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Amazon FBA Business Plan – Financial Projection Sample

Are you about writing a business plan for Amazon FBA? If YES, here is a sample Amazon FBA business plan financial projection, cost, budget & forecast suitable for investors.

  1. Executive Summary
  2. Market Analysis
  3. SWOT Analysis
  4. Financial Projection
  5. Marketing Plan
  6. Marketing ideas & Strategies

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The materials and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.

Our Startup Budget and Expenditure

As for the detailed cost analysis for starting a shipping and logistics company / Amazon FBA business; it might differ in other countries due to the value of their money. However, this is what it would cost us to setup Swift & Safe Logistics, LLC in the United of America;

  • The Total Fee for Registering the Business in the United States of America – $750.
  • Legal expenses for obtaining licenses and permits – $1,500.
  • Marketing promotion expenses for the grand opening of Swift & Safe Logistics, LLC in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
  • Cost for hiring business consultant – $2,500.
  • Cost for Computer Software (Accounting Software, Payroll Software, CRM Software, Microsoft Office, and QuickBooks Pro et al) – $7,000
  • Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $3,400.
  • Cost for payment of rent for warehouse facility for 12 month at $1.76 per square feet in the total amount of $105,600.
  • Cost for warehouse remodeling (construction of racks and shelves) – $20,000.
  • Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
  • Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
  • Storage hardware (rack and shelves,) – $3,720
  • Cost for store equipment (cash register, security, ventilation, signage) – $13,750
  • The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, fax machine, cabins, tables and chairs et al): $4,000.
  • The cost of Launching a Website: $1,500
  • The cost for the purchase of delivery vans and bikes: $70,000
  • The cost for branding: $5,000
  • The cost for our opening party: $7,000
  • Miscellaneous: $10,000

We would need an estimate of $700,000 to successfully set up our shipping and logistics business cum Amazon FBA business. Please note that this amount includes the salaries of all the staff for the first month of operation.

A Sample Amazon FBA Business Plan Financial Projection

  • Sources of Income

Swift & Safe Logistics, LLC is a business that was established to offer shipping, logistics and customer care basically to third party retailers under the Amazon FBA platform.

In view of the above, our source of income will be offering logistics and shipping services for our clients. All our clients and potential clients need to do is to store their products in Amazon’s fulfillment centers, and we will pick, package and, ship them to any destination of their choice. We will also provide top notch customer service for these products.

  • Sales Forecast

One thing is certain when it comes to shipping and logistics business, if you have a robust transport / shipping networks, reliable and if your warehouse is centrally positioned and easily accessible, you will always attract customers and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in shipping and logistics market cum Amazon FBA and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base.

We have been able to critically examine the shipping and logistics industry and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to startups in the United States of America.

Below is the sales projection for Swift & Safe Logistics, LLC, it is based on the location of our business and other factors as it relates to shipping and logistics business with active presence in Amazon FBA start – ups in the United States;

  • First Fiscal Year-: $100,000
  • Second Fiscal Year-: $250,000
  • Third Fiscal Year-: $750,000

N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

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