How to Write an eCommerce Business Plan
As the competition between e-commerce companies increases, the focus should shift from acquiring new customers to keeping your existing customers. In most cases, it costs six to seven times more to acquire a new customer than to keep an existing one. This means that focusing on customer loyalty is a must for the success of your eCommerce business. Listed below are some ways to measure customer loyalty:
(Looking for specialist digital marketing? Contact us today!)
Identifying your target audience
In addition to the market analysis, an eCommerce business plan should include a sales plan. This section of your plan should explain how you will attract customers and how you will sell your products and services. The product should address your customer’s needs, price it at a price that will appeal to them, and consider your place and promotion. You should also provide short descriptions of the key positions in your company and how they will be paid.
Creating a sales forecast
If you plan to sell one product or service, creating a sales forecast template is an excellent idea. This template will help you understand how sales deals are progressing throughout the month. For example, a 12-month sales forecast template will break down the sales forecast by product. By comparing this information with actual sales, you can determine if the forecast is accurate. You can also modify the template to include a multi-year sales forecast.
Considering local licenses
If you are launching a new eCommerce business in a different state, you should consider getting local licenses. While sole proprietors and general partnerships do not have to get a state license, other business entities may need to obtain a general operating license, and some locations may require additional licensing. Depending on the state, obtaining the right licenses can be difficult, but you should consider it when writing an eCommerce business plan.
Estimating market size
When writing an eCommerce business plan, determining your target market is crucial. This can be difficult if you don’t know how many people will buy your products. In general, you can estimate the size of the market by looking at the demographics of your target audience. For example, if you sell baby shampoo, you will likely target a group of new moms. Also, consider the projected growth of this group.