In today’s globalized marketplace, the opportunity to sell on Amazon USA from India has become more accessible than ever before. With millions of potential customers and a robust e-commerce infrastructure, the US market offers immense potential for Indian sellers to expand their reach and boost their business. However, navigating the intricacies of international selling can be challenging. In this blog post, we will provide you with a comprehensive guide on how to sell on Amazon USA from India in 2023. From setting up your seller account to optimizing your product listings, we will equip you with the knowledge and strategies needed to successfully tap into the American market and thrive as an Indian seller on Amazon.
Why Export From India With Amazon Global Selling?
Exporting products from India has never been easier, thanks to the power of e-commerce and platforms like Amazon Global Selling. As an Indian seller, the opportunity to expand your business internationally through Amazon opens up a world of possibilities. With its extensive reach, robust infrastructure, and trusted reputation, Amazon Global Selling provides numerous benefits for exporters in India. In this blog post, we will explore the advantages of exporting from India with Amazon Global Selling, highlighting why it is a compelling avenue for Indian sellers looking to tap into global markets and take their businesses to new heights.
Advantages of Selling on Amazon
Selling on Amazon offers several advantages for Indian vendors, particularly through programs like Amazon Global Selling that facilitate global expansion and e-commerce exports. Here are some key benefits:
Cost-Effective: Unlike opening physical stores in different countries, selling on Amazon incurs low maintenance fees. By leveraging e-commerce exports, Indian sellers can avoid the expenses associated with maintaining physical locations, allowing them to grow their business with minimal financial investment.
Access to New Markets: Exporting through e-commerce enables Indian sellers to expand their reach to multiple nations from the comfort of their homes. Instead of being limited to a single location with a physical store, sellers can tap into new markets and connect with customers worldwide.
Expanded Customer Base: E-commerce platforms like Amazon eliminate the need for middlemen, allowing sellers to directly engage with customers. This opens up opportunities to build relationships and attract millions of new clients globally, including in countries like the USA, UK, Canada, UAE, Australia, and more.
Cost-Effective Marketing: With e-commerce, sellers can effectively market their products without the need for expensive billboards or TV ad campaigns. Digital marketing tools on global marketplaces allow for customized branding, targeted promotions, and discounts tailored to meet the needs and preferences of customers.
Flexible Delivery: Customers expect reliable and timely delivery, regardless of the products being sold. E-commerce export programs, such as Fulfillment by Amazon (FBA), provide sellers with access to efficient logistical solutions for packaging, storage, delivery, and returns. This ensures a hassle-free experience for both sellers and customers.
Selling on Amazon provides Indian vendors with cost-effective global expansion opportunities, access to new markets, an expanded customer base, economical marketing options, and flexible delivery solutions. These advantages make Amazon an attractive platform for Indian sellers looking to thrive in the world of e-commerce exports.
How To Sell On Amazon USA From India? (Beginners Guide 2023)
E-commerce has rapidly emerged as a dominant business trend, providing a convenient way to reach a vast customer base with just a few clicks. In this ever-expanding online marketplace, Amazon stands out as a leading platform, generating billions in revenue and offering sellers a global reach. For beginners in India seeking to sell on Amazon USA, this guide will provide the necessary steps to navigate international selling and tap into new markets.
Traditionally, businesses faced geographical limitations and required significant capital to expand into different regions. Creating and establishing your own website might be time-consuming and challenging to flourish as expected. However, Amazon presents an excellent opportunity as a third-party e-commerce site to sell and grow your business with minimal constraints and a straightforward registration process.
By creating a single account, you can start selling in three Amazon marketplaces: Amazon.com (USA), Amazon.ca (Canada), and Amazon.com.mx (Mexico). Amazon Global Selling empowers global sellers to explore different international markets, enabling them to reach millions of potential buyers. In this guide, we will cover all the essential steps required for successful international product sales.
By registering with Amazon Global Selling, you gain access to export and sell your products in the USA, Canada, and Mexico. As of 2023, Amazon boasts a staggering 9.7 billion online sellers, with approximately 1.9 billion actively selling their products internationally. This demonstrates the immense potential and opportunities available for Indian sellers looking to expand their business on a global scale.
How to Export from India to USA with Amazon Global Selling?
With Amazon Global Selling, you can reach over 200 countries worldwide and tap into a vast customer base. Whether you’re a manufacturer, reseller, or emerging brand, selling globally on Amazon is just a few steps away. Let’s explore how you can export from India with Amazon and unlock new opportunities for your business.
Discover Amazon’s Global Selling Services: Take the time to understand the range of services and features Amazon offers to enhance and expand your business on a global scale. Familiarize yourself with the market opportunities and identify the international market that best suits your company’s products.
Register and List Your Products: Registering your business and listing your products on Amazon is a crucial step. Provide comprehensive details about your business and carefully list the products you wish to sell internationally. Make use of Amazon’s powerful tools, such as the Amazon Webmaster Tool, designed to simplify the process of listing your products effectively.
Seamless Shipment with FBA: Amazon offers a convenient solution called Fulfillment by Amazon (FBA) Global Solutions for seamless product delivery to customers. Utilize FBA to ensure the hassle-free shipment and let Amazon handle the logistics while you focus on growing your business.
Monitor Sales and Track Growth: Stay on top of your business’s performance by regularly monitoring your sales on Amazon. Keep an eye on key metrics, customer feedback, and market trends to make informed decisions and drive growth.
Efficient Business Management and Payment Processing: Amazon provides a range of tools and services to help manage your export business efficiently. You can receive payments in Indian Rupees (INR), link your account features to sell on other international marketplaces, and leverage additional resources to scale up your business.
With Amazon Global Selling, the world becomes your marketplace. Take advantage of these user-friendly steps and unlock the potential for your Indian export business to thrive on a global scale.
Costs of Selling on Amazon USA from India
When it comes to selling on Amazon USA from India, it’s important to be aware of the associated costs. Different marketplaces, including European and North American regions, have their own fee structures, primarily consisting of the following elements:
Subscription Fees: The fee structure depends on the region you choose to sell in and the selling plan you opt for. Amazon offers various selling plans, and the fees are based on your selection.
Referral Fees: These fees are category-specific and are charged by Amazon for each item sold. The referral fee can be a fixed minimum amount (starting at $0.30) or a percentage of the total price, which includes the unit price, shipping costs, and any gift-wrapping fees.
Closing Fees: These fees are based on the price of the sold item and are charged in addition to the selling plan fees.
Weight and Handling Fees: Fees are applicable for shipment and delivery, and they vary based on the weight and size of your product. The delivery cost also depends on the fulfillment method you choose.
Other Fees: There may be additional fees related to specific programs and services you utilize, such as “Multi-Channel Fulfillment” for distributing products to customers who make purchases offline or through your e-commerce site.
To get started, you will need a minimum amount of $40 for a professional Amazon seller account, along with some funds for other costs. Additionally, around $30 will be required for obtaining a unique product code for global selling.
When it comes to product fulfillment, you have two options: self-ship or Fulfillment By Amazon (FBA). With self-ship, you handle shipping directly to customers, and the shipping cost depends on the third-party logistics company you choose. FBA, on the other hand, involves sending goods to Amazon’s overseas fulfillment centers. Amazon stores and distributes the products once customers place orders.
Considering these factors, it is advisable to select a Professional Selling account with a flat monthly fee. By utilizing the Amazon seller fee calculator, you can easily understand and calculate the three main components of the pricing structure: monthly subscription charge, referral fee, and delivery cost.
Being aware of these costs will help you plan your selling strategy effectively and make informed decisions while selling on Amazon USA from India.
Documents for Selling on Amazon USA from India
Expanding your sales to the United States market can be a lucrative opportunity for Indian sellers. However, before you begin, there are several important documents you need to obtain to ensure a smooth export process.
Import Export Code (IEC):
The Import Export Code is a 10-digit business identification number issued by the Directorate General of Foreign Trade (DGFT). It is mandatory for Indian vendors looking to export their goods internationally. An IEC is required for any product or service being imported or exported.
Authorized Dealer (AD) Code:
The Reserve Bank of India (RBI) assigns a 14-digit AD code to banks that handle foreign currency transactions. Exporters must obtain an AD code letter from their bank, which should be registered with the customs port where the goods will be exported. The AD code enables banks and customs agencies to monitor export transactions.
GST LUT:
Exporters can utilize the Letter of Undertaking (LUT) to export products or services without paying Integrated Goods and Services Tax (IGST). The LUT can be generated through the Goods and Services Tax (GST) portal and allows for zero-rated turnover. Exporters can provide the LUT to their logistics partner for the creation of the shipping bill. However, exporters without a LUT must pay IGST on their exports and can claim a refund when filing their taxes.
Importer on Record (IOR):
When importing goods into the USA, an Importer on Record (IOR) is required. The IOR is responsible for customs clearance, tax payment, and compliance with local laws and regulations. Generally, for shipments valued below USD 2,500, an informal entry is allowed by the Customs and Border Protection (CBP) authorities, and an IOR may not be required. However, certain regulated categories of goods may necessitate the provision of the importer’s information and the need for an IOR.
It’s important to have the following information and documentation ready:
- A valid credit card
- Bank account details
- Phone number
- Tax information.
Additionally, you may be asked to provide scanned copies of documents such as your passport, government-issued ID, bank statement, or credit card statement. For a comprehensive list of required documents, refer to the Amazon Exports Compliance Dashboard.
By obtaining these necessary documents, you can ensure compliance and successfully sell your products on Amazon USA from India.
Step-by-Step Guide: Selling Products on Amazon USA from India
Selling your products on Amazon USA from India opens up immense opportunities to tap into a vast customer base and boost your revenue. To help you navigate the process, here is a step-by-step guide:
Product and Market Selection:
Choose the product(s) you want to export and identify the target market(s) in the USA. It’s crucial to select products with significant demand in the global market to ensure growth potential.
Registration:
Create an Amazon Global Selling account to begin exporting to the USA. Register as an Amazon seller and provide your company information, KYC details, Import Export Code (IEC), and any marketplace-specific documents required, such as FDA compliance, depending on your category and region.
Business Model Selection:
Decide on your business model. You can opt for private-label selling, where you sell your own branded products; wholesale selling, where you market products from other brands or businesses; or dropshipping, where you promote goods supplied by other vendors or manufacturers.
Product Listing:
Once registered, start listing your products on Amazon USA. The listing process is straightforward. Prepare your product’s SKU information, including barcodes, UPC, or EAN, and provide product details such as features, model number, size, and expiry date (if applicable).
Listing Guidelines:
Ensure your product listings stand out by regularly updating high-quality photographs that showcase the product’s authenticity and quality. Use an SEO-friendly title to help customers find your products easily. Include bulleted lists of product features in the description for clarity. Provide accurate product descriptions to avoid customer dissatisfaction.
Fulfillment and Shipping:
Consider using Fulfillment by Amazon (FBA) for smooth international order delivery. Simply ship your products to Amazon’s overseas fulfillment centers, and they will handle storage, pick-up, delivery, and customer service. Alternatively, you can choose third-party providers for self-fulfillment.
Payments and Expansion:
Upon successful sales, payments will be transferred to your account in your chosen currency. Leverage Amazon’s global tools and services to expand your business further internationally.
By following these step-by-step instructions, you can successfully sell your products on Amazon USA from India and take advantage of the vast opportunities available in the global marketplace.
Is Selling on Amazon USA from India Profitable?
Indian vendors are increasingly interested in exploring the profitability of exporting goods from India through e-commerce platforms as online commerce continues to thrive. Selling products online has become a convenient option for Indian businesses, thanks to the low investment required and the comprehensive services provided by e-commerce platforms.
What makes it even more appealing is the ease of exporting through e-commerce, allowing merchants to swiftly reach millions of buyers worldwide from the comfort of their homes in India. Many small and medium-scale enterprises (MSMEs) are venturing into e-commerce exports to tap into the untapped potential of global markets, benefiting from lower operational costs and higher profit margins.
E-commerce exports provide a pathway for merchants to expand beyond national borders and achieve international growth by directly selling to customers in other countries through international marketplaces. With e-commerce, vendors can reach customers without the need for substantial investments in physical infrastructure. They can attract new customers overseas by creating attractive product listings and leveraging the power of online presence.
For aspiring entrepreneurs and expanding companies, e-commerce exports offer a highly profitable business model for international growth and increased revenue. Numerous renowned companies and brands started their journey by selling just a few items online and gradually expanded their operations from there.
In summary, selling on Amazon USA from India through e-commerce exports holds significant potential for profitability and can be a lucrative opportunity for emerging businesses looking to expand their reach and boost their revenue.
How to Sell on Amazon in the United States from India: A Step-by-Step Guide
Selling your products to customers in the United States through Amazon has become incredibly convenient for Indian vendors, eliminating the need for a warehouse in the US. Follow these simple instructions to understand how you can efficiently deliver your items to American customers using Amazon’s global selling platform.
Utilize Amazon FBA Fulfillment
By utilizing the Fulfillment by Amazon (FBA) program, vendors can easily send their items to Amazon’s fulfillment centers in the United States through a designated carrier. You have two options: either package the items yourself and send them to the fulfillment center, or let Amazon handle the packaging and shipping when a customer places an order. Additionally, Amazon takes care of customer support and returns for FBA items. To utilize this shipping method, ensure that FBA is added to your Amazon seller account.
How to Choose an Amazon FBA Plan?
Selecting an Amazon FBA Shipping Plan
To opt for FBA shipping, navigate to your inventory menu in Seller Central and click on “Send to Amazon.” From the Send to Amazon page, you have two options: you can either add items directly or upload a spreadsheet containing the product range. Specify the desired quantity of the product to be sent to FBA. Once you’ve provided the quantity, you can proceed with picking and packing individual units. Additionally, ensure that the shipping address you provide is valid.
Proper packaging and labeling of your items are essential for secure delivery to the fulfillment center and prompt availability to customers. You have two choices: either package the items yourself and send them directly to customers, or utilize the FBA Prep Service.
FBA Prep Service
If you opt to use an FBA prep service, make sure to adequately protect your products by using materials such as poly bags, bubble wrap, and tape. For more detailed instructions on product preparation, refer to Amazon Seller Central.
Next, your exported items must be labeled in one of three ways. You can either utilize existing UPC or EAN barcodes for eligible products or apply Amazon barcodes directly on the items or their packaging. Alternatively, you can utilize the FBA Label Service, which incurs a per-piece cost, to have Amazon handle the labeling for you.
Review Your Shipments
It is crucial to review and verify your shipments. Your items will be assigned to shipment centers, and before approving a shipment, you should double-check the details. Once you click “Approve shipments,” the Review Shipments page will transform into the View Shipments page, allowing you to track the export process.
Depending on the chosen delivery option, there may be restrictions on the number of boxes you can include in a package. Once all your boxes have arrived at the facilities, you can close the shipment. For a comprehensive understanding of the shipping process, refer to the Amazon guidelines. After your merchandise has reached the fulfillment center, its status, which can be viewed on the summary page, will indicate that it is available for purchase by customers.
By using FBA, you can minimize delivery delays for your customers while also providing refunds and local language assistance. It also handles any inquiries or requests for customer support, including returns, refunds, and partial refunds.
Using a Third-Party Service
If you choose not to utilize FBA services, you can directly ship your products to customers overseas through third-party providers. You will need to select a carrier that offers worldwide shipping according to the terms and conditions stated on the shipping bill. The carrier acts as an intermediary, and customs charges will be incurred by the buyer upon delivery.
As the seller, you are responsible for meeting the shipment deadlines for every order you receive. Global shipping costs are determined by factors such as product weight and size, delivery time, origin (where the product is being shipped from), and destination (the customer’s location).
When handling shipping on your own, it is important to address any inquiries or issues customers may have regarding your products. Additionally, you need to provide customers with a local return address within the region of their Amazon marketplace site or offer free return shipping.
How to Sell on Amazon.com in the United States Without Paying GST
GST (Goods and Services Tax) is a tax applicable to a wide range of products and services. However, if you are selling GST-exempt items and services on Amazon, you are not required to register for GST. For all other Amazon businesses, GST registration is mandatory. Sellers on the Amazon marketplace who sell taxable goods must assign the appropriate GST rates (Product Tax Code or PTC) for their listings and provide a GST number.
There are certain goods exempt from GST as per government regulations. These are called exempt supplies and are not subject to tax. Examples of such items include books, maps, recognized handicraft goods, and plastic bracelets.
Amazon or any other company will not reimburse you for GST. They collect the GST and remit it to the government. They act as intermediaries and service providers, applying GST to different service components, collecting the funds, and forwarding them to the government. You can make an Input Tax Credit (ITC) claim from your GST account. Amazon will provide you with a monthly compensation invoice, allowing you to easily track the amount of GST charged. This process ensures compliance with GST regulations.
Sellers are required to submit their transactional information through GST, including tax details from the time of purchasing inventory to the time of selling it. Sales are summarized on an order-wise basis, and GST is included in the price charged to the buyer when selling a product on Amazon or any other marketplace.
Conclusion
Selling on Amazon USA from India in 2023 presents a significant opportunity for Indian vendors to tap into a vast consumer market and expand their business globally. With the right documentation, registration, and strategic approach, you can successfully navigate the process and leverage the power of Amazon’s e-commerce platform to reach millions of customers in the United States. By following the step-by-step guidelines and utilizing services like Fulfillment by Amazon (FBA), you can streamline your operations, enhance customer experience, and maximize your profits. Remember, starting an export business on Amazon is not only financially rewarding but also a gateway to international growth and success. So, take the plunge and embark on your journey to become a successful Amazon seller in the United States.