How to Create an eCommerce Business Plan, With Examples
Published
25 Mar, 2022
16 min read
If you're thinking about starting an e-commerce business, you need a solid business plan. The goal of your business plan is to outline your business goals and how you plan to achieve them. By writing it down, even if it is only for you, you can visualize and be realistic about the outcome of your business
An e-commerce business plan is a written document that describes in detail how an online store will operate. The plan should include information such as the products or services that will be sold, the target market, e-commerce platform, shipping and returns policy, and marketing strategy.
A business plan is an important tool for any business, but it is especially important for an e-commerce business. There are a few key reasons why you need an e-commerce business plan:
If you're thinking about starting an e-commerce business, take the time to create a comprehensive business plan. It will save you time and money in the long run, and help you build a successful business.
A business plan should be created for you in the first instance. It is the foundation on which you will build your online e-commerce business. This means that you should be thorough and very realistic in your planning.
Here's what you should include in your e-commerce business plan with examples for an online store that sells handmade clothes for small dogs, Dress My Small Paws.
The executive summary is a brief overview of your e-commerce business plan. It should include your company name, your elevator pitch, and your business model.
Example:
Dress My Small Paws is a sole proprietorship that sells handmade clothing for small dogs. It offers unique and personalized clothing for small breeds of dogs made with eco-friendly materials.
Dress My Small Paws ideal customer is a woman who owns a small dog, and considers herself a “dog mom”. Given the importance people in Europe place on their pets, and that the pet industry generates $100 billion a year globally, there's a market not only for customizable clothing but for accessories also.
Given that the clothes are hand-made from sustainable materials and customizable to each individual dog's needs, the items are sold at a premium price. Dress My Small Paws will promote its products through a mix of industry trade shows, and digital advertising.
Dress My Small Paws is pre-launch currently and projects earnings over 1,000 euro a month within 3 months of launch. The business is run by Jane Doe, founder, who has extensive experience in the pet industry and formal training as a clothes designer.
In this section, you will describe your company, its history, and its mission. You should also include information about your team, your business location, and your target market.
Example:
Business structure
Dress My Small Paws will operate as a sole proprietorship run by the owner, Jane Doe.
Nature of the business
Dress My Small Paws sells unique, one-of-a-kind, and handmade clothes for small dogs.
Industry
Dress My Small Paws operates in the pet industry primarily, and sells goods that could also be categorized as part of the fashion industry.
Background information
Jane Doe, the founder of Dress My Small Paws, has a long history in the pet industry and working with animals, and was trained as a seamstress. She understands that every dog figure is unique and creates clothes based on measurements rather than on templates.
Describing the products and services you offer is crucial for your business plan. You should include information about your pricing, your shipping, and your returns policy.
Example:
Dress My Small Paws's flagship product is a line of clothes for small dogs made handmade from sustainable materials. Each piece of clothing is created by personalized measurements, which means that it will fit the dog perfectly, regardless of the shape and size.
Clothes can be bejeweled, the owner can choose the material and the exterior stitching, from an existing catalog. All supplemental accessories will come with an extra cost.
In this section, you will analyze your target market. You should include information about your target market's needs, your competition, and your market share.
Example:
Dress My Small Paws's ideal customer is a woman who has a dog and lives in Europe. She's between the ages of 25 and 55, doesn't have children, and is comfortable buying products online, ordering at least once a week from online vendors. She has a university-level degree.
Furthermore, she values her time highly, isn't opposed to calling herself a“dog mom,” and has friends who feel the same.
An e-commerce business must have a well-thought marketing strategy. You should include information about your sales channels, your marketing mix, and your promotional strategy.
Example:
Price
Given that the clothes from Dress My Small Paws are customized to each dog's individual needs, and the materials are sustainable and durable, each piece will have a starting point of 20 euros. Collars will add another 5 euros, and bejeweling will add 5 more euros, depending on the size and model. Adding a stitched text will add 5 to 10 euros depending on the length of the text.
Product
Customizable clothing for small dogs will solve the problem of ill-fitting. Regardless of the accessories the owner chooses, all the clothes are made by the measurements provided, not by standardized templates.
Promotion
Dress My Small Paws will rely on three main promotional strategies. Given Jane Dow's experience in the pet industry, she has identified multiple leading trade shows that would be worth the investment to get the word out about her business. Additionally, her existing relationships give her several opportunities to pursue partner promotions with established products. Finally, digital ads on Facebook, Instagram and TikTok will help her reach Dress My Small Paws's ideal customers.
Place
Dress My Small Paws will be run as an online e-commerce store, given the nature of the versatility of the niche. Customers can place their orders at dressmysmallpaws.com, and will receive their orders at their home after the relevant shipping windows.
Business operations is crucial to online e-commerce. This is a key factor to a great customer experience. Address your manufacturing process, your fulfillment process, and your customer service process.
Example:
Suppliers
Fabric will be bought from a local supplier and accessories will be bought in bulk from international suppliers.
Production
Once a customer sends the measurements for a piece of clothing and chooses the fabric and the accessories, Jane will start the production. Each simple piece of clothing takes up to 3 hours to be made. Additional accessories will add to that time up to 5 hours, as jewels are glued manually.
Facilities
Jane works out of her home office to design, create and saw small dog clothing.
Equipment
While Dress My Small Paws already owns the required software for design and a sewing machine with prerequisite stitching accessories. In the case of a breakdown, both would need to be replaced immediately.
Shipping and fulfillment
Dress My Small Paws will fulfill orders using Shopify Shipping for the foreseeable future, and may look into local fulfillment options or contractors to help scale if orders take off, or during busy seasons.
Inventory
Given the custom nature of the business, Dress My Small Paws does not hold inventory and all orders are created as they come in.
In this section, you will describe your management team and your personnel. You should think about your organizational structure, your management style, and your human resources strategy. Even if you are a small online business, you should describe your company culture and management system, as they will be a starting point for future development.
Example:
Jane Doe is the sole full-time employee of Dress My Small Paws. Future employment will be made on a needed basis, as the business will grow.
Think about financing needs. You should include information about your start-up costs, your operating costs, and your financial projections.
Example:
The initial investment to Dress My Small Paws is made by Jane Doe and consists of 500 euros in supplies, as the hardware used is already owned by her.
Each piece of clothing will have a starting point of 20 euros. Collars will add another 5 euros, and bejeweling will add 5 more euros, depending on the size and model. Adding a stitched text will add 5 to 10 euros depending on the length of the text.
Based on a small market analysis, Jane is expected to earn 1000 euros each month in the first trimester after launching.
In this section, you will identify and assess your risks. You should include information about your business continuity plan, your insurance coverage, and your legal protections.
Example:
Research about the market for Dress My Small Paws showed that The global pet clothing market size was USD 5.01 billion in 2020. The same research shows that decorative collars and clothing for their pet is perceived as a status purchase, therefore, unique clothing for pets will have a market of its own, as a luxury product.
Swat Analysis
In this section, you will include any supporting documents, such as your marketing plan, your financial statements, and your resumes.
There is a big step from idea to actually doing business. But a big part is to create a sound business plan, as it is the foundation of your e-commerce business.
