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 (LLC is common), a US bank account, a registered agent, and an Amazon Seller Central account. You will then ship your inventory to Amazon's US warehouses, and they will handle storage, packing, and shipping to customers.

Selling on Amazon.com from India is a huge opportunity. The US market is large and consumers are comfortable with Amazon. But many Indian sellers get stuck on the setup process. It seems more complex than it is.

We've helped many Indian brands launch in the US, often through Amazon FBA. This guide breaks down the exact steps and clarifies the most common points of confusion.

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

Yes, you need a US business entity. While Amazon technically allows you to sign up with an Indian entity, it creates significant operational friction. US customers, suppliers, and service providers are hesitant to deal with non-US companies. Getting a US bank account, credit card, and payment gateways becomes a nightmare.

Most founders get this wrong because they try to save a few hundred dollars upfront. This is a mistake. Registering a US company is not an optional step; it is the foundation of your US business. The most common choice is a Limited Liability Company (LLC).

An LLC protects your personal assets from business debts. For tax purposes, a single-member LLC owned by a non-resident is a "disregarded entity," meaning the profit passes through to you, and you are taxed in India. You still have US tax filing obligations (Form 5472 and 1120), so you will need a US accountant.

How Do You Set Up a US LLC and Bank Account from India?

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

Here are the steps:

1. Choose a State: Wyoming and Delaware are the most popular choices. Wyoming is cheaper and has strong privacy protections. Delaware is the standard for venture-backed companies, but it's more expensive and offers no real advantage for a typical e-commerce business.
2. Hire a Registered Agent: You are legally required to have a registered agent in the state where you form your LLC. They receive official mail on your behalf. Services like Stripe Atlas, Firstbase, or LegalZoom will handle the entire formation process, including acting as your registered agent. This costs between $500 and $800.
3. Get an Employer Identification Number (EIN): Your registered agent will apply for an EIN from the IRS on your behalf. This is your federal tax ID number. You need it to open a bank account.
4. Open a US Bank Account: Once you have your LLC formation documents and EIN, you can open a business bank account. Online banking platforms like Mercury or Relay are popular with international founders. They are designed for this exact use case and the process is done entirely online.

Do not try to use a personal US bank account or services like Payoneer as your primary business account. It will cause accounting and compliance headaches later.

What are the Logistics of FBA for Indian Sellers?

FBA means Fulfillment by Amazon. You ship your products in bulk to Amazon's warehouses in the US. They handle everything else: storage, picking, packing, and shipping to the end customer. They also manage customer service and returns.

Your main job is to get your inventory from your factory in India to an Amazon fulfillment center in the US. This is called the "first mile."

1. Find a Freight Forwarder: You need a logistics partner who specializes in shipping from India to Amazon FBA in the US. They handle customs clearance, duties, and final delivery. They will need your Amazon shipment details to book a delivery appointment.
2. Prepare Your Shipment: Your products must be prepped according to Amazon's strict requirements. This includes specific labeling (FNSKU barcodes), packaging (poly bags, bubble wrap), and box content information. Most Indian sellers do this prep work in their own facility before handing off to the freight forwarder.
3. Create a Shipping Plan in Seller Central: In your Amazon account, you will create a "Shipping Plan." You tell Amazon what products you are sending, how many units, and how they are packed. Amazon will then tell you which fulfillment center(s) to send your inventory to.
4. Pay Import Duties: When your goods arrive in the US, you will have to pay import duties. Your freight forwarder will manage this payment, but you are the one who pays. Duty rates vary widely by product category. An experienced forwarder can give you an estimate before you ship.

Small, lightweight test shipments can often be sent via courier like DHL or FedEx. This is faster but much more expensive per kilogram. It's a good option for your very first shipment to test the market before committing to a larger sea freight shipment.

How Do You Get Paid?

This is the easiest part once you have your US entity and bank account set up.

Amazon pays sellers every two weeks. In your Seller Central account, you will connect the US bank account (like Mercury) that you opened for your LLC. Amazon will deposit your sales revenue (minus their fees) directly into this account.

From your US bank account, you can pay US-based suppliers or service providers (like your freight forwarder or advertising agencies). To move money back to India (for example, to pay your Indian manufacturing costs or take a salary), you can use a wire transfer or a service like Wise. This is a standard international transfer from your US company bank account to your Indian personal or business account.

What are the Main Costs?

Budgeting correctly is critical. Many founders underestimate the costs involved.

• One-Time Setup Costs: $500 - $800 for LLC formation and EIN.
• Amazon Professional Seller Fee: $39.99 per month.
• FBA Fees: These are your biggest variable cost. They include a fulfillment fee (per unit sold) and a monthly storage fee (per cubic foot). These fees depend on your product's size and weight. Expect FBA fees to be roughly 25-40% of your selling price.
• Amazon Referral Fee: Amazon takes a "commission" on every sale, typically 15% for most categories.
• Shipping & Duties: The cost to ship from India to the US plus import duties. This can be 10-25% of your landed cost, depending on the product and shipping method.
• Advertising (PPC): You must budget for Amazon PPC (Pay-Per-Click) ads to get initial visibility. A common starting budget is 10-20% of your revenue goal. You cannot rely on organic traffic alone when you start.

Total fees (Amazon fees + advertising) often consume 40-60% of your revenue. You must have a product with a high enough gross margin to absorb these costs and still make a profit.

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Frequently Asked Questions (FAQ)

Q: Can I sell on Amazon.com with my Indian GST number? A: No. You need to register as a seller on Amazon.com (the US marketplace). Your Indian GST is for your Indian operations. Your US sales will be governed by US tax laws, which is why having a US entity is the correct approach.

Q: How do I handle US sales tax? A: Amazon's marketplace facilitator laws mean that Amazon automatically calculates, collects, and remits sales tax on your behalf for sales made on their platform. This simplifies things immensely. You are still responsible for other taxes, like income tax, so you need a US CPA.

Q: Is it better to ship by air or sea from India? A: Air is faster (1-2 weeks) but more expensive. Sea is slower (4-6 weeks) but much cheaper for bulk shipments. Most sellers use air for their first small batch to get started quickly, then switch to sea freight for restocking once they have proven sales velocity.