How to Write An eCommerce Business Plan

How to Write an eCommerce Business Plan

The e-commerce business throughout the US and worldwide has been growing at an above-average pace over the last several years, which has driven demand for e-commerce business plans, e-commerce business plan templates, and e-commerce pro forma financial projections. 

The growing need for e-commerce business plans can be attributed to various factors. For instance, many retail and grocery store owners aim to broaden their services by including online buying and delivery options. As these business owners integrate online components into their traditional offerings, the necessity for revamped business plans becomes evident.

Regardless of the reason behind seeking e-commerce business plans, our e-commerce specialist provides several pointers to assist entrepreneurs in improving their e-commerce business plans, templates, and financial forecasts (10/23).


Executive Summary for an eCommerce Business Plan or Template.

For an e-commerce business plan, the executive summary should begin by revealing the company's name, address (even if it is an online address), and the range of products and services provided. Furthermore, our e-commerce specialist advises that business owners in this sector elucidate how they will manage the receipt and shipment of products and the necessary space for these operations. Some e-commerce entrepreneurs might operate from a garage or a storage facility. In different cases, they might collaborate with third-party shipping and packaging companies. Whichever operational approach is chosen, it is wise to outline it briefly in the executive summary.

Company Information and Location for an eCommerce Business Plan.

When crafting the company information section of an e-commerce business plan, many overlook detailing the actual location of the e-commerce operation. As an illustration, some entrepreneurs might note that they will start their venture from home. Yet, such a statement omits critical operational details. To enhance clarity, it is beneficial to specify the exact area within the home where operations will occur, like a garage or a designated office space. By highlighting these specifics, readers can better visualize the products' storage, receipt, and dispatch processes.

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Popular Services Offered by an eCommerce Company.

E-commerce is a vast industry that offers many products and services either virtually or delivered directly to the customer's doorstep. This encompasses diverse items like groceries, vehicles, and bicycles. Additionally, e-commerce platforms can provide services like consultation, customer support, and educational courses. Given the broad spectrum of offerings in e-commerce, organizing a business plan's product/services section hinges upon the specific items or services provided through the platform.

Nevertheless, a universal aspect across almost all e-commerce offerings details how customers purchase goods or services. The plan should elaborate on the delivery method if customers are acquiring tangible products. Will the item be mailed and delivered by a courier? This process must be explained thoroughly. Similarly, if the business focuses on services, the plan should elucidate how these services will be rendered to clients.

Pro Forma Financial Projections for an eCommerce Company.

Pro Forma financial projections for an e-commerce enterprise vary, depending on whether it deals in goods or services. More often than not, e-commerce platforms focus on selling physical items. In such instances, our e-commerce specialist has determined that these businesses typically make projections based on the average number of daily product sales and the average sale price for each item. Subsequently, the financial model will incorporate variable costs like raw material expenses and costs associated with packaging and delivery. Structuring it this way allows e-commerce proprietors to synchronize variable costs with sales instead of lumping them under fixed costs like packing supplies.

Hopefully, these insightful tips and tricks for writing a business plan were helpful.  If you need help with a business plan or financial projections, email or call us. 

Author: Paul Borosky, Doctoral Candidate, MBA., Author

Owner of: Quality Business Plan and Quality Business Consultant.

Date: 10/9/2023