Is Selling on Amazon USA from India Profitable? Real Unit Economics

Short answer: Yes, for the right category. The US Amazon marketplace pays a 30–80% premium over India for premium D2C goods. The question is whether your unit economics survive the stack of fees on top.

Here is the typical Amazon USA cost stack for an Indian brand selling at a $20 retail price point:

• Cost of goods (India ex-works): $4–$6 typical for beauty, supplements, kitchen.
• Air freight + customs: $1.50–$3.00 per unit on small SKUs (under 500g).
• Amazon referral fee: 15% on most consumer categories → $3.00 on a $20 SKU.
• FBA fulfilment: $3.06–$5.50 per standard-size unit.
• Long-term storage: typically negligible if turn > 30 days.
• Ads (TACoS): 12–18% mature → $2.40–$3.60 per $20 sold.
• Returns (5–8% rate): $1.00 effective on a $20 SKU.

Net contribution margin at $20 retail on a $5 COGS product: approximately $4–$5, or 20–25%. That is good but tight — the categories that compound past year 1 are the ones where unit economics improve as you scale.

Categories that work: premium beauty + skincare, kitchen tools, organic snacks/supplements, home accents, ethnic apparel. Categories that struggle: cheap commodity goods (low ticket, high return), oversized items (storage + freight), category-restricted goods (alcohol, vaping, hazmat).

The single biggest hidden cost we see Indian brands miss: returns. A 25% return rate in apparel will eat any margin advantage. Build a realistic return rate into your launch P&L from day one.

Want a per-SKU unit-economics workbook for your specific catalog? Free on the first call.