Amazon FBA (Fulfilment by Amazon) is one of the most powerful business models available to Indian entrepreneurs today. You source the product, send it to Amazon's warehouse, and Amazon handles storage, packing, shipping, customer service, and returns.
You focus on products and marketing. Amazon handles the logistics.
This guide walks you through everything you need to know to start selling FBA on Amazon.in — from registering your account to shipping your first inventory.
What is Amazon FBA?
FBA stands for Fulfilment by Amazon. Here's how it works:
- You create product listings on Amazon.in
- You ship your inventory to Amazon's fulfilment centres across India
- When a customer orders, Amazon picks, packs, and ships the product
- Amazon handles customer queries, returns, and refunds for FBA orders
- Amazon pays you your earnings every 7 days (after deducting FBA fees)
The key benefit: Your products become eligible for Amazon Prime, which significantly increases conversion rates. Prime customers buy more and return less.
Is Amazon FBA Right for You?
FBA works best when:
- Your products are small and lightweight (FBA fees are weight/size based)
- You want to scale without building a warehouse operation
- Your margins can absorb FBA fees (typically 15-30% of selling price, depending on category)
- You're selling products with consistent demand, not highly seasonal SKUs
FBA may not be ideal if:
- Your products are very heavy or oversized (FBA fees will eat into margins)
- You have very low-margin products where FBA fees are proportionally large
- You're selling highly perishable or temperature-sensitive products
Step 1: Register as an Amazon Seller
Go to sell.amazon.in and click "Register Now".
You'll need:
- GST number (mandatory for FBA sellers in India)
- PAN card (individual or business)
- Bank account details (Indian bank, preferably current account)
- Mobile number linked to your Aadhaar
- Email address
Choose between:
- Individual plan: ₹0/month, but you pay ₹99 + taxes per item sold. Good for testing.
- Professional plan: ₹999/month + taxes. Required for FBA, Brand Registry, A+ Content, and advertising.
Go with Professional from day one if you're serious about FBA.
Step 2: Set Up GST and Tax Information
Amazon India requires GST compliance. Once registered:
- Go to Seller Central → Settings → Tax Settings
- Enter your GST number(s) — you can have multiple state GSTs
- Set your tax collection methodology (Amazon calculates and collects GST on your behalf for most categories)
If you don't have GST yet, you'll need to register under GST first. For most product categories, you'll need a GSTIN to start selling.
Step 3: Choose Your Products
This is where most new sellers go wrong — picking products based on what they like rather than what the market actually wants.
Product Research Framework
Look for products that have:
- Proven demand: 300+ monthly sales across the top 10 listings in the category
- Manageable competition: The top sellers have < 500 reviews (so you can compete)
- Good margins: Selling price ≥ 3-4x your landed cost (after FBA fees + shipping + cost of goods)
- Low seasonality: Consistent sales year-round
- No dominant brands: Categories where a single brand has 80%+ market share are hard to enter
Use these tools for research:
- Helium 10 (most comprehensive)
- Jungle Scout
- Amazon's own Best Sellers and Movers & Shakers lists
- Google Trends for seasonal analysis
The Margin Calculation
Before committing to a product, calculate your net margin:
Selling Price (SP): ₹999
Amazon Referral Fee (8-15% of SP): ₹120
FBA Fee (storage + fulfilment): ₹80
Cost of Goods Sold: ₹250
Shipping to Amazon: ₹30
Advertising Cost (10-15% of SP): ₹100
Net Margin: ₹999 - ₹120 - ₹80 - ₹250 - ₹30 - ₹100 = ₹419 (~42%)
Aim for net margins of 25%+ after all fees and advertising. Anything below 15% is very difficult to scale profitably.
Step 4: Source Your Products
Option A: Domestic Sourcing (India)
- IndiaMart / TradeIndia: India's largest B2B directories. Good for sourcing from Indian manufacturers and wholesalers.
- Direct from manufacturers: Find factories on IndiaMart, visit trade shows (Delhi Haat, various state-level trade fairs), or contact manufacturers directly.
Advantages: No import duties, faster lead times, easier returns/replacements, support for Indian brands and GST compliance.
Option B: International Sourcing (China, etc.)
- Alibaba / Made-in-China: For manufacturing to your specification
- AliExpress: For smaller initial test orders (not ideal for scale)
- Freight forwarders: Essential for managing customs, duties, and shipping
Be aware of: Import duties (can be 20-40% on many categories), GST on imports, minimum order quantities, longer lead times, quality control challenges.
For beginners, domestic sourcing from India is simpler and lower risk. Start there.
Step 5: Create Your Product Listing
Your listing is your most important conversion asset. A great product with a poor listing will fail.
The 5 Elements of a High-Converting Listing
1. Title (most important for SEO)
Format: [Brand] [Main Keyword] [Secondary Keyword] [Key Feature] [Quantity/Size]
Example: Zurich Stainless Steel Water Bottle 1 Litre | Leak Proof Insulated Flask | BPA Free | For Office, Gym & Outdoor Use
- Include your primary keyword in the first 80 characters
- Use all available characters (up to 200 for most categories)
- No promotional language ("best", "cheapest", "#1") — Amazon may suppress
2. Bullet Points (5 bullets) Each bullet should address one benefit. Lead with the benefit, then explain the feature.
Format: BENEFIT: Feature explanation. [Adds context or use case]
Example: STAYS COLD FOR 24 HOURS: Double-wall vacuum insulation technology keeps drinks cold all day and hot for 12 hours — perfect for long commutes or outdoor adventures
3. Product Description / A+ Content If you have Brand Registry, use A+ Content (brand story + enhanced images + comparison tables). This significantly improves conversion rates.
For non-branded sellers, the product description allows more detail — use it to address purchase objections.
4. Backend Keywords The search terms field (not visible to customers) is crucial for discoverability. Include:
- Synonyms and alternate spellings
- Spanish/Hindi keywords if relevant
- Competitor keywords (without using competitor brand names)
- Long-tail phrases not in your title
5. Images
- Minimum 6 images, ideally 7-9
- Main image: Product on white background, fills 85%+ of frame
- Lifestyle images: Product in use, by real people in real contexts
- Infographic images: Call out key features and benefits with text overlays
- Size/dimension image: Show scale with a person or common object
- Comparison chart: How your product compares on key specifications
Step 6: Enrol in FBA and Create a Shipment
In Seller Central:
- Go to Inventory → Manage Inventory
- Click "Edit" on your listing, then "Change to Fulfilled by Amazon"
- Click "Convert & Send Inventory"
- Amazon will assign you to a fulfilment centre
- Prepare your inventory per Amazon's packaging requirements
- Print FBA labels (FNSKU labels) and attach to each unit
- Ship your inventory to the assigned FC
Important packaging requirements:
- Each unit must have a scannable barcode (FNSKU or EAN/UPC)
- Products must be properly poly-bagged or boxed to protect against damage
- Expiry dates must be visible for food/health products
- Suffocation warnings on poly bags for baby/child products
Step 7: Launch and Get Initial Reviews
The biggest challenge for new FBA sellers: getting initial reviews.
Legitimate strategies:
- Vine Programme: Amazon's official review programme (requires Brand Registry). Send free units to Vine reviewers.
- Buyer-Seller Messaging: Amazon's messaging system allows you to send a follow-up message requesting a review (one message per order, no incentivising)
- "Request a Review" button: In Seller Central, you can request a review on each order within 5-30 days of delivery — highly recommended
Never:
- Buy reviews
- Offer free products or discounts in exchange for reviews
- Ask friends/family to leave reviews (Amazon detects and removes these)
Amazon's algorithm heavily weights review velocity in the first 30 days of a new listing. Even 5-10 reviews can dramatically improve your ranking.
Step 8: Run Amazon Sponsored Ads
FBA sellers need advertising to get initial visibility. Amazon's Pay-Per-Click (PPC) platform is essential for new listings.
Start with:
- Auto campaign: Let Amazon match your ads to relevant searches. Run for 2 weeks to collect data.
- Manual exact campaign: Take your best-performing keywords from the auto campaign and target them exactly.
- Manual phrase campaign: Add phrase match for additional reach.
Starting bid: ₹10-20 for most categories. Adjust based on your conversion rate.
Key metrics to watch:
- ACoS (Advertising Cost of Sale): Total ad spend ÷ ad-attributed revenue. Aim for below your target gross margin.
- CTR (Click-Through Rate): Below 0.3% means your title or main image isn't compelling enough.
- CVR (Conversion Rate): Below 10% means your listing or price needs work.
Common FBA Mistakes to Avoid
- Not checking FBA fees before choosing a product — Use Amazon's FBA Revenue Calculator (free tool in Seller Central)
- Sending too much initial inventory — Start with 30-60 days of expected sales to limit storage fees
- Ignoring IPI score — Amazon's Inventory Performance Index affects your storage limits; keep IPI above 400
- No repricing strategy — Prices on Amazon change frequently. Use a repricer to stay competitive.
- Ignoring negative reviews — Respond professionally. Amazon customers read seller responses.
- One listing, no variations — If your product comes in multiple sizes or colours, create a parent-child variation listing for better ranking consolidation
Your First 90 Days on Amazon FBA
Days 1-30: Setup, listing creation, initial inventory shipment, launch auto PPC campaigns
Days 31-60: Review collection, PPC optimisation, listing refinement based on search term data
Days 61-90: Scale budget on profitable keywords, address inventory levels, apply for Brand Registry if you have a trademark, plan second product
Need Help Launching on Amazon FBA?
Our ecommerce team has helped brands launch and scale on Amazon.in across dozens of categories. From listing creation and A+ Content to PPC management and FBA logistics — we handle the full setup so you can focus on building your brand.