How to Sell on Amazon FBA in the US from India: A Step-by-Step Guide

Quick answer: To sell on Amazon FBA in the US from India, you need a US business entity (like an LLC), a US bank account to receive payments, an Amazon Seller Central account, and a reliable logistics partner to handle shipping from India to Amazon's US warehouses. Most new sellers get stuck on the legal and payment setup, but it's a solvable problem.

Selling on Amazon.com from India is one of the most direct ways to reach the US market. But many Indian founders get overwhelmed by the initial setup. They see conflicting advice about bank accounts, import licenses, and company structures.

We've seen dozens of companies go through this process. The path is well-defined. This guide breaks it down into concrete steps, focusing on the specific hurdles for Indian sellers.

Do I Need a US Company to Sell on Amazon US?

Yes, you need a US legal entity. While Amazon technically allows you to register with an Indian company, it creates massive operational friction. Getting a US bank account becomes difficult, and you will face payment transfer issues and higher fees.

Most people get this wrong because they try to save a few hundred dollars upfront. This is a mistake. Setting up a US LLC is the standard, most reliable path. It simplifies banking, taxes, and payments. Trying to bolt on an Indian entity to a US Amazon account is a classic beginner error that costs more time and money to fix later.

We recommend forming a Wyoming or Delaware LLC. These states have business-friendly laws and are efficient for non-residents. Expect to pay between $500 to $1,000 for a service to file the LLC for you and get your Employer Identification Number (EIN), which is like a tax ID for your business.

How Do I Get Paid from Amazon US?

Amazon pays US-based sellers via ACH transfer into a US bank account. To get a US bank account, you first need your US LLC and EIN. Without them, no reputable US bank will open an account for you.

Once you have your LLC and EIN, you can use a service like Mercury or Relay. These are online banking platforms designed for internet businesses and are friendly to non-resident founders. You can open an account remotely from India. They will issue you the routing and account numbers that Amazon requires.

Do not rely on third-party payment services that give you a "virtual" US account number. These often have high fees (1-3% of your revenue) and can be shut down with little notice, freezing your funds. Opening a proper business bank account under your own LLC is the only professional way to operate.

What is the Step-by-Step Process for Setup?

Here is the sequence we see work best for founders in our Basecamp E-Com Foundation Program.

1. Form a US LLC: Use a service like Stripe Atlas or a dedicated formation agent. Choose Wyoming for low costs or Delaware if you plan to seek venture capital later. This takes 1-3 weeks.
2. Get an EIN: Your formation agent will apply for this with the IRS. This is mandatory. The wait time can vary from 2 to 8 weeks.
3. Open a US Business Bank Account: Once you have your LLC documents and EIN, apply for an account with an online bank like Mercury. This can be done online from India in a few days.
4. Register for Amazon Seller Central: Go to sell.amazon.com and register for a Professional selling account ($39.99/month). Use your US LLC and US bank account details during signup. Have your passport and a utility bill ready for identity verification.
5. Find a Logistics Partner: You need a freight forwarder who specializes in Amazon FBA shipments from India. They handle customs clearance in both countries and deliver your goods directly to Amazon's warehouses. Get quotes from at least three providers.

How Do I Ship Products from India to Amazon FBA?

Shipping is a two-step process: exporting from India and importing into the US. You cannot just mail a box to Amazon. You must use a freight forwarder who understands FBA requirements.

First, you need an Importer of Record (IOR) in the US. The IOR is the entity legally responsible for the import, customs duties, and compliance. Your US LLC will act as the IOR. This is another reason why having a US entity is non-negotiable.

Your freight forwarder in India will prepare the export paperwork, including the bill of lading and commercial invoice. They will then ship your goods via air or sea to the US. Air freight is faster (7-10 days) and more expensive, ideal for initial small batches. Sea freight is slower (30-45 days) but much cheaper for larger volumes.

Once the shipment arrives in the US, the forwarder's US counterpart handles customs clearance and pays duties on your behalf (which you reimburse). They then book a delivery appointment with Amazon and transport the goods to the designated FBA warehouse. Amazon has strict rules for palletizing and labeling; your forwarder must follow these, or Amazon will reject the shipment.

What are the Common Mistakes to Avoid?

• Underestimating Total Costs: Your landed cost is not just the product cost. It includes Indian GST, export fees, freight, US import duties (which can range from 0% to 25%+), and final delivery to Amazon. A common rule of thumb is that your final landed cost will be 1.5x to 2x your factory cost.
• Ignoring US Customs Duties: Before you even place a production order, you must know the HTS (Harmonized Tariff Schedule) code for your product. This code determines your import duty rate. A 15% duty can instantly make a profitable product unprofitable. Your freight forwarder can help you find the right HTS code.
• Poor Quality Control: Once your product is in an FBA warehouse, you can't fix defects. You must have a QC process in India before the goods are shipped. For any order over $2,000, consider hiring a third-party inspection agent to check the goods at the factory.
• Starting with Too Much Inventory: Your first shipment should be a small test batch, usually 200-500 units sent via air. This lets you validate demand before committing to a large sea shipment. We've seen founders spend their entire budget on a single large shipment, only to find the product doesn't sell.