Writing an eCommerce business plan is one of the first steps you should take if you’re thinking about starting an online business. Whether you’re opening an online-only shop or adding an eCommerce component to your brick and mortar store for an omnichannel retail experience, there’s never been a better time to sell online.
The numbers don’t lie: since 2014, the number of digital shoppers worldwide has grown from 1.32 billion to 2.14 billion. That’s a 62% increase! Currently a $4.28 trillion market, eCommerce is forecasted to make up a fifth of all retail sales by 2024. If you want a slice of the climbing profits, now is the time to get involved.
An eCommerce business plan can help you steer your online shop in the right direction. Fortunately, you don’t need a business degree to create one. Read on to:
Learn everything you need to know build, launch and grow an online store with this free guide.
A business plan is a document that outlines the goals of a business and how the business will achieve those goals. While there is no standard format for a business plan, such documents typically cover what the company will do, what problem it will solve, how the business is structured, who the target market is and how the product or service stands out from the competition.
A business plan serves as a roadmap for your company and helps you stay focused. Having one is also useful for attracting investors and business partners, as it shows you’re serious about your business, have done your research, know your industry and have considered the challenges you may face along the way.
While the structure of a business plan for an eCommerce business won’t differ much from a business plan for any other type of company, the business strategy at the core of the plan may differ greatly from that of a traditional retail store.
For example, a traditional retail business plan might describe plans for leasing and designing a storefront. An eCommerce business plan, in contrast, would focus on the company’s digital storefront: its website. One of your business goals for the first year might be identifying the best eCommerce software , rather than finding the perfect space to lease.
Another notable distinction: while a traditional retail business plan might include an organizational chart with many front of house staff members, an eCommerce business plan would emphasize roles in online customer service , fulfillment and marketing.
Now, if you already run a brick and mortar business and are adding an online selling component, you’ll want to cover all of the topics listed above.
Now that you understand what a business plan is, why you need one, and what differentiates an eCommerce business plan from a traditional retail business plan, it’s time to get into the good stuff. Read along to learn exactly how to write an eCommerce business plan.
This section concisely introduces everything that you’ll be covering in your business plan. Write it last, so that you can source inspiration from the rest of the document.
Explain what your company does and what makes it stand out. Use the company introduction to answer the following questions:
Going through the exercise of considering these questions and putting your answers into writing will sharpen your focus as a business owner. When opportunities present themselves that don’t align with your values or help you solve your customers’ problems, then you can say no without doubts — or, conversely, you can enthusiastically accept opportunities that align with your vision.
Get to know your customers and competition. Do some soul searching and conduct market research to uncover:
Now it’s time for the less sexy stuff. In this section of your eCommerce business plan you should explain:
Explain what makes your eCommerce shop shine: its products and services. Describe, in detail:
Having great products is fantastic, but that in itself is useless if people don’t know about your products. Include your marketing strategy in your eCommerce business plan to show your team and investors how you’ll get your products in front of customers.
Your marketing strategy should include:
This is the juiciest section of your business plan. It helps you set sales and fundraising goals that will let you explain to investors where you stand financially and why you need their investment.
If your business is pre-revenue, include:
If your business already exists, include information like:
Now that you know everything there is to know about how to start an eCommerce business, it’s time to craft your business plan. Follow the template below to set yourself up for success.
Company name:
Founders/leadership team:
Products/services:
Target market:
Marketing strategies:
What does your business do?
What problem does it solve, and how?
Business model:
Mission statement:
Company values:
Ideal customer:
Market size:
Competitive analysis:
What makes your business different from the competition? What are your advantages and opportunities?
Legal structure:
Leadership team:
Organizational chart:
Product/service 1:
Product/service 2:
Product/service 3:
Pricing, positioning and profit margins:
Manufacturing/supply chain:
Intellectual property claims:
SWOT analysis:
Marketing channels:
Marketing strategies:
Marketing goals and KPIs:
Revenue (projected or actual):
Profit or loss:
Investments:
Budget vs. actuals:
When you record what you want to achieve and how you’re going to achieve it, you’re more likely to turn your vision into a reality. Take the time to think about your business, find out what makes your products different, and be thoughtful about how you’re going to find customers.
When you’re ready to build your eCommerce shop, turn to Lightspeed’s eCommerce platform. Watch a demo to learn more.
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