How to Sell on Amazon USA from India: A Founder's Guide
A step-by-step guide for Indian founders on setting up an Amazon FBA business for the US market. We cover getting a US entity, managing inventory, and handling international payments without getting stuck.
Table of contents
Quick Answer: To sell on Amazon USA from India, you must first decide on your business structure (US LLC vs. Indian entity). Then, set up your Amazon Seller Central account, manage international shipping and FBA intake, and establish a reliable way to receive USD payments. Most founders get stuck on the legal and payment steps, not the Amazon part.
Selling on Amazon.com from India is a huge opportunity. The US market is massive and willing to pay for good products. But the path is littered with expensive mistakes, especially for first-time exporters.
We've seen dozens of Indian brands try to make this jump. The ones who succeed are ruthlessly methodical. This is not a "launch fast and break things" situation. Getting the foundation right with your legal structure, finances, and logistics is the whole game.
Should you use a US company or your Indian company?
This is the first, most critical decision. Most people get this wrong because they choose the path that seems fastest, not the one that's best for the long term.
Your two main options are:
- Register a US LLC: Create a new legal entity in the United States.
- Use your existing Indian Pvt Ltd: Sell directly as an Indian entity.
For 95% of serious founders, we recommend forming a US LLC, typically in Wyoming or Delaware. It costs more upfront ($500-$1000) but simplifies everything else. A US company makes it easier to get US bank accounts, access US-based payment processors like Stripe, and work with other American businesses. It also signals to partners and lenders that you are building a serious US operation.
Selling as an Indian entity is possible, but it creates constant friction. Your banking will be more complex. Getting paid takes longer. Many US-based services and software tools will not work with an Indian company. You might save a little money at the start, but you will pay for it in operational headaches later.
| Feature | US LLC | Indian Entity |
|---|---|---|
| Banking | Easier to open US bank account (e.g., Mercury, Relay) | Harder, often requires specialized services |
| Payments | Direct access to Stripe, lower fees | Requires cross-border services, higher fees |
| Compliance | US tax filings (simpler for single-member LLC) | FEMA/RBI compliance, complex export docs |
| Partner Perception | Seen as a US-based business | Seen as a foreign vendor |
| Initial Cost | Higher (~$500-$1000) | Lower |
| Operational Ease | High | Low |
Founder Mistake: Choosing to sell as an Indian entity to save $500 on formation costs, only to lose thousands later in higher payment processing fees, currency conversion costs, and wasted time on compliance paperwork.
How do you get paid in USD?
Once you have a US entity, your payment flow becomes much simpler. You can open a US business bank account online. We often see founders in our Basecamp program use services like Mercury or Relay Financial for this.
With a US LLC and a US bank account, you can connect directly to Amazon Seller Central's payment system. When Amazon pays you, the money lands in your US bank account in USD. No forced currency conversions, no wire transfer delays. You control when and how you move money back to India.
If you operate as an Indian entity, you must use Amazon's Currency Converter for Sellers (ACCS) or a third-party service like Payoneer. ACCS forces conversion to INR for every payout, and the rates are not the best. Using a service like Payoneer gives you a "virtual" US bank account, which is better, but it's still another intermediary taking a cut.
Bottom line: A proper US entity with its own bank account gives you financial control. Selling as an Indian entity means you are always reacting to third-party timelines and fees.
How does inventory get from India to a US FBA warehouse?
This is the logistics puzzle. You need to get your products from your factory in India to an Amazon fulfillment center (FC) somewhere in the US. You cannot just mail a box to Amazon.
Your process will look like this:
- Find a Freight Forwarder: This is a company that specializes in moving goods internationally. They handle customs in both India and the US. Do not try to do this yourself.
- Prepare Your Shipment: Your goods must be packed, labeled, and palletized according to both your forwarder's and Amazon's strict requirements. Get this wrong, and your shipment will be rejected at the warehouse, costing you a fortune in storage and re-handling fees.
- Clear US Customs: Your freight forwarder will manage this, but you need to provide the correct paperwork. This includes a commercial invoice, packing list, and proof of your Importer of Record (IOR). Your US LLC can act as the IOR.
- Trucking to Amazon FBA: Once the goods clear customs at a US port (e.g., Long Beach, CA or Newark, NJ), your forwarder arranges for a truck to deliver them to the specific Amazon FC assigned in your FBA shipping plan.
Ocean freight is cheaper but slower (30-50 days). Air freight is much faster (7-12 days) but can be 5-10x more expensive. Most sellers use a mix: a small initial air shipment to get in stock quickly, followed by a larger ocean shipment to lower costs.
Real Numbers: Shipping a standard carton (50x50x40cm) from India to a US port might cost $200-$300 by air and $40-$80 by sea. These are rough numbers and change constantly. Your forwarder will give you a precise quote.
What are the key Amazon Seller Central setup steps?
Setting up the Amazon account itself is the most straightforward part of this process. The hard work is the legal and logistical prep.
Here are the key things you'll need for your application:
- Business Information: Your US LLC details and Employer Identification Number (EIN). You get an EIN from the IRS after forming your LLC.
- Personal Identification: Your passport and a utility bill or bank statement for address verification. The name and address must match exactly across all documents.
- US Bank Account: The account you opened with a service like Mercury.
- Credit Card: A credit card that can be charged internationally for Amazon's fees.
Founder Mistake: Submitting documents with slight name or address variations. If your passport says "Rohan V. Kumar" and your bank statement says "Rohan Kumar," the system will likely flag your account for suspension. Ensure every character is identical before you submit.
Verification can take anywhere from a few days to a few weeks. If you get stuck, don't just keep resubmitting. Figure out exactly what document they are questioning and provide it. Sometimes this requires getting on a video call with an Amazon rep.
Building an Amazon business in the US from India is a marathon, not a sprint. The money is made by getting the operational and financial plumbing right from day one. Rushing these steps is the fastest way to fail.