to reflect the team hierarchy (if you have one) and highlight:

Key members of the leadership and management team

People’s individual skills, experience, and functions with the company

Professional gaps you intend to fill with new hires

Here’s what this section would look like when completed:

7. Products and services

List the products or services you offer and how your customers will access them. 

For instance, if you sell digital products, state whether customers will download or stream the content. If you’ll charge a subscription fee, say whether customers will pay a subscription fee for each content piece or to access the entire content platform.

If you sell physical products online, share what your site will look like and which  ecommerce platform  you’ll use, and list each product with its description and pricing details.

Share information about your entire product and service range and how they relate to one another to form your whole offering. If possible, show how your offerings will allow you to cross-sell, upsell, and/or retain customers. 

Keep this section as simple as possible, highlighting:

The most compelling characteristics of your product or service.

Your prices compared to the competition.

How your products meet your target customers’ needs.

How your offerings enable you to hit your long-term goals and objectives.

Any patents, trademarks, licensing, awards, or copyright information you have.

Future product or service expansions you plan to make.

Potential challenges or threats to your product or service range.

Save any technical details about your product or service for the appendix section of your business plan. 

Want to learn about marketing strategy and logistics? Keep reading.

Ready to start selling? Find an ecommerce specialist on Fiverr to grow your store.

8. Marketing strategy

In this section, detail how you’ll attract, retain, and grow customers for your business. 

Marketing covers a wide range of activities and approaches, so ensure you have a clear structure with enough information to show how your planned marketing activities will work. 

Some key things to cover in this section include:

Your unique selling proposition (USP)

Product or service positioning (affordable or premium)

Promotional activities to drive brand awareness and traffic to your site 

Distribution channels and order fulfillment processes you’ll use

Together with your customer personas, distill the marketing efforts you plan to undertake into a brief outline of how you’ll reach and attract your ideal customer.

Your ecommerce marketing strategy can include using social media tools, such as Instagram Reels or TikTok videos, print campaigns, loyalty cards, and more—depending on your budget. The plan should resonate with your audience and meet them on the platforms they visit.

“We always knew we would design a service-style business that relied on customer retention, satisfaction, and high touchpoints,”  says Michael Green, co-founder of  Winona , a female-founded anti-aging wellness center.  “We’ve employed a variety of marketing strategies through various platforms to reach target audiences, notably through Facebook and targeted PPC advertising—where our customers browse and shop.”

9. Logistics

This section is critical, particularly if you’ll opt for a  dropshipping  approach to your online business. 

Set out everything you need to operate your business, including your suppliers, facilities, inventory, equipment, and more. This shows you’ve thought through each aspect of your product down to fulfillment and potential issues you might run into that could impact the customer experience. 

Present a clear picture of how you’ll start the business and manage day-to-day operations, plus details such as costs, delivery options, and estimated timelines.

10. Financials

All the theory you’ve covered so far means little without numbers to back it up. 

Include information about your finances—cash flow projections, profit margins, forecasting, and more—to demonstrate your business’s financial viability to potential investors or lenders. 

The basics to include are:

Any capital you might already have

Potential sales

Cash-flow projection

Profit margins

Customer acquisition cost

Estimated monthly income and expenditure

Estimated expenses budget divided into fixed and variable costs

Projected balance sheet (assets and liabilities) 

Remember, most numbers you’ll include in this section will be based on projections of what you need to start, run, and grow your ecommerce business.

“The most important elements to include in a business plan relate to costs,”  says Lou Haverty, owner of  Tank Retailer .  “You want to accurately estimate your product margins and advertising costs. You want to make the estimated costs higher if possible. If you have a plan that works with higher costs, you give yourself more of a cushion in case you have unexpected costs.”

If you need help structuring your financials section, reach out to Fiverr’s  financial consultants  to handle the numbers for you.

Position your ecommerce business for success

With the elements and steps above, you can create a thorough ecommerce business plan for your startup that will impress your team, key stakeholders, potential investors, and customers.

If you lack the time or bandwidth to build yours, Fiverr is here to help. 

Our digital services marketplace hosts a wide range of experts offering different business services, including writing, financial consulting, legal services, and more. What’s more, you can manage freelancers, project files, and payments for free on the platform.

Sign up to Fiverr  to find a  business expert  who will build and firm up your ecommerce business plan.

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Elsier otachi b2b content writer.

Elsier writes data-driven content for tech-led brands and SaaS companies that gets them noticed online and truly delivers value.

eCommerce Business Plan & eCommerce Business Plan Template

So, you've picked one of the best eCommerce business ideas and decided you're starting an eCommerce business . You've figured out what is an LLC so you know if you're going to be one or not.

Now you need to come up with a business plan.

Though it may seem like a lot of work, drafting a plan is an important step in starting a profitable business.

We've put together a guide to help you draft the best version so you can start off on the right foot.

What Is eCommerce Business Plan?

An eCommerce business plan is a document outlining the structure, operations, and finances of your business. This document will give you a roadmap to follow as you build your business and is very useful when seeking investors.

Typically, your business plan can help you steer your business in the right direction. When you write a business plan, each section of the business plan should be adapted to fit your business model and your target market.

How to Make an eCommerce Business Plan

Writing a business plan for an eCommerce business should be done by conducting thorough research and following an outline. Your plan will likely be ten or more pages, but some sections will require more detailed information than others. Make sure you include as much information as possible that a prospective buyer or investor would be interested in.

7 eCommerce Business Plan Elements

Though there are many types of eCommerce businesses , the best have business plans that are structured similarly. These are the seven major elements that all investors expect to see in a business plan:

1. Executive summary

This opening section is one of the most important and should be written last. It will summarize the following sections and highlight any key ideas you've discovered while writing. Investors often decide whether or not to continue reading based on this section alone, so it needs to be flawless.

The executive summary should not exceed a single page, so you'll need to condense information as much as possible. Try to include your concept, goals, products or service, customer base, marketing plans, and financials. If looking for financing, you'll also need to include how much startup investment you need to get going.

2. Company mission and overview

This section will need to answer two simple questions: who are you and what will your business do? This serves as an introduction to the business, what makes it unique, and why you're worth investing in.

The way your business will be structured, what your values are, what experience you have, and who will be on the team should be included. Are you starting B2B eCommerce or a direct to consumer brands ? Are you an expert in the field or is this a totally new venture? Be specific, but promote your strengths as much as possible.

3. Market analysis

Here, you need to outline who your target customers are, what competitors you will have, and how you plan to succeed. This section requires quite a bit of research but will give insight into the ways your business can carve out its place in the industry.

Your market analysis answers the questions: who are your competitors, where to find your target market, and how to price your product or service. It also allows you to see where your competitors are lagging. You can develop your unique selling points with a great market analysis.

Performing a SWOT analysis is a great way to fill out this section. It is a breakdown of your company's s trengths, w eaknesses, o pportunities, and t hreats. It is most often laid out in a grid with the most relevant information as bullet points for easy understanding. You can see an example in the template shared below.

4. Products and services offered

Your products and services will likely be peppered throughout your business plan, but this section will outline all of them and any key information. If you only offer a few products or services, be as detailed as possible. If you have many offerings, feel free to summarize them by category. This list can also be helpful in the future when cross selling .

Make sure to note where you're sourcing your goods. You may be producing goods, buying in bulk, or participating in dropshipping . Whichever you choose, your plan will need to be specific.

5. Marketing plan

Your plan needs to show how you will position your business and attract customers. Whether you will be using B2B marketing strategy (see what is B2B marketing ) or DTC marketing , show what sets you apart from the competition. Include what your products or services are, prices, how you'll promote, and where you'll sell them.

If you'll be using digital marketing, make sure to outline the different channels you plan to use. A little extra detail in this section can show that you have thought through how you'll turn prospective customers into buyers.

Your marketing plan should include the type of eCommerce marketing channels, such as social media, you will adopt. Adding a section about your marketing goals and eCommerce KPIs will help you track marketing campaigns.

6. Operations plan

In this section, you need to outline all aspects of logistics and operations. Investors are very interested in your operations plan, so make sure to be thorough if you're looking for outside financing.

Include information about procurement like who your suppliers will be and how your products are going to be produced. You should also include where your offices and warehouse are, what tools and technology you'll use, and how you'll handle shipping and fulfillment. What software you use for eCommerce accounting , eCommerce credit card processing , and how you'll handle 3PL companies (if you need them) are valuable data points for this section.

Remember, none of these activities would be possible if you don't get an eCommerce business license . You may also want to use a business process flow chart template to identify your business processes.

7. Financial Plan

Finally, it's time to outline how you plan to become a profitable business. Typically, your financial plan section will include an income statement, a balance sheet, and a cash-flow statement.

This section needs to be more detailed if you'll be seeking investors, so write for your audience. A financial projection is expected in that case and can sway investors on the fence. Which one of the best banks for eCommerce business should you open an account with and how will you accept eCommerce payment ? Answer these questions before an investor has to ask.

eCommerce Business Plan Template

You can also build out your eCommerce business plan using a free downloadable eCommerce business plan template.

Once you download it, give it a look through. You’ll see an example of an eCommerce food wholesaler's free business plan template for reference. 

We've included all seven sections and a few subsections to help you see the amount of detail expected in a business plan. It's mostly filler text, so you can edit the areas that you need and remove the rest. A robust plan can help you land investors, grow your business, and even pick up eCommerce business insurance .

Frequently Asked Questions About eCommerce Business Plan

Writing an eCommerce business plan gives you a solid headstart before launching your business. Let’s answer some popular questions about eCommerce business plans.

How Do I Write an eCommerce Business Plan?

There are various types of eCommerce business plans . However, when writing an eCommerce business plan there are formats you want to follow and sections you should include.

Here are sections to include in an eCommerce business plan:

• Executive summary
• Company Overview and objectives
• Market analysis
• Products and services
• Marketing plan
• Operations plan
• Financial plan

What are the 4 Types of eCommerce Businesses?

There are different types of eCommerce businesses . Here are 4 common types:

• Business to business (B2B)
• Business to customer (B2C)
• Direct to consumer (D2C)
• Business to government (B2G)

How Important Is a Proposal for eCommerce Business?

An eCommerce business plan serves as a proposal document to show investors when seeking funds for your business. A proposal makes it easy for investors to see the market opportunities and profitability of your eCommerce business. When written perfectly, it can influence these investors to pour money into your business.

Stick to the Plan

A solid business plan is a vital element in the foundation of any business. Put enough effort into researching the market and creating a thorough plan. It will give you the structure you need to grow a profitable and sustainable eCommerce business.

If you're looking to start an eCommerce food wholesale business, BlueCart is the best tool for you. It's an all-in-one online marketplace that helps food suppliers make wholesale sales , acquire new customers, and grow their bottom line.

We also recommend checking out some of the best eCommerce books and an eCommerce blog or two to give you insight into some of the new technologies and trends you can use to grow. You should also find out what SEO terms to include on your site so you can attract customers more easily. There are a lot of benefits of eCommerce SEO that can help take your business to the next level.

Ecommerce Business Plan Guide + Sample

July 6, 2023

Adam Hoeksema

Welcome to the ever-evolving world of ecommerce—a space where countless businesses are launching every day. If you've landed here, we're guessing you too are gearing up to start your own ecom business. Yet, entering ecommerce is not just about setting up a website and listing products—it involves a robust plan that encompasses every aspect from customer acquisition to cash flow forecasting. That's why we've crafted this comprehensive guide. This Ecommerce Business Plan Guide, complete with a sample business plan, should help you check this project off the list. 

Although we focus on ecommerce financial models , we know that some of our clients also need a full business plan, so I decided to take a deep dive into the topic.  I plan to cover:

• Why write a business plan for an ecommerce business?
• What to include in an ecommerce business plan?
• Ecommerce business plan outline

How to Analyze the Market for an Ecommerce Product?

How to analyze the competition in ecommerce, how to estimate customer acquisition costs in ecommerce.

• How to Create Financial Projections for an Ecommerce Brand?
• Example Ecommerce Business Plan?

Ecommerce Business Plan FAQs

With that as our guide, let’s dive in!

Why write a business plan for an ecommerce business? 

It might feel like writing a business plan is a waste of time, and honestly, writing a 40 page plan probably is a waste of time.  So why write a business plan?  I like to say that you write a business plan primarily because the people with the money (the lenders and investors) are asking for your business plan and projections.  

Although I think a business plan could be a good exercise for any ecommerce startup, I know the real impetus for writing a business plan is likely the fact that your potential investors or lenders are asking for one.  

What to include in an ecommerce business plan? 

I don’t think your business plan needs to be a 100 page dissertation, our ecommerce business plan example is roughly 10 pages.  We include the following sections:

Ecommerce Business Plan Outline

We suggest the following business plan sections for your ecommerce business plan:

• Executive Summary
• Company Description
• Market Analysis
• Product and Service Offerings
• Marketing Plan & Customer Acquisition
• Operating Plan
• Financial Plan

Analyzing the market for an ecommerce product is a vital step in any business plan. It gives you a better understanding of your potential customers, competitors, and overall market dynamics. Here's a step-by-step guide to help you do this effectively:

• Identify Your Target Audience: Understanding who will buy your product is crucial. Segment your audience based on demographic and psychographic factors. This might include age, gender, location, lifestyle, interests, income, and more. Analyzing these factors will give you a clear picture of who your customers are and what they need.
• Market Size Estimation: Determine the size of your potential market. This involves looking at the number of potential customers who might be interested in your product. Market size can be categorized into three segments: total available market (TAM), serviceable available market (SAM), and serviceable obtainable market (SOM).

I like to use Google Keyword Planner Tool to see how many people are searching for keywords related to the product I plan to sell as a quick and free way to estimate the market size.  For example, let’s assume that we are selling a yoga mat.  According to Google Keyword Planner Tool there are roughly 90,000 monthly searches for that keyword. 

To put some additional rough math to the opportunity, the first organic search result will often get roughly 40% of the clicks, and a solid ecommerce site will have a 3% conversion rate of visit to purchase.  So if you ranked first and received roughly 36,000 clicks with a 3% conversion rate you could sell 1,080 mats per month. 

• Competitor Analysis: Understanding your competitors is as important as understanding your customers. Identify your direct and indirect competitors, analyze their products, pricing, marketing strategies, customer reviews, and their market share. This will help you identify gaps in the market that you can exploit.

Read More: How to Write a Business Plan Competitor Analysis

• Trend Analysis: Investigate current market trends related to your product. Look at the growth of the market, customer preferences and behavior, and the impact of technology and environmental factors.

I like to suggest using Google Trends to see trends in popularity in your market.  If we stick with our yoga mat example we can see the following seasonal trends and trend over the last 5 years for the search term yoga mat. 

• SWOT Analysis: Carry out a SWOT analysis - strengths, weaknesses, opportunities, and threats related to your ecommerce product. This analysis will help you understand your product's position in the market.
• Pricing Analysis: Understand the pricing strategies of your competitors and the pricing willingness of your potential customers. It will help you to set a competitive and profitable price for your product.
• Regulatory Environment: Check the regulatory environment related to your product. It includes legal regulations, trade policies, and standards that might impact your ecommerce business.
• Customer Behavior and Preferences: With the help of analytics and customer feedback, understand what drives customer behavior. Consider their shopping habits, their product preferences, and what influences their buying decisions.

Each of these steps will provide valuable insights that can shape your ecommerce product's marketing strategy, positioning, pricing, and much more. Remember, market analysis is an ongoing process—it needs to be repeated periodically as markets evolve over time.

There are a couple of tools that I like to use when analyzing the competition in ecommerce.  

• Google’s Ads Transparency Tool – with this tool you can simply enter in the domain name of a competitor and Google will show you all of the ads that they are running.  This is a nifty way to get an idea of ads that might be working well and areas you might be able to compete. 
• Ahrefs – Ahrefs will allow you to look up a competitor’s website and you can see how much organic traffic they are getting and exactly what keywords are sending that traffic. For example, REI ranks 3 rd organically for the keyword “yoga mats” so we looked up their Yoga Mats page on Ahrefs and found that they receive roughly 2,200 organic visits per month to that page:

We can also see what keywords are sending the most traffic to that page below where I have highlighted the monthly organic traffic estimate for each keyword. 

I like to use Google Keyword Planner Tool to estimate customer acquisition costs as well.  As we saw with the Yoga Mat example below the average cost per click to advertise for that keyword was between $0.39 cents and $3.13.   

Again if we stick with a 3% conversion rate and assume 50 cents per click that means you are likely to spend roughly $16 to acquire one customer.  Not a whole lot of room for margin in this business right?  In this case you would need to hope that you can sell multiple products to the same customer over time.  

Your customer acquisition costs will be a fundamental assumption in your financial model.  Let’s dive into that next. 

How to Create Financial Projections for a Bar Business Plan

Just like in any industry, the ecommerce business has its own unique factors that impact financial projections, such as online traffic, conversion rates, and customer acquisition costs. Utilizing an ecommerce financial projection template can simplify the process and increase your confidence. Creating accurate financial projections goes beyond showcasing your ecommerce venture's ability to generate sales; it's about illustrating the financial roadmap to profitability and the realization of your online business goals. To develop precise projections, consider the following key steps:

• Estimate startup costs for your ecommerce business, including website development or platform setup, inventory acquisition, branding and marketing expenses, and initial fulfillment and shipping costs.
• Forecast revenue based on projected online traffic, conversion rates, average order value, and potential growth in customer base.
• Project costs related to product sourcing or manufacturing, packaging, shipping, and fulfillment services.
• Estimate operating expenses like website maintenance, hosting fees, digital marketing expenses, customer support, and administrative costs.
• Calculate the capital needed to launch and sustain your ecommerce business, covering initial expenses and providing working capital for continued growth.

While financial projections are a critical component of your ecommerce business plan, seek guidance from experienced professionals in the ecommerce industry. Adapt your projections based on real-world insights, leverage industry resources, and stay informed about digital marketing trends and evolving consumer behavior to ensure your financial plan aligns with your goals and positions your ecommerce venture for long-term success.

Example Ecommerce Business Plan

Explore our E-commerce Business Plan, presented below. If you prefer, you can access a downloadable Google Doc version of this bar business plan template, allowing you to personalize and tailor it to your specific needs. Additionally, a helpful video walkthrough is available, guiding you through the process of customizing the business plan to perfectly align with your unique Ecommerce business.

Table of Contents

Executive Summary:

• Business Description
• SWOT Analysis

Marketing and Sales Strategy

• Branding and Identity
• Website, menu, and social media platforms
• Marketing materials and promotional items
• Marketing mix

Operations Plan

• Organizational Structure:
• Location and Facility:
• SOP (Standard Operating Procedures):
• Health and safety protocols:

Financial Projections

• Startup Costs and Use of Funds
• Annual Sales, Gross Profit and Net Profit
• Key Financial Ratios
• Income Statement at a Glance
• Income Statement Annual Summary
• Cash Flow Statement Annual Summary
• Balance Sheet Annual Summary

I. Executive Summary

Our ecommerce store, "Eco-Friendly Fashion," aims to provide consumers with stylish and environmentally-friendly clothing options. 

Our target customer is the eco-conscious, fashion-forward individual who is looking for sustainable alternatives to fast fashion.

The ecommerce market is growing rapidly, and there is a growing demand for sustainable fashion products. We believe there is a gap in the market for an ecommerce store that offers a wide range of eco-friendly clothing options at affordable prices. Our unique selling proposition is to offer high-quality, stylish clothing that is also environmentally friendly, at a price that is accessible to our target customer.

We plan to launch with a product line of 50 items, including t-shirts, hoodies, and dresses, made from organic cotton and recycled materials. Our products will be manufactured in fair trade factories, ensuring ethical labor practices. Our initial funding will come from personal investments and a small business loan. Our financial projections show that we will break even in the third year of operation and achieve a profit by the fourth year.

II. Company Description

Eco-Friendly Fashion is a newly established ecommerce store that will offer a wide range of eco-friendly clothing options for both men and women. The company was founded by two friends, Jane Doe and John Doe, who share a passion for sustainability and fashion. Jane has a background in fashion design and John has experience in ecommerce and marketing.

Eco-Friendly Fashion is a limited liability company (LLC) registered in the state of California. Our team also includes a product sourcing specialist and a freelance graphic designer. Our office and warehouse are located in Los Angeles, CA.

III. Market Analysis

The global ecommerce market is expected to reach $4.9 trillion by 2021, with a significant portion of this growth coming from the fashion industry. Consumers are increasingly turning to ecommerce for their fashion purchases, and there is a growing demand for sustainable fashion products.

Our target customer is the eco-conscious, fashion-forward individual, aged 18-35, with a moderate to high income. This demographic is highly concerned about the environmental impact of their clothing choices and is willing to pay a premium for sustainable fashion options.

Competitors in the eco-friendly fashion market include established brands like Patagonia and smaller, niche brands like Tentree. However, these brands tend to focus on outdoor and athletic wear, rather than everyday fashion, and their products can be expensive. Our competitors in the sustainable everyday fashion market include companies like Reformation and Everlane, but these brands have limited product offerings and their products can also be expensive.

Our marketing and sales strategies will focus on leveraging social media, influencer marketing, and targeted online advertising to reach our target customer. We will also attend sustainable fashion trade shows and events to network and showcase our brand.

IV. Product and Service Offerings

Eco-Friendly Fashion will launch with a product line of 50 items, including t-shirts, hoodies, and dresses, made from organic cotton and recycled materials. Our products will be manufactured in fair trade factories, ensuring ethical labor practices. Our products will be designed in-house, with a focus on creating stylish, on-trend pieces that are also environmentally friendly.

Our pricing strategy will be to offer high-quality, stylish clothing at a price that is accessible to our target customer. Our products will be priced slightly higher than fast fashion options, but lower than sustainable fashion competitors like Reformation and Everlane.

We will continuously expand our product line and source new materials and manufacturing partners to ensure we are always offering the latest in sustainable fashion. In addition to our clothing line, we will also offer a recycling program for customers to trade in their old clothing for store credit. This will further demonstrate our commitment to sustainability and encourage customers to make more sustainable fashion choices.

V. Marketing Plan & Customer Acquisition

Our plan to grow our ecommerce business and reach our financial targets will follow a 5 pronged marketing approach in order to acquire customers. 

Brand Awareness:

• Partner with influencers and bloggers in the sustainable fashion and lifestyle space to feature your products and increase brand exposure.
• Utilize social media platforms such as Instagram and Facebook to showcase your products and educate your audience on the importance of environmentally responsible and ethically sourced apparel.
• Participate in local events and festivals that align with your values to increase visibility and connect with potential customers in person.

Content Marketing:

• Create a blog that features articles on sustainable fashion and how your products are made in an environmentally responsible and ethical manner.
• Offer styling tips and suggestions for incorporating eco-friendly fashion into everyday outfits to engage and educate your audience.
• Share customer testimonials and reviews on your website and social media channels to build trust and credibility with potential customers.

Email Marketing:

• Build an email list by offering an incentive such as a discount code to customers who sign up.
• Send newsletters that include information on new product launches, sales, and events.
• Use email automation to send abandoned cart reminders and follow-up emails to potential customers who have shown interest in your products.

Paid Advertising:

• Utilize targeted Facebook and Instagram ads to reach a wider audience and drive traffic to your website.
• Partner with eco-friendly and sustainable lifestyle websites to run display ads and reach potential customers who are already interested in these topics.
• Consider using Google Ads to target customers who are actively searching for environmentally responsible and ethically sourced apparel.

Referral Program:

• Encourage satisfied customers to refer friends and family by offering a discount code or other incentive for each successful referral.

VI. Operating Plan

Eco-Friendly Fashion will operate as an online ecommerce store, with all sales taking place through our website. Our website will feature a user-friendly interface, detailed product descriptions, and multiple payment options. We will also offer free shipping on all orders within the United States, with the option for international shipping at an additional cost.

Our fulfillment and delivery strategies will include partnerships with established logistics companies to ensure efficient and cost-effective shipping. We will also implement a comprehensive returns and exchanges policy to ensure customer satisfaction.

Our ecommerce platform will be powered by Shopify, which offers a range of tools and integrations to manage our website, inventory, and customer data. We will also use a customer relationship management (CRM) system to track customer interactions and improve our marketing and sales strategies.

VII. Financial Plan

Our start-up costs will include the cost of product development and manufacturing, website development, marketing, and rent for our office and warehouse. Our initial funding will come from personal investments and a small business loan.

Our financial projections show that we will achieve $75,000 in sales in the first year, increasing to $500,000 in the second year and $1 million in the third year. Our expenses will include product manufacturing, marketing, salaries, and other operating costs. Our projections show that we will break even in the third year of operation and achieve a profit by the fourth year.

To minimize risk, we will continuously monitor our financial performance and adjust our strategies as needed. We will also implement a thorough risk management plan, including carrying appropriate insurance coverage and implementing strong data security measures to protect our customer information.

All of the unique financial projections you see below were generated using ProjectionHub’s Ecommerce financial projection template . Use PH20BP to enjoy a 20% discount on the template. 

Startup Costs:

Projected Financial Summary:

Annual Sales, Gross Profit and Net Profit:

Key Financial Ratios:

Watch how to create financial projections for your very own ecommerce business:

Income Statement:

Balance Sheet:

Cash Flow Statement:

VIII. Conclusion

Eco-Friendly Fashion is poised to fill a gap in the sustainable fashion market, offering a wide range of stylish and environmentally friendly clothing options at affordable prices. With a growing demand for sustainable fashion and our commitment to ethical and sustainable business practices, we are confident in our ability to succeed in the competitive ecommerce market.

Our team is dedicated to offering the highest quality products and customer service, and we are excited to bring our vision of sustainable fashion to life. Our next steps include finalizing our product line and manufacturing partnerships, launching our website, and beginning our marketing and sales efforts.

How do I start an ecommerce business?

To start an ecommerce business, you'll need to identify your target market and products, create a business plan, set up an online store or website, source or create products, establish secure payment and shipping methods, and implement marketing strategies to drive traffic and sales.

Which ecommerce platform should I use for my online store?

Popular ecommerce platforms include Shopify, WooCommerce, Magento, and BigCommerce. Consider factors such as ease of use, customization options, scalability, pricing, and integration with other tools or marketplaces when choosing the right platform for your business.

How can I drive traffic to my ecommerce website?

You can drive traffic to your ecommerce website through various strategies, including search engine optimization (SEO), social media marketing, content marketing, influencer partnerships, email marketing, paid advertising, and utilizing marketplace platforms such as Amazon or Etsy.

What are the essential elements to include in product descriptions for ecommerce?

Essential elements for product descriptions in ecommerce include clear and concise product titles, detailed descriptions highlighting key features and benefits, high-quality product images, pricing information, sizing or specifications, and customer reviews or testimonials, if available.

How can I optimize the checkout process to increase conversions?

To optimize the checkout process, streamline the steps involved, offer guest checkout options, provide multiple payment methods, ensure security and trust indicators, display shipping options and costs upfront, minimize form fields, and offer incentives such as discounts or free shipping for completing a purchase.

About the Author

Adam is the Co-founder of ProjectionHub which helps entrepreneurs create financial projections for potential investors, lenders and internal business planning. Since 2012, over 50,000 entrepreneurs from around the world have used ProjectionHub to help create financial projections.

Other Stories to Check out

How to start a non-emergency medical transportation business.

This article is a guide on learning more about how to start a non-emergency medical transportation business and the key financial assumptions necessary to create reliable financial projections.

5 Key Tips to Make Your Startup Business Plan Shine for an SBA Loan

Learn 5 key tips to make your startup business plan stand out and secure an SBA loan, from demonstrating market potential to creating realistic financial projections.

8 Ways to Enhance Your Chances of Getting approved for an SBA Loan

Learn practical steps to increase your SBA loan approval odds. This guide offers 8 straightforward strategies from an experienced SBA loan officer.

Have some questions? Let us know and we'll be in touch.

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

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 .

E-commerce Business Plan Template

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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

Related Topics

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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How to Write an Ecommerce Business Plan

If you’ve got an exciting concept for an e-commerce venture, it’s crucial to develop a business plan tailored to your online store. This plan will play a pivotal role in ensuring that your vision has the necessary resources to thrive and generate profits. By crafting a comprehensive business plan for your online retail operation, you can effectively pinpoint your target audience, set clear monthly and quarterly sales targets, and significantly enhance the prospects of achieving long-term success in the e-commerce industry.

As a business plan writer and consultant , I’ve authored over 15,000 business plans for various enterprises, many of which have gone on to achieve substantial growth and success. In this article, I offer insights based on my experience and expertise in creating an e-commerce business plan.

What is an ecommerce business plan?

An ecommerce business plan is a comprehensive document that outlines the goals, strategies, and financial projections of an online business. It serves as a roadmap for the business, guiding entrepreneurs in making informed decisions and attracting investors.

How to Write an E-commerce Business Plan Step By Step

• Provide an executive summary.
• Business overview.
• Explain your offerings.
• Analyze the market.
• Develop your marketing strategy.
• Establish a sales plan.

l. Provide an executive summary

An executive summary serves as a succinct, one-to-two-page overview of your business, meticulously crafted to inform stakeholders about the essential elements of your comprehensive business plan. It’s a window into your business’s aspirations, strategies, and financial projections, providing a clear roadmap for decision-making and attracting potential investors.

An ecommerce business plan executive summary can look something like this:

Here’s a complete guide on how to write an effective executive summary with examples.

ll. Business overview

Business overview section beckons for meticulous attention to detail, as it showcases the very essence of your business – your product or service. It’s the stage upon which your offering takes center stage, captivating the audience with its unique value proposition and compelling features. Begin by painting a vivid overview of what you’re bringing to the market, piquing the interest of potential customers and investors alike.

A business overview of Pet Planet online store may look something like this:

Here are 14 profitable eCommerce business ideas you can start today!

lll. Explain your offerings

Having established the foundation of your business and its purpose, it’s time to embark on a deeper exploration of your plan. The spotlight now falls upon the products and services that will form the cornerstone of your venture. Begin by meticulously listing each offering, accompanied by a clear explanation of its purpose. Address the fundamental question of ‘why’ – why have you chosen to offer these specific products and services ? What unique value do they bring to the market?

Once the products and services have been comprehensively described, it’s time to illuminate the pricing model that will govern your offerings. Assign a clear cost to each service, considering factors such as production costs, market demand, and competitive pricing. Determining pricing, especially for a startup, can be a complex endeavor. Fortunately, sales pricing calculators can serve as valuable allies in identifying the optimal pricing strategy .

A explain your offerings of smart home products may look something like this:

• Business Plan Template

For your E-store business, download this ecommerce business plan template now.

lV. Analyze the market

A comprehensive market analysis serves as a compass, guiding your business through the intricate terrain of the marketplace. It begins with a deep understanding of your target audience, delving into their demographics, preferences, and purchasing behaviors. This knowledge empowers you to tailor your products, services, and marketing strategies to resonate with their needs and aspirations.

Here is how analyze the market in our ecommerce business plan.

How to Write Products and Services Section of Business Plan

Your perfect Ecommerce business plan is just a click away.

You have a great business idea. We can help you turn it into a perfect business plan..

V. Develop your marketing strategy

An ecommerce business’s marketing plan is its secret weapon, guiding it towards brand awareness, target audience reach , and enhanced sales and revenue. This plan revolves around positioning strategy, acquisition channels, and tools and technology. Positioning strategy determines how you will differentiate yourself in the market, while acquisition channels identify how your target audience discovers your business.

Finally, tools and technology harness the power of innovation to enhance your reach, automate tasks, and gain valuable insights into customer behavior. By crafting and implementing a comprehensive marketing plan , you can effectively build brand awareness, attract your target audience, and drive growth and profitability for your ecommerce venture.

How to Write the Marketing Plan in Ecommerce Business Plan?

Vl. Establish a sales plan

Importance of an ecommerce business plan.

The significance of an ecommerce business plan cannot be overstated. It plays a pivotal role in:

• Defining Your Business Goals: Clearly articulating your business objectives provides a sense of direction and ensures that your actions are aligned with your overall vision.
• Identifying Your Target Market: Understanding your target audience's needs, preferences, and behaviors is crucial for tailoring your products, services, and marketing strategies effectively.
• Developing Effective Marketing Strategies: A well-defined marketing plan outlines the strategies you will employ to reach your target audience, generate leads, and drive sales.
• Securing Funding: Investors and lenders often require a comprehensive business plan to assess the viability of your venture and the potential return on their investment.

Tips for Writing an Effective Ecommerce Business Plan

• Conduct Thorough Research: Gather comprehensive data and insights into your target market, competitors, and industry trends.
• Set Realistic Goals: Establish achievable and measurable goals that align with your business's resources and capabilities.
• Update Regularly: Review and update your business plan periodically to reflect changes in your market, strategies, or goals.
• Quantify Your Financial Projections: Back up your financial projections with sound assumptions and calculations.
• Seek Feedback: Share your business plan with trusted advisors and mentors for constructive feedback and suggestions.

Revenue projections can be determined by conducting market research, analyzing industry trends, evaluating your target market size, and considering your pricing strategy. Additionally, factors such as marketing efforts, customer acquisition rates, and competition should be taken into account.

Managing operating expenses effectively involves careful budgeting, identifying cost-saving opportunities, negotiating with suppliers, optimizing operational processes, and regularly reviewing expenses. It’s important to strike a balance between controlling costs without compromising the quality of your products or services.

Funding options for an eCommerce business may include self-funding, loans from financial institutions, angel investors, venture capital, crowdfunding platforms, or partnerships. Consider your business’s financial needs, growth plans, and potential risks when exploring funding options.

The break-even point is the point at which your total revenue matches your total expenses, resulting in neither profit nor loss. It can be calculated by dividing your fixed costs by the contribution margin (selling price per unit minus variable costs per unit). This calculation helps you determine the minimum sales volume required to cover costs.

Tracking CAC and CLV is crucial for understanding the effectiveness of your marketing and sales efforts. CAC helps determine the cost of acquiring a new customer, while CLV estimates the value a customer brings to your business over their lifetime. By analyzing these metrics, you can optimize your marketing strategies and ensure that the cost of acquiring customers aligns with their long-term value.

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Sample Ecommerce Business Plan

Writing a business plan is a crucial step in starting an ecommerce business. Not only does it provide structure and guidance for the future, but it also helps to create funding opportunities and attract potential investors. For aspiring ecommerce owners, having access to a sample ecommerce business plan can be especially helpful in providing direction and gaining insight into how to draft their own ecommerce business plan.

Download our Ultimate Ecommerce Business Plan Template

Having a thorough business plan in place is critical for any successful ecommerce venture. It will serve as the foundation for your operations, setting out the goals and objectives that will help guide your decisions and actions. A well-written business plan can give you clarity on realistic financial projections and help you secure financing from lenders or investors. An ecommerce business plan example can be a great resource to draw upon when creating your own plan, making sure that all the key components are included in your document.

The ecommerce business plan sample below will give you an idea of what one should look like. It is not as comprehensive and successful in raising capital for your ecommerce business as Growthink’s Ultimate Ecommerce Business Plan Template , but it can help you write an ecommerce business plan of your own.

Ecommerce Business Plan – ClickCart Emporium

Table of contents, executive summary, company overview, industry analysis, customer analysis, competitive analysis, marketing plan, operations plan, management team, financial plan.

Welcome to ClickCart Emporium, your new go-to ecommerce destination based in the vibrant city of Oklahoma City, OK. Our mission is to revolutionize the local ecommerce landscape by providing an unparalleled online shopping experience. With our comprehensive suite of services, we cater to a wide range of customer needs, ensuring secure payment processing, timely delivery, and a user-friendly online retail platform. Our dedication to excellence and our commitment to the Oklahoma City community drive us to serve you better, making online shopping convenient, secure, and enjoyable.

Our confidence in becoming the leading ecommerce platform in Oklahoma City is anchored in our founder’s previous success in the ecommerce industry, combined with our unwavering commitment to superior service. Since our launch on January 4, 2024, ClickCart Emporium has achieved significant milestones, including the development of a distinctive brand identity, securing an ideal operational base, and laying a strong foundation for our future growth. These accomplishments reflect our dedication to excellence and our strategic approach to becoming your preferred online shopping destination.

The Ecommerce industry in the United States, currently valued at over $600 billion, is on an exponential growth trajectory, with projections estimating its value to reach $1 trillion by 2025. This growth is driven by increased internet access, rising disposable incomes, and the proliferation of digital devices, alongside consumer preferences shifting towards online shopping for its convenience and variety. ClickCart Emporium is poised to leverage these trends, offering exceptional customer service and a diverse product range, positioning us to carve out a successful niche within this competitive and rapidly expanding market, especially in Oklahoma City, OK.

ClickCart Emporium targets a diverse customer base in Oklahoma City, focusing on busy professionals, parents, elderly shoppers, tech-savvy millennials, Gen Z, and small business owners. Our platform caters to their varying needs with a wide range of products, convenient and reliable delivery options, and an easy-to-navigate interface. By tailoring our marketing strategies, especially through social media and influencer partnerships, we aim to engage these segments effectively, ensuring a seamless and efficient online shopping experience that meets their everyday needs and preferences.

Our main competitors include Liquidfish, 1stPride, and Plenty of Pixels, each offering unique digital solutions targeting different customer segments in Oklahoma City, OK. Despite their strengths, ClickCart Emporium differentiates itself through superior customer service, an intuitive shopping platform, and leveraging cutting-edge technology to offer an expansive product range. Our focus on competitive pricing, exclusive deals, and personalized support ensures a seamless shopping experience, setting us apart as a leader in the ecommerce market.

At ClickCart Emporium, we offer an integrated suite of ecommerce services, including a user-friendly online retail platform, secure payment processing, and efficient logistics and fulfillment services, all designed to empower businesses and delight consumers. Our competitive pricing strategy and comprehensive service offerings are tailored to meet the diverse needs of our customers in Oklahoma City, OK. Our promotional strategy is multifaceted, encompassing SEO, PPC, social media marketing, email marketing, community engagement, and influencer partnerships. These efforts aim to enhance our visibility, drive traffic, and foster a strong community around our brand, ensuring ClickCart Emporium becomes a household name in the local ecommerce scene.

To ensure ClickCart Emporium’s success, our operations focus on maintaining a user-friendly website, real-time inventory management, efficient order processing, and seamless coordination with shipping partners. We prioritize customer support across multiple channels and implement secure payment systems to enhance the shopping experience. Our operational strategy includes regular analysis of customer data and market trends, enabling us to refine our product offerings and marketing strategies continually. By focusing on these key operational processes and milestones, we aim to achieve operational excellence and sustain our growth trajectory.

Our management team combines expertise in ecommerce, digital marketing, logistics, and customer service, driving ClickCart Emporium towards achieving its mission. With a solid track record in the industry and a shared vision for innovation and excellence, our team is committed to providing the best online shopping experience in Oklahoma City, ensuring that ClickCart Emporium stands out in the competitive ecommerce landscape.

Welcome to ClickCart Emporium, a new Ecommerce venture based right here in Oklahoma City, OK. As a local ecommerce business, we noticed a gap in the market for high-quality online shopping experiences tailored to our community’s needs. Recognizing this, we set out to create an ecommerce platform that not only serves Oklahoma City but also sets the standard for what local online shopping should look like.

At ClickCart Emporium, we offer a comprehensive suite of ecommerce solutions. Our primary offering is an online retail platform designed to bring the convenience of shopping online to our local customers, providing them with a wide range of products at their fingertips. To complement this, we offer payment processing services, ensuring a seamless transaction experience. Recognizing the importance of timely delivery, we also specialize in ecommerce logistics and fulfillment. These services work in tandem to provide a smooth and enjoyable shopping experience from browsing to delivery.

Our operations are deeply rooted in Oklahoma City, OK. This strategic location allows us to stay closely connected with our community and understand the unique needs of our customers better. Serving the Oklahoma City area is not just a business decision; it’s a commitment to enriching our local economy and providing value to our neighbors.

ClickCart Emporium is poised for success for several reasons. Our founder brings valuable experience from previously running a successful ecommerce business, imparting a wealth of knowledge and industry insights that are instrumental to our operations. Moreover, our commitment to delivering superior ecommerce services positions us ahead of the competition, ensuring that we meet and exceed the expectations of our customers.

Since our inception on January 4, 2024, ClickCart Emporium has made significant strides as a Limited Liability Company. We’ve developed a unique and recognizable brand, starting with the design of our logo and the creative development of our company name. Additionally, we secured a great location that supports our logistics and fulfillment operations, laying a solid foundation for our business. These accomplishments, though early, are indicative of our dedication to building a successful and sustainable ecommerce platform for Oklahoma City.

The Ecommerce industry in the United States is currently valued at over $600 billion, making it one of the largest and fastest-growing sectors in the country. With the rise of online shopping and the convenience it offers consumers, Ecommerce sales have been steadily increasing year over year. Experts predict that the market will continue to grow at a rapid pace, reaching over $1 trillion by 2025.

One of the key trends in the Ecommerce industry is the shift towards mobile shopping. With more and more consumers using their smartphones and tablets to make purchases online, businesses that provide a seamless mobile shopping experience are poised for success. ClickCart Emporium, being a new Ecommerce platform, can take advantage of this trend by ensuring their website is mobile-friendly and easy to navigate on all devices.

Another trend in the Ecommerce industry is the increasing demand for personalized shopping experiences. Consumers are looking for tailored product recommendations, exclusive deals, and customized shopping features. ClickCart Emporium can set itself apart from competitors by offering personalized recommendations based on customer preferences and purchase history, creating a unique and engaging shopping experience for its customers in Oklahoma City, OK.

Below is a description of our target customers and their core needs.

Target Customers

ClickCart Emporium will primarily target local residents seeking a convenient and efficient online shopping experience. This segment includes busy professionals, parents needing to juggle work and family commitments, and elderly individuals who prefer the safety and comfort of home shopping. The focus will be on offering a wide range of products tailored to their everyday needs, from groceries to household essentials.

The business will also cater to tech-savvy millennials and Gen Z consumers who are always on the lookout for the latest trends and unique products. These younger customers value fast, reliable delivery and an easy-to-navigate website or app interface. ClickCart Emporium will tailor its marketing strategies to engage this demographic through social media channels and influencer partnerships.

In addition to the above, ClickCart Emporium will target small business owners in Oklahoma City who require bulk purchases for their operations. This segment is in need of a reliable partner that can provide a variety of products at competitive prices with the convenience of scheduled deliveries. The platform will offer business accounts with features such as order tracking, purchase history, and volume discounts.

Customer Needs

ClickCart Emporium steps into the market to fulfill the growing demand for high-quality eCommerce services among residents who seek the convenience of online shopping. Customers expect a seamless shopping experience that combines ease of use with a wide selection of products. By focusing on user experience and inventory diversity, ClickCart Emporium meets these expectations head-on, ensuring that every visit to the site is both enjoyable and fruitful.

In addition to providing an extensive range of products, ClickCart Emporium understands the importance of reliable customer service and fast, accurate delivery. Shoppers value quick responses to inquiries and appreciate the peace of mind that comes with knowing their purchases will arrive on time and in perfect condition. This level of service builds trust and loyalty, encouraging repeat visits and long-term relationships with customers.

Moreover, ClickCart Emporium recognizes the significance of offering competitive prices without compromising on quality. Consumers are always on the lookout for the best deals online, and by ensuring that prices are attractive, ClickCart Emporium positions itself as a go-to destination for savvy shoppers. This approach not only satisfies the need for affordability but also reinforces the value proposition of shopping with ClickCart Emporium.

ClickCart Emporium’s competitors include the following companies:

Liquidfish specializes in offering comprehensive digital solutions including website development, digital marketing, and custom software development. Their services are tailored towards businesses looking to establish or enhance their online presence. Price points for their services vary depending on the complexity and scope of the project, making them accessible to a wide range of businesses.

While specific revenue figures are not publicly available, Liquidfish is recognized for its robust client portfolio across various sectors, indicating a healthy financial standing. The company operates primarily from its headquarters in Oklahoma City, OK, but serves clients across the United States. This broad geographic coverage is a key strength, as it allows Liquidfish to cater to a diverse client base.

Key strengths of Liquidfish include its comprehensive service offering and its ability to deliver customized digital solutions. However, its primary weakness lies in the highly competitive market of digital services, where differentiation can be challenging.

1stPride offers a range of ecommerce services, focusing on website design, online marketing, and SEO optimization. Their services are designed to help businesses improve their online sales and visibility. The company adopts a competitive pricing strategy, which makes it an attractive option for small to medium-sized businesses.

1stPride operates mainly within the Oklahoma City area, targeting local businesses aiming to expand their online footprint. Although they have a strong local presence, their geographical reach is more limited compared to other competitors. This focus on a local customer base both serves as a strength, providing personalized services, and a weakness, limiting potential market expansion.

Their key strength lies in their local market knowledge and personalized customer service. However, their limited geographical reach and the challenge of scaling their services can be seen as weaknesses.

Plenty of Pixels specializes in website design and development, offering customizable packages to meet the needs of various businesses. Their pricing model is transparent, with clear tiers based on the complexity and features of the website, catering to both startups and established businesses. The company prides itself on its efficient project delivery and post-launch support.

Although primarily based in Oklahoma City, OK, Plenty of Pixels serves clients nationwide, leveraging digital communication tools to manage projects remotely. This allows them to tap into a larger market, despite their physical location. Their ability to serve clients across the country is a significant strength, broadening their potential customer base.

The key strengths of Plenty of Pixels include their flexible pricing model and nationwide service coverage. However, their focus on website services means they might not offer as comprehensive a digital solution set as some competitors, which could be seen as a weakness in a market that favors full-service agencies.

Competitive Advantages

At ClickCart Emporium, we pride ourselves on providing unparalleled ecommerce services that set us apart from our competition. Our secret lies in our commitment to understanding the unique needs of our customers in Oklahoma City, ensuring that we offer personalized shopping experiences tailored to their preferences. We leverage advanced technology to streamline the shopping process, making it faster, more intuitive, and user-friendly. This approach not only enhances customer satisfaction but also fosters loyalty, as shoppers know they can expect a seamless experience every time they visit our platform.

Beyond merely offering a wide range of products, we differentiate ourselves by integrating cutting-edge features such as AI-powered recommendations and real-time inventory updates, which significantly improve the shopping experience. Our customer service is second to none, providing round-the-clock support to address any queries or concerns promptly. Additionally, our logistics and delivery system is optimized for efficiency, ensuring that orders are processed and delivered faster than any other service in the area. This comprehensive approach to ecommerce positions us not just as a shopping platform, but as a reliable partner for our customers, making their online shopping journey enjoyable and hassle-free.

Our marketing plan, included below, details our products/services, pricing and promotions plan.

Products and Services

ClickCart Emporium emerges as a comprehensive solution for both businesses and consumers, offering a suite of services designed to streamline the online shopping experience. At the heart of its offerings is an online retail platform that serves as a marketplace for a wide range of products. This platform connects sellers with buyers, facilitating easy access to an array of items from the comfort of one’s home. The average selling price for products on this platform varies widely depending on the category and value of the items, but ClickCart Emporium ensures competitive pricing to attract a broad customer base.

In addition to facilitating sales through its online retail platform, ClickCart Emporium offers payment processing services. This crucial service ensures secure and efficient transactions between buyers and sellers, employing state-of-the-art encryption and security measures to protect all parties involved. The company charges a nominal fee for these services, typically a percentage of the transaction value. This fee averages around 2.9% + 30 cents per transaction, aligning with industry standards and ensuring that sellers can affordably access secure payment processing capabilities.

Understanding the importance of logistics in e-commerce, ClickCart Emporium also provides e-commerce logistics and fulfillment services. This comprehensive service covers everything from warehousing and inventory management to order fulfillment and shipping. By handling these logistical aspects, ClickCart Emporium enables sellers to focus on their products and sales, rather than the complexities of distribution. Pricing for these services is tailored to the specific needs of each seller, but businesses can expect competitive rates that reflect the efficiency and value of the logistics solutions provided.

Overall, ClickCart Emporium positions itself as a key player in the e-commerce sector by offering an integrated platform that not only connects buyers and sellers but also provides essential services like payment processing and logistics. Through competitive pricing and a commitment to quality, ClickCart Emporium aims to foster a vibrant online marketplace that meets the needs of a diverse customer base.

Promotions Plan

ClickCart Emporium embarks on an ambitious journey to captivate the hearts and wallets of customers in Oklahoma City, OK, with a blend of innovative and traditional promotional methods tailored to the digital age. Recognizing the power of online presence, the emporium will leverage online marketing as its spearhead strategy. Through this approach, ClickCart Emporium expects to build a robust digital footprint that resonates with its target audience, driving both traffic and sales.

Diving deeper into online marketing, the company will utilize social media platforms extensively. Platforms such as Facebook, Instagram, and Twitter will become arenas where ClickCart Emporium engages with its audience. Regular posts, interactive stories, and targeted ads will serve to inform, entertain, and persuade potential customers. Moreover, the emporium will harness the power of influencer marketing, partnering with local influencers in Oklahoma City to tap into their followers and gain credibility quickly.

Email marketing will also play a crucial role in ClickCart Emporium’s promotional strategy. By collecting emails from potential customers through sign-ups and promotions, the emporium will send out newsletters, exclusive offers, and updates about new products or services. This personalized approach expects to not only drive sales but also foster a sense of community among its customers.

Search Engine Optimization (SEO) will ensure that ClickCart Emporium appears at the top of search results when potential customers look for related products or services online. By optimizing its website content with relevant keywords, the emporium expects to attract more organic traffic, thereby reducing its reliance on paid advertising in the long run.

ClickCart Emporium will not limit itself to online methods alone. Local events and sponsorships will serve as an excellent opportunity to increase brand visibility and engagement within the community. Participating in or sponsoring local events, fairs, and festivals will allow the emporium to showcase its brand and products in a more personal and interactive setting.

Loyalty programs will be introduced to reward returning customers, encouraging repeat business and word-of-mouth referrals. These programs will offer discounts, special offers, and early access to new products, cultivating a loyal customer base that feels valued and appreciated.

In conclusion, ClickCart Emporium will employ a multifaceted promotional strategy that combines the reach and efficiency of online marketing with the personal touch of local engagement and customer loyalty programs. Through these efforts, the emporium expects to attract and retain customers, setting a strong foundation for growth in Oklahoma City, OK.

Our Operations Plan details:

• The key day-to-day processes that our business performs to serve our customers
• The key business milestones that our company expects to accomplish as we grow

Key Operational Processes

To ensure the success of ClickCart Emporium, there are several key day-to-day operational processes that we will perform.

• Maintain a user-friendly and up-to-date website interface to ensure customers can easily browse, search for products, and complete purchases.
• Monitor inventory levels in real-time to ensure stock availability aligns with website listings and restock products as needed to meet customer demand.
• Process orders efficiently, from confirmation to packaging, ensuring accuracy in order fulfillment to minimize errors and returns.
• Coordinate with shipping partners for timely delivery of products, offering customers tracking information to ensure transparency and improve customer satisfaction.
• Offer customer support through multiple channels (e.g., chat, email, phone) to address inquiries, resolve issues, and provide assistance throughout the buying process.
• Implement and maintain secure payment processing systems to protect customer data and ensure a smooth checkout experience.
• Analyze website traffic and customer purchase data to understand customer preferences, improve product offerings, and tailor marketing strategies.
• Engage in digital marketing efforts, including SEO, social media marketing, and email campaigns, to attract new customers and retain existing ones.
• Collect and act on customer feedback to continually improve the shopping experience and address any shortcomings in products or services.
• Conduct regular financial reviews to monitor profitability, manage expenses, and adjust pricing strategies as necessary to remain competitive.

ClickCart Emporium expects to complete the following milestones in the coming months in order to ensure its success:

• Secure a reliable supply chain: Establish agreements with suppliers and distributors to ensure a steady supply of products. This not only assures product availability but also helps in negotiating better terms and prices, reducing the cost of goods sold.
• Develop and launch the ecommerce platform: This involves finalizing the website design, ensuring user-friendly navigation, and implementing secure payment gateways. A smooth, secure, and convenient shopping experience is crucial for customer retention and acquisition.
• Implement an initial marketing strategy: This should include a mix of digital marketing tactics such as SEO, social media marketing, and email campaigns to build brand awareness and drive traffic to the new ecommerce platform.
• Establish customer service protocols: Develop a robust customer service framework that includes clear return policies, a responsive support team, and a feedback system. Excellent customer service not only enhances customer satisfaction but also builds trust and loyalty.
• Launch our ecommerce business: Officially open the online store for business. This involves ensuring all operational, logistical, and marketing systems are in place and functioning correctly to handle orders and customer inquiries.
• Monitor and optimize operations: After launch, closely monitor all aspects of the business from website performance, order fulfillment efficiency, to customer feedback. Use this data to make informed decisions on operational improvements and optimizations.
• Expand product offerings: Based on initial customer feedback and sales data, gradually introduce new products or variations to meet demand and attract a wider audience. This helps in keeping the product catalog fresh and engaging for return customers.
• Get to $15,000/month in revenue: Achieve this financial milestone through a combination of increasing traffic to the website, improving conversion rates, and expanding the customer base. It signifies a stable demand for the products and a growing business.
• Build partnerships and collaborations: Establish partnerships with complementary brands or platforms to expand reach and tap into new customer segments. Collaborations can also open up opportunities for exclusive products or marketing campaigns.
• Implement a customer loyalty program: To encourage repeat business and foster a loyal customer base, introduce a loyalty program that rewards customers for their purchases, referrals, or engagement with the brand.

ClickCart Emporium management team, which includes the following members, has the experience and expertise to successfully execute on our business plan:

Lily Young, CEO

Lily Young brings a wealth of experience to ClickCart Emporium, having previously led an ecommerce business to notable success. Her entrepreneurial spirit and deep understanding of digital marketplaces equip her with the unique insights needed to navigate the complex landscape of online retail. Lily’s leadership style is characterized by a focus on innovation, customer satisfaction, and operational efficiency. Her track record of building cohesive teams and fostering a culture of excellence makes her an invaluable asset to ClickCart Emporium. Under Lily’s guidance, the company is poised to achieve its goals and make a lasting impact in the ecommerce arena.

ClickCart Emporium’s financial strategy is designed to support our growth objectives, ensuring we have the necessary resources to expand our operations, enhance our service offerings, and achieve our goal of becoming the leading ecommerce platform in Oklahoma City. Our plan outlines the investment needed to fuel our strategic initiatives, focusing on technology upgrades, marketing efforts, and operational efficiencies to drive revenue growth and profitability.

Financial Statements

Balance sheet.

[insert balance sheet]

Income Statement

[insert income statement]

Cash Flow Statement

[insert cash flow statement]

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E-Commerce Start-Up Business Plan

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NoHassleReturn.com

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">, opportunity.

As E-commerce continues to accelerate, so does the problem of merchants and manufacturers needing to process returns. The average rate of returns for Internet-based companies is 9%. In the coming year the value of returned merchandise was $1.5 billion. Every one of these transactions involves financial processing. Many of them require physical shipping of physical goods, plus processing the goods as received. This is a huge hassle. 

NoHassleReturn.com strives to position itself as a strategic partnership between online merchants, Web hosting companies and portals, shipping companies, and online payment agents such as credit card issuers. Due to demand aggregation, the strategy will produce reduced or totally free shipping of returned merchandise to consumers. This differentiating element will multiply the consumer acceptance factor and will draw more revenues to all participating companies. The proposed program is therefore a win-win solution to all parties involved. Moreover, the software architecture and website format will be wireless-friendly thus designing the service in such a way that consumers will later be able to easily use it via cellular phones and other personal wireless devices

E-commerce continues to accelerate and the amount of money spent on purchases made through the Internet shows no sign of decline. During the past holiday season (November 20 to December 19), retailers saw online revenues quadruple, jumping 300% to about $11 billion and far exceeding expectations, according to a study by Shop.org and Boston Consulting Group. The study of 30 retailers in such categories as apparel, books and music, home and garden, specialty foods and electronics showed a 270% growth in the number of orders. The study indicated that online sales were growing at 145% annually and it projected online retailer revenues of more than $36 billion for last year. An earlier study conducted by Ernst & Young, before the holiday frenzy, already estimated that total revenues for online retail and consumer products for the calendar year just completed were around $25-30 billion. Currently, the average rate of returns for Internet-based companies is 9%. In the coming year the value of returned merchandise was $1.5 billion. This indicates an amazing opportunity.

Competition`

The company foresees three types of competition for the services we offer: Direct

If we prove successful, others will follow. Our most worrisome competition would be combining delivery and/or courier services, like something of this type owned or partnered with UPS or FEDEX. 

The first competitors to the new service are the online retailers themselves. Since NoHassleReturn.com will need to strike partnerships and strategic agreements with retailers in order to offer its services, they are classified as internal competitors. 

With NoHassleReturn.com, at least one selling opportunity will be given to retailers while consumer is on the Web–something a partnership with a carrier cannot provide. Moreover, serving as a demand aggregator NoHassleReturn.com should be able to arrange necessary agreements and provide consumers with greatly reduced, or even free, shipping for all returned merchandise.

Thinking in reverse to the previous paragraph, service providers such as Mail Boxes Etc. and PostNet may try to forge strategic partnerships with numerous online retailers to simplify the return process. 

Our mission is to enhance customer service of online merchants, boost their customer retention and increase their sales. We strive to improve the overall image of the online merchant and therefore stimulate growth of online shopping. We put our efforts to increase customer satisfaction when consumers deal with retailers, to enhance the interaction process when retailers communicate with consumers, and to streamline the problem resolution order in all possible ways.

Expectations

NoHassleReturn.com’s financials are conservative yet quite promising. Once they are up and running and sign up some merchants as customers, NoHassleReturn.com will quickly gain momentum and generate impressive sales. 

Financial Highlights by Year

Financing needed.

We need $50,000 to start. We will get that from the two owners to start $25,000 each.

Problem & Solution

Problem worth solving, our solution.

NoHassleReturn.com is an e-commerce start-up company positioning itself to become the market leader in offering online merchants and consumers a uniform and trouble-free way to return merchandise purchased online. The company offers a business-to-business solution to online merchants of physical, non-perishable products. The company utilizes a consolidation approach in handling all product returns that allows online merchants to instantly save bad sales, restore customer satisfaction and stimulate repeat sales, while offering consumers a convenient, centralized online location to claim returns. By creating a new service category and utilizing the first-mover advantage, NoHassleReturn.com positions itself for rapid growth and gains a strong opportunity to raise entry barriers for possible competition.

Target Market

Market size & segments.

E-commerce continues to accelerate and the amount of money spent on purchases made through the Internet shows no sign of decline. During the holiday season (November 20 to December 19), retailers saw online revenues quadruple, jumping 300% to about $11 billion and far exceeding expectations, according to a study by Shop.org and Boston Consulting Group. The study of 30 retailers in such categories as apparel, books and music, home and garden, specialty foods and electronics showed a 270% growth in the number of orders. The study indicated that online sales were growing at 145% annually and it projected online retailer revenues of more than $36 billion for 1999. An earlier study conducted by Ernst & Young, before the holiday frenzy, already estimated that total revenues for online retail and consumer products for the calendar year 1999 were around $25-30 billion.

While a notable amount of positive publicity about the Internet shopping has recently appeared in the media, the number of problems encountered by online shoppers actually increased more dramatically than the sales figures. According to a poll conducted by WebAssured.com, the number of complaints filed between November 25, 1999 and January 13, 2000 was up 404% over the same period last year. Over 62% of the respondents claimed they had experienced at least one problem with an online transaction. Misrepresentation/misinformation and delivering defective products each accounted for at least 22% of all complaints. In the breakdown of types of problems occurred, delivery of a wrong item accounted for 17.2%. These kind of problems ultimately result in product returns that cause additional costs to the consumers and both costs and lost revenues to the retailers.

When a wrong, defective, or misrepresented item was delivered to a consumer, the return process often proved uneasy. According to recent findings by PC Data Online, 30% of all consumers who returned items found the return process difficult. It is apparent that existing return procedures are inadequate and sometimes irritating. The solution, however, does not lie in forcing all online retailers to establish a "no-questions-asked" return policy and to post it clearly at the top of their websites. The entire sequence a consumer has to follow, starting from looking up the procedures on the Web and then having to make a trip to UPS or the Post Office, has to be streamlined. There is clearly a need, as well as an opportunity, for a new service company to improve the overall return process for online shoppers. As a result, the consumer satisfaction will be enhanced and it will translate into increased repeat sales for online retailers.

Market Segmentation

As stated in the previous section, the estimated online retail revenues were around $25-36 billion. Both sources providing the estimates indicated that only merchants selling physical products (books, CDs, electronics, apparel, etc.) were included in the breakdown by category. No mention was made of services such as online hotel reservations, news subscriptions, or online brokerage being included in the total figures. However, it would be advisable to use a more conservative approach when estimating the total revenues of online merchandise sales. Presented below are estimates for Internet retail sales made by National Retail Federation shortly after the 1998 holiday season.

Competition

Current alternatives.

Direct Competitors

Based on the current intelligence, there is no independent company out there specializing in a "returned merchandise" service to online consumers. No single company is known to be employing a concept of establishing a single point of presence on the Internet for consumers to claim returns. The current situation allows the new company to gain the first-mover advantage and build entry barriers for any possible new entrants.

Internal Competitors

The first competitors to the new service are the online retailers themselves. Since NoHassleReturn.com will need to strike partnerships and strategic agreements with retailers in order to offer its services, they are classified as internal competitors. Retailers may perceive that their internal return procedures are adequate and fully meet customer demands. However, the discussion under the Need Assessment section of this plan clearly indicated that there are significant drawbacks and shortcomings in the return process across the entire industry. Even companies like Amazon.com that touts a quick and easy return policy now sees its customers go to Barnes & Noble superstores to return books. Partnering with brick-and-mortar retailers may be seen as a solution by some e-tailers. However, from the consumer perspective, there still will not be a centralized location to return merchandise, no quick and easy return procedure, and no savings on shipping costs. Consumers may end up having to go from one physical retailer to another to return various items.

Online retailers may try to partner with carriers and service providers such as UPS, Mail Boxes Etc., or Rite Express. Reportedly, eBay.com is working out an agreement with Mail Boxes Etc. to appoint them as a preferred/exclusive service for product returns. eBay.com may receive rebates per shipment for directing its clients to Mail Boxes Etc., but consumers again will have little or no benefit. The standard shipping rates are applied, the choice of carriers is now limited, and online merchants are not informed about product returns ahead of time so that bad sales could be saved. With NoHassleReturn.com, at least one selling opportunity will be given to retailers while consumer is on the Web–something a partnership with a carrier cannot provide. Moreover, serving as a demand aggregator NoHassleReturn.com should be able to arrange necessary agreements and provide consumers with greatly reduced, or even free, shipping for all returned merchandise.

 Channel Competitors

Thinking in reverse to the previous paragraph, service providers such as Mail Boxes Etc. and PostNet may try to forge strategic partnerships with numerous online retailers to simplify the return process. But as it was described, online retailers will be shortchanged in overall customer satisfaction, information exchange, total costs, and additional selling opportunities. Consumers, on the other hand, will lose out on the limited number of "exclusive" carriers for particular retailers, and uniform simplicity in the return process will not be achieved. Moreover, both Mail Boxes Etc. and PostNet combined do not have sufficient physical presence in the market.

Carriers such as UPS and FedEx may try to enter the arena. Those organizations have extensive networks of facilities, experience in shipping, and a track record of quality. The U.S. Postal Service has recently started a TV advertising campaign of a service for online merchants that allows consumers to print return labels online. This is a step towards addressing the shipping end of the return problem, but it falls short of saving bad sales and creating new selling opportunities for merchants. No single shipping company can fully provide the range of benefits the proposed company can. NoHassleReturn.com will be able to arrange strategic alliances with numerous carriers and even play one against the other in negotiating rate reductions and preferential service terms for both merchants and consumers. Being a smaller company with a focus on the e-commerce community, it will also have a greater degree of flexibility in adjusting to customer needs.

Our Advantages

At NoHassleReturn.com, we feel we provide a value-added service to a variety of consumers. By having a safe and easy-to-use return service, the company benefits more people than simply the average customer.

Merchants Advantages

• Increase revenues! NoHassleReturn.com turns the systemic problem of product returns into new selling opportunities.
• Enhance customer satisfaction and retention with the quick and easy return process and boost repeat sales! NoHassleReturn.com provides the opportunity to instantly deal with returns, save bad sales, and turn unhappy customers into loyal patrons.
• Improve customer service with a simple, trouble-free way to return merchandise! NoHassleReturn.com makes it easy for consumers to return products and follow return procedures.
• Simplify the shipping hassle for consumers! NoHassleReturn.com provides the option to print a shipping label since pre-printed labels sometimes get lost or misplaced, which provides added convenience and peace of mind to consumers.
• Improve inventory management and logistics! NoHassleReturn.com immediately alerts you when your customer initiates the return process so that you can act on it right then, not when the merchandise arrives at your door.
• Fine-tune your internal efficiencies and product offerings! NoHassleReturn.com provides you with invaluable new data on all your product returns by customer group, product category, etc., so you can analyze your operations better.
• Enhance your image! NoHassleReturn.com underscores your customer orientation, which you can use to promote your business.

Consumers Advantages

• Return merchandise with ease! NoHassleReturn.com provides one centralized online location with a simple and trouble-free way to return merchandise in just a few easy steps.
• Buy online, return online! No need to call in or email your merchant if authorization is required–NoHassleReturn.com does the communication for you.
• No need to look up every single merchant for return policies every time! NoHassleReturn.com summarizes it for your particular item and makes sure the return time frames are followed.
• Generate a shipping label! NoHassleReturn.com generates a shipping label for you so that you do not have to worry about misplacing the pre-printed label or spending extra time at a shipping company’s counter if the pre-printed label is not included.
• Reduce or eliminate shipping costs! Through strategic alliances, NoHassleReturn.com reduces or completely eliminates the cost of shipping.
• Keep track of your returns! If you would like, NoHassleReturn.com will remind you to ship the claimed item and will maintain a file of your returns for your records.
• Increase awareness in the community! NoHassleReturn.com serves as a "returned merchandise credit bureau," providing discrete information to consumers on merchants and to merchants on consumers.
• Cross reference marketing leads! NoHassleReturn.com maintains a database of purchases that help custom-target online buyers in a more efficient way.
• Improve the overall image of the online merchant! NoHassleReturn.com enhances customer service of online merchants and overall customer satisfaction by simplifying and streamlining the return process.

Keys to Success

In order for the company to operate, a number of specific ingredients are needed. Following are things to put in place before the service can be offered.

• Retrieve all pertinent information on a participating merchant.
• Match appropriate return procedures against the returning item.
• Present procedures to the consumer in the most concise format.
• Provide reference to the merchant’s entire return policies if requested.
• Inform the merchant of the entire transaction as it occurs.
• Gain authorization from the merchant to return merchandise if needed.
• Present the merchant’s website to consumer for selling opportunities.
• Provide confirmation emails to the customer of the actions taking place if requested.
• Interact with the merchant’s database for further customer details if needed.
• Maintain a record of the transactions for the company’s own database.
• Develop successful relationships with online merchants to facilitate exchange of information.
• Develop strategic alliances with online merchants, shipping companies, and credit card issuers to negotiate reduction or elimination of the shipping costs to consumers on returned merchandise.
• Design, maintain, and promote a user-friendly website, the corporate trademark, that offers an easy and trouble-free merchandise return procedure for consumers.

Marketing & Sales

Marketing plan.

Because the company’s service is a business-to-business program, it will be initially promoted to online merchants by direct sales force. Personal selling will be necessary to reach decision makers within online organizations. At first, contacts will be made with Internet service providers, such as America Online, that host online stores and shops. America Online claims to have 20% of the total Internet service provider market in the U.S. Therefore, arranging a strategic partnership where NoHassleReturn.com becomes the preferred or exclusive choice for all returned merchandise bought at AOL.com shops will be invaluable for establishing a well-recognized brand and building up entry barriers for any possible competition. Ideally, a company’s banner with a notation "For an Easy, Trouble-Free Product Return Click Here" will be visibly displayed throughout the shopping section of AOL.com. Portals such as Yahoo! will be approached as well. Reportedly, Yahoo! hosts nearly 6,000 merchants where it charges each merchant at least $100 to $300 per month. Arranging a strategic partnership with Yahoo! will provide a strong leverage in negotiating return contracts with individual merchants. Similar to that of America Online, the company’s banner will be displayed throughout the entire shopping section of Yahoo!

Large online merchants such as Amazon.com and Buy.com will be targeted by the direct sales force during the first stage as well. Those companies have already achieved significant volumes of sales–and therefore product returns–and will find the uniform return process of much benefit to them. Strong "category killers" such as eToys and CDnow are also first sales targets. Auction houses such as eBay.com and uBid.com will be approached with a service offer for products sold to consumers by merchants and direct manufacturers.

Wherever possible, smaller online retailers will be personally approached by the sales force. To stimulate awareness and service penetration among smaller players, industrial marketing techniques will be utilized. Those will include advertising in specialized publications such as Internet World and Red Herring, as well as referral fees for retailers who already use the service. Email campaigns will be used to reach decision makers at smaller companies. The email messages will have an invitation to the NoHassleReturn.com website where a specially designed presentation will explain the benefits of the new service. An invitation to be contacted by a service consultant to discuss details will be included.

The company plans to offer its services right before Thanksgiving 2000. In order to stimulate a quicker adoption of the services, the remainder of the year 2000 will be offered free of charge.

It is estimated that the initial expenses to hire a sales force and a customer service unit of up to five people during the first year will be close to $400,000. Another $200,000 will be needed for sales program development, marketing activities, and training (excludes advertising). The initial compensation package for sales force will include a nominal base salary and a progressive commission structure. This should ensure that during the early stage of the company’s growth not only that sales targets are met, but also that customer (customer here means merchant) satisfaction and retention are fully addressed. The sales force will initially be located at the corporate headquarters. A territorial approach will later be implemented, with sales people located in regions. After one year, sales force members will split into two distinct groups. The first group will include pure sales people, the "go-getters" who will be placed in regions and will work on pure commissions. The commission structure will become more progressive and rewarding for such individuals, including a bonus structure. The estimate for an average commission paid on sales is approximately 5-10%. The second group will include client care professionals who will concentrate on customer satisfaction and retention to ensure the continuity of the program. These individuals will remain at the headquarters and will have a base salary with a bonus structure. The base salary for client care professionals is in the mid-five figures. Industrial advertising and promotional expenses in 2000 are estimated at $250,000.

It is also a possibility to sell the services to merchants via the Internet hosting service providers, portals, and software developers. Those companies will then serve as distributors and agents, compensated on commissions. This approach will eliminate the need for a large sales force. The final layout will depend on how quickly agreements with companies such as America Online and Amazon.com are negotiated, how aggressively they will be able to promote the services, and on what conditions.

The following diagram describes the customer approach (customer here means merchant).

Service consultants are the direct sales force that approaches prospective customers with service offers. Once a customer has been signed, a service consultant will only approach the client with new service offers and product upgrades. A client care professional is then assigned to each customer to deal with all customer service issues. Each customer will be advised to direct all service inquiries to the professional. A professional will also proactively call on customers to ensure high quality of service and customer satisfaction. The consultants and professionals will have direct communication lines between themselves to ensure open information exchange and a quick and efficient problem-resolution culture. This structure will guarantee an aggressive sales approach, client-oriented service, and efficient post-sales support.

NoHassleReturn.com will strive to eliminate the shipping costs to consumers by means of strategic agreements with online merchants, shipping companies, and credit card companies. As stated in the last quote, 58% of all product returns were due to merchants’ faults, hence merchants will have to reimburse shipping costs to consumers in those cases. NoHassleReturn.com therefore proposes that 65% of a given shipping cost should be allocated to corresponding merchants. Due to demand aggregation, the company will be able to negotiate a shipping rate discount with companies such as UPS or FedEx. Hence 20% of shipping costs should be allocated to shipping companies in a form of a discount. Credit card issuers such as Chase and BancOne currently offer a 5% rebate to consumers on purchases with selected online merchants. It is therefore feasible to arrange an agreement with credit card companies and/or issuers to include a 5% shipping cost rebate on all returned merchandise. Since product returns are only 9% of all purchases, it will not represent a large cost to credit card companies to add this differentiating feature to their products. These allocations in total will cover 90% of the shipping cost. The remaining 10% will be absorbed by NoHassleReturn.com via a special "instant rebate."

NoHassleReturn.com will charge merchants a program fee that will average only 0.5% of a given merchant’s total sales. Also, the company will charge a low per-claim fee of 12% of each item’s listed price (each item that has been claimed through the company’s website). However, of the 12% charged per item, up to 4% will be instantly given back to merchants to cover the remaining portion of the shipping cost. The previous table indicates that the 4% rebate is sufficient to cover the remainder of the shipping cost in the first product category. It is actually far more than sufficient in other product categories (refer to ASC Coverage Ratio). NoHassleReturn.com can then decide whether to offer merchants a reimbursement of the remaining portion of shipping costs only or a flat 4% "instant rebate" regardless of shipping costs. For the purpose of this business plan and financial projections, a flat 4% "instant rebate" was used thus reducing the per-claim fee from 12% to 8% across the board.

As it was stated in a prior chapter, retailers should see an average sales increase of at least 15% due to the service offered by the company. On the other hand, based on the proposed pricing structure the service should not cost merchants more than 1.5% of their total revenues. The cost-benefit ratio of 10 will be a strong promotional point for NoHassleReturn.com.

While it is a possibility to charge merchants commissions on all sales made through the company’s website (when consumers claim their returns), it would not capture all sales stimulated by the company. The program will increase consumer satisfaction and loyalty. However, when consumers start buying more due to the program’s effect but dealing directly with the merchant, the company will not receive any commissions and will in effect be giving its services away for free. Hence both fees charged should fully reflect the benefits of the easy-return procedure, early information on all returning items, restored customer satisfaction, selling opportunities created during the claim process, and all repeat sales thereafter.

The company also plans to draw revenues from advertising on its website, but for the purpose of this business plan advertising revenues will be considered negligible. A fee/rebate agreement may be arranged with such companies as UPS and Mail Boxes Etc. for bringing customers to them for shipping needs. Other revenue generating activities such as affiliate programs with VISA, American Express, or Citibank can be arranged to promote certain credit cards as a preferred method of payment online. Those revenues will also be omitted in the financial projections. Once the company has generated a sufficient customer database, it may also market information to retailers and other organizations for a fee. Any fees and payments NoHassleReturn.com could generate from consulting activities in the field of product returns will not be included in the financial projections either.

The service positioning in the eyes of online merchants is imperative to the success of the enterprise. The service proposed by the company is a business-to-business solution offered to online merchants of physical, non-perishable products. However, because online consumers will deal directly with the company via its website, the proposed solution also incorporates some features of a business-to-consumer service. It is therefore of utmost importance to clearly define what this company offers is a customer service & customer satisfaction program for online merchants. The most unique feature is that the proposed company takes the systemic problem of product returns and turns it into new selling opportunities for online merchants.

It is also important to note that NoHassleReturn.com does not try to position itself as a competitor to any incumbents with a similar service, online merchants, or shipping companies. The proposed company strives to position itself as a strategic partner to all parties participating in handling product returns. If nothing else, NoHassleReturn.com should be viewed as an outsourcing company to online merchants with the core competency and focus in handling returned merchandise.

The service offered by NoHassleReturn.com is designed to enhance customer retention and loyalty by offering an easy and trouble-free merchandise return process to online shoppers. According to Jupiter Communications, the goal of the 1999 holiday season was not about generating impressive sales, but rather securing long-term relationships. Retailers now need to focus on retention and loyalty. NoHassleReturn.com will help to achieve just that through establishing lasting, productive relationships with online merchants. Providing an easy, uniform, and trouble-free return process to all online shoppers will enhance the overall image of online merchants. While the number of retailers continues to grow, consumers will not have to look up every single one to find out about return policies and later keep abreast for possible changes. A centralized Internet location–the company’s website–will retrieve, summarize, and present the appropriate policies. Based on product information, it will make sure the correct procedures are used. The company’s banner with a notation "For an Easy, Trouble-Free Product Return Click Here" will be placed visibly on retailers’ websites and will serve as a symbol of customer orientation and care.

Moreover, the shipping process will be streamlined. Customers will be able to generate a shipping label on the company’s website thus reducing the hassle at the shipper’s counter. Although some online retailers already supply pre-printed shipping labels for sold items, customers sometimes lose, or throw away, those labels when they first see and like the products they ordered. Shortly after they may change their mind and would like to return a particular item, but the label is gone. With the proposed program, the label is always available online so that consumers can have peace of mind and also reduce the amount of documents they need to keep just in case. The service therefore offers a dual benefit to consumers. The retailers may then choose to stop including a pre-printed return label with every outgoing shipment thus reducing costs of selling. From a shipping company’s perspective, the shipping process is streamlined because the online-generated label will have all the necessary information, possibly including a tracking number if it is going to be shipped by UPS. That way consumers do not have to spend time at UPS counters filling out forms–both a customer service and operations improvement for UPS. NoHassleReturn.com will be a strategic merger between online merchants, carriers, and their partners targeted at overall improvement of customer satisfaction and ultimately the bottom line of merchants.

Another important feature of NoHassleReturn.com is that shipping of returned merchandise should be free of charge to consumers. (Means of achieving it are discussed in more detail in the Pricing and Revenue Generation section.) This differentiating feature will tremendously increase the consumer acceptance factor of the proposed service. The fact that products purchased online can be returned in an easy and trouble-free way, and that shipping is also free, will help expand the entire online shopping industry. The added convenience and peace of mind consumers will gain with NoHassleReturn.com will translate into more shopping with those online merchants that participate in the NoHassleReturn.com program.

When customers go through the sequence of online entries on the company’s website, the retailer whose product is being claimed for return will be offered at least one selling opportunity. At the end of the sequence the retailer will be able to target the consumer with any new sales offers as its website will appear onscreen. Should an exchange or replacement be preferred by the customer during the online return process, the retailer will receive an additional selling opportunity as its website will appear with offers during that step. These opportunities will translate into more sales for retailers. This will also stimulate customer retention, which means repeat sales. All in all, the program will increase customer satisfaction and generate more sales.

The program has a number of unique features. First, it alerts the retailer that a particular customer is claiming a particular product for return as it happens. That way the retailer knows about it as it occurs and not when the merchandise arrives at its warehouse. This allows to plan ahead. Since 9% of all products are returned, this feature offers useful information to better handle logistics and inventory.

Secondly, and more importantly, by asking consumers during the online sequence why they want to return a particular item merchants gain an invaluable piece of information. If the reason for return is defective product (30% of all reported returns), the retailer can save the sale and turn an unhappy customer into a delighted one by sending a new item right away. If the reason for return is wrong color, wrong size, or wrong product altogether (28% of all reported returns), the retailer may choose to send the correct product right then, thus instantly restoring customer satisfaction and saving a bad sale. It will be up to the retailer to decide on payment and credit terms of the exchange. These benefits ultimately translate into increased customer retention, reduced costs, more sales, and improved bottom line.

It is estimated that the program will generate an average sales increase for merchants of at least 15%. Online shopping is still at the early stage of consumer adoption. As stated earlier, about half the people who have not shopped online cited the cost and hassle of returns as a significant factor for not shopping online. Another recent survey found that 89% of online buyers said that return policies influenced their decision to shop with an online retailer. Consumers demand not only convenience but peace of mind. The proposed program offers both and it should increase the number of online shoppers, thus causing a market expansion for online merchants. The first retailers who implement the proposed program will also be able to differentiate themselves and capture a larger market share in their respective segments. Once embraced by the majority of online merchants, the program will become an industry standard.

It is important to note that during the entire process the company will not ask for, or try to gain access to, consumers’ credit card numbers. This will significantly limit possible liabilities and security/confidentiality concerns.

Milestones & Metrics

Milestones table.

Key Metrics

Our Key Metrics: 

• Active clients
• Active client leads
• Monitor Facebook and Twitter and reach out to customers who tweet at us or about us
• Easy to understand website and have a online chat and telephone number for questions 
• # of referrals from strategic alliances 
• # of customer who use us month after month 
• # of returns handled and from which company 
• cost of processing returns, make it as streamlined and well thought out as possible 

Ownership & Structure

Those activities that are not crucial to the corporate success (i.e. payroll) will be outsourced or subcontracted. Below are brief summaries of major responsibilities for corporate officers.

• Board of Directors : oversees the overall strategic direction and progress of the company. Specific areas include operational soundness, financial stability, and long-term well-being of the corporation.
• President : responsibilities include strategic guidance of the enterprise, exploration of expansion opportunities, and strategic alliance facilitation and management.
• Chief Executive Officer : the main responsibility is to maintain a strategic fit between the corporate resources and external factors. Responsibilities include running of the overall day-to-day operations, technological and operational soundness, and financial stability.
• Director of Finance and Operations : responsibilities include financial oversight, safeguarding of assets, and human resources management.
• Director of Information Technology : responsibilities include overall technological efficiency, software development, and information control.
• Director of Sales and Marketing : responsibilities include sales generation, marketing programs development, and public relations.

Management Team

There are two principals that are responsible for the idea and the progress of the firm up. They recognize as the companies quickly grows, certain positions such as CEO and CFO will need to be filled. The company was founded by Steve Logic and Dan Codder. Steve has spent the last ten years at Federal Express. While at FedEx, Steve was responsible for their logistics system. Steve has the incredible skill of perceiving business needs and creating a solution to address the need. At FedEx, Steve was the architect behind their benchmarked logistic system that has the ability to track customer packages and share the information with the client. What this meant for FedEx is that they could tell the customer exactly where their package is at any one point. This logistics system is the main driver behind FedEx’s exponential growth. Dan Codder is a twenty-year veteran in the computer industry. Self taught, Dan has worked at IBM, Cadence, Tektronix, and several other companies. Dan has the ability to design and write computer code very quickly and accurately. NoHassleReturn.com will leverage Dan’s skills for the completion of their customer service software engine.

Personnel Table

Financial Plan investor-ready personnel plan .">

Key assumptions.

• $4.1 million investment
• Status quo in market developments related to returns as part of traditional commerce is online commerce.
• Competition as we foresee it in the plan. 

Revenue by Year

Net profit (or loss) by year, use of funds.

START-UP REQUIREMENTS

Start-up Expenses

Stationery etc. $50

Brochures $450

Insurance $100

Research and development $400

Expensed equipment $1,100

TOTAL START-UP EXPENSES $3,000

Sources of Funds

The two co-owners will each contribute $25,000, for a total startup of $50,000. 

The plan depends on $4.1 million investment in the first month. 

Projected Profit & Loss

Projected Balance Sheet

Projected Cash Flow Statement

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7 Business Plan Examples to Inspire Your Own (2024)

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

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 .

7 business plan examples: section by section

The business plan examples in this article follow this template:

• Executive summary.  An introductory overview of your business.
• Company description.  A more in-depth and detailed description of your business and why it exists.
• Market analysis.  Research-based information about the industry and your target market.
• Products and services.  What you plan to offer in exchange for money.
• Marketing plan.   The promotional strategy to introduce your business to the world and drive sales.
• Logistics and operations plan.  Everything that happens in the background to make your business function properly.
• Financial plan.  A breakdown of your numbers to show what you need to get started as well as to prove viability of profitability.
• Executive summary

Your  executive summary  is a page that gives a high-level overview of the rest of your business plan. It’s easiest to save this section for last.

In this  free business plan template , the executive summary is four paragraphs and takes a little over half a page:

• 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 the 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.”
• Industry.  “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 have expanded into two new product categories.”
• Team.  “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.

• 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 who you’re up against and give you ideas on how to differentiate your brand. A broad competitive analysis might include:

• Target customers
• Unique value add  or what sets their products apart
• Sales pitch
• Price points  for products
• Shipping  policy
• 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:

• 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.

• Logistics and operations plan

The Paw Print Post example considered suppliers, production, facilities, equipment, shipping and fulfillment, and inventory.

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 this financial plan spreadsheet to build your own financial statements, including income statement, balance sheet, and cash-flow statement.

Types of business plans, and what to include for each

A one-page business plan is meant to be high level and easy to understand at a glance. You’ll want to include all of the sections, 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  outside 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 bigger picture, more-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.

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, what is the best format to write a business plan, 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.
• Cashflow: 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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All types of ecommerce business models explained.

Are you ready to dive into the world of ecommerce business models ? When you understand these models, you’ll be ready to thrive in the online marketplace .

But which model will make your business rise? I’ll explain every ecommerce business model with a real-world example to give you a clearer vision.

It doesn’t matter if you’re just starting out or looking to refine your strategy. Trust me, you’ll get valuable insights to transform your online journey. Let’s dive in!

Table of Contents

7 Types of Ecommerce Business Models

1. b2c (business-to-consumer).

B2C (Business-to-Consumer) is probably the first thing that comes to mind when you think of ecommerce business models. It’s the model where businesses sell directly to you, the end consumer. 

From my experience, earlier I was looking for a new pair of shoes and I hopped on Zappos website .  

So, let me show you how this process goes. You browse through the options and find the perfect pair. You choose your size and the color you like, and click on “ Add to Bag.”

Then you go to “My Bag” and for insurance check if everything is alright. If it is, click on Proceed to Checkout to make the purchase.

It’s all about creating a seamless , personalized shopping experience just for you. This business model is incredibly common because it focuses on you, the customer. 

Think of Amazon , Walma rt, or even your favorite online boutique. They are all examples of B2C businesses. They make it easier to target our needs with customized marketing strategies.

But, like everything, B2C has its pros and cons . On the plus side, it’s customer-centric , which means businesses can tailor their strategies to meet our exact needs, leading to potentially higher sales.  

However, this focus also means there’s stiff competition. Standing out in a crowded market can be challenging, requiring constant innovation and sharp marketing tactics . 

2. B2B (Business-to-Business)

Let’s dive into another ecommerce business model that I’ve found intriguing, B2B (Business-to-Business). 

In essence, B2B ecommerce involves transactions where one business sells products or services to another business. It’s more complicated compared to selling directly to consumers, but when you master it, it can be rewarding.

Let me explain it clearer to you. Let’s say you own a small business that manufactures custom furniture . You need a bulk supply of high-quality wood to create your masterpieces. 

You remember the well-known B2B platform  Alibaba  and find a reliable supplier. From here, Alibaba connects you with a wood supplier that sells large quantities of materials specifically to other businesses.

One of the key features that stand out in this form of ecommerce is bulk ordering. Unlike B2C models, where purchases are often made in single units, B2B transactions typically involve large quantities. These can lead to better pricing and economies of scale. 

Additionally, businesses prefer enduring partnerships built on trust and reliability. In other words, to have long-term relationships.

Moreover, there is negotiation. It’s a critical element where terms, prices, and delivery schedules are discussed in detail to meet the specific requirements of both parties. 

Companies like Alibaba , ThomasNet , and Salesforce have mastered the e-business model that connects businesses worldwide. 

You can run into B2B pros and cons too. The pros are that when you deal in bulk orders , it can lead to profits and stable business relationships that provide consistent revenue streams. It also opens doors to international markets . 

However, the challenges shouldn’t be overlooked. B2B sales can be  longer  and more  complicated . It requires substantial time and resources to nurture client relationships and close deals. Additionally, be aware of  missteps; they might lead to losing a valuable client. 

3. C2C (Consumer-to-Consumer)

C2C (Consumer-to-Consumer) is all about the peer-to-peer connection and is one of the most dynamic types of ecommerce business models. This is where regular folks like you and me buy and sell directly to each other. Imagine it like a virtual garage sale but with a global audience. 

So, what exactly is C2C ecommerce? I’m sure you have some vintage lamp in your attic that’s been sitting for years. Instead of letting it collect dust, you can sell it on eBay .

You go on Sell and then click on  List an Item  to list your lamp for sale. Soon enough, someone will find your lamp and  make the purchase. 

eBay doesn’t own the lamps or even set the price. It’s all you! It just provides the marketplace for you and the buyer to connect. 

From my experience, C2C ecommerce is all about people helping people , whether it’s through selling items you no longer need or buying something unique you couldn’t find in a store. 

Marketplace platforms, user trust, and reliable payment systems are the cornerstones of this model. eBay , Craigslist , or Etsy act as the middlemen. They make sure that transactions go smoothly and that both parties are protected. 

Also, Facebook Marketplace is another great example for the C2C ecommerce business model.

As  pros , it’s incredibly easy to start selling. You don’t need inventory or a storefront, just a product and a platform. Plus, the direct interaction between buyers and sellers can create a more personalized shopping experience. 

As cons , these transactions are between individuals, so trust can sometimes be an issue. That’s why platforms put a lot of emphasis on reviews, ratings, and secure payment systems to help build confidence between users. 

4. C2B (Consumer-to-Business)

When you already explore the different ecommerce business models, one that often surprises people is C2B (Consumer-to-Business). Here consumers offer products, services, or even influence to businesses. 

I personally for my marketing campaigns, brochures, and websites,  I  am looking for photos on  Shutterstock . There are some talented photographers, instead of selling their prints to individual customers, they upload them on Shutterstock, and it’s a lot easier. And, me and businesses like me, make a purchase on their images. 

Here you can browse whatever you want and need, and in what form you want. 

Whether you’re a freelancer on Upwork, a designer on Fiverr, or a photographer on Shutterstock, you’re a participant in a C2B ecommerce model.

Let’s dive into the key features of C2B. There are reverse auctions where businesses bid for the services of consumers. Then is service provision through platforms that connect you with companies. And even influence marketing , where you use your social media reach to promote your brands. 

The pros  of the C2B business model are that it opens up a world of  opportunities  to earn money and grow your brand. And it’s flexible too! You can work on your own terms.

However,  the cons  are that it can be  competitive,  and sometimes, it might be a challenge to secure steady work. 

5. D2C (Direct-to-Consumer)

D2C (Direct-to-Consumer) is all about cutting out the middlemen. No need of retailers, no wholesalers, just direct connection between you and your customers.

With this model , you have  complete control  over your products, prices, and customer relationships .

For example, if you own a skincare brand lik e Glossier, you may decide to sell directly through your website instead of  through traditional retail channels. 

Customers come to your site, choose something from your offerings, and make the orders that go directly to you. There’s no one else, which means you have full control over your brand’s image , the way you present your product, and how your customers will experience your service.  

Also, the best ecommerce examples are D 2C brands like Warby Parker for glasses or Casper that is for mattresses. They all have built their brands by selling directly to their customers, not just products but experiences. 

For me, this type of ecommerce business model is more intimate and personal , which allows me to build stronger and more loyal relationships. 

This model has a strong focus on branding . Moreover, you are able to directly manage customer relationships . And also to take advantage of bypassing intermediaries who might take a cut of your profits. 

When you’re in charge, you can  innovate faster  or respond more directly to customer feed back.

However, on the bright side, you’re in complete control. This means you can offer a unique, consistent brand experience. 

But  this also means you’re responsible for everything, from marketing to logistics to customer service. There is no one to lean on for support, so the pressure is all yours. 

But, when you succeed, the success is all yours!

6. B2B2C (Business-to-Business-to-Consumer)

You have come to the most complicated ecommerce business model of all, B2B2C (Business-to-Business-to-Consumer). It has the strength of both B2B and B2C. 

How? It creates a chain that connects a business with end consumers through an intermediary business.

For instance, you have a favorite bread bakery, right? Be sure that a lot more people like that bread , too. So, the bakery creates a  large grocery chain  with stores that buy their bread and then sell it to the end consumers. 

It’s a smart way to expand your market without opening more stores or managing direct consumer sales yourself. 

Moreover, this model also has a strong dynamic , where both businesses need to work closely to ensure that the process from production to consumer purchase goes well.  

So, integrating the value chain in every part of the journey, from the bakery to the grocery shelves, enhances the  customer experience,  and the bakery can focus more on doing its best. 

In the ecommerce world, Instacart is a store that delivers products directly from grocery stores to consumers. 

Amazon’s partnership wi th third-party sellers is another, in which Amazon acts as the intermediary allowing smaller businesses to reach millions of customers through its platform. 

B2B2C is like the best of both worlds :  the  efficiency  and  scale  of B2B, which comes from tapping into an established partner’s infrastructure and customer base, and the personal touch of B2C . 

But they have their  worst worlds,  too. It requires careful coordination and trust between the businesses. Success depends on both! On the one business’s effort and the other one how well it will represent and sell the product. 

7. B2G (Business-to-Government)

Business to Government (B2G) ecommerce is like a company selling directly to government agencies online.

 Imagine you’re a tech company that builds advanced security software. Instead of selling to everyday consumers, you pitch your software to the government to protect their data and systems. 

You’d use specialized platforms to submit your bids and proposals, often facing a longer process because governments must ensure they get the best deal with public money.

For example, let’s assume you are a software developer. You have developed an application specifically designed for government use. It might improve data security or streamline administrative processes. 

You notice that a government agency seeks proposals for a solution that matches with your software. You enter the bidding process and compete against other businesses. After careful review from the government, you win the contract! From now on you’re not just selling the software, you’re partnering with the government! 

Therefore, government contracts can be massive, both in terms of scope and financial value. That’s why the aspect of scale and impact of the projects is involved. 

Make compliance , detail the documentation, and ensure you can meet the standards set by the government. 

For instance, IBM , Oracle , and Boeing are masters at this. Their success lies in managing the complex relationships and requirements that come with contracts. 

Let’s discuss the pros and cons now. The  pros  are that governments are reliable clients, and their contracts can lead to long-term stability.

However, the  cons  are that the bidding process can be  highly competitive  and  time-consuming . If you fail, you might have serious consequences.

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Other Ecommerce Models

1. subscription-based ecommerce.

Subscription-based ecommerce is where both sides get benefits. Customers get convenience, and businesses secure loyalty. 

Think about something as simple as shaving. Dollar Shave Cl ub helps you avoid running to the store every time you need new razors. With a subscription, you receive fresh supplies delivered to your doorstep every month.

Same as Netflix ! Do you have that strange feeling when you switch to another service and break a habit from your daily routine?  

Also, the Shopify business model is a choice to set up subscriptions services. With its seamless integration and tools it helps businesses manage everything from product offerings to customer retention strategies. 

But, if businesses stale their services or the products are no longer what they were expected, the subscription can easily go out.  

And, when it’s done all how it needs to be done, it’s a win-win for both!

2. White Label and Private Label

With White Label and Private Label strategies you get the quality of established products and create your own brand on it.

Let’s go back to skincare! Don’t waste time and money on developing new products from scratch. You find some products that are ready to go from some manufacturer. 

How to make it your brand ? You rebrand them under your label, give them a new name, new look, and target your audience. 

So, you take something ordinary and make it into something exclusive with your brand’s identity. 

Like Brandless and Trader Jo e’s are doing, they take products made by other companies and put their own brand on them. 

You control! You decide how the product looks, how it’s marketed, and how it’s positioned in the market. 

And, you make your success! It depends on how well you will change them through branding, marketing, and customer engagement. 

Build a story and convince them that your version of this product is the one they need.

3. Dropshipping

Dropshipping is the lowest headache for managing inventory or worrying about shipping logistics. 

For instance, you have an online store that sells phone accessories. But this ecommerce business model, you don’t have to stock up with cases, chargers, or screen protectors. 

Here, you partner with the suppliers, and they take care of the rest. You just make the orders on your site. 

This allows you to focus more on marketing and customer service rather than storage space and packaging. 

Dropshipping.com offers a treasure of resources, from blog articles to tools that help you find reliable suppliers and manage orders efficiently. It’s a guide that walks you through the process. 

Whether you use the Shop i fy business model or another platform, Dropshipping.com has the insights and tools to help you streamline your operations and avoid common pitfalls. 

Moreover, SaleHoo and AutoDS are also great examples in the dropshipping world. They offer everything from supplier directories to order management systems. 

I personally love it because it has a low-risk nature. What does it mean? It’s perfect for beginners. You don’t need to invest so much and that means less financial risk.  

But, you still have to be aware which suppliers you are choosing. Choose the safe ones! 

4. Print On Demand

Print on Demand is an ecommerce business model for artists and designers. 

You just do you! Do your design, and don’t stress about the hundred t-shirts, cups, to deliver. You don’t need them. Sell only your print on demand design .

Don’t worry about the sizes and colors. That will handle platforms like Printful and Teespring . So, you can sit back and watch your designs come to life with each sale. 

Here, I’ll guide you through using  Printful a little. You can customize your choices, including where you want it to be placed, what color you want, and  what size.

What I find most exciting about this e-business model is how it allows you to sell custom products. You don’t have to be just an artist or designer just to have a clever idea, and you can launch your ecommerce store with minimal upfront investment.  

Therefore, you don’t need to commit to large production runs or worry about unsold stock. Every product that you make is made for order. So, you pay only for what you sell.  

Choosing the Right Ecommerce Business Model

Choosing the right ecommerce business model can feel a bit exhausting. Your chosen model will follow you, so it’s worth taking time to find the best fit. 

Who are you trying to reach? Different types of ecommerce business models are for different customers. Your target market will guide all your decisions and will keep you on the right path. 

Next, go for your product type . The type of product will influence your choice of ecommerce business model. 

Don’t forget about scalability . Some types of ecommerce are easier to scale than others. Resources are a big deal too, both financial and human. 

I recommend you to do a SWOT analysis . Consider your strengths, weaknesses, opportunities. You can combine this with some market research to understand where you are. 

So, what are your business goals? Are you looking for quick or long hauls? They should align with the e-business models you consider. 

The start is as simple as setting up a basic online store. I recommend  starting small to  see what works, and please don’t be afraid to pivot if things aren’t going well . 

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Top 5 Ecommerce Business Websites in 2024

Shopify is a comprehensive ecommerce platform that allows you to build , customize , and manage your online store with ease. 

Moreover, it offers a wide range of tools for product management, payment processing, and marketing. 

So, all of this is designed to support various ecommerce business models like dropshipping , B2C , and subscription-based ecommerce. 

2. BigCommerce

BigCommerce is a robust ecommerce platform for businesses looking to scale. 

Therefore, it offers advanced features for managing products , payments , and marketing , which helps you  grow  whether you’re just starting out  or expanding. 

Also, supports ecommerce business models such as B2B , B2C , and D2C . 

3. WooCommerce

WooCommerce is a customizable , open-source for WordPress that transforms your website into a fully functional online store. 

Thus, it supports B2C , B2B , and subscription-based services . It offers them extensive flexibility with numerous extensions and integrations.

Magento is a powerful ecommerce platform designed for businesses to seek high to customize their online store. 

Therefore, it offers advanced features , scalability , and third-party integrations, to ecommerce business models like B2C and B2B .

To manage complicated operations, businesses can use Magento to require a flexible ecommerce solution. 

5. Squarespace

Squarespace is an all-in-one website and e-commerce platform that allows users to create  visuals for  online stores.  

Moreover,  B2C  and  subscription-based services  offer  design templates ,  marketing tools,  and  product management.  

So, creators and small businesses can  stylishly create  their  online presence with this app .  

Top 5 Ecommerce Online Stores in 2024

1. gymshark.

Gymshark is a go-to brand for modern fitness culture. It offers products designed to enhance athletic performance and comfort , both casual fitness enthusiasts and serious athletes. 

Moreover, this popularity has come with its strong focus on quality , innovation , and approach to community. 

2. Toyshades

Toyshades is a trendy eyewear brand that offers stylish , affordable sunglasses and prescription glasses . 

Known for its high-quality craftsmanship , Toyshades provides a lot of eyewear options that blend fashion with functionality. 

Thus, it focuses on delivering unique , trending styles to fashion consumers. 

3. Wolf Circus

Wolf Circus is a Vancouver-based jewelry brand that makes minimalist and timeless jewelry designed for everyday wear. 

So, it offers handcrafted pieces made from recycled metals . The brand wants to create modern , wearable art that’s stylish and sustainable. 

4. Quadlock

Quadl ock is a leading brand whose mechanism ensures that your device stays firmly in place. This makes it a top choice for active individuals seeking reliable smartphone mounts. 

Therefore, it’s known for its secure and versatile mounts  and offers products for  cycling ,  running ,  driving, and motorcycling. 

5. Allbirds

Allbirds is a footwear and apparel brand that makes its comfortable shoes with eco-friendly materials , like merino wool and eucalyptus. 

Also, is a minimalist design brand that prioritizes both style and sustainability. 

Therefore, it is celebrated for its commitment to reducing environmental impact, which proves  high quality.

To sum it all up, I recommend you learn the differences between the ecommerce business models if you plan to start your online business. 

It doesn’t matter if you are leading towards dropshipping for its low-risk entry, or B2B for large scale, or subscription-based models for consistent revenue. Every model can offer you advantages and challenges . 

Before you make a decision, it’s important to consider your  target audience , your  product type,  and your  long-term goals . 

Remember, when you choose the right model , you have just  begun  the journey. You still have to  learn  and  experience  these types of e-business models. 

Start today with your exploring, researching, to stay ahead in the world of ecommerce.

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Executive Summary of a Florist: Template & Example

• August 26, 2024
• Business Plan , Executive Summary

A florist business plan needs a straightforward executive summary . This part of your plan is the first thing investors and partners see, and it should clearly outline what your store is all about. It’s where you explain what makes your florist different and worth investing in.

We recommend using a two-slide PowerPoint format for this summary. The first slide should cover the basics of your business and the market you’re entering. Here, you detail your store’s products, location, and what sets you apart from others. The second slide focuses on your management team and your financial plans, highlighting the people behind the business and how you expect the store to grow financially.

This simple, two-slide approach ensures that your executive summary is easy to follow and covers all the essential points about your florist business.

Florist Business Plan

Fully editable 30+ slides Powerpoint presentation business plan template.

Download an expert-built 30+ slides Powerpoint business plan template

Florist Executive Summary: Page 1

Business Overview

Your business overview should provide clear and concise information about your florist shop. This includes the name of your shop, its location, and a brief overview of daily operations.

In this section, it’s essential to emphasize your unique selling proposition (USP)—what makes your florist shop stand out. Whether it’s your focus on locally sourced flowers, custom floral designs, or sustainable practices, your USP should be central to your executive summary. This is your chance to captivate your audience by showcasing the distinct value your business offers in the marketplace.

Example “Blossom & Bloom Florist,” located in the bustling downtown area of Riverside, operates from a 2,000 sq. ft. space on Elm Street. The shop opens daily at 9 AM, offering a wide range of fresh bouquets, potted plants, and custom floral arrangements. The USP of Blossom & Bloom is its commitment to sustainability, using only locally sourced flowers and eco-friendly packaging materials, making it the go-to florist for environmentally conscious customers.

Market Overview

The market overview section should present the size, growth trends, and key dynamics of the floral industry.

Highlight the potential of the U.S. floral industry, supported by relevant data such as market size and growth rates. Discuss emerging trends like the increasing demand for sustainable and personalized floral arrangements, which can offer insight into how your florist shop fits within this evolving market.

It’s also important to address the competitive landscape. Identify your key competitors and explain how your florist shop positions itself uniquely within this environment. Whether through exceptional customer service, innovative floral designs, or a wide variety of seasonal flowers, this section should clearly illustrate how your florist shop will stand out.

Example Blossom & Bloom Florist is part of the $72.8 billion U.S. floral industry, which has been growing at a 15% CAGR over the past five years. Competing with several local florists and large retail chains in Riverside, Blossom & Bloom differentiates itself by offering bespoke floral designs and a strong commitment to eco-friendly practices, catering to a growing base of sustainability-minded consumers.

Florist Executive Summary: Page 2

Management Team

The management team’s background is crucial to your business’s success. This part of your executive summary should emphasize the expertise and experience of your key team members.

This could include details such as the co-founder’s extensive experience in floral design or the financial manager’s background in retail management. Highlighting your team’s qualifications not only adds credibility but also reassures potential investors and partners of your florist shop’s potential for success.

Example At Blossom & Bloom, co-founders Emily Rose and David Green lead the team. Emily, with over 10 years of experience in floral design, has a passion for creating unique and memorable floral arrangements, while David, with a background in retail management, ensures the smooth operation and financial health of the shop, combining their expertise to drive the business forward.

Financial Plan

Your financial plan overview should succinctly outline your financial goals and projections, such as revenue targets and profit margins, giving a clear snapshot of your florist shop’s financial trajectory.

Example Blossom & Bloom aims to achieve $3 million in annual revenue by 2028, targeting a 12% EBITDA margin. The financial strategy involves an initial investment in premium floral supplies and a welcoming shop atmosphere, with growth driven by community engagement and a strong online presence, positioning the florist shop for profitability and local recognition within five years.

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