Steps to Sell on Amazon USA from India

Expanding your business internationally has never been easier until Amazon Global Selling came in. This program offers Indian sellers the opportunity to tap into the vast market of Amazon USA, providing a platform to reach millions of customers. 

Over 125,000 Indian exporters are already successfully selling globally through Amazon. You can too! Leverage Amazon’s established infrastructure for a smooth transition into the international marketplace. They provide comprehensive support for Indian sellers, including logistics, shipping, marketing, and customer service, making your global selling journey efficient and hassle-free.

This article will delve into the advantages of selling on Amazon USA, offering insights into why this market is lucrative for Indian entrepreneurs. We will provide a step-by-step guide on how to sell on Amazon USA from India, ensuring you understand every crucial aspect. By the end of this article, you will have a comprehensive understanding of what it takes to sell your products on Amazon USA from India successfully.

Advantages of Selling on Amazon USA

How to sell on Amazon USA from India talks about the international selling opportunities. The platform provides a plethora of opportunities to grow that helps sellers expand their businesses internationally. Here are some key advantages:

1. Access to a Vast Customer Base: Amazon USA boasts millions of active customers, providing an extensive market for your products. Selling on Amazon USA enables direct access to international customers. This not only broadens your market but also helps establish your brand on a global scale, making it easier to penetrate new regions. This vast reach can significantly increase your sales potential and brand visibility.

2. Lower Maintenance Fees: Compared to other platforms, Amazon offers competitive maintenance fees. It allows sellers to maximize their profits without worrying about excessive costs eating into their revenue.

3. Flexible and Cost-Effective Marketing Strategies: Amazon’s advertising tools enable sellers to create targeted marketing campaigns. These flexible options allow you to manage your budget effectively while reaching the right audience for your products.

4. Support at Every Stage, Including Fulfillment and Returns: Amazon provides comprehensive support to sellers, including handling fulfillment and returns. With services like Fulfillment by Amazon (FBA), sellers can ensure efficient logistics, excellent customer service, timely delivery, and improving the overall shopping experience for buyers.

Getting Started with Amazon Global Selling

Starting a journey with Amazon Global Selling can open doors to immense growth and international success. This section will walk you through the process to ensure a smooth and successful start.

1. Understanding Amazon’s Global Selling Program: Amazon Global Selling is designed to help sellers reach customers worldwide, providing tools and support to navigate international markets. This program simplifies the process of listing your products on various Amazon marketplaces, managing logistics, and handling customer service across different countries.

2. Choosing the Right Products for the US Market: Selecting the correct items is essential to success in the US market. Conduct extensive market research to better understand consumer preferences, trends, and demand. To increase your chances of success, focus on products that are in great demand and have limited competition. Some of the best-selling products in the US market are:

• Electronics and Gadgets: Smartphones, smart home devices, and accessories.
• Health and Wellness Products: Vitamins, supplements, and fitness equipment.
• Beauty and Personal Care: Skincare products, hair care tools, and cosmetics.
• Home and Kitchen Appliances: Cookware, small kitchen gadgets, and home organization items.
• Fashion and Apparel: Trendy clothing, shoes, and accessories.

Assure that your products meet all legal standards and quality expectations of US customers.

3. The Role of Fulfillment by Amazon (FBA) in Global Selling: Fulfillment by Amazon (FBA) is a key component of Amazon’s Global Selling. It enables sellers to keep their products in Amazon’s fulfillment centers, where Amazon handles storage, packaging, shipping, and customer service. Customers benefit from this service since it provides speedy and reliable delivery, which improves their buying experience.

Intoglo is one of the top-rated Amazon Certified Logistics Providers, recognized as the “Best International Shipping Partner” by Amazon. Intoglo specializes in facilitating the movement of shipments from Indian warehouses to Amazon warehouses in the USA. We provide logistics support to help sellers efficiently send their products across borders. Once your shipment arrives at Amazon’s warehouses in the USA, it is managed by Amazon’s logistics team (FBA), ensuring prompt delivery to your customers. Intoglo’s expertise ensures that your products are handled efficiently, enhancing your business delivery rate.

Necessary Documents Required for Selling on Amazon USA from India

To start selling on Amazon USA from India, you need to ensure that you have all the necessary documents in place. These documents are essential for setting up your seller account, complying with legal requirements, and facilitating smooth transactions. If you’re wondering how to sell on Amazon USA from India, here is a list of the key documents required:

1. Business Registration Documents: You need to provide proof of your business registration in India. It could include your GST registration, incorporation certificate, or partnership deed.

2. PAN Card: Your Permanent Account Number (PAN) card is required for tax purposes. It is a mandatory document for all Indian sellers.

3. Bank Account Details: You need to provide details of your bank account in India, which will be used for receiving payments from Amazon. Ensure your bank account can handle international transactions.

4. Identity Proof: A government-issued identity proof, such as a passport or Aadhaar card, is required to verify your identity.

5. Address Proof: Provide a valid address proof for your business, such as utility bills, rental agreements, or a bank statement with your business address.

6. Import Export Code (IEC): The IEC is necessary for exporting goods from India. You can obtain it from the Directorate General of Foreign Trade (DGFT).

7. Authorized Dealer (AD) Code: This code is provided by your bank and is essential for conducting foreign trade transactions. It helps in the smooth transfer of funds internationally.

8. GST Letter of Undertaking (LUT): The LUT is required for exporting goods without paying the Integrated Goods and Services Tax (IGST). The GST department issues this document, and it is crucial for compliance.

9. Tax Information: You will need to provide your GST number and details of any other relevant taxes applicable to your business.

10. Product Compliance Documents: Depending on the products you plan to sell, you may need to provide compliance certificates, safety standards, and other regulatory documents to meet US market requirements.

By ensuring that you have all of the required documents handy, you can speed up the process of creating your seller account and begin selling on Amazon USA from India without difficulty.

Comprehensive Overview: Fulfillment by Amazon (FBA)

Fulfillment by Amazon (FBA) is a turning point for Indian sellers looking to expand their reach in the USA and streamline their logistics. FBA allows its sellers to keep their products in Amazon’s fulfillment centers, where Amazon takes care of storage, packaging, shipping, and customer service. Here is a comprehensive overview of the FBA process:

1. FBA Shipping Plan

Creating an FBA shipping plan is the first step in sending your products to Amazon’s fulfillment centers. It involves:

• Create an ID on Seller Central: Start by logging into your Amazon Seller Central account. If you don’t have an account, you’ll need to create one to begin the process.
• Set Up Your FBA Account: Once logged in, navigate to the FBA section of your Seller Central account. Here, you’ll set up your FBA account, including agreeing to Amazon’s terms and conditions.
• Create an FBA Shipping Plan: Choose the products you intend to send to Amazon’s fulfillment centers. Amazon will allocate one or multiple warehouses in the USA for your inventory. Review the recommended distribution and prepare your shipment accordingly.
• Choose a Trusted Carrier Partner: Partner with a reliable logistics provider to handle the transportation of your goods from your warehouse in India to Amazon’s fulfillment centers in the USA. Intoglo’s expertise in international logistics ensures your products are delivered efficiently and on time.
• Label and Pack Your Products: Follow Amazon’s guidelines for labeling and packaging your products. Proper labeling ensures that your products are processed correctly upon arrival at Amazon’s warehouses.
• Ship Your Products: Coordinate with your chosen carrier to ship your products to the allocated Amazon fulfillment centers. Provide all necessary documentation and tracking information to ensure a smooth delivery process.

An effective shipping plan ensures your products are received and processed efficiently by Amazon.

2. FBA Prep Service Overview

Amazon’s FBA Prep Service helps sellers meet Amazon’s packaging and preparation requirements. To avoid any discrepancies, it is necessary to go through Amazon’s guidelines regarding packaging and take care on their own. 

This service includes:

• Labeling: Amazon labels each unit with the required barcodes. This ensures that your products can be accurately tracked and managed within Amazon’s fulfillment centers. 
• Poly Bagging: Products that need additional protection are placed in poly bags. This is especially important for items that need to be kept clean or are at risk of damage during handling and storage.
• Bubble Wrap: Fragile items are wrapped to prevent damage during transit. This added layer of protection is essential for delicate products. 
• Taping: This includes sealing boxes and securing any openings that could expose the contents to damage or contamination.

Using the FBA Prep Service can save time and reduce the hassle of meeting Amazon’s rigid preparation standards.

3. Shipping Products to Amazon FBA

Shipping products to Amazon involves several key steps:

• Packing Your Products: Ensure products are packed securely to avoid damage during transit. Follow Amazon’s packing guidelines to avoid delays.
• Creating Shipping Labels: Generate and print shipping labels from your Seller Central account.
• Scheduling Pickup or Drop-off: Arrange for the carrier to pick up your shipment from your warehouse to the fulfilment center.  After that, the package is to be delivered to the Amazon warehouse in USA via air or freight. 
• Tracking Shipments: Monitor your shipment to ensure it arrives at the fulfillment center.

Properly shipping products ensures they reach Amazon’s warehouses in good condition and are quickly made available for sale.

4. Managing Amazon FBA Shipments and Reviewing Fulfillment Options

Once your products reach Amazon’s fulfillment centers, managing shipments and reviewing fulfillment options is crucial:

• Tracking Inventory: Use Seller Central to monitor your inventory levels, sales, and shipment status.
• Replenishing Stock: Keep an eye on inventory levels and create new shipments as needed to avoid stockouts.
• Reviewing Fulfillment Options: Evaluate Amazon’s various fulfillment options, such as standard, expedited, and priority shipping, to best meet your customers’ needs.
• Handling Returns: Amazon manages customer returns, ensuring a hassle-free experience for both sellers and buyers.

Effective management of FBA shipments and fulfillment options ensures your products are consistently available, enhancing customer satisfaction and boosting sales.

By understanding and leveraging FBA, you can focus on product quality and growing your product categories while Amazon handles the complexities of fulfillment and logistics.

Financial Aspects of Selling on Amazon USA

Selling on Amazon USA from India can be highly profitable, but it’s important to understand the financial aspects of managing costs and maximizing profits effectively. Here’s a detailed discussion of the key financial considerations:

1. Understanding the Cost Structure: Subscription, Referral, and Shipping Fees

• Subscription Fees: Amazon offers two selling plans – the Individual Plan and the Professional Plan. The Individual Plan charges a per-item fee of $0.99, while the Professional Plan has a fixed monthly subscription fee of $39.99. The Professional Plan is more cost-effective for high-volume sellers.
• Referral Fees: Amazon charges a referral fee of 15% or less (depending on the product) for each item sold. This fee varies by category and is a percentage of the selling price. It’s essential to factor this into your pricing strategy to ensure profitability.
• Shipping Fees: If you use Fulfillment by Amazon (FBA), shipping fees include the cost of sending your products to Amazon’s fulfillment centers and the cost of Amazon shipping products to customers. FBA fees vary from size to size and weight of the products. Sellers not using FBA will need to consider their shipping costs to the USA.

2. GST and Tax Considerations for Indian Sellers

• Goods and Services Tax (GST): Indian sellers must account for GST on their sales. Products exported from India are typically zero-rated for GST, but you need to maintain proper documentation to claim this benefit. The GST Letter of Undertaking (LUT) is required for exporting goods without paying IGST.
• Income Tax: Profits from your Amazon USA sales are subject to Indian income tax. Ensure you keep accurate records of your earnings and expenses to comply with tax regulations. You may then take advantage of any deductions or exemptions available.

3. Receiving Payments: International Bank Account Requirements

• International Bank Account: To receive payments from Amazon USA, you need a bank account that can handle international transactions. Many Indian banks offer this service, but it’s important to check the fees and exchange rates they provide.
• Payment Process: Amazon pays sellers every two weeks, transferring the funds directly to the seller’s bank account. Ensure your account is correctly set up in Amazon Seller Central to avoid delays.

4. Exploring Profitability and Using Amazon’s Analytical Tools

• Profitability Analysis: Regularly review your cost structure, including production, shipping, Amazon fees, and taxes, to determine your profitability. Adjust your pricing strategy if necessary to maintain healthy profit margins.
• Amazon’s Analytical Tools: Amazon provides several tools to help sellers analyze their business performance. These include:

• Sales Dashboard: Track your sales performance in real time.
• Inventory Reports: Monitor stock levels and manage inventory efficiently.
• Advertising Reports: Evaluate the effectiveness of your Amazon advertising campaigns.
• Fee Preview: Get an estimate of the fees for each product to understand your costs better.

Using these tools can assist you to make informed decisions, optimize your operations, and maximize your profits.

By understanding the financial aspects of selling on Amazon USA, you can effectively manage your costs, comply with tax regulations, and ensure your business remains profitable in the competitive international market.

FDA Requirements for Exporting to the US from India Through Amazon

Exporting products to the US market involves complying with various regulatory requirements, including those set by the Food and Drug Administration (FDA). Understanding and complying with these standards is critical for ensuring that your products can be sold lawfully on Amazon USA. Here are the key FDA requirements for exporting from India:

1. Product Compliance

• Compliance Standards: Ensure that your product complies with the applicable FDA standards. It includes meeting labeling requirements, safety standards, and ingredient regulations. For example, food products must adhere to the FDA’s food safety standards, while cosmetics must be safe for use and properly labeled.

2. FDA Registration and Listing

• Food Facility Registration: If you are exporting food products, your manufacturing facility must be registered with the FDA. It involves the facilities that manufacture, process, pack, or store food for consumption in the US.
• Drug and Device Listing: For pharmaceuticals and medical devices, you must register your business and list your products with the FDA. This process involves submitting detailed information about your products and their intended use.

3. Labeling Requirements

• Food Labeling: Food products must have labels that comply with FDA regulations, including nutritional information, ingredient lists, allergen warnings, and proper product identification.
• Cosmetic Labeling: Cosmetics must be labeled with the product name, intended use, ingredients, and manufacturer’s information. Claims made on labels must be truthful and not misleading.
• Drug and Device Labeling: Pharmaceuticals and medical devices require detailed labeling, including usage instructions, warnings, and active ingredients. Labels must be clear and provide necessary information for safe use.

4. Premarket Approvals

• New Dietary Ingredients (NDI): If your dietary supplement contains a new dietary ingredient not previously used in the US, you may need to submit an NDI notification to the FDA.
• Premarket Notification (510(k)): Some medical devices require a 510(k) submission to show that they are safe and effective for their intended purpose.
• Drug Approval: Prescription and over-the-counter drugs must go through the FDA’s drug approval process, which involves extensive testing and documentation.

5. Adherence to Good Manufacturing Practices (GMP)

• GMP Compliance: Ensure that your manufacturing processes comply with Good Manufacturing Practices (GMP) standards set by the FDA. This includes maintaining cleanliness, proper handling, and quality control measures throughout the production process.

Resources and Support Available for Amazon USA Indian Sellers

Amazon offers a variety of resources and support to help Indian sellers who worry about how to sell on Amazon USA from India. Here are some key resources and support options available:

1. Amazon Global Selling Program

• Overview: The Amazon Global Selling program provides Indian sellers with the tools and resources needed to expand their business internationally. This program includes access to global marketplaces, marketing support, and logistical solutions.
• Sign-Up Support: Amazon offers step-by-step guides and tutorials to help you sign up and navigate the platform effectively.

2. Seller University

• Educational Resources: Seller University offers a comprehensive collection of training videos, webinars, and articles covering various aspects of selling on Amazon. Topics include setting up your account, listing products, managing inventory, and optimizing your sales.
• Webinars and Live Training: Regular webinars and live training sessions provide opportunities to learn from experts and ask questions in real-time.

3. Seller Support

• Dedicated Support: Amazon provides dedicated seller support teams to assist with any issues or questions you may have. You can contact seller support through the Seller Central platform for help with account setup, listing issues, and more.
• Help Center: The Amazon Seller Help Center is a comprehensive resource for troubleshooting common problems and finding answers to frequently asked questions.

4. Fulfillment by Amazon (FBA)

• Logistics Support: FBA takes care of storage, packaging, shipping, and customer service for your products. This service allows you to focus on growing your business while Amazon handles the logistics.
• FBA Prep Service: Amazon offers prep services to ensure your products meet their packaging and labeling requirements.

5. Marketplace Web Services (MWS)

• API Integration: MWS provides APIs that enable you to integrate your systems with Amazon’s marketplace. It allows for automated management of orders, inventory, reports, and more.
• Developer Support: Resources and documentation are available to help you utilize MWS effectively.

6. Amazon Advertising

• Marketing Tools: Amazon offers a variety of advertising options to help you promote your products, including Sponsored Products, Sponsored Brands, and Sponsored Display ads. These tools help increase visibility and drive sales.
• Campaign Management: Detailed analytics and reporting tools enable you to manage and optimize your advertising campaigns effectively.

By leveraging these resources and support options, Indian sellers can navigate the complexities of selling on Amazon USA more effectively, optimize their operations, and maximize their success in the international marketplace.

Intoglo: Your Trusted Amazon FBA Shipment Partner

Choosing Intoglo as your Amazon FBA shipment partner ensures a seamless and efficient logistics experience. Here’s why you should trust Intoglo for your shipping needs:

• Proven Success: Intoglo has partnered with more than 150 Amazon sellers and over 1,000 shipments were successfully delivered to Amazon and Walmart warehouses.
• Cost-effective Rates: Intoglo offers transparent end-to-end rates covering the entire Amazon shipment journey from your warehouse in India to Amazon warehouses across the USA, ensuring clarity and predictability in shipping costs.
• Comprehensive Coverage: Delivery to all Amazon warehouses across the USA.
• Adherence to Guidelines: Intoglo ensures compliance with Amazon guidelines by scheduling timely appointments at Amazon warehouses and utilizing certified trucking partners for deliveries across the USA.
• Expert Support: Dedicated in-house Amazon experts providing end-to-end shipment support.
• Compliance Assistance: Comprehensive compliance support to navigate the complexities of Amazon’s shipping requirements.

With Intoglo, you can focus on growing your business with confidence, knowing your shipments are in capable hands.

Conclusion

Engaging with the seller community provides valuable insights and fosters continuous learning. By strategically planning for long-term success and scaling operations, sellers can maximize their growth potential. With Amazon’s comprehensive support and resources, Indian sellers are well-equipped to thrive in the competitive international marketplace. Partnering with a reliable logistics and shipping partner like Intoglo ensures seamless operations, from warehousing solutions to efficient delivery strategies.