How to Sell on Amazon FBA in the US from India: A Step-by-Step Guide
A complete, step-by-step guide for Indian sellers starting with Amazon FBA in the US. We cover company setup, GST, payments, shipping, and the most common mistakes we see founders make.
Table of contents
Quick Answer: To sell on Amazon FBA in the US from India, you must first form a US company (usually an LLC). Then, get a US bank account, set up a payment processor like PingPong or Payoneer to handle repatriation, register for GST in India, and arrange for FBA prep and shipping. Do not start by registering for an Amazon seller account directly with your Indian details.
We see hundreds of Indian brands that want to sell in the US. The first platform they almost always look at is Amazon.com.
It makes sense. Amazon is the largest single channel in the US market. But most Indian founders get the setup process wrong.
They assume they can just register on Amazon.com with their Indian company details, PAN card, and GST number. This is a mistake that creates huge problems with payment repatriation and US tax later on. This guide walks through the correct sequence of steps.
Should you register with an Indian or US company?
You must register your Amazon seller account with a US company, not your Indian one. We recommend a Wyoming LLC for most sellers. This is the single most important decision you will make.
Most people get this wrong because Amazon's own marketing materials sometimes suggest you can sign up from India directly. While technically possible, it is not the right way to build a scalable business. Using an Indian entity creates massive friction.
Your US customers will see "Sold from India," which reduces trust and conversion rates. Your funds will be disbursed in USD to an Amazon Currency Converter for Sellers (ACCS) account, which has high fees. You will also face a complicated tax situation with potential US withholding tax and IRS filings.
Setting up a US LLC solves all these problems. It makes your business a US-native entity in the eyes of Amazon and your customers. This is the standard, professional way to operate.
| Feature | US LLC Setup (Recommended) | Indian Company Setup (Not Recommended) |
|---|---|---|
| Customer Perception | Appears as a US domestic seller | Clearly an international seller from India |
| Payment Repatriation | Clean, low-cost via PingPong/Payoneer | Forced through Amazon's ACCS, higher fees |
| US Tax | Simple pass-through taxation, often no US tax owed | Complex, potential 30% withholding on revenue |
| Banking | Can open a US bank account (e.g., Mercury) | Cannot open a proper US bank account |
| Scalability | Easy to add other US sales channels (Shopify, etc.) | Difficult to expand beyond Amazon.com |
What is the step-by-step process for setting up?
Here is the exact sequence we recommend for Indian sellers. Do not change the order.
Form a US Company. First, create a US entity. For 99% of sellers, a Wyoming LLC is the best choice. It's low-cost, provides liability protection, and has minimal filing requirements. You can use a service like Stripe Atlas or do it yourself.
Get an EIN. Your new LLC needs an Employer Identification Number (EIN) from the IRS. This is your federal tax ID number. You'll need it to open a bank account and your Amazon account. Your formation service can usually get this for you.
Open a US Bank Account. With your LLC and EIN, open a US business bank account. We recommend Mercury for most e-commerce founders. It's an online bank built for this purpose.
Set up a Repatriation Service. You need a way to get your profits from your US bank account back to India. Do not use wire transfers (SWIFT). The best options are payment platforms like PingPong or Payoneer. You connect your US bank account to them, and they handle the transfer to your Indian bank account, automatically generating the FIRC/FIRS documents needed for compliance.
Register for GST in India. Your Indian entity that receives the export revenue needs to be registered for Goods and Services Tax (GST). You will need a Letter of Undertaking (LUT) to export goods without paying IGST. This is a critical compliance step in India.
Open Your Amazon Seller Account. Only now should you go to sell.amazon.com and register. Use your US LLC details, EIN, and US bank account information. For the verification step, you will use your personal Indian passport and a utility bill.
Founders in our Basecamp E-Com Foundation Program often try to jump straight to step 6. This is a recipe for disaster. Your account may get approved, but you will be stuck when it comes time to move money or file taxes.
How do you handle payments and repatriation?
Getting paid is simple with the right structure. Amazon pays your USD revenue into your US bank account (e.g., Mercury) every two weeks. This part is entirely within the US financial system.
The challenge is moving that money to India legally. This is called repatriation.
Your first instinct might be to just wire the money from your US account to your Indian account. This is a bad idea. Indian banks will ask for documentation like a Foreign Inward Remittance Certificate (FIRC) for every single transfer to prove it's export revenue. Wires make this a manual, painful process.
This is why you must use a service like PingPong or Payoneer. They are designed for this exact purpose.
Here's how it works:
- You link your US Mercury account to your PingPong account.
- You link your Indian business bank account to your PingPong account.
- When you want to repatriate funds, you pull money from Mercury into PingPong.
- You then withdraw the funds from PingPong to your Indian bank.
PingPong automatically generates the digital FIRS (the modern equivalent of FIRC) and purpose codes required by Indian authorities. This keeps you compliant with the RBI and FEMA. Their fees are typically around 1% or less, which is much cheaper than bank wires or Amazon's currency converter.
What about shipping and FBA prep?
FBA stands for "Fulfilled by Amazon." You ship your products in bulk to an Amazon warehouse in the US, and they handle storage, packing, and shipping to individual customers.
Your job is to get your inventory from your factory in India to that Amazon warehouse, ready for sale. This involves two main steps: export from India and import into the US.
1. Exporting from India: You'll need an Importer Exporter Code (IEC) for your Indian business. You'll also need a shipping partner. You can use a large carrier like FedEx or DHL, or a freight forwarder that specializes in e-commerce.
The shipment must be prepared for export with a commercial invoice, packing list, and other required documents. If you have a GST LUT, you can export without paying IGST up front.
2. Importing and FBA Prep in the US: Your shipment needs a US Importer of Record (IOR). Your US LLC can act as the IOR. The shipment also needs to be prepared for Amazon's warehouses. This is called "FBA Prep."
FBA prep includes things like:
- Applying FNSKU labels to each unit.
- Putting products in poly bags if required.
- Adding "Made in India" labels.
- Creating case labels for the master cartons.
Never ship directly from India to an Amazon FBA warehouse. Amazon will reject it. The shipment must first go to a "prep center" in the US. This is a third-party logistics (3PL) company that receives your bulk shipment, inspects it, preps it according to Amazon's rules, and then forwards it to the designated FBA warehouses.
Using a prep center is not optional. It's a required part of the logistics chain.
What are the most common mistakes?
We see the same few mistakes over and over.
- Using an Indian Company: As discussed, this is the original sin. It complicates everything. Form a US LLC first.
- Ignoring Repatriation: Founders get money into a US bank account and think the job is done. They forget about the legal requirements for bringing that money back to India. Use PingPong or Payoneer from day one.
- Shipping Directly to FBA: This always fails. Your international shipment will be rejected at the Amazon dock. You must use a US-based prep center as an intermediary.
- Incorrect GST/LUT Handling: Failing to get a GST number and LUT in India can lead to significant tax liabilities and compliance issues.
- Ignoring US Sales Tax: Selling on Amazon means you have "nexus" in states where your inventory is stored. Amazon's marketplace facilitator laws handle sales tax collection in most states, but you are still responsible for registration and filing in some cases. This is a complex area you'll need to address as you grow.
Starting on Amazon FBA from India is a powerful way to enter the US market. But you have to build the corporate, financial, and logistical foundation correctly from the start. Fixing it later is 10x harder.
Frequently Asked Questions
Can I sell on Amazon USA without GST? No. Your Indian entity that is exporting goods and receiving repatriated funds must be GST registered. You will need a Letter of Undertaking (LUT) to export goods without having to pay IGST.
Do I need an Importer Exporter Code (IEC) to sell on Amazon USA from India? Yes. Your Indian company needs an IEC to legally export goods from India to the US.
What is the cost to sell on Amazon FBA from India? Initial setup costs include US LLC formation (~$500), an Amazon Professional Seller account ($39.99/month), and a repatriation service (e.g., PingPong, ~1% fee). Ongoing costs include FBA fees (storage and fulfillment), shipping, marketing, and potential US tax compliance costs.
How do I get my money from Amazon USA to my Indian bank account? Do not use a direct wire. The best method is: Amazon (USD) -> US Bank Account (USD) -> Repatriation Service like PingPong (USD) -> Indian Bank Account (INR). This process ensures you receive the necessary FIRS documentation for RBI compliance.