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 to form a US company (LLC), get an EIN, open a US business bank account, and set up an Amazon Seller Central account. Then, you ship your inventory to Amazon's US warehouses, and they handle storage, packing, and shipping to customers.

Selling on Amazon.com from India is a huge opportunity. The US market is the largest and most dynamic ecommerce market in the world. But many Indian founders are blocked by confusion about the process. They assume it’s more complex or expensive than it really is.

We've helped dozens of Indian brands launch in the US. This is our step-by-step guide to getting it done right, avoiding common mistakes that waste time and money.

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

Yes, you need a US company. While Amazon technically allows you to sign up with an Indian entity, it creates massive operational friction. Getting paid, managing returns, and handling US sales tax becomes a nightmare. Don’t do it.

The standard, most effective structure is to form a US LLC (Limited Liability Company). This entity will own your Amazon store and receive all its revenue. You, as the Indian founder, will own the US LLC. This cleanly separates your US and Indian businesses.

Most founders get this wrong because they try to save a few hundred dollars. They register as a sole proprietor or with their Indian company. This leads to payment gateway issues, higher currency conversion fees, and a huge headache come tax time. Starting with a US LLC from day one is the only professional way to do it.

What are the Steps to Set Up a US LLC from India?

Setting up a US LLC is surprisingly straightforward. You don't need to visit the US. The entire process can be done online in 1-2 weeks.

1. Choose a State: We recommend Wyoming or Delaware. Both have low setup fees, strong privacy protections, and no state income tax for non-residents. For 99% of ecommerce sellers, Wyoming is slightly cheaper and simpler.
2. Hire a Registered Agent: You are legally required to have a registered agent in the state where your LLC is formed. They handle legal mail and official notices. Services like Stripe Atlas, Firstbase, or any number of online incorporation services will handle this for you. Expect to pay $100-150 per year for this.
3. File for an EIN: After your LLC is formed, you need an Employer Identification Number (EIN) from the IRS. This is your company's federal tax ID number. Your registered agent or incorporation service can file the SS-4 form for you. This is free, but can take a few weeks for non-residents without a US Social Security Number.
4. Open a US Business Bank Account: Once you have your LLC and EIN, you can open a US business bank account. Online banking platforms like Mercury or Relay are popular with international founders. They are designed for this exact use case and integrate cleanly with payment processors like Stripe (for Amazon payouts).

Total cost for this setup is usually between $500 and $800. It's a non-negotiable cost of doing business in the US market.

How Do I Get Paid from Amazon USA?

This is where your US business bank account is critical. Amazon pays out seller revenue every 14 days. They will deposit US dollars directly into your US business bank account via ACH transfer, with no fees.

If you tried to use an Indian bank account, you’d be forced to use Amazon’s Currency Converter for Sellers (ACCS). ACCS charges a currency conversion fee of around 3-4% on every single payout. On $100,000 in revenue, that’s $4,000 in fees you are throwing away. Using a US bank account reduces this cost to nearly zero.

From your US bank account (like Mercury), you can then decide when and how to move money to your Indian accounts, giving you control over exchange rates and transfer fees.

How Does FBA Shipping Work from India?

FBA stands for "Fulfillment by Amazon." You ship your products in bulk to Amazon's US warehouses, and they handle the rest.

1. Prepare Your Products: Each unit must have an Amazon FNSKU barcode label. This is how Amazon identifies your product in their warehouse. You generate these labels from your Amazon Seller Central account.
2. Create a Shipping Plan: In Seller Central, you’ll create a "Shipping Plan." You tell Amazon what products you're sending and how many units. Amazon will then tell you which warehouse(s) to ship your inventory to. They may split your shipment across multiple locations (e.g., one on the East Coast, one on the West Coast). This is normal.
3. Choose a Freight Forwarder: You cannot just mail a box to Amazon. You need to work with a freight forwarder who understands Amazon FBA requirements. They will handle customs clearance, duties, and the final delivery to the Amazon warehouse.

Many Indian sellers make the mistake of using a cheap, inexperienced forwarder. This can lead to shipments being rejected by Amazon for improper labeling, palletizing, or delivery appointments. A good forwarder specializing in FBA is worth the cost. Expect to pay between $2-$4 per kg for air freight from India to the US, including all fees.

What are the Main Amazon FBA Fees?

Amazon’s fees can feel complex, but they break down into a few main categories. Understanding them is key to profitability.

• Referral Fee: This is Amazon's commission for selling on their platform. It's typically 15% of the selling price for most categories, but can be as low as 8% for others.
• FBA Fulfillment Fee: This is a per-unit fee for picking, packing, and shipping your product to the customer. It depends on the size and weight of your product. For a small, light item (under 1 lb), this might be $3-4. For a larger, 3 lb item, it could be $6-7.
• Monthly Storage Fee: You pay for the space your inventory occupies in Amazon's warehouses. This is charged per cubic foot and is much higher during the peak holiday season (October-December).
• Other Fees: There are also fees for long-term storage (for inventory that sits for over a year), returns processing, and optional programs like advertising (PPC).

Your goal is to ensure your sale price covers your product cost, shipping from India, all Amazon fees, and still leaves you with a healthy profit margin (ideally 20-30%+).

How Do I Handle US Sales Tax?

Sales tax is one of the most confusing topics for new sellers. Here’s the simple version. Sales tax in the US is determined by the buyer's location (the "ship to" address), not the seller's.

As an FBA seller, your inventory is stored in multiple states. Storing inventory in a state creates a "physical nexus," which means you are legally obligated to collect and remit sales tax in that state.

Don’t panic. Amazon has a service called "Tax Collection Services." For a 2.9% fee on the tax collected, Amazon will automatically calculate, collect, and remit sales tax on your behalf for all states that require it.

For a new seller, this is the best option. It automates a very complex process. Most people get this wrong by either ignoring it (a major legal risk) or trying to file manually across 40+ states, which is impossible without expensive software. Use Amazon’s service to start.