How to Sell on Amazon USA from India: Fees, Shipping, Products (2025 Guide)
- Yes, you can: Selling on Amazon USA from India is viable across many categories if you price and ship right.
- Start here: IEC, PAN, GST, EIN (free), international card, and Amazon Seller Central USA via Amazon Global Selling.
- Pick winners: $15–$60 price, <1.5 kg, stable BSR, steady reviews, FBA share, and price stability.
- Math first: Landed cost = COGS + freight + duties + FBA/MFN + storage + ads. Target 25–30% post-fee margin.
- Fulfilment: Validate with MFN, scale with FBA (Prime).
- Ship & comply: Correct HS codes; FDA/CPSC/UL where applicable; prep rules.
- Taxes: W-8BEN/BEN-E, treaty benefits; marketplace laws simplify sales tax.
- Payouts: Plan around Amazon’s 14-day cycle; optimize FX and docs (FIRA/eBRC) with compliant providers like Skydo.
Picture this: You're running a small business in Mumbai, crafting beautiful handmade jewellery that your local customers love. But you keep wondering, could these same products find buyers worldwide? Specifically, in the massive US market where millions of customers browse Amazon daily? You're not alone in this thought. Thousands of Indian entrepreneurs are discovering that selling on Amazon USA from India isn't just possible, it’s become one of the most viable paths to international expansion. The numbers tell the story.
Amazon's US marketplace processes over $469 billion in sales annually, making it the largest e-commerce platform globally. For Indian sellers, this represents an enormous opportunity that's surprisingly accessible.
Why the US market makes sense for Indian sellers
Before we dive into the mechanics of how to sell on Amazon from India to the USA, let's understand why this particular market works so well for Indian entrepreneurs.
- The US Amazon marketplace is both big and deep. Unlike many other international markets, American consumers actively seek out unique products across particular niches. Whether you're selling artisanal tea blends from Darjeeling or innovative phone accessories, there's likely a dedicated customer base waiting.
- Recent tariff changes have created headwinds, but the fundamentals remain strong. Yes, the evolving trade policies and tariff discussions have made exporting more complex for many Indian businesses. Some categories face increased duties, and compliance requirements have tightened. However, the US remains the largest international marketplace for Indian exporters, as the sheer scale and purchasing power still outweigh these challenges for most sellers.
- Certain categories work particularly well for India-made products. Home and kitchen items consistently perform strongly, think spice containers, decorative items, or cooking tools that bring authentic Indian craftsmanship to American kitchens. Apparel basics, such as cotton clothing, scarves, and traditional wear, have found dedicated audiences. The crafts and handmade category is especially receptive to Indian artisans, while auto accessories and cosmetic beauty products also show strong potential. The key advantage is that Indian manufacturing costs often allow for competitive pricing while maintaining healthy margins, even after factoring in shipping and Amazon's fees.
Getting your documents ready to sell on Amazon USA
Starting your Amazon Seller Central USA journey requires gathering the proper paperwork, but it's more straightforward than most people expect. You'll need an
- Import Export Code (IEC) from the Directorate General of Foreign Trade: this 10-digit code authorises you to export goods from India. Apply online through the DGFT website; processing takes 7–10 working days.
- Your standard Indian business documents include a PAN card and an active GST registration, which Amazon verifies during the approval process.
- The most challenging requirement for many Indian sellers is an international credit card for identity verification and payment of fees. If your bank doesn't offer international cards, consider HDFC, ICICI, or Axis Bank, which have streamlined processes for exporters.
- Amazon's US tax interview asks about your tax status and US business connections. As an Indian resident, you'll typically qualify for exemptions under the India-US tax treaty. Obtaining an EIN (Employer Identification Number) significantly simplifies this process; it's free through the IRS website and can be processed within days.
- If you have Indian trademarks, consider Amazon Brand Registry for enhanced listing control and A+ Content access. This requires US trademark registration or a pending application, which US attorneys can handle for international businesses.
Setting up your Amazon Seller Central USA account
- Your entry point is Amazon Global Selling (AGS), not regular Seller Central. Head to sellercentral.amazon.com, find "Amazon Global Selling," click "Start selling globally," and select "United States" from available marketplaces.
- Identity verification requires clear, colored scans of your IEC, PAN card, and GST certificate. Add a recent utility bill or bank statement matching your registration address. Amazon may request additional verification through video calls, which typically takes 5–10 minutes when required.
- For bank payouts, you can add your Indian business account (SWIFT, a/c no., beneficiary) if you want better FX and built-in export docs. Consider receiving your payments via Skydo. Create your virtual account right here in under 5 minutes and add it to your Amazon Central account, and settle to INR at live mid-market (zero FX markup) with transparent flat fees. Skydo auto-issues FIRA for every payout and eBRC for Amazon sellers, which simplifies GST/EDPMS and audits.
- Choose between Amazon's two selling plans based on your sales volume. The Individual plan costs $0.99 per item sold with no monthly fee, while the Professional plan costs $39.99 monthly with no per-item charges. The Individual plan works for testing with under 40 monthly sales, but lacks bulk listing tools and advertising options. For serious sellers, the Professional plan is the better choice—it includes essential features for international sellers and pays for itself after 40+ sales.
- Set your business address to match the one on official documents and select a return address for US customer returns. Many sellers start with their business address, then switch to US-based return services later for faster processing.
Choosing products that actually sell
Smart product selection happens before you manufacture anything. Too many Indian sellers choose products they love, only to wonder why US customers ignore them. Use this four-signal filter for any product you're considering.
- Check the Best Seller Rank (BSR) trend over 3–6 months: You want steady or improving rankings, not declining ones. Look at review velocity, products receiving 5–10+ reviews per month indicate active demand.
- Examine the FBA share percentage: If most competitors use Amazon's fulfilment, customers expect fast shipping.
- Track price stability: Avoid categories where prices fluctuate wildly. Your sweet spot lies between a $15–60 retail price, a shipping weight under 1.5 kg, and low return rates. Heavy or fragile items can significantly impact your margins with international shipping costs.
- Before committing, validate that US customers actually search for your product using American terms, not Indian ones. Check seasonality patterns and ensure that Google Ads costs align with your margins. A product that costs $3 to make but requires $8 in advertising to sell isn't viable.
Getting your pricing math right
Your pricing strategy determines whether you're building a business or subsidising American customers.
- Start by calculating your actual landed cost for every unit that reaches a US customer. Build your cost foundation systematically. Take your cost of goods sold, add international freight (air or sea), factor in customs duties and taxes, include Amazon's FBA or fulfilment fees, account for storage costs, and budget for advertising spend. Only after adding all these costs should you determine your selling price.
- Target a minimum 25–30% margin after all fees. This might seem aggressive, but international selling brings unexpected costs, return shipping, inventory adjustments, exchange rate fluctuations, and seasonal storage fees, all eat into profits. List your products in USD with a small buffer for currency changes and returns. Indian rupee fluctuations can quickly turn profitable products into loss-makers if you price too aggressively.
- Hold off on coupons and promotional pricing until you establish an organic sales base. New sellers often panic and slash prices immediately, training customers to wait for discounts. Build momentum first, then use strategic promotions to boost rankings during key periods.
FBA versus merchant fulfillment: choosing your approach
Your fulfilment choice directly impacts customer experience and your operational complexity. Most successful Indian sellers employ a strategic mix rather than relying on a single method.
- FBA works best for Prime-eligible, fast-moving products. Amazon handles storage, packing, shipping, and customer service, while you receive the Prime badge, which significantly improves conversion rates. The downside? Storage fees accumulate quickly, especially for slow-moving inventory, and long-term storage fees can destroy margins for seasonal items.
- Merchant fulfilment (MFN) makes sense for specific scenarios: oversized items where FBA fees would be prohibitive, seasonal products you don't want stored year-round, or when you're testing demand for new products. You control packaging quality and shipping costs, but lose the Prime advantage and handle customer service yourself.
- Many smart sellers use a hybrid approach: start new products with MFN to validate demand without committing to large inventory shipments. Once a product proves itself with consistent sales, migrate the winners to FBA for the benefits of Prime and operational simplicity.
Shipping logistics that actually work
Shipping products from India to Amazon's fulfilment centres requires understanding both Amazon's requirements and the realities of international shipping.
- Creating FBA shipments starts in Seller Central. Generate your shipment, print Amazon's labels, and book either air or sea freight depending on your timeline and budget. Air freight costs more but gets inventory active faster, which is crucial for maintaining rankings.
- Compliance cannot be an afterthought. Use the correct HS codes for customs classification, ensure FDA approval for food/cosmetic items, verify CPSC compliance for children's products, and include the required safety certifications, such as UL for electronics. The recent removal of de minimis exemptions means that stricter scrutiny will be applied to all shipments—every package now requires proper HS codes and customs declarations, regardless of value.
- Proper prep prevents headaches. Use poly-bagging for soft goods, add foam padding for fragile items, include suffocation warnings where required, and follow Amazon's carton weight limits. Poor prep leads to receiving delays and additional fees.
- Work with freight forwarders experienced in Amazon shipments; they understand labelling requirements and can efficiently consolidate multiple SKUs. This operational foundation enables you to focus on growing sales rather than addressing logistics problems.
Handling taxes, duties, and returns like a pro
The tax landscape for international Amazon sellers has become significantly simplified thanks to marketplace facilitator laws; however, it is still essential to understand your obligations to avoid costly mistakes.
Complete the US tax interview properly.
As an individual seller from India, you'll fill out Form W-8BEN during Amazon's tax interview process. If you're selling through a registered Indian business entity, you'll need Form W-8BEN-E instead. This form establishes your foreign tax status and helps you claim benefits under the India-US tax treaty, potentially reducing withholding from the standard 30% to 0% for many types of income. Amazon now handles sales tax collection and remittance in almost every US state under marketplace facilitator legislation. This means Amazon automatically calculates, collects, and remits state sales tax to the appropriate authorities on your behalf. While this relieves you of most sales tax collection duties, you may still need to register for sales tax permits in states where you have nexus, and some states require filing zero-dollar returns even when Amazon collects all the tax.
Plan your returns strategy early.
You'll need a US return address for customer returns. You can use your business address initially, though many successful sellers eventually work with US-based return processing services for faster handling. FBA automatically handles returns for you, but merchant-fulfilled orders require you to manage the return process directly. Keep detailed records of all commercial invoices, packing lists, and material safety data sheets where required. These documents prove crucial for customs clearance and potential audits.
Creating listings that rank and convert for US customers
- Your product listings must be written in American English and tailored to meet US customer expectations to succeed in this competitive marketplace. Master US keyword usage. American customers search differently from Indian buyers—research actual US search terms rather than assuming direct translations work.
- Utilise tools like Amazon's search suggestions and competitor analysis to pinpoint the exact phrases customers type when searching for your products. Write compelling titles and bullet points that focus on benefits rather than just features.
- US customers want to know how your product addresses their specific needs and problems. Include lifestyle images that showcase your product in American homes and contexts—this builds trust and helps customers visualise owning it. For example, instead of just showing a spice container on a white background, show it organised in a modern American kitchen pantry.
- If you're eligible for Brand Registry, invest in A+ Content pages. These enhanced product descriptions significantly improve conversion rates by allowing richer storytelling and detailed product showcases. Include any required compliance marks or certifications prominently in your images and descriptions.
Launch strategy and advertising that works
Your first few weeks determine whether your product gains traction or gets buried in search results. Follow this proven launch sequence for the best results.
- Start with Auto campaigns in weeks 1–2. Run both close and loose match auto campaigns to discover which search terms Amazon's algorithm connects with your product. Monitor these campaigns daily and harvest successful search terms for your manual campaigns. Set conservative bids initially—you're gathering data, not yet maximising sales volume.
- Transition to manual campaigns in weeks 3–4. Create exact and phrase match campaigns using the best-performing terms from your auto campaigns. Add promotional coupons once you have some organic momentum—discounts work best when customers already want your product, not as a substitute for product-market fit. Start defending your brand terms and experiment with category targeting if your ACOS remains stable. Remember that advertising supports ranking, which drives long-term organic sales. A slightly higher ACOS during launch often pays dividends through improved organic visibility later.
Getting paid efficiently in India
Smart payment processing can save significant money on foreign exchange and compliance costs while ensuring you meet all regulatory requirements. Amazon's standard payout system is compatible with most Indian bank accounts; however, the foreign exchange spreads and intermediary fees can quickly add up.
Consider using specialised services like Skydo that offer virtual USD receiving accounts for Amazon payouts. This allows you to convert at live forex rates with transparent pricing, rather than accepting the exchange rate your bank offers. While Amazon's Currency Converter for Sellers (ACCS) and platforms like Payoneer or PingPong typically charge 1–2% in fees plus hidden forex markups, Skydo offers rates as low as 0.3% with zero forex markup—potentially saving you a significant amount on payout fees.
More importantly for compliance, services like Skydo automatically generate the required FIRA documentation and eBRC certificates for each remittance. This simplifies your GST filing, eBRC reporting, and EDPMS compliance significantly compared to managing these documents manually for each payout. Plan your cash flow around Amazon's payment schedule, which typically occurs 14 days after delivery confirmation, followed by payouts every two weeks. Factor this timing into your inventory purchasing and business planning, especially during your first few months when cash flow patterns are not yet established.
Explore Skydo!
Can I sell on Amazon USA from India without a US company?
Yes. You can register via Amazon Global Selling, complete the US tax interview with W-8BEN/W-8BEN-E, and use an EIN.
What documents do I need to start?
How do I set up Amazon Seller Central USA?
Should I use FBA or ship myself (MFN)?
What margin should I target after all costs?
How do I handle payouts and FX efficiently?
