9 steps to a clear eCommerce strategy
E-commerce offers countless opportunities for entrepreneurs. However, a well-thought-out business plan remains essential for the long-term success of any company. In this article, you’ll learn how to build your own online store with thoughtful planning: In “9 Steps to a Clear eCommerce Strategy,” we show you what to consider when planning and developing a strategy so that nothing stands in the way of your online business’s success.
What is an eCommerce strategy?
With your eCommerce strategy, you’ll create a business plan for your online store. A business plan is a key to success. Even if you’re creating this plan just for yourself, it will continually encourage you to ask the right questions, limit your losses, and focus on your goals. Here are the key points of a business plan:
1. Business idea – For your eCommerce strategy, you begin by outlining the business idea behind your planned online shop. What makes your online shop special? What will it specialise in? What should your online shop offer that your competitors don’t? Are you planning a special service? What is your unique selling point? The wording should succinctly capture the business idea in just a few sentences and words. The goal must be to explain the shop’s concept in a clear and concise manner.
2. The founder(s) – In the next step, introduce the people who will be founding the online shop. What is their professional background? What are your strengths? What motivates you to build the online shop? How qualified are you for the planned business?
3. Target group – Who will your online shop be aimed at? Is there a specific group of people you’re targeting? The more precisely you define your target group and customer structure, the better! Because if you can narrow down your future customers, it’s easier to plan targeted acquisition. A precise definition of your target group is essential information for your eCommerce strategy and should be included in any business plan. In online retail, the target group determines, for example, the marketing strategy to be pursued, the templates or design of the online shop, and the appropriate product range.
4. Marketing strategy – Marketing includes everything you use to draw attention to your online shop. This includes, for example, the online shop itself, which can be found by Google and has an inviting design. PR work for your company is just as much a part of marketing as advertising. As mentioned above: The better you can define your target audience, the more targeted your marketing can be. In your business plan, include all the measures you plan to use to acquire customers. This includes pricing.
5. The competitive landscape – In this section of the business plan, explain your direct competitors. These could be other online shops with similar offerings, or they could be brick-and-mortar retailers. Under “Competitive Landscape,” explain what alternatives to your online shop your future customers could choose. If your offering is unique, highlight that as well.
6. Location – In eCommerce, the location of your business isn’t as crucial as it is for a brick-and-mortar store. However, if the location of your online shop could impact your business, you should consider it. Perhaps you can rent a warehouse at a particularly reasonable price? Or does your location perhaps lead to collaborations with neighboring businesses?
7. The organizational structure – How will your online shop and its processes be organized? Who will handle orders, who will issue invoices and delivery notes, who will handle accounting? How will you organize the shipping of goods? Questions like these must be answered in your online shop business plan.
8. Opportunities and Risks – In this section, you provide honest insight: What are your online store’s prospects for success? What risks are you taking, and what mistakes should you avoid?
9. Financial Planning – “No money, no honey”: What costs will you incur for starting a business? Not only the costs of the shop itself, but also expenses like rent, internet connection, and salaries are important factors. You should get as specific quotes as possible to be able to realistically list the costs. How much equity can you raise? Where will the remaining money come from?
Brevity is the soul of wit
Your business plan should summarize the most important points in a few, concise words. Rule of thumb: You should plan no more than one and a half pages per section.
You can find more information about creating an online shop here.
