How to Sell on Amazon USA from India: The FBA Guide

Quick Answer: To sell on Amazon USA from India, you must form a US company (LLC or C Corp), get an EIN, and open a US business bank account. Then, set up your Amazon Seller Central account, manage inventory using FBA, and handle international logistics and US taxes. This process is complex but completely manageable from India.

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Selling on Amazon.com from India is a huge opportunity. The US market is large and consumers are comfortable buying online. But many Indian founders get stuck on the first few steps. They get confused about the legal structure, international banking, and logistics.

Most people get this wrong because they try to use their Indian company or personal details. This creates massive problems with payment processing, IRS compliance, and operations down the line. The correct way is to set up a proper US entity from day one.

We've seen dozens of companies go through this process. Here is the step-by-step playbook.

What legal structure do I need?

You need a US company. This is not optional. Trying to run a US Amazon business with an Indian entity leads to payment holds, higher scrutiny from Amazon, and major tax headaches. Your two main choices are an LLC or a C Corporation.

For most founders starting out, the LLC is the simplest and most cost-effective structure. It offers liability protection, meaning your personal assets are separate from the business. It also has "pass-through" taxation, where profits are passed to the owners and taxed at their personal rate. A C Corp is more complex and usually better for companies seeking venture capital.

We recommend services like Stripe Atlas or Mercury to form your company. They handle the paperwork for forming a Delaware LLC or C Corp, getting your Employer Identification Number (EIN) from the IRS, and setting up a US business bank account. This package costs around $500 and takes a few weeks, all done online from India.

Common Mistake: Registering the Amazon account with your personal name or Indian business details. Amazon's verification process is strict. If the name and address on your government ID, bank statements, and utility bills don't match your Amazon account details exactly, you will get stuck in verification hell.

How do I open a US bank account from India?

You cannot walk into a Chase or Bank of America branch in the US. You need a service that specializes in remote, international founders. The easiest way is to use the bank account that comes with the company formation packages mentioned above.

• Stripe Atlas: Sets you up with a bank account, often through a partner bank.
• Mercury: Is a financial technology company, not a bank, but offers FDIC-insured bank accounts through partner banks. It's built for tech companies and is our default recommendation.

These services give you a real US business bank account with a routing and account number. You will also get a debit card. This account is crucial for receiving payments from Amazon and paying US-based expenses like software, advertising, and FBA fees.

To get money back to India, you will use the bank's wire transfer service. Expect to pay $25-$50 per wire. Plan your transfers to avoid sending small amounts frequently.

How do I get paid by Amazon?

Amazon pays out every 14 days. To receive payments, you will connect your US business bank account to your Amazon Seller Central account. This is done in the "Account Info" section under "Deposit Methods".

This is where having a proper US bank account saves you. Amazon requires a bank account that can accept ACH (Automated Clearing House) transfers. While some third-party currency services offer virtual accounts, we've seen them cause payment delays and trigger account reviews. A direct, US-domiciled business bank account in your company's name is the most reliable method.

Your Amazon payouts will be net of all fees: referral fees (usually 15%), FBA fulfillment fees, storage fees, and advertising costs. Don't be surprised when the deposit amount is much lower than your total sales.

How do I ship products from India to a US FBA warehouse?

This is the biggest operational hurdle. You cannot just mail a box to Amazon. You need to use a freight forwarder who understands Amazon FBA requirements.

Your process will look like this:

1. Prepare Your Shipment: Your products must be manufactured, packaged, and labeled according to Amazon's specifications. This includes applying an FNSKU barcode to each individual unit if required.
2. Create a Shipping Plan: In Seller Central, you'll create a shipping plan. This tells Amazon what products you are sending, how many units, and from where. Amazon will then tell you which fulfillment center(s) to ship your inventory to.
3. Hire a Freight Forwarder: You give the shipping plan details to your freight forwarder in India. They will handle the export paperwork, book space on a plane or ship (air freight vs. sea freight), and manage customs clearance in the US.
4. US Customs and Delivery: The forwarder’s US counterpart will clear the shipment through US Customs and then arrange for final delivery to the Amazon FBA warehouse. They must follow Amazon's strict appointment and delivery requirements.

Air freight is faster (7-10 days) but more expensive ($5-$10 per kg). Sea freight is slower (45-60 days) but cheaper ($1-$3 per kg). Most sellers use a mix: air freight for initial stock or to avoid running out, and sea freight for bulk replenishment.

Common Mistake: Not calculating landed costs correctly. Your landed cost is the total cost to get one unit of your product from your factory to the Amazon warehouse. It includes manufacturing, shipping, customs duties, and insurance. If you don't know this number precisely, you cannot price your product profitably.

What about US taxes and compliance?

Yes, you have to pay US taxes. A US company doing business in the US owes taxes to the IRS. This is non-negotiable.

• Income Tax: Your LLC or C Corp must file an annual tax return. The specific forms depend on your structure. For an LLC owned by a non-resident, you'll likely file Forms 5472 and 1120. This is not a DIY job. You must hire a US-based CPA who specializes in ecommerce and international founders. Expect to pay $1,500 - $3,000 per year for tax preparation.
• Sales Tax: This is a tax on consumption collected at the state level. Amazon's Marketplace Facilitator program handles the collection and remittance of sales tax in most states. For the states where it doesn't, your CPA will advise if you have "nexus" (a business presence) and need to register and file. For most new sellers, Amazon handles almost all of it.

Budget for professional help. The US tax system is complex, and penalties for non-compliance are severe. Getting this wrong can get your Amazon account suspended or your company in trouble with the IRS.

Many founders in our Basecamp E-Com Foundation Program are surprised by this complexity. It's a cost of doing business in the US market and needs to be planned for from day one.