You've been buying goods from online stores or marketplaces like Etsy, eBay, and Amazon for years and have always wished you could do the same thing. Writing a business plan may seem more daunting than starting your own e-commerce venture.
On the other hand, a business plan enables you to verify your business idea, evaluate your financial situation, and develop a clear action plan for how you'll get a product from the manufacturer to the final customer.
To put it another way, even though it may seem like the business plan is primarily for the benefit of others, such as potential investors, business partners, or well-intentioned family members who keep nagging you to write one, the business plan serves the interests of the business owner the most.
You'll develop your company's vision and objective as well as the road map for getting there. According to Harvard Business Review research, business owners that create a formal business plan have a 16% higher chance of succeeding than those who don't.
Furthermore, the top 10 vitals that you can’t afford to miss out on in your efficient e-commerce industry business plan are:
Cover Page- Executive Summary
- Company Description
- Products & Services
- Industry Analysis
- Target Market
- Market Opportunities
- Financial Summary
- Funding Details
- Exit Strategy
Why do you need E-commerce Business Plan?
Given that more and more people are making purchases online, an eCommerce business plan is crucial. This number has reportedly surpassed 2 billion. An e-commerce business plan helps you stay organized and is beneficial when looking for investors who need to comprehend your firm.
For instance, with which vendors would you collaborate? What kinds of goods will you carry? Your ideal customer is who? How will you promote your company? Can you still turn a profit while offering free shipping?
Steps to Create Your E-commerce Industry Business - Segments Covered in the E-commerce Industry Business Plan PDF Document
SlideTeam provides you with a step-by-step guide on how to create a business plan for your online shop, what to include, and how to use it to improve your chances of success.
Step 1 – Start-up cost summary for e-commerce platform
This section provides information about start-up expenditures that incur during the process of establishing an e-commerce platform. It includes start-up ownership, legalities, and other expenses associated with the platform. It will also highlight how the company will utilize its funds.
Knowing your costs and how to control them will help you effectively launch your company and maintain a profit while it is operating. You can: Determine your beginning costs by Calculating projected earnings. Analyze the break-even point.
Further, showcase how the company is utilizing the fund, and the overview of it gives a clear idea to the audience.
Step 2 – Implementing effective business solutions by analyzing the market gap
This section covers the problem associated with the e-commerce industry and how the company will implement an effective solution to overcome the existing gap. It also helps to identify unexplored areas that other businesses in the same space are not serving currently.
Every business comes into existence to solve a particular problem that is prevailing in the market. So, highlight the market gap and the solution that the business is providing to solve that gap.
Step 3 – Product categories offered by the e-commerce platform
The area of your business plan that discusses your goods and services enables the reader to comprehend your goals, the things you offer, how you compete with other possibilities, or how you fill a market gap that no one else is filling.
The purpose of this slide is to provide a glimpse of the key product categories offered by the platform that delivers a specific value proposition for an end client, such as fashion and apparel, home appliances and kitchen, groceries, home décor, electronics, and accessories, etc.
Step 4 – Analyzing key success factors to strategize e-commerce business
This section covers the major points to be kept in mind while selling products on the platform. These are understanding prospects' needs, focusing on outcomes and emotions, and building a strong brand.
However, these key factors have the potential to attract investors’ attention and can influence their decision.
Step 5 – Key statistics associated with the e-commerce industry
This section highlights the thorough assessment of a market within the e-commerce industry. It will help in getting valuable insights and projecting the success that the company expects while introducing its brand and its products to consumers within the market.
Further, showcase the retail sales, in the form of a bar graph by anticipating the next 5 years’ sales for both retail e-commerce sales as well as non-e-commerce sales.
Moreover, showcase the US retail sales growth in the form of a bar chart for different categories.
However, don’t forget to highlight the facts of the US e-commerce sale and the retail e-commerce category growth.
Step 6- Key market trends shaping the e-commerce industry
This section highlights the key market trends that have the potential to change the current market scenario, as well as ways that the company can stay ahead of competitors. With these trends, the company will look for innovative or new ways of providing its products and services.
So, highlight the facts and figures to showcase the market trend that is prevailing in the market. Showcase the population % of the country and highlight how many are digital shoppers.
Also, showcase the facts related to the rise in online shopping, digital shoppers age, etc. This will give the overview to the audience who may be thinking to invest in the company.
Step 7 - Determining growth drivers for the e-commerce platform
This section caters to details about various growth drivers resulting in e-commerce platforms' progress. In terms of enhancing shopping experiences with mobile commerce and augmented reality, rise in the number of voice searches, sustainable business practices, etc.
All the growth drivers’ factors can lead you to get funding from a potential investor.
Step 8 - Detailed porter’s five forces analysis for e-commerce platform
The section highlights porter’s five forces model and its implications in the US e-commerce industry. The five forces include rivalry among competitors, bargaining power of buyers and suppliers, and the threat of new entrants and substitutes.
Further, mention the force i.e., low, moderate, and high of each key point along with its detailed description to formulate the decision.
Step 9 – Effective go-to-market strategy to increase sales and revenue
The purpose of this section is to implement an effective go-to-market strategy. The purpose is to bring company's products or services to an end customer taking into consideration elements like sales, positioning, and price.
Mention the marketing strategy made by the marketing team in each element, to give a wide perspective to the audience about the growth & expansion of the company.
Step 10 – Key financial assumptions for an e-commerce start-up
This section provides a glimpse of important financial assumptions that are to be made while setting e-commerce platform in terms of income, expense, and balance sheet. The computations are based on market trends and conditions prevailing in the e-commerce industry.
So, highlight the financial assumption for different particular for the anticipated 5 years so that audience can calculate the growth of the business.
This is a very important slide of the business plan as every investor and client is interested to know the financial status of the company.
Bottom Line
What is the size of E-commerce industry in US?
The eCommerce industry is expanding and will soon undergo a significant evolution. It significantly alters consumer behavior, demands, and shopping trends. In just 25 years, this industry has generated global revenues of more than 2 trillion US dollars.
What is the E-commerce market growth?
E-commerce will account for 20% of global retail sales by 2024.
Take Assistance from SlideTeam!
E-commerce industry business plan word PDF document is everything you need to take insight about the sector, market, and both simultaneously. But, what is not everyone's cup of tea, is the designing and structuring of the vital elements together for an effective business plan.
There comes our role. At SlideTeam, a pool of researchers and designers work together on the projects to draft as per client requirements. One can even customize the same word document as per their business needs.
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P.S. Read our blog that is a complete guide to prepare e-commerce industry business plan (With various Templates Included).
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