How to Sell on Amazon FBA USA from India: A Step-by-Step Guide

This is a common goal for Indian ecommerce founders. The US market is huge, but the logistics seem complicated. They aren’t, if you follow a clear process.

The quick answer is: yes, it’s entirely possible. You need a US business entity (LLC is best), an Employer Identification Number (EIN), a US bank account, and a way to handle US import and customs. This guide walks through each step.

What are the legal requirements to start?

Most people get this wrong because they try to use their Indian company. Don't do this. It creates tax headaches and makes getting paid much harder. The cleaner path is to set up a US-based entity.

Your best bet is a US Limited Liability Company (LLC). It provides liability protection and is simpler for non-residents than a C-Corp. You can register an LLC in states like Wyoming or Delaware online through services like Stripe Atlas or Firstbase. It costs between $500 and $1,000.

Once your LLC is formed, you need an Employer Identification Number (EIN) from the IRS. This is your business tax ID number in the US. Your formation service can usually get this for you. With an LLC and EIN, you can open a US business bank account with services like Mercury or Relay. This is crucial for receiving payments from Amazon without high conversion fees.

How do I get my products from India to an Amazon FBA warehouse?

This is the biggest operational hurdle. You can't just ship a box to Amazon yourself. It needs to clear US customs first. You need a customs broker and a freight forwarder.

Here's the process:

1. Find a Freight Forwarder: These companies handle shipping from your factory in India to the US. They will quote you rates for air freight (faster, more expensive) and sea freight (slower, cheaper). For your first few shipments, air is often better to get your product selling faster. Expect to pay $5-$10 per kg via air.
2. Appoint a Customs Broker: The forwarder often has a partner broker. This person is licensed to handle import declarations with US Customs and Border Protection (CBP). They will file the necessary paperwork, including the Importer Security Filing (ISF) for sea shipments.
3. Become the Importer of Record (IOR): Your US LLC will be the IOR. This means your company is legally responsible for the goods, duties, and taxes. You cannot list Amazon as the IOR.
4. Pay Duties and Taxes: The US has import duties on most goods. This is a percentage of your product's "landed cost" (cost of goods + shipping). Your customs broker will calculate this for you. It can range from 0% to over 25% depending on the product category.
5. Final Delivery to Amazon FBA: Once your shipment clears customs, your freight forwarder arranges for it to be trucked to the specific Amazon FBA warehouse assigned in your Seller Central shipping plan. The boxes must be labeled according to Amazon's strict standards before they leave India.

Many founders make the mistake of underestimating shipping and customs costs. A good rule of thumb is to budget 30-40% of your product manufacturing cost for total logistics and duties.

How do I set up my Amazon Seller Central account?

Once your US entity and bank account are ready, you can sign up for an Amazon Seller Central account on sellercentral.amazon.com (the US marketplace).

During registration, you will provide:

• Your US LLC details and EIN.
• Your US business bank account information.
• A credit card (can be an Indian business credit card) for Amazon's fees.
• A government ID (like your passport).

Amazon verification can be slow. It can take anywhere from a few days to a few weeks. They may ask for a utility bill or other documents to verify your business address. Be prepared for some back-and-forth.

Choose the Professional selling plan ($39.99/month). The Individual plan is too limited for FBA sellers.

How do I get paid in India?

This is the easy part if you set things up correctly. Amazon pays your revenue into your US business bank account (e.g., Mercury). From there, you have a few options:

• Wise (formerly TransferWise): This is the most common method. You can connect your US bank account to Wise and send money to your Indian bank account. The fees are low and the exchange rates are fair.
• Payoneer: Another popular option similar to Wise.
• Bank Wire: You can wire money directly from your US bank to your Indian bank, but this is usually more expensive and slower.

Most founders leave a portion of their funds in their US account to pay for US-based expenses like software, marketing services, or inventory restocking. This avoids unnecessary conversion fees. The Reserve Bank of India (RBI) has rules about how long you can hold funds overseas, so consult with a financial advisor who understands the Liberalised Remittance Scheme (LRS).

What are the biggest mistakes Indian sellers make?

We've seen hundreds of founders go through this process in our Basecamp E-Com Foundation Program. The same mistakes come up often.

1. Choosing the Wrong Product: The US market is competitive. Don't sell a generic "me-too" product. Your product must have a clear point of difference—better features, unique design, or a stronger brand story.
2. Ignoring US Sales Tax: When you store inventory in an Amazon warehouse, you establish "nexus" in that state. This means you are required to collect and remit sales tax in that state. Services like TaxJar or Avalara can automate this, but it's a cost you must plan for. It’s a common point of failure.
3. Poor Listing Optimization: Simply translating an Indian listing to English isn't enough. You need to research US-specific keywords, understand cultural nuances in your copy, and invest in high-quality photography and A+ Content that appeals to American consumers.
4. Not Budgeting for PPC: You will not get sales on Amazon without running Pay-Per-Click (PPC) ads, especially at the start. You should budget at least $1,500 - $3,000 for your first month of ad spend to gather data and generate initial sales velocity.