How to Start Selling on Amazon USA from India (2024 Guide)

The eCommerce industry has blurred the lines between nations. It has become the fastest-growing trend in business. Business owners, these days, are leveraging the power of eCommerce to spread their reach in distant lands. Initiatives such as Fulfillment by Amazon (FBA) have been instrumental in helping businesses expand internationally. Reportedly, 10% of Amazon sellers earned more than USD 100,000 in their annual sales in 2022. Amazon FBA is being used by numerous Indian business owners to sell their products in the international market. It has made eCommerce export convenient for sellers. With this programme, you do not require investing huge capital to sell your products across borders.

Amazon FBA is a clearly defined programme aimed at helping your business flourish. In this article, we have shared all information about this initiative to help Indian sellers make the most out of it. As you go through it, you shall learn about using Amazon FBA to sell goods to the USA, including the steps involved in the process, documentation, advantages, and more.

Reasons to Choose Amazon Global Selling from India

Here is a look at the various reasons to choose Amazon Global Selling:

1. Expands Your Reach

Indian sellers can expand their reach in the global market by leveraging the Amazon Global Selling initiative. It gives them access to new markets in different countries, thereby enabling them to strengthen their customer base. 

2. Easy Delivery

FBA has made it easier for businesses in India to ensure timely deliveries to their customers residing in different countries. It provides logistical solutions to the sellers by managing tasks such as storing, packing, and delivering. Even the returns are taken care of in a systematic manner. This is one of the main reasons for the popularity of Amazon FBA in India.

3. Builds Trust

Amazon is a trusted brand. Statistics reveal that the company makes USD14,900 each second, which means approximately USD 53 million per hour. When your business is associated with such a big brand, you will get many benefits as customers tend to trust the brand name. It helps attract potential clients and boost your sales. 

4. Minimal Maintenance Fees

Compared to the various advantages you receive by choosing the Amazon Global Selling programme, the maintenance fees you pay are negligible. You save on several other costs involved in exporting, selling, and marketing products overseas.

Exporting from India with Amazon: A Step-by-Step Guide

Here is a step-by-step guide for exporting your products via Amazon FBA from India to the USA and various other nations. The initiative helps business owners sell their products globally by following the few easy steps mentioned below:

1. Develop a Clear Understanding

Before you export your products to a new market, it is important to explore different global markets and understand your potential customers properly. You must develop a clear understanding of the market opportunities and select a suitable market accordingly.

2. Register Your Business

Once you understand which market is best suited for your product, it is time to register for Amazon FBA. The task can be accomplished in a few simple steps.

3. List Your Products

After registration, list your products carefully using the Amazon Webmaster Tool. This tool is designed to ease product listing while ensuring efficiency. You must also mention the areas where you want to sell your products on amazon.

4. Keep Track of Your Sales

Once you list your products on Amazon and start selling in the global market, it is important to keep track of your sales. As Amazon takes care of your logistical needs, you must focus on monitoring your performance and work towards growing your business.

5. Manage Your Business Efficiently

Amazon offers various tools to manage different aspects of your business as you export your products to distant lands. These tools help in scaling your business, receiving payments, managing inventory, and more. Use these tools to manage your business efficiently and accelerate growth.

Required Documentation for Selling on Amazon USA from India

Here is a list of documents required for selling in the USA using Amazon FBA from India:

1. Authorised Dealer

The banks dealing in foreign currency are assigned an Authorised Dealer (AD) code by the Reserve Bank of India. Exporters should get an AD code letter from the bank in which they have their current account. AD code letter is submitted at the customs port from where the items are to be exported. This enables the banks and customs agencies to track the business’ export transactions.

2. Import Export Code

It is a unique business identification number provided by the Directorate General of Foreign Trade. Any product imported or exported from another country should have an Import Export Code (IEC). This 10-digit number is mandatory for trading in the global market.

3. GSTLUT

Letter of Undertaking (LUT) enables exporters to export their products and services without paying IGST. Exporters can give LUT to their logistics partner once every financial year to get the shipping bill.

4. Importer on Record

An Importer on Record is necessary for importing goods in the USA. An IOR manages the filing of taxes, customs, and other paperwork necessary for imports. The IOR must ensure that the imported goods are in sync with the local regulations. It is to be noted that an IOR is not required for shipments that cost less than USD 2,500 as they are allowed informal entry. However, this is not the case if the cargo includes items classified under the regulated categories.

Profit Potential of Selling on Amazon USA from India

Indian sellers have excellent profit potential if they choose to sell their products on Amazon USA. The eCommerce platform helps expand their reach in the international market by taking care of their logistical needs in an efficient manner. Small and medium-sized businesses can generate greater revenue by selling their products and services on Amazon USA. It gives them a chance to build trust among their potential clients and expand their customer base. Many businesses in India started by selling a single item on Amazon USA and then grew in size. It has enabled them to churn huge profits while keeping their operational costs low.

Leveraging Amazon FBA for Seamless Order Fulfillment

Amazon FBA helps in seamless order fulfillment by leveraging the latest tools and technology. The staff members at the Amazon fulfillment centers make sure your goods are stored systematically so that they can be located quickly as soon as an order is placed. The products are packed carefully using appropriate packaging material to ensure they remain safe during transit. Thereafter, they are shipped via an appropriate mode of transport to ensure timely delivery. The entire process runs smoothly as the Amazon staff is highly trained and uses advanced technology to accomplish most of the tasks. They gauge potential risks during the transit and take necessary steps to avert the same. Real-time tracking of the shipments is done to keep track of the shipments’ whereabouts. Customers can also track their orders in real-time. 

Choosing Amazon FBA Plan for Your Business

Here is how to select the Amazon FBA plan for your business:

• FBA Shipping Plan

To select the FBA shipping plan, click open Seller Central, go to the inventory menu, and choose ‘send to Amazon’. Thereafter, add items via the Amazon page and select the products that need to be delivered to FBA. Now, pack and label all the items appropriately and ship them to the Amazon fulfillment centers.

• FBA Prep Service

When you choose FBA prep as a part of your Amazon FBA plan then you do not have to spend time packing each item separately. You can just use bubble wrap or poly bagging to guard your items as you ship them to the fulfillment centers. You should also label them using FBA labels, and existing UPC or EAN barcodes. Amazon will pack your appropriately using the right packaging material and label them before shipping them to your customers.

• Examine Your Shipping

It is important to review and verify your shipments before approving them for shipping from India to the USA. This can be done by selecting the Approve Shipments option. It will show you the exporting process. You will get different limits on the number of boxes that can be sent in a package. After all your boxes arrive at the facilities, you can go ahead and close the shipment.

Tax Considerations: Selling on Amazon.com in the USA without GST

GST, short for Goods and Services Tax, applies to numerous products and services sold on Amazon. However, certain items and services are exempted from GST. While GST registration is mandatory for doing business on Amazon, you do not require registering if you want to sell GST-exempt items on the platform. These items include maps, books, recognised handicraft goods, and plastic bracelets among others. GST does not apply to these goods as the government has exempted them from this tax.

Logistics: Shipping from India to Amazon FBA and Product Sourcing

Indian businesses do not require setting up or renting warehouses in the United States to sell in the US market. As an Indian seller, you can easily deliver products to your US customers via Amazon FBA from India. All you need to do is to ship all your listed goods to the Amazon fulfillment center in the United States. Thereafter, the Amazon staff will take care of your orders. When you receive an order, the Amazon staff will pack the product carefully and ship it to your US customer. Remember, FBA should be added to your Amazon seller account to use this facility.

Strategies for Expediting Business Growth, Branding, or Agency Expansion

It is important to incorporate effective strategies to boost business growth and build a brand name. Here are some strategies you can adopt for expanding your reach:

1. Research and Understand

Conducting market research is not a one-time job. You must conduct extensive market research at the time of starting a business but it should not stop there. It is important to keep researching and exploring different avenues as you run your business. This helps in understanding the changes in the industry as well as customer demand and behaviour.

2. Choose an Area for Growth

To get better results, it is essential to follow a focused approach. Try focusing on one area at a time. For instance, you may choose to add a new product to your catalogue, launch your product in a new region, expand your warehouse space, or acquire new customers to start with. You may take another initiative after working substantially on one area.

3. Set Clear Goals

To grow your business, you must set clear growth goals. When you have a clear idea about what and how much you want to achieve, you shall be able to work more diligently towards achieving it. It is suggested to create a plan of action and set a timeline for accomplishing each goal. 

4. Determine Your Growth Requirements

To grow your business, you will require more funds as well as manpower. You may also need new equipment and a bigger workplace. To begin with, assess whether you want to bootstrap your business or pursue investors. Likewise, check whether you would need to accommodate more in-house staff, prefer working with freelancers, or outsource additional tasks.

5. Use the Latest Technology

Make use of advanced tools and technologies relevant to your field to work on your goals. Incorporating the latest technology helps in efficiently executing your plans. The use of technology helps speed up various tasks and lowers the scope of human errors. It also takes off the load of doing repetitive tasks and increases productivity.

Conclusion

It is unanimously believed that Amazon is among the best platforms for Indian sellers to accelerate their business growth. As per the latest report, there are as many as 9.7 billion sellers on Amazon. Out of these, 1.9 billion are actively selling their products in the global market. Its initiatives such as FBA give you a chance to sell your products internationally with ease. By following a few simple steps, you can use FBA to sell your products in various international locations including the United States. Amazon FBA has grown popular among Indian businesses as it offers numerous advantages. From taking care of the logistics to building trust among potential clients in the new market, it helps businesses increase their customer base and generate profit.

When you are an Amazon seller, the Amazon FBA will take care of everything. However, for sellers on other platforms, Shiprocket’s CargoX is a trustworthy logistics service that simplifies the international shipping process. It makes sure your shipments are delivered to the overseas customers safely and timely. Several businesses are using it to expand their reach in the foreign market. With CargoX, you can expect instant quotes, lucid invoices, complete transparency, on-time pick-up and delivery, cost-effective service, digitalised procedures, and hassle-free shipping.