How to Sell on Amazon FBA in the US from India
Want to sell in the US market via Amazon FBA from India? This guide breaks down the exact steps, from setting up your company and bank accounts to managing inventory and getting paid. We cover the real costs and common mistakes to avoid.
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Your product is ready. You know the US market is the target. Amazon FBA seems like the obvious channel to get started.
But how do you actually do it from India? This guide lays out the steps we see founders take, the real costs involved, and the most common mistakes to avoid.
Quick Answer: How do you sell on Amazon FBA in the US from India?
To sell on Amazon FBA in the US from India, you must first establish a US business entity (usually an LLC). Next, secure a US bank account and set up a US payment gateway. With the legal and financial structure in place, you can create your Amazon Seller Central account, ship your inventory to Amazon's US warehouses, and start selling.
Do I need a US company to sell on Amazon?
Yes, you almost certainly need a US company. While Amazon technically allows you to sign up with an Indian entity, it creates significant operational friction. Most founders get this wrong because they try to avoid the upfront cost, but it costs much more in the long run.
Without a US entity, getting a US bank account is difficult. Payment processors like Stripe will not work with you. You will face hurdles with customs, and your customers will see an international seller, which hurts conversion.
We recommend setting up a US LLC. It provides liability protection and is recognized by all the services you'll need. Expect to pay between $500 and $1,000 for a service to set this up for you in a state like Delaware or Wyoming.
How do I get paid from the US?
To get paid, you need a US bank account linked to a payment processor, which is then linked to your Amazon Seller Central account. This is a multi-step process.
- Get a US Employer Identification Number (EIN): After your LLC is formed, you must apply for an EIN from the IRS. Your formation agent can usually do this for you. The EIN is like a PAN card for your US business.
- Open a US Bank Account: With an LLC and an EIN, you can open a business bank account. Services like Mercury or Relay are popular with international founders because they allow remote applications. You do not need to fly to the US.
- Set up a Payment Processor: You need a processor to handle the transactions. Stripe is the standard choice. You will create a Stripe account for your US LLC and link it to your new US bank account.
- Link to Amazon: Finally, you connect your Stripe account to Amazon Seller Central. When a customer buys your product, the money flows from Amazon, through Stripe, to your US bank account.
From your US bank account, you can then wire funds back to your Indian bank accounts as needed. This structure is clean and standard.
How much does Amazon FBA cost?
Your costs break down into three main categories: Amazon fees, shipping costs, and storage fees.
| Fee Category | What It Is | Typical Cost Range |
|---|---|---|
| Amazon Fees | Referral fees (commission on each sale) and a monthly subscription. | 15% of selling price (referral) + $39.99/month (Professional plan). |
| Shipping Costs | Getting your inventory from India to Amazon's US warehouses. | $5 - $10 per kg via air freight. Ocean freight is cheaper but much slower. |
| Storage Fees | Monthly fees for storing your products in Amazon's warehouses. | $0.50 - $3.00 per cubic foot, per month. Varies by season and product size. |
Common Mistake: Founders consistently underestimate storage fees. If your product doesn't sell quickly, these costs add up. Amazon also charges a steep "aged inventory surcharge" for items that sit for more than 180 days. You must manage your inventory velocity carefully.
Your first shipment should be small. Send enough for 30-45 days of sales. Test the market before committing to a huge inventory order that could get stuck in storage.
How do I handle shipping and customs from India to the US?
This is the most intimidating part, but it's a solved problem. You will use a freight forwarder.
- Find a Freight Forwarder: Look for a service that specializes in Amazon FBA shipments from India to the US. They handle everything from pickup at your factory to customs clearance in the US.
- Prepare Your Shipment: Your products must be packaged and labeled according to Amazon's strict FBA requirements. This includes individual product barcodes (FNSKU) and carton labels. Your forwarder will guide you on this.
- Choose a Shipping Method: You can ship by air or sea. Air is fast (7-10 days) but expensive. Sea is slow (40-60 days) but much cheaper for bulk shipments. Start with air for your first few shipments to get sales data quickly.
- Customs Clearance: Your freight forwarder handles this. They will ask you for a commercial invoice and packing list. The US requires a customs bond, which your forwarder can arrange. All duties and taxes will be billed to you. The key is having your US LLC and EIN in place; this makes you the official "Importer of Record" and smoothes the process.
Do not try to manage this yourself to save a few hundred dollars. A mistake at customs can delay your shipment for weeks and incur heavy penalties.
What about US taxes and compliance?
Yes, you have to file US taxes. Your US LLC will need to file an annual report in the state where it's registered and file a federal tax return with the IRS.
Most Indian founders operating a US LLC will file Form 5472 and Form 1120. This is not something to do yourself. Hire a US-based accountant who specializes in working with e-commerce sellers and non-resident owners.
Expect to pay $1,000 - $2,500 per year for tax preparation and filing. Budget for this from day one. Failing to file can result in penalties of up to $25,000 and can jeopardize your business.
In our Basecamp E-Com Foundation Program, we spend a whole session on setting up this legal and tax structure correctly because it's the foundation for everything else. Getting it wrong creates problems that can take years to unwind.
Final Checklist: Getting Started
- Step 1: Legal & Finance
- Form a US LLC.
- Get a US EIN.
- Open a US business bank account.
- Set up a US Stripe account.
- Step 2: Amazon Setup
- Create your Amazon Seller Central account with your US LLC details.
- List your products.
- Step 3: Logistics
- Find an India-to-US freight forwarder.
- Prepare a small test shipment (30-45 days of inventory).
- Ship to Amazon FBA warehouses via air freight.
- Step 4: Operations
- Monitor sales and inventory levels.
- Hire a US accountant for tax compliance.
Following these steps provides a reliable path to entering the US market on Amazon. It requires upfront investment in the proper structure, but it avoids the much larger costs of fixing mistakes later.