How do you prepare a business plan before launching an ecommerce site?

Launching an ecommerce business can be a promising and challenging adventure. Yet many entrepreneurs rush headlong into it, underestimating the importance of drawing up a solid business plan for their ecommerce site. The result? The majority of new ecommerce sites fail within the first few years, because they lack a clear strategy and fail to anticipate obstacles. A well-constructed ecommerce site business plan, however, avoids this pitfall. This step-by-step guide will help you create an effective strategy tailored to your project.

Why is an ecommerce business plan the key to success?

Before we even talk about ecommerce, what is a business plan and why is it essential? A business plan is a structuring document that defines a project's objectives, as well as the financial and other resources required to implement them. It's an essential management tool for any business, whether physical or digital, enabling the identification of key resources, risks and market opportunities. Ecommerce is a fast-growing sector. By 2023, online sales in France will have almost 160 billion euros, according to the FEVAD report. This continuous annual expansion is attracting many entrepreneurs, but of course it is also leading to increased competition. A well-constructed ecommerce site business plan enables you to stand out from the crowd and adopt the right strategy. The advantages of an ecommerce site business plan are numerous:

• Define precise market positioning.
• Anticipate costs and plan a realistic budget.
• Identify growth drivers and customer acquisition strategies.
• Attract potential investors or partners.
• Avoid common mistakes that cost new online stores dearly.

Contrary to popular belief, the business plan for an ecommerce site is not set in stone. In fact, it needs to evolve as the online store develops and the market evolves. Tip: If you're just starting out, use tools like LivePlan, Bizplan or the free templates offered by BPI France to structure your business plan.

Understanding your market: the step that will make all the difference

Before getting started, knowing your market well is a prerequisite for success in ecommerce. Many entrepreneurs make the mistake of believing that simply putting a site online will be enough to attract customers. However, in-depth market research also allows you to understand consumer expectations, anticipate trends and adapt your offer accordingly. To conduct effective market research, here are some of the right questions to ask yourself and analyses not to overlook:

1. Observe consumer behavior: what are their needs, their online purchasing habits, their choice criteria?
2. Analyze industry trends using tools such as Google Trends but also by consulting industry studies and FEVAD reports.
3. Scrutinize competitors' strategies: what types of content do they produce? How do they positioned themselves on social networks? What pricing strategies do they use?

Concrete example: L’Atelier du Chocolat and the power of personalization

L'Atelier du Chocolat is A French artisanal brand founded in 1951 that has stood out thanks to precise market research and a strategy focused on customization. Faced with fierce competition in the high-end chocolate sector, the company chose to innovate by promoting a tailor-made offering. Their online customization module now allows customers to create their own chocolate assortments.

Choosing the right business model: selling yes, but how?

Choosing your business model is a strategic decision that directly impacts the management and profitability of your ecommerce project. In ecommerce, managing your own inventory and handling all logistics allows you to have complete control over products and service quality. However, this method requires a significant initial investment and ongoing inventory management. The subscription model is another option, where customers pay to receive products on a recurring basis, such as monthly boxes. This model can provide stable and predictable revenue, but requires maintaining a consistently attractive offering to avoid subscriber fatigue. Another alternative is to sell your products on marketplaces like Amazon, Cdiscount, or eBay. This strategy offers immediate visibility and access to a wide audience without requiring significant investments in traffic acquisition. However, this solution also reduces margins due to the commissions applied, and competition is much fiercer. The ideal is often to split the difference and combine a marketplace presence with a dedicated website to capitalize on both channels. But having a well-built online store isn't enough. You also need to generate traffic and convert those visitors into customers. That's where your marketing strategy comes in.

Attracting and converting customers: the marketing strategy that works

An ecommerce site cannot function without qualified traffic. An effective ecommerce site business plan takes into account the imperative of attracting visitors and converting them into customers. To achieve this, the most commonly used levers are :

• Search Engine Optimization (SEO) is an excellent way to ensure lasting visibility on Google without spending a fortune. However, it's also a full-time job that requires you to avoid certain penalizing SEO mistakes.
• Paid advertising campaigns (Google Ads, Facebook Ads) can generate traffic quickly. These are known as SEA campaigns campaigns, which require a certain budget depending on your objectives.
• Social networks and influencer marketing help create an engaged community and strengthen brand image. Collaborations with content creators can boost your visibility.
• Email marketing strategies are also essential for building customer loyalty and optimizing retention.

If you want to maximize your chances of success, use tools like Google Analytics, Semrush or Ahrefs to track your performance and adjust your strategy according to the results.

Financial foresight: the basis of a solid ecommerce business plan

An ecommerce business plan must include a detailed financial analysis. The aim is to anticipate your budgetary needs and ensure the project's medium-term profitability. The essential financial elements to include are :

• Initial investments: site development, stock purchases, marketing budget.
• Fixed and variable costs: hosting, maintenance, bank charges, logistics.
• Projected turnover, based on estimated sales volume and average shopping cart.
• The break-even point, a crucial concept that allows us to determine the level of turnover from which a company is financially viable.

The average conversion rate inecommerce, generally between 2% and 5% depending on the sector, is also a key performance indicator. These statistics highlight the importance of attracting many visitors to generate a sufficient number of sales. For example: if your average shopping basket is €50 and your conversion rate is 2%, generating sales of €5,000 will require 5,000 monthly visitors.

Conclusion

Creating an ecommerce site without a business plan is a bit like building a house without architect's plans. This document helps you structure your project, anticipate challenges and optimize resource management. An entrepreneur who takes the time to prepare an ecommerce site business plan maximizes his chances of success and can adjust his strategy according to the results. The ball is now in your court: think about your strategy, define your priorities and launch your project!