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 recommended), get an EIN, open a US business bank account, and set up your Amazon Seller Central account. Then you must handle inventory import, customs, and shipping to Amazon's warehouses. This guide covers every step.

Selling on Amazon.com, the biggest ecommerce market in the world, is a huge opportunity for Indian brands. But many founders get stuck on the setup. They see a wall of acronyms—LLC, EIN, FBA, UPC—and get intimidated by the perceived complexity of US regulations.

We've seen dozens of companies through this process. It's not that complex if you follow a clear sequence. This guide breaks down the exact steps we use with founders in our Basecamp E-Com Foundation Program.

Should You Sell as an Indian Entity or a US Entity?

This is the first major decision. You can technically register on Amazon.com as an Indian private limited company. But we strongly advise against it.

Selling through a US-based company, typically a Limited Liability Company (LLC), is the standard for a reason. It simplifies taxes, banking, and operations significantly. US customers, partners, and even Amazon itself are more comfortable dealing with a US entity.

Most founders get this wrong because they try to save a few hundred dollars on setup. This is a classic mistake. Saving $500 upfront can cost you thousands in banking fees, currency conversion charges, and operational headaches down the line. Setting up a US LLC is the professional way to enter the US market.

Feature	Selling as Indian Pvt Ltd	Selling as US LLC	Winner
Amazon Fees	Subject to 2% equalization levy.	Standard US fees.	US LLC
Banking	Requires complex FIRC/FIRS process for each payout. High conversion fees.	Simple transfers from a US bank account.	US LLC
Customer Trust	Lower perceived trust from US buyers.	Higher trust, appears as a local business.	US LLC
Taxation	Complex cross-border tax treaties.	Simpler US federal and state tax filing.	US LLC
Operational Ease	Harder to get US credit cards, loans, and work with US partners.	Straightforward access to the US financial system.	US LLC

Winner: Set up a US LLC. Don't overthink it.

How Do You Set Up a US Company from India?

Setting up a US LLC is surprisingly easy and can be done entirely online from India. You do not need to visit the US.

First, you choose a state of incorporation. Wyoming and Delaware are the most common choices for non-residents because they have business-friendly laws and low franchise taxes. For most ecommerce sellers, Wyoming is slightly more straightforward and affordable.

Next, you hire a "Registered Agent" service. These companies (like Stripe Atlas, Firstbase, or many others) handle the paperwork with the state for a fee, typically $500-$800. This service includes:

1. Filing Articles of Organization: This officially creates your LLC.
2. Providing a Registered Agent: This is a legal requirement—it's a physical address in the state that can receive official mail on your behalf.
3. Getting an EIN: After your LLC is formed, the service will apply for an Employer Identification Number (EIN) from the IRS. The EIN is like a PAN card for your US business. You need it for banking and taxes.

This whole process takes anywhere from 2 to 6 weeks. Once you have your LLC formation documents and your EIN, you are a legal US business entity.

How Do You Open a US Business Bank Account?

With your LLC and EIN, you can now open a US business bank account. In the past, this required a physical visit to a bank branch in the US.

Today, you can do this remotely. A few services specialize in providing US business banking to non-resident founders. Mercury and RelayFi are two of the most popular options. They are "fintech" companies, not traditional banks, but they are built for this exact purpose and offer FDIC-insured accounts through partner banks.

Opening an account is a simple online application. You will need to submit:

• Your LLC formation documents.
• Your EIN confirmation letter.
• A copy of your passport.

Approval usually takes a few days. Once approved, you have a real US checking account, routing number, and a debit card. You can now receive payments from Amazon and pay US-based expenses without dealing with international wire fees or currency conversions on every transaction.

What is Amazon FBA and How Does it Work?

FBA stands for "Fulfillment by Amazon." It's the program that lets you store your products in Amazon's warehouses. When a customer places an order, Amazon picks, packs, and ships the product for you. They also handle customer service and returns.

This is non-negotiable for selling in the US from India. You cannot realistically handle fulfillment yourself from another country. FBA is the key that unlocks the US market.

Here’s the process:

1. Create Product Listings: In your Amazon Seller Central account, you create a listing for each product you plan to sell.
2. Get Product Identifiers (UPC): Amazon requires a valid UPC (Universal Product Code) for each new listing. You must purchase these from GS1, the official source. Do not buy cheap codes from resellers; Amazon is cracking down on this and may reject your listings.
3. Prepare a Shipping Plan: You tell Amazon how many units of which products you intend to send. Amazon will then tell you which of their warehouse(s) to ship your inventory to.
4. Label Your Products: Each individual unit needs an FNSKU label (Amazon's internal barcode) printed and applied over the existing UPC barcode. Your supplier can do this, or you can have a "prep center" in the US do it.
5. Ship to Amazon: Your goods are shipped from India, clear US customs, and are then sent to the designated Amazon FBA warehouses.

How Do You Ship Inventory from India to the US?

This is the most intimidating step for new sellers, but it follows a standard process.

You will need a freight forwarder. These are logistics companies that manage the entire journey of your goods from your factory in India to the Amazon warehouse in the US. They handle shipping, customs clearance, and final delivery.

There are two main shipping methods:

• Air Freight: Faster (1-2 weeks) and more expensive. Good for your first few shipments or for high-value, lightweight products.
• Sea Freight: Slower (5-8 weeks) and much cheaper. This is how you ship in bulk once your product is selling consistently.

A critical piece of the puzzle is the Importer of Record (IOR). The IOR is the entity legally responsible for ensuring the goods comply with US laws and for paying duties and taxes. Your US LLC will act as the IOR.

You will also need a Customs Bond. This is an insurance policy that guarantees the US government that all duties and fees will be paid. Your freight forwarder will help you purchase one, which can be a single-entry bond or a continuous bond (better if you plan to ship multiple times a year).

Your first shipment might cost $2,000 - $4,000 for a small batch via air. Don't be shocked. Treat it as a startup cost to validate your product in the market.