How to Sell on Amazon FBA in the US From India

Your product is ready. You know the US is the target market. Using Amazon FBA (Fulfillment by Amazon) is the fastest way to get in front of millions of customers, but the process for a seller in India can feel complicated. This guide breaks it down into practical steps.

What is the basic process?

Selling on Amazon FBA from India involves five main stages. First, you set up a legal entity and get your business documents. Second, you register for an Amazon US seller account. Third, you figure out how to get paid in USD and bring it back to India legally. Fourth, you ship your inventory to Amazon's US warehouses. Finally, you manage your listings and sales.

Most people get this wrong because they jump straight to the Amazon part without sorting out the legal and banking foundations. This creates major problems later.

Do I need a US company to sell on Amazon US?

No, you don't strictly need a US company, but we strongly recommend it. You can technically register as an Indian "sole proprietor" on Amazon. However, using a US LLC (Limited Liability Company) is usually the better, more scalable choice.

Here’s a comparison:

Feature	Indian Sole Proprietor	US LLC	D4Commerce Recommendation
Setup Cost	Low (almost zero)	~$500 - $1,000	LLC is worth the cost.
Liability	Unlimited personal liability	Protects personal assets	Critical for selling in the US.
Banking	Harder to get US bank account	Easy to open US business bank account	Simplifies payments immensely.
Credibility	Lower	Higher with partners, suppliers	Looks more professional.
Taxes	Complex cross-border taxes	Simpler US tax filing (though you still have Indian obligations)	Cleaner accounting.

Founders often choose the sole proprietor route to save a few hundred dollars. This is a mistake. The personal liability risk alone makes it a bad choice. Selling physical products in the US opens you up to lawsuits you can't predict. An LLC separates your business assets from your personal ones (house, car, savings).

We use and recommend services like Stripe Atlas or Firstbase.io to form a Delaware C-Corp or Wyoming LLC. They handle the paperwork, get you an Employer Identification Number (EIN) from the IRS, and help with US bank accounts.

How do I open an Amazon Seller Central account?

Once your legal entity is ready, you can sign up at sell.amazon.com. You will need a "Professional" account, which costs $39.99 per month. Don't start with the free "Individual" plan; it lacks essential features for FBA sellers.

During registration, Amazon will ask for:

• Business Information: Your legal business name and address (use your US LLC info if you have one).
• Personal Information: Your passport and personal details for identity verification.
• Bank Account: A US bank account to receive payments. This is crucial.
• Credit Card: An internationally chargeable credit card to pay Amazon's fees.
• Phone Number: A US phone number (you can get one via a service like OpenPhone).

Amazon’s verification process can be frustrating. Be prepared for a video call verification. Ensure all your documents are clear, unexpired, and match exactly the information you entered. The slightest mismatch can lock your account for weeks.

How do I get paid and handle currency conversion?

This is the most common point of failure for new Indian sellers. Amazon pays out in USD to a US bank account. You then need to move that money to your Indian bank account.

Here are the options:

1. Amazon Currency Converter for Sellers (ACCS): This is Amazon's built-in service. It’s the easiest to set up but has the worst exchange rates. You will lose 3-4% on every conversion. Avoid it.

2. Third-Party Payment Services (Recommended): Services like Payoneer or Mercury act as a "virtual" US bank account. You link this account to Amazon Seller Central. Amazon deposits USD into your Payoneer/Mercury account. From there, you can withdraw the funds to your Indian bank account at much better rates (typically ~1% fee).

3. Direct US Bank Account (Best): If you formed a US LLC, you can open a real US business bank account with banks like Relay or Mercury. This is the cleanest option. Amazon pays your US bank, and you can use wire transfers or services like Wise to move funds to India when you need to.

Getting this right from day one saves you thousands of dollars in hidden fees as you grow.

How do I ship my inventory to Amazon FBA warehouses?

Shipping from India to a US Amazon warehouse is called "prep and inbound." You can't just mail a box to Amazon. The packages must be prepared and labeled according to Amazon's strict FBA requirements.

Your basic steps are:

1. Create a Shipping Plan: In Seller Central, you tell Amazon what products you are sending, how many units, and how they are boxed.
2. Label Your Products: Each individual unit needs an FNSKU barcode label covering the existing UPC barcode.
3. Label Your Cartons: Each master carton you ship needs a special FBA Box ID label.
4. Choose a Carrier: You need a freight forwarder or courier that handles customs clearance (DDP - Delivered Duty Paid).

Most new sellers get this wrong by trying to do it themselves with DHL or FedEx directly. It’s possible, but it’s expensive and you are responsible for customs paperwork. The better way is to use an "FBA Prep Center" in India or a freight forwarder specializing in Amazon.

These companies handle everything: they pick up from your factory, inspect and label the products correctly, consolidate shipments, manage customs, and deliver to Amazon’s warehouses. It adds a cost per unit (maybe $0.50 - $2.00 depending on the item), but it prevents costly mistakes and shipment rejections by Amazon.

What are the biggest mistakes Indian sellers make?

We see the same few mistakes repeatedly in our Basecamp E-Com Foundation Program.

1. Choosing the Wrong Legal Structure: Starting as a sole proprietor to save $500, exposing themselves to massive personal risk.
2. Ignoring Payment Fees: Using Amazon's currency converter and losing 4% of all revenue unnecessarily.
3. Underestimating Shipping & Customs: Trying to ship directly without a prep center or forwarder, leading to lost inventory or surprise customs bills.
4. Not Calculating All FBA Fees: Your profit isn't just Sale Price - Product Cost. You must account for Amazon's referral fee (~15%), FBA fulfillment fee (varies by size/weight), storage fees, and advertising costs.

Selling on Amazon US from India is not complex if you follow a structured process. Get the legal and banking foundation right first. Then, focus on the logistics. This approach sets you up for a scalable, long-term business.