How To Create The Perfect Ecommerce Business Plan (Examples & Templates)
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.
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:
| Section | Details |
|---|---|
| Mission Statement | Purpose: Why does the company exist? Example: "To provide eco-friendly products that promote sustainable living." |
| Company History | Roots: Origin and background of the company Example: "Founded in 2010 as a small eco-friendly shop, now expanded to a global online presence." |
| Leadership Model | Leaders: Key leadership figures and their qualifications Example: "Jane Doe, CEO, MBA from Harvard, 15 years in ecommerce." |
| Company Stakeholders | Stakeholders: Individuals or entities with a stake in the company Example: "Founders, investors, key employees." |
| Market Segment | Target Market: Specific market segment the company serves Example: "Eco-conscious consumers aged 25-45." |
| Ecommerce Products | Products: Items the company will sell Example: "Reusable bags, bamboo toothbrushes, eco-friendly cleaning products." |
| Ecommerce Services | Services: Services offered to customers Example: "Subscription boxes, personalized eco-living consultations." |
| Unique Selling Points | USPs: What makes the products or services unique Example: "Products made from 100% recycled materials, carbon-neutral shipping." |
| Competitive Advantages | Advantages: How the company stands out against competitors Example: "Exclusive partnerships with green manufacturers, award-winning customer service." |
| Suppliers & Vendors | Needs: External products or services required Example: "Sustainable packaging suppliers, logistics providers." |
| Financial Projections | Projections: Future financial outlook Example: "Projected revenue of $1M by year 2, break-even by year 3." |
| Investments | Resources Needed: Cost and types of resources required Example: "Initial investment of $500K for inventory and marketing." |
| Company Goals | Long-term Goals: Strategic objectives Example: "Become the leading online retailer for sustainable products within 5 years." |
You will have better clarity regarding some of these aspects after you complete the entire ecommerce business plan.
For instance, you can provide a more accurate competitive analysis after conducting market research.
Similarly, you will have a clear understanding of financial projections and investment requirements after you source potential suppliers.
You can create a rough draft of the executive summary at the beginning. Then you can circle back to it when you have more clarity.
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.
| Section | Details |
|---|---|
| Company Purpose | What will the company do, and how does it help the target customer? Why will the company succeed? Example: "Providing eco-friendly products to promote sustainable living. Our unique products cater to the growing demand for sustainable solutions, ensuring market success." |
| Core Values | What core values will the company uphold in customer service, operations, and employee management? Example: "Sustainability, Integrity, Innovation, Customer Centricity." |
| Organizational Structure | What roles are needed to run the company's operations? Example: "CEO, Operations Manager, Marketing Team, Customer Support, Logistics Manager." |
| Company Location | Where will the company's office be located? Example: "Headquarters in San Francisco, with additional offices in New York and London." |
| Existing Resources | What resources does the company already possess? Example: "Established supply chain, experienced management team, proprietary technology, initial funding of $1M." |
| Required Resources | What additional resources are needed for the company to be operational? Example: "Additional funding of $500K, office space, skilled labor, marketing tools, logistics partners." |
In this section, you'll outline what your company will look like and what it'll do.
You'll detail the types of people needed to run the company, along with the resources you already have and the ones you'll need.
For example, if you've already purchased a domain name and registered your company name as a trademark, you can list these as existing resources.
If you still need to develop an ecommerce website, list that under required resources (and find the right ecommerce platform to make your job easier).
This section also provides an overview of your company’s hierarchy and management team. Describe the different departments in your company and the key team members for each one.
You should also specify which operations will be done in-house and which will be outsourced to external agencies.
This part of your business plan will give you a clear picture of your current status and help you identify what you’re missing. Keep in mind, this section may change as you do more research and discover new requirements.
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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.
| Section | Details |
|---|---|
| Product Offerings | Product Name: Various names of your products. Product Attributes: Key characteristics of the product. Features: Unique features of the product. Benefits: Advantages and benefits for the customer. Uses: How the product can be used. SKU Variations: Different versions or variations of the product. Cost of Manufacturing: Manufacturing cost per unit. Price: Selling price of the product. |
| Service Offerings | Service Name: Name of the service. Service Attributes: Key characteristics of the service. Service Provider: Who provides the service. Features: Unique features of the service. Benefits: Advantages and benefits for the customer. Cost of Service: Cost to provide the service. Price: Selling price of the service. |
| Pricing Strategy | Product/Service Name: Name of the product or service being priced. Pricing Strategy: Strategy used to price the product or service (e.g., cost-plus, competitive pricing). Profit Margin: Expected profit margin. |
While you might only sell products on your ecommerce platform, you could also be selling services (which many ecommerce platforms allow you to do).
For each product, include a short description and pricing information. Specify whether you're selling physical or digital products, and explain how customers will receive them.
Describe any services you provide, such as digital subscriptions or in-person consultations. Specify how customers will access these services and any relevant pricing information.
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.
| Section | Details |
|---|---|
| Target Market | Target Audience: Who are the potential customers? Example: "Eco-conscious millennials aged 25-40, living in urban areas, interested in sustainable living." |
| Buyer Persona | Profile: Create a detailed profile based on different target audiences. Example: "Jane, 30, urban professional, shops online for eco-friendly products, values sustainability and quality." |
| Customer Needs | Needs: What specific needs does your ecommerce business fulfill? Example: "Providing high-quality, eco-friendly household items." |
| Customer Pain Points | Pain Points: What challenges or problems does your company resolve for customers? Example: "Difficulty finding reliable eco-friendly products at affordable prices." |
| Customer Locations | Locations: Where are your customers? Example: "Primarily in the US and Europe, with growing interest in Asia and Australia." |
| Competitor Analysis | Competitor Name: Brand name of competition. Market Positioning: Where does the competitor stand in the market? Strengths: What are the competitor's strengths? Drawbacks: What are the competitor's weaknesses? Similarities: How is the competitor similar to your business? Differences: How is the competitor different from your business? Marketing Channels: Which marketing channels does the competitor use? |
This analysis will affect several other aspects of your ecommerce business plan.
At this stage, you must analyze the market and decide what place your company can take in the competitive landscape. You can also use other methods for market research, such as SWOT analysis or Porter’s Five Forces analysis.
Regardless of the method, you need an accurate understanding of what your competitors offer and how you can differentiate your ecommerce brand.
This brings us to marketing.
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.
| Section | Details |
|---|---|
| Brand Positioning | Positioning: How will you differentiate your brand in the market? Example: "Positioning as a premium eco-friendly brand that combines sustainability with luxury." |
| Audience Segment 1 | Relevant Products: Which products are relevant to this audience segment? Example: "Eco-friendly household items." Demographics: Age, gender, income level, etc. Example: "25-40 years old, both genders, middle to high income." Psychographics: Lifestyle, values, interests. Example: "Values sustainability, enjoys outdoor activities." Locations: Where is this audience located? Example: "Urban areas in the US and Europe." Interests: What are their main interests? Example: "Eco-friendly living, wellness." Purchase Drivers: What motivates their purchases? Example: "Quality, sustainability, brand reputation." Product Uses: How will they use the product? Example: "Daily household use, gifting." Product Positioning: How will the product be positioned for this segment? Example: "Premium quality with eco-friendly credentials." |
| Acquisition Channels | Channel: Which marketing channels will you use to reach and acquire new customers? Example: "Instagram, Facebook, Google Ads." Channel Attributes: Key features of the channel. Example: "Visual content, targeted advertising." Content Formats: Types of content used (e.g., videos, blogs). Example: "Short videos, infographics, sponsored posts." Sales Funnel Stages: Which stages of the funnel will this channel target? Example: "Awareness, consideration." Target Audience Segments: Which audience segments will you target on this channel? Example: "Eco-conscious millennials." Audience Behaviour: How does the audience behave on this channel? Example: "Engages with visual content, shares posts." Campaign Types: Types of campaigns to run on this channel. Example: "Influencer partnerships, seasonal promotions." |
| Technology | Tool: What tools are necessary for running your ecommerce marketing? Example: "Hootsuite for social media management." Tool Attributes: Key features of the tool. Example: "Scheduling, analytics, team collaboration." Tool Uses: How will the tool be used? Example: "Managing social media posts, tracking engagement." Connected Marketing Channels: Which channels will the tool connect to? Example: "Instagram, Facebook, Twitter." Pricing Format: Is the tool free, paid, or subscription-based? Example: "Subscription-based pricing." |
Your marketing plan should clearly outline how you'll position your brand in the market.
Define the channels you'll use at different stages of the sales funnel. For example, you might use Facebook ads to raise awareness and email marketing to engage existing customers.
Include sections to define your ideal customers using buyer personas. Create different personas for various types of potential customers, associating each persona with a specific product and its use cases.
Finally, list the ecommerce tools you'll need for your marketing efforts, such as automation tools, CRM software, and SEO tools.
Once you know how to attract your audience, the next step in your ecommerce business plan is to define how you'll convert them into customers.
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.
| Section | Details |
|---|---|
| Ecommerce Sales | Sales Methodologies: Approaches and techniques used to close sales. Example: "Consultative selling, solution selling." After Sales Services: Services provided after the sale to ensure customer satisfaction. Example: "Warranty services, returns processing." |
| Prospecting Strategy | Strategy: Methods used to identify and reach potential customers. Example: "Cold emailing, social media outreach." Points of Sales: Locations or platforms where sales transactions occur. Example: "Online store, mobile app, pop-up shops." Tools & Resources: Tools used to support sales activities. Example: "CRM software, sales automation tools." |
| Inbound Sales Channels | Channels: Methods through which customers find and engage with the business. Example: "SEO, content marketing, social media." |
| Outbound Sales Channels | Channels: Methods through which the business reaches out to potential customers. Example: "Email campaigns, cold calling, direct mail." |
| Transaction Method | Method: How sales transactions are processed. Example: "Online payment gateways, mobile payment options." |
| After Sales Communication | Communication: How the company stays in touch with customers post-sale. Example: "Follow-up emails, feedback surveys, loyalty programs." |
| Sales Team Structure | Structure: Organization of the sales team. Example: "Sales manager, account executives, sales representatives." |
| Customer Service | Stages of Customer Communication: Different stages in the customer interaction process. Example: "Pre-sale inquiries, post-sale support, ongoing engagement." Channels of Communication: Platforms used for customer communication. Example: "Email, live chat, phone support, social media." Tools & Resources for Customer Service: Tools used to manage customer service. Example: "Helpdesk software, customer feedback tools, knowledge base." Customer Support Team Structure: Organization of the customer support team. Example: "Support manager, support agents, technical support specialists." |
With this template, you are essentially defining customer experience with your brand. You'll create a strategy for selling the products on different channels.
These include ecommerce websites, marketplaces, affiliate websites, social media, etc. You'll have to define the sales process for each channel.
You must also draft a plan to create memorable customer experiences. This is crucial for developing a community.
It also has a direct impact on sales and revenue. Repeat customers spend 67% more than first-time buyers. Once you have a strategy for acquiring customers, you must build a strategy for delighting and retaining customers.
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.
| Section | Details |
|---|---|
| Procurement Strategy | Sources: Where do your products come from? Example: "Local manufacturers, international suppliers." Procurement Source 1: Specific details about one of your procurement sources. Supplier / Manufacturer Name: Name of the supplier or manufacturer. Example: "ABC Manufacturing Co." List of Products Sourced: What products are sourced from this supplier? Example: "Eco-friendly cleaning products." Supply Volume: How much product is sourced? Example: "10,000 units per month." Price per Unit: Cost per unit from the supplier. Example: "$2.50 per unit." |
| Logistics Strategy | Supply Lead Time: Time it takes for products to be delivered from suppliers. Example: "2-3 weeks." Warehousing Strategy: How will you manage the procured inventory? Inventory Volume: Amount of inventory held. Example: "50,000 units." Warehouse Size: Size of the warehouse required. Example: "10,000 sq ft." Warehouse Locations: Locations of warehouses. Example: "San Francisco, New York, London." Target Markets for Order Fulfillment: Primary markets where orders will be fulfilled. Example: "North America, Europe." Inventory Management Strategy: How will inventory be tracked and managed? Example: "Using an automated inventory management system." Inventory Replenishment Strategy: How will inventory be replenished? Example: "Just-in-time replenishment based on sales data." |
| Logistics and Distribution Strategy | Movement: How will you move the products through the supply chain? Example: "Using third-party logistics providers." Logistics Vendors: Vendors used for logistics. Example: "FedEx, DHL." Stages of Inventory Movement: Different stages in the movement of inventory. Example: "From manufacturer to warehouse to customer." Modes of Freight Transportation: Methods used to transport goods. Example: "Air, sea, road." Inventory Distribution Strategy: How will inventory be distributed to various locations? Example: "Centralized distribution from main warehouse." Order Fulfillment Strategy: Process for fulfilling customer orders. Example: "Using automated order processing systems." Reverse Logistics Strategy: How will returns be handled? Example: "Setting up a dedicated returns center." Cost of Logistics: Total cost of logistics operations. Example: "$5 per unit." |
In this section of the ecommerce business plan, you will outline how the product will make its way to the customer.
Supply chain management involves everything from sourcing the products from a supplier to shipping the products to the customer.
Alongside the strategy, you also need to define the stages that you will outsource. Creating your supply chain is quite resource intensive.
That's why ecommerce businesses outsource certain aspects to 3PL companies. Some of the commonly outsourced services include distribution and logistics (42%), manufacturing (37%), product finishing (29%), and packaging (23%).
This process accounts for a significant portion of ecommerce expenses. It will also impact several customer-facing aspects of the business. This includes the availability of stock, shipping charges, delivery time, and more.
Hence, you should define a supply chain strategy for speed, efficiency, and cost-effectiveness.
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.
| Section | Details |
|---|---|
| Legal Considerations | Obligations: What are the legal and compliance obligations of the company? Example: "Ensuring all business activities comply with federal, state, and local laws." |
| Business Registrations | Registrations: Required business registrations. Example: "Registering the business with the state, obtaining an EIN from the IRS." |
| Product Registrations | Registrations: Necessary product registrations. Example: "FDA registration for food products, CE marking for electronics." |
| Trade Permits | Permits: Required trade permits. Example: "Import/export permits, health and safety permits." |
| Product Licenses | Licenses: Necessary product licenses. Example: "Licenses for selling specific products such as alcohol or pharmaceuticals." |
| Relevant Regulatory Bodies | Regulations: Relevant regulatory bodies. Example: "FDA, FTC, OSHA, local health departments." |
| Applicable Business Taxes | Taxes: Business taxes that apply. Example: "Corporate income tax, payroll tax, property tax." |
| Applicable Sales Taxes | Taxes: Sales taxes that apply. Example: "State and local sales taxes, use tax." |
| Insurance Requirements | Insurance: Required insurance coverage. Example: "General liability insurance, product liability insurance, workers' compensation insurance." |
You must understand the laws applicable to running an ecommerce business in your region.
If you plan to ship products internationally, you must also understand international shipping laws, customs clearance requirements, import/export regulations, and trade laws in the target market.
This section ensures that your company always remains on the right side of the law.
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.
| Section | Details |
|---|---|
| Startup Cost | Funds Needed: How much funds will you need to start the ecommerce business? Example: "Initial capital requirement is $150,000." Total Cost: The overall cost to get the business operational. Example: "$150,000." Budget Breakdown: Detailed allocation of the startup budget. Example: "Inventory: $50,000, Marketing: $30,000, Technology: $20,000, Legal and Compliance: $10,000, Miscellaneous: $40,000." |
| Operational Cost | Annual Budget: What is the annual budget required to run the business? Example: "Annual operating cost is projected at $120,000." Total Cost: The overall annual cost. Example: "$120,000." Budget Breakdown: Detailed allocation of the annual budget. Example: "Salaries: $50,000, Marketing: $20,000, Inventory Restocking: $30,000, Technology: $10,000, Miscellaneous: $10,000." |
| Sales Forecast | Sales Estimate: How many products will the company sell each year after initiating? Example: "Projected to sell 10,000 units in the first year." Profit Margins: Expected profit margins per product. Example: "20% profit margin." Annual Revenue Estimates: Projected revenue per year. Example: "$200,000 in the first year." |
| Break Even Analysis | Recovery Time: How long will it take for the company to recover the investment? Example: "Expected to break even within 18 months." Year-on-Year Growth Estimate: Projected growth in sales and revenue year over year. Example: "20% annual growth rate." Year-on-Year Cost Estimates: Projected annual costs over the years. Example: "$120,000 in the first year, $140,000 in the second year." Estimated Break-Even Point: The point at which revenues will cover costs. Example: "Achieved at $150,000 in sales." Profit and Loss Analysis: Detailed analysis of expected profits and losses over time. Example: "First-year profit: $40,000, second-year profit: $60,000." |
If you pitch the ecommerce business plan to an investor, you must add other details to this section.
These would include funding requirements, funding stages, value offerings, etc. This section of your business plan also sheds light on a company’s assets and liabilities.
You must also clarify what you offer the investors against the funds. This can be equity stake, debt, dividends, and so on.
This helps potential investors conduct a cost-benefit analysis.
You can go a step further and present key elements of cost-benefit analysis for the ecommerce company. This should highlight the short-term and long-term gains for the new business.
You can use this section to show potential investors how your new business will grow in market value based on milestones. These milestones can be defined based on sales, inventory size, revenue, market acquisition, etc.
With this section, you conclude your ecommerce business plan.
You need to revisit the executive summary and ensure it aligns with the rest of the document. It is best to review the entire document a few times to ensure you present a unified vision for starting and running your ecommerce business.
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:
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.