When starting an Amazon business, one of the biggest decisions sellers face is whether to sell on Amazon India (Amazon.in) or Amazon USA (Amazon.com). Both marketplaces offer great opportunities, but profitability depends on multiple factors such as demand, competition, fees, and logistics. In this blog, we will compare Amazon India vs. Amazon USA to help you decide which marketplace is more profitable for your business.
1. Market Size & Customer Base
Amazon India
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Amazon India has a rapidly growing e-commerce market, with millions of active users.
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The Indian consumer base is price-sensitive, which means lower profit margins but higher sales volume.
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The competition is fierce, especially in popular categories like fashion, electronics, and home essentials.
Amazon USA
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The USA has one of the largest e-commerce markets in the world, with millions of high-spending customers.
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Consumers in the USA are more inclined to premium products and higher-priced items.
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The competition is intense, but sellers with a unique product and solid marketing strategy can generate higher profits.
Verdict: If you want high sales volume, Amazon India is a good option. If you prefer higher profits per sale, Amazon USA is better.
2. Selling Fees & Costs
Amazon charges different selling fees depending on the marketplace.
Amazon India Fees
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Referral fees: 5% – 20% (varies by category)
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Closing fees: ₹5 – ₹50 per unit (depends on price range)
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Fulfillment fees (FBA): ₹30 – ₹100 per unit (depends on weight)
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GST (Goods & Services Tax): 18% on seller fees
Amazon USA Fees
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Referral fees: 8% – 45% (varies by category)
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Fulfillment fees (FBA): $2.50 – $10 per unit (depends on size & weight)
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Storage fees: Higher than India, especially during peak seasons
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Sales tax: Varies by state (usually 6% – 10%)
Verdict: Amazon India has lower selling fees, making it easier for beginners. However, Amazon USA has higher revenue potential despite slightly higher costs.
3. Competition & Product Demand
Amazon India
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The demand for affordable products is high, but price wars are common.
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Indian sellers face competition from local brands and Chinese imports.
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Seasonal sales (Diwali, Holi, and festive discounts) drive massive sales.
Amazon USA
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There is a large market for premium and niche products.
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Sellers can target different customer segments (luxury, organic, eco-friendly).
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Amazon USA has fewer restrictions on product categories compared to Amazon India.
Verdict: Amazon USA offers more opportunities for niche and high-margin products, while Amazon India is better for budget-friendly and high-demand items.
4. Logistics & Shipping Costs
Amazon India
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Amazon’s FBA (Fulfillment by Amazon) and Easy Ship programs simplify logistics.
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Shipping costs within India are lower, making it easier for new sellers to operate.
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COD (Cash on Delivery) is a preferred payment method, adding complexity for sellers.
Amazon USA
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FBA fees and shipping costs are higher, but Prime customers boost sales.
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Sellers outside the USA may face customs duties & international shipping challenges.
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Partnering with a 3PL (Third-Party Logistics) provider can help reduce shipping costs.
Verdict: If you’re based in India, Amazon India is easier to manage. If you can handle international shipping, Amazon USA has higher profit potential.
5. Currency Exchange & Payment Settlements
Amazon India
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Payments are settled in INR (Indian Rupees), and GST applies to sales.
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Payouts take 7-14 days after order delivery.
Amazon USA
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Payments are settled in USD (US Dollars).
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If selling from India, you need to convert USD to INR (exchange rate fluctuations may impact profits).
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Payouts take every 14 days.
Verdict: If you want stable payments in INR, Amazon India is preferable. If you want to earn in USD with higher exchange rates, Amazon USA is a better choice.
Conclusion: Which One is More Profitable?
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If you want higher sales volume and lower fees, Amazon India is a good choice.
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If you want higher profit margins and access to premium customers, Amazon USA is more profitable.
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If you are an Indian seller exporting globally, Amazon USA allows you to earn in dollars and target a wealthier customer base.
