How to Sell on Amazon FBA in the USA from India: The Complete Guide
A step-by-step guide for Indian sellers starting on Amazon FBA in the US. We cover company setup, banking, payments, shipping, and the real costs involved.
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Your product is ready. You're based in India and want to sell it in the world's largest ecommerce market: the USA. Amazon FBA is the most direct path to do it.
This guide breaks down the exact steps to get from India to your first FBA sale in America. We will cover the business structure, banking, payments, and shipping. We will also share the most common mistakes we see founders make.
Quick Answer: How do you sell on Amazon FBA in the US from India?
Yes, you can sell on Amazon FBA in the US directly from India. You need to set up a US business entity (usually an LLC), get a US bank account, and find a reliable way to ship your inventory to Amazon's warehouses. The process involves legal registration, tax compliance, and managing international logistics.
Do I need a US company to sell on Amazon?
Yes, you need a US business entity. Don't try to use your Indian company or sell as an individual.
Most people get this wrong because Amazon's own documentation can be confusing. Technically, Amazon allows sellers from India. But in practice, you will face huge operational friction without a US entity and US bank account. Payment gateways, suppliers, and even Amazon itself work better with US companies.
We recommend a Limited Liability Company (LLC). It provides liability protection, separating your personal assets from the business. It also simplifies US tax filing. Wyoming and Delaware are the most common states for non-residents to form an LLC.
- Cost: Expect to pay $500 - $1,000 for a service to form the LLC and get your Employer Identification Number (EIN) from the IRS. The EIN is your federal tax ID number. It's essential.
- Time: The process takes 2-4 weeks.
Trying to save money here is a classic mistake. It creates massive headaches later. Just set up the LLC correctly from day one.
How do I get a US bank account from India?
Once you have your US LLC and EIN, you can open a US business bank account. You cannot connect an Indian bank account to your US Amazon Seller Central account for payouts.
Your options are:
- Neobanks: Services like Mercury or Relay are the best options for foreign founders. They are designed for this exact scenario. You can apply online from India with your LLC and EIN documents. Approval takes a few days.
- Traditional Banks: Banks like Bank of America or Chase require you to visit a branch in person in the US. This is not practical for most founders starting out.
We use and recommend Mercury to founders in our Basecamp E-Com Foundation Program. It’s fast, has no monthly fees, and integrates well with payment processors like Stripe (which you'll use for your own Shopify store later).
How do I get paid by Amazon?
Amazon pays US sellers via ACH transfer to a US bank account. This is why the previous step is critical.
Here’s how the money flows:
- A customer buys your product on Amazon.com.
- Amazon processes the payment and subtracts its fees (referral fees, FBA fees, storage fees).
- Every two weeks, Amazon deposits the remaining balance into your US business bank account (e.g., your Mercury account).
To get the money back to India, you have two main options:
- Wise (formerly TransferWise): This is the most common method. You can connect your Mercury account to Wise and send USD to your Indian bank account. The exchange rates are fair and the fees are transparent. This is the simplest, most cost-effective way.
- Bank Wire Transfer: You can wire money directly from your US bank to your Indian bank. This is usually more expensive, with higher fees and less favorable exchange rates. We don't recommend it for regular transfers.
Remember to account for RBI (Reserve Bank of India) rules on foreign remittances. Your Indian bank will require you to fill out a form (A2) and state the purpose of the remittance. Keep your paperwork organized.
How do I ship my products from India to Amazon FBA US?
This is the most complex part of the operation. You need to get your inventory from your factory in India to an Amazon fulfillment center in the US. You cannot just mail a box to Amazon.
Your two primary shipping methods are sea and air.
| Feature | Air Freight | Sea Freight |
|---|---|---|
| Speed | Fast (7-15 days) | Slow (45-60 days) |
| Cost | High | Low |
| Best for | Small, light items; initial test batches; stock emergencies. | Bulk shipments; heavy/large items; regular restocking. |
Most sellers use a combination. They might air-freight the first small batch to get live and start selling quickly. Then, they send a larger restock order by sea to lower the cost per unit.
The Process:
You will work with a freight forwarder. A freight forwarder is a company that manages the entire shipping process for you. They handle customs in India, the actual transport (air or sea), US customs clearance, and the final delivery to Amazon's warehouse.
- Create a Shipping Plan in Seller Central: You tell Amazon what you’re sending. Amazon tells you which warehouse(s) to send it to. You cannot choose the warehouse.
- Prepare Your Shipment: Your products must be labeled with Amazon’s FNSKU barcodes. The cartons must have FBA box labels. Your freight forwarder or a specialized "prep center" can do this for you.
- Book with a Freight Forwarder: You give your forwarder the details from your shipping plan. They will give you a quote and manage the logistics.
- Customs Clearance: Your forwarder will handle this, but you are the "Importer of Record." You are responsible for paying US import duties. Duties vary by product type, typically ranging from 0% to 15% of the product's value.
Cost Example: Shipping a 20kg (44 lbs) box from Delhi to a California FBA warehouse might cost:
- By Air: $200 - $350 (around $10-$17 per kg)
- By Sea (as part of a larger shipment): $80 - $150 (around $4-$7 per kg, but with minimum volume requirements)
These are rough estimates. Prices change weekly. Always get multiple quotes.
What are the main fees for selling on Amazon FBA?
Your profit margin is what's left after all costs. Amazon's fees are a major part of that.
- Referral Fee: A percentage of the selling price. Usually 15% for most categories. If you sell a product for $30, Amazon takes $4.50 right away.
- FBA Fulfillment Fee: The cost for Amazon to pick, pack, and ship your item. This depends on the product's size and weight. For a small, 1-pound item, this could be $4-6.
- Monthly Storage Fee: Cost to store your inventory in Amazon's warehouses. It’s higher from October to December. Storing a standard-size shoebox costs about $0.87/month for most of the year.
- Other Fees: Long-term storage fees (for inventory over a year old), removal order fees (to have inventory sent back to you), and advertising costs (PPC).
Rule of Thumb: For a typical product, budget 30-40% of your selling price to go to Amazon in fees. If you sell a product for $30, expect $9-$12 to disappear before the money ever hits your account.