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Sample Ecommerce Business plan

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Sample Ecommerce Business plan

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Sample Ecommerce Business plan

  1. 1. Business Plan for Maple exclusive Online Store Selling range of Apple and its affnity products. By Prashant Chauhan . Email :prowebb@gmail.com Phone: 92235442662
  2. 2. Index 1. Summary 2. Market Analysis Summary 2.1) Market reaserch and analysis for apple products in india offline market 2.2) Market reaserch for online market for apple products in india with emerging Trends 2.3) Analysis of Various Online Ecommerce Channels 2.4) Competation analysis 2.5 ) SWOT Analysis 3. Strategy and Implementation Summary 3.1 ) Implementation Strategy Summary 3.2) Ecommerce Store and various Channels 4. Finaicial Planing 4.1) Startup funding requirnmnet 4.2 ) fixed cost and Operational Expenses 4.3) Break even analysis 4.3) Sales Forcasting,revenue and profit/loss projections
  3. 3. 1 .Summary Introduction : Maple Digital Technology International Pvt. Ltd. is a pioneer in providing Indian customers a complete experience of the cutting edge technology of Apple. We assist our customers with everything – starting with buying their first Apple device, to setting up a complete solution tailored to their needs. Objective to launch a ecommerce store : India’s e-commerce market is worth about Rs 50,000 crores in 2011. About 80% of this is travel related (airline tickets, railway tickets, hotelbookings, online mobile recharge etc.). Online retailing comprises about 15%. India has close to 10 million online shoppers and is growing at an estimated 40-45% CAGR vis-à-vis a global growth rate of 8-10%. Electronics and apparel are the biggest categories in terms of sales. Maple being a premium reseller of apple products want to tap in the online market oppurtunity by launching a online store selling exclusive range of apple and its compitable products.
  4. 4. 2.Market Analysis Summary Market reaserch analysis for apple products in india offline market a) Market size of apple products in reatil offline Market is estimated to 6000 Cr Rs as of Dec 2012 b) The company products are retailed by 35 Odd Apple premium reseller(APR) and muli brand retail outlets I.e Croma ,vijay sales ,reliance retail etc Assumption based on report and varous sources Estimated Market Size for apple products sold in 2012 > 6000 CR rs Number of ARP (Apple premium reseller) 35 Number of Multi Brand retail selling apple products 5-8 Source : DNAArticle on Apple for 2012 link :http://www.dnaindia.com/analysis/column_will-india-scuttle-potential-rs700-cr-investment-of- apple-stores_1670708 Market reaserch for online market for apple products in india with emerging Trends Online Market size for apple product : Estimated Market Size of apple product sold online in india through various online channels in 2012 is expected to be greater than 3 % of its offline market of 6000 Cr and estimated @ 180 Cr Rs which is estimated to grow at CAGR 8 -10 % . Apple products sold online per year as of 2012 180 Cr Compound annual growth rate of market (CAGR) 8-10 % Estimated market in next Three years by 2016 Approx 250 – 350 CR (The ratio is derived by studying overall Etailing Market vs Offline Retail market applied to Apple Products sold online Vs Offline)
  5. 5. Google Trend and keyword analysis Search Trend for apple products in india by Google insight the trend shows step incress in online searchs for apple products from 2004-2013
  6. 6. The the report shows major kewords used by people to search for appple related products and region from india where searches are originated with “Apple india” as major keyword and state of jamu and kashmir with most number of searches The report also shows major searches for apple producs is generated from tire 2- tire 3 cities like ludhiana from state of punjab where presence of apple retail stores is absent
  7. 7. Online Market Size of apple products Based on the assumptions the below Apple products sold online in india 180 Cr Avg transaction value of apple product sold online 18000 RS Number of apple product sold per year online 1,00,000 Orders Number of apple products sold per Month 8334 Orders per month Apple product sold per month revenue 15 Cr rs Number of apple products sold online per day 288 Orders per day Apple products sold per day revenue 0.5 Cr Rs per day Competation Analysis: In india apple products are sold online by multibrand online retailers and apple resellers as a vendor on various market places as ebay.com ,indatimes.com , etc Competation Example Multi Brand Online Retailers Flipkart.com,infibeam.com,naaptol.com, rediff.com etc Apple resellers selling online through Online Market place and channels Ebay.com, indiatimesshopping.com,junglee.com and various small ecomomerce portals reliance istore Apple premium resllers (APR)
  8. 8. SWOT Analysis Strength Weakness Threat Maple being (A P R) in india can provide its customer with higer value proposation In terms of value added services then its Competations Oppurtunity Maple is a strong offline player with no online presense,being a new entry to online market it may take quite a Learing curve to get adapted to online market dynamics to capture market share and become strong online market Player . a)Online Market for apple product is estimate at 180 Cr as of 2012 and is assumed to grow at 8-10% CAGR per year. b)Online channel is much more cost effective as compaired to physical store and give exponetial output at fixed cost also it can reach much larger audience With no limit of demographic. a)Apple launching its own online store to cater indian market. b) Incressed competation from other Apple Premium resellers selling online and multi brand online retailer. c) Apple losses its market cap in india
  9. 9. Strategy and Implementation Summary As a go to market strategy for online channel , Maple would have a composit approch of selling its products by through its online store and various other online channel as etailing portals, market places and affliates channel. Map for Online sales Channels for maple Channel type Type of engagement Example of channel Maple Online Store Owner Mapleonline.com Online retailer Vendor Flipkart.com,rediff.com ,jabong.com infibeam.com Market place Owner exclusive store Ebay.com, junglee.com,indiatimesshopping.com Other channles Vendor Snapdeal.com, dealsforu.com, affliates etc Maple (APR) Online Store Vendor of Online Retailer like Flipkart.com Exclusive Store on Online Market Place Eg: Ebay.com Other Channels Like Affliates AuctionSite Deals etc
  10. 10. Financial Planning Budget planning : Particulars Resources /Sku/Item Cost per unit/Year/Sku/ month Total cost One time Fixed Cost SEO content writing Product content writing 150 words each with 2 photos 1000 150 1,50,000 Payment gateway 1 45000 45000 Total one time fixed cost 1,95,000 Operartional expenses per month SAS ecommerce platform (Martjack) 1 16000 16000 Ecommerce executive (Product update /Order Booking etc ) 2 15000 30000 Ecommerce manager 1 60000 60000 Over heads and mescelenious expenses 1 30000 30000 Total Opex per month 1,36,000 Rs Marketing Budget per month Marketing Budget 1 30000 3,00,000 Cost of inventory 1 5,00,000 5,00,000
  11. 11. Break Even Analysis Break even analysis is based on average ticket size per sales @ 18000 Rs with gross margin of 10 %. Particulars Units Total Fixed cost of operations (OPEX) 1,36,000 Rs (Per month ) Avg ticket value per order 18000 Rs Gross Margin 10 % Variable Cost 1 (Payment gateway Trasaction Charges @ 3 % Assumption avg ticket value of order is 18000 Rs) 540 rs (per Order) Variable Cost 2 (Cost per aqusatation CPA or marketing cost as per sale) 600 Rs Variable cost 3 (Cost of product calculated based on 10% margin) 16200 Rs Total variable Cost (Variable Cost 1 + Variable Cost 2 + Variable Cost 3) 17,340 RS Break even point= Fixed cost ------------------------------------------------------- = 136000/(18000-17340) (Ticket Value per Order – Total Variable cost ) 207 Orders (per month ) Break Even Point per day = 207/30 = 7 Orders ( per day) Break even sales revenue required per month (Avg ticket value per order 18000 Rs) 37,26,000 RS ( per month) Break even Sales revenue required per day (Avg ticket value per order 18000 Rs) 1,26,000 Rs (per day)
  12. 12. Break even analysis Chart monthly
  13. 13. Sales forcasting for 3 years Sales Forcast for First Year : First year Month 1 2 3 4 5 6 7 8 9 10 11 12Total AVG Ticket Value 18000 18000 18000 18000 18000 18000 18000 18000 18000 18000 18000 18000 Volume 10 20 25 30 50 75 100 200 300 350 350 400 1910 Sales 180000 360000 450000 540000 900000 1350000 1800000 3600000 5400000 6300000 6300000 7200000 34,380,000.00 INR Cost of sales 162000 324000 405000 486000 810000 1215000 1620000 3240000 4860000 5670000 5670000 6480000 30,942,000.00 INR Gross profit 18000 36000 45000 54000 90000 135000 180000 360000 540000 630000 630000 720000 3,438,000.00 INR Gross margin % 10 10 10 10 10 10 10 10 10 10 10 10 Net margin % 3.7 3.7 3.7 3.7 3.7 3.7 3.7 3.7 3.7 3.7 3.7 3.7 NetProfit 6660 13320 16650 19980 33300 49950 66600 133200 199800 233100 233100 266400 1,272,060.00 INR NetCost 173340 346680 433350 520020 866700 1300050 1733400 3466800 5200200 6066900 6066900 6933600 33,107,940.00 INR ROI % 4 4 4 4 4 4 4 4 4 4 4 4 4
  14. 14. Sales forcast Second year Sales forcast Third year Second year Month 13 14 15 16 17 18 19 20 21 22 23 24Total AVG Ticket Value 18000 18000 18000 18000 18000 18000 18000 18000 18000 18000 18000 18000 Volume 350 350 350 400 450 500 500 500 550 600 600 600 5750 Sales 6300000 6300000 6300000 7200000 8100000 9000000 9000000 9000000 9900000 10800000 10800000 10800000 103,500,000.00 INR Cost of sales 5670000 5670000 5670000 6480000 7290000 8100000 8100000 8100000 8910000 9720000 9720000 9720000 93,150,000.00 INR Gross profit 630000 630000 630000 720000 810000 900000 900000 900000 990000 1080000 1080000 1080000 10,350,000.00 INR Gross margin % 10 10 10 10 10 10 10 10 10 10 10 10 Net margin % 3.7 3.7 3.7 3.7 3.7 3.7 3.7 3.7 3.7 3.7 3.7 3.7 Net Profit 233100 233100 233100 266400 299700 333000 333000 333000 366300 399600 399600 399600 3,829,500.00 INR Net Cost 6066900 6066900 6066900 6933600 7800300 8667000 8667000 8667000 9533700 10400400 10400400 10400400 99,670,500.00 INR ROI % 4 4 4 4 4 4 4 4 4 4 4 4 4 Third Year Month 25 26 27 28 29 30 31 32 33 34 35 36Total AVG Ticket Value 18000 18000 18000 18000 18000 18000 18000 18000 18000 18000 18000 18000 Volume 600 700 700 750 800 900 1000 1000 1200 1500 2000 2500 13650 Sales 10800000 12600000 12600000 13500000 14400000 16200000 18000000 18000000 21600000 27000000 36000000 45000000 245,700,000.00 INR Cost of sales 9720000 11340000 11340000 12150000 12960000 14580000 16200000 16200000 19440000 24300000 32400000 40500000 221,130,000.00 INR Gross profit 1080000 1260000 1260000 1350000 1440000 1620000 1800000 1800000 2160000 2700000 3600000 4500000 24,570,000.00 INR Gross margin % 10 10 10 10 10 10 10 10 10 10 10 10 Net margin % 3.7 3.7 3.7 3.7 3.7 3.7 3.7 3.7 3.7 3.7 3.7 3.7 Net Profit 399600 466200 466200 499500 532800 599400 666000 666000 799200 999000 1332000 1665000 9,090,900.00 INR Net Cost 10400400 12133800 12133800 13000500 13867200 15600600 17334000 17334000 20800800 26001000 34668000 43335000 236,609,100.00 INR ROI % 4 4 4 4 4 4 4 4 4 4 4 4 4
  15. 15. projection :revenue,P/L for 3 years First year Second Year Third year Volume 1910 5750 Avg Ticket value 18000 18000 18000 Sales revenue 34,380,000 103,500,000 245,700,000 Cost of sales 30,942,000 93,105,000 221,130,000 Gross profit @ 10 % Margin 34,38,000 10,350,000 24,570,000 Net margin % (After deducting opex+ +marketing cost +inventory cost etc) 3.7 3.7 3.7 Total Cost (including Opex +Marketing+ Inventory) 33,107,940 99,670,500 236,609,100 Net Profit 1,272,060 3,829,500 9,090,900 ROI % 3.8 3.8 3.8
  16. 16. Funding requirnment to Start Operations for one year Particulars Unit/Months/Sku Total Product catlog content development 1000 X 150 Rs per Sku 1,50,000 Payment gateway 45000 X1 45000 Opex for 1 Year (Inclucing SAS Ecommerce Platform) 1,36,000 X 12 16,32,000 Cost of inventory 5,00,000 5,00,000 Marketing Budget 3,00,000 X 3months 9,00,000 Surplus cash 2,73,000 Rs 2,73,000 Total 35,00,000 RS Best regards, Prashant Chauhan . Email : prowebb@gmail.com Phone: 92235442662

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