The Real Cost of Selling on Amazon USA from India: A 2026 Breakdown
Most cost guides for Indian sellers quote only the cheapest line item and skip the rest, which is how people end up surprised. This is the honest version: every cost to get from "I want to sell on Amazon USA" to "my product is live and selling," split into one-time setup, per-shipment, ongoing Amazon fees, and annual compliance, with realistic 2026 figures.
One-time setup (LLC + EIN + bank): roughly $500–$1,500 depending on whether you DIY or use an operator.
Per shipment: freight + duty + FBA prep, scaling with volume.
Ongoing Amazon: $39.99/mo plan + 8–15% referral + FBA fees + PPC.
Annual compliance: Form 5472/1120 + state filing — budget for it, because missing Form 5472 is a $25,000 penalty.
The cheap number you saw online is real — it is just not the whole number.
What's in this guide
The four cost buckets
The reason cost guides feel misleading is that they mix four very different kinds of cost into one number. To budget honestly, separate them: one-time setup (paid once to exist as a US business), per-shipment costs (every time inventory moves from India), ongoing Amazon costs (charged on every sale), and annual compliance (filed once a year, with real penalties for skipping). A figure like “start for $200” is usually quoting only the first bucket, and only the cheapest version of it.
One-time setup costs
This is the cost to become a functioning US business: form the LLC, get the EIN, and open a US bank account. The range is wide because it depends on whether you assemble it yourself across separate vendors or use a single operator.
| Item | Typical cost | Notes |
|---|---|---|
| LLC state filing fee | $60–$300 | Varies by state; Texas/Wyoming low, Delaware higher |
| Registered agent (year 1) | $100–$300 | Often bundled with formation |
| EIN filing | $0–$300 | Free if you file Form SS-4 yourself; a fee if done for you |
| US bank account | $0 | Mercury/Relay are free and remote |
| US business address | $0–$200/yr | Often included with an operator |
DIY, the setup can be very cheap in cash — but it costs you weeks of learning, the risk of an EIN rejection, and the Form 5472 trap later. Through a single operator it is more like $500–$1,500 all-in, with the filings done correctly the first time. To model your exact setup, use our US LLC cost calculator, and for the state question see our Texas vs Wyoming vs Delaware comparison.
Per-shipment costs
Every time inventory moves from India to the US, you pay freight, duty, and prep. These scale with volume, so the per-unit cost falls as your shipments get larger.
- Freight: air from roughly $4–$6/kg (fast), ocean LCL much cheaper per unit but slower. See our shipping calculator for air-vs-sea.
- Customs duty: depends on your HTS code and product category; build it into your landed cost. Details in our customs clearance guide.
- FBA prep: per-unit labeling, poly-bagging, and inbound; compared in our FBA prep cost comparison.
Ongoing Amazon costs
These hit on every sale and every month you operate, and they are the costs most likely to quietly erode margin if you do not model them upfront.
| Cost | Amount | Frequency |
|---|---|---|
| Professional seller plan | $39.99 | Monthly |
| Referral fee | 8–15% of sale | Per sale |
| FBA fulfillment fee | Varies by size/weight | Per unit sold |
| FBA storage fee | Varies; higher in Q4 | Monthly |
| Advertising (PPC) | Your budget | Ongoing |
The full per-fee math is broken down in our Amazon FBA fees explained post, and you can pressure-test a product’s margin with our profit margin calculator before you commit inventory.
Annual compliance costs
This is the bucket DIY sellers forget, and it is the one with teeth. A foreign-owned single-member LLC must file Form 5472 plus a pro-forma Form 1120 every year, even at zero revenue, and missing Form 5472 carries a $25,000 penalty. Add the state annual filing (zero tax for most small sellers but the filing is still required) and, if you sell off-Amazon, sales-tax handling. A CPA typically charges a few hundred to ~$1,500 for the federal filings. None of this is optional, and it recurs every year. The full picture is in our tax guide.
A realistic first-year example
Putting the buckets together for a modest first launch: setup through an operator (~$1,000), a first air shipment of inventory with prep (varies with your product, but plan for a few hundred to a couple thousand dollars all-in), the monthly Amazon plan ($480/yr), referral and FBA fees on whatever you sell, a starter PPC budget, and year-one compliance ($500–$1,500). The honest takeaway: the *setup* can be under $1,500, but a *realistic, funded first year* — setup plus inventory plus fees plus compliance — runs meaningfully higher, and you should budget for inventory and ads as the largest variable line, not the LLC.
Where sellers underestimate
Three costs catch people out. First, annual compliance — skipped by DIY sellers until a penalty notice arrives. Second, FBA storage in Q4, which punishes overstocking (one reason buffer-stocking in a US warehouse beats sending everything to FBA, as we cover in our 3PL vs FBA comparison). Third, PPC during launch, which is a real, ongoing cost, not a one-time fee. Budget for all three from day one and the “real cost” stops being a surprise.
Want your exact numbers instead of ranges? Think14 handles setup, FBA prep, and annual compliance as one quoted package — and our cost calculator gives you a first-year estimate in two minutes.
Frequently asked questions
How much does it cost to start selling on Amazon USA from India?
Becoming a functioning US business (LLC + EIN + bank) costs roughly $500–$1,500 through an operator, or less in cash if you DIY. But a realistic first year also includes inventory, freight, FBA prep, Amazon fees, PPC, and annual compliance — inventory and ads are usually the largest costs, not the LLC.
What is the cheapest way to set up?
Filing the LLC and EIN yourself and using free banks (Mercury/Relay) minimises cash cost, but adds weeks, the risk of an EIN rejection, and the chance of missing the Form 5472 filing later. Many sellers use an operator to avoid those risks.
What ongoing costs does Amazon charge?
A $39.99/month professional plan, referral fees of 8–15% per sale, per-unit FBA fulfillment fees, monthly storage fees (higher in Q4), and whatever you spend on PPC advertising.
What is the biggest cost sellers forget?
Annual compliance. A foreign-owned LLC must file Form 5472 and a pro-forma Form 1120 yearly even at zero revenue, and missing Form 5472 is a $25,000 penalty.
Is selling on Amazon USA from India worth the cost?
It can be, given the size of the US market, but only if you model all four cost buckets first. Use a profit margin calculator on your specific product before committing inventory.