From Local to Global: Navigating Amazon’s Global Selling Journey

As Amazon says: “India se duniya tak ka safar” – Global Selling

The journey from a local business to a global powerhouse is within reach for sellers in India and around the world, thanks to Amazon’s Global Selling program. But before diving into global markets, it’s essential to understand how Global Selling differs from Local Selling, the steps involved, and the key benefits of this program.

Local Selling

  As the term “local” implies, this involves selling within the geographical boundaries of your own country. For example, if you’re based in India and sell products across India, that’s Local Selling. This type of selling is more straightforward, as it doesn’t require special licenses or certifications. You purchase products, list them on Amazon, and can start selling immediately within the country.  

Global Selling

  Global Selling is different; it entails selling products outside your country’s borders. In this case, if you’re in India, any products you sell internationally qualify as Global Selling. Unlike local selling, this does require additional documentation and setup, including export codes and compliance with various international trade standards.  

What is Amazon Global Selling?

  Launched in 2015, Amazon Global Selling is Amazon’s flagship program designed to help Indian sellers export their products to international markets. Initially, this program began with just 100 exporters, but it has since grown exponentially, reaching over 150,000 Indian exporters as of September 2024. The program now supports exports to 21 countries, including prominent markets like the United States, United Kingdom, Germany, Japan, and Australia, to name a few.

This rapid expansion has made Amazon Global Selling one of the most popular platforms for Indian sellers to reach customers around the globe and establish a foothold in new markets.   

Registration Process for Global Markets

  To start with Amazon Global Selling, sellers must register for each country they intend to sell in. Amazon categorizes its markets into regions, allowing sellers to reach multiple countries with a single registration for certain territories. For example:

Amazon North America includes the United States, Canada, and Mexico. By registering for this group, sellers can automatically gain access to all three countries.

Amazon Europe covers the United Kingdom, Germany, France, Italy, Spain, and others. Registering in Europe gives sellers access to all these markets without the need for individual registrations.

This saves time and effort for sellers and helps them establish a larger footprint without repetitive registrations. However, some countries, like Japan and Australia, require individual registration due to separate market regulations. 

Myth-Busting:

  A common myth is that you must start with local selling before going global, but this is not true. Sellers can directly register for Global Selling without ever having sold locally. However, having local selling experience can give you an edge, as it allows you to test product demand, build initial reviews, and adapt logistics before expanding internationally.

Another advantage is that sellers do not need to create a new Amazon account for Global Selling. Your existing account can be used, and if you have reviews or ratings on your products locally, these can carry over to your global listings, increasing trust with new customers abroad.   

Essential Documentation for Global Selling

Many sellers assume the documentation process for Global Selling is complicated, but in reality, it is quite manageable. Here’s what you’ll need:

1. Email and Phone Number: Active contact details are essential for registration and ongoing communications.
2. Bank Account: You need a bank account, either savings or current, to receive payments.
3. Identity Proof: A valid ID, such as a passport, Aadhaar, PAN card, or driver’s license, is required to verify your identity.
4. Import Export Code (IEC): This 10-digit code, issued by the Directorate General of Foreign Trade (DGFT), is mandatory for all exporters. This code is crucial for customs purposes and to ensure that your trade data is accurately recorded.
5. Authorized Dealer Code (ADC): A 14-digit code issued by your bank, necessary for customs clearance and obtaining government benefits for your exports.
6. Amazon Subscription Fee: Amazon charges $39.99 monthly for Global Selling accounts. This fee is applicable regardless of your sales volume.
7. International Credit Card: All Amazon Global Selling transactions must be conducted through an international credit card.

Shipping Options for Global Selling

Once you’re set up with Amazon Global Selling, there are two primary options for fulfilling international orders:

1. Fulfillment by Amazon (FBA): With FBA, you send your products to Amazon’s warehouses in your target market, and Amazon manages the entire fulfillment process—from storage to packing, shipping, and even handling returns.
• Pros: Fast delivery (1-2 days) increases customer trust and satisfaction.
• Cons: If demand is low, you may incur high storage fees, and retrieving unsold stock from international warehouses can be costly due to customs fees and logistical costs.

2. Merchant Fulfillment Network (MFN): Here, you manage shipping and fulfillment yourself or partner with a logistics provider like DHL. Orders are shipped as they come in, directly from your location.

   • Pros: Minimizes the risk of dead stock since products are only shipped upon order placement.
   • Cons: Shipping times are longer (around 8-10 days), which may impact customer satisfaction.

GST Treatment for Exports

Amazon Global Selling requires sellers to have a GST registration, even though exports are zero-rated, meaning no GST is charged to foreign customers. There are two primary approaches to managing GST for exports:

1. Export Under LUT Without IGST: An LUT (Letter of Undertaking) allows you to export goods without paying IGST. This exemption is particularly beneficial as it enables you to claim refunds on input tax credits (ITC) for GST paid on raw materials, packaging, etc. You must renew your LUT annually on the GST portal.
2. Export with IGST Payment: If you do not have an LUT, you’ll need to pay IGST on your exports, which can be claimed as a refund after shipment. You’ll raise export invoices that include GST, file returns, and the GST system processes refunds automatically when your shipping and GST data match.

Key Points to Keep in Mind

1. Bank Account Alignment: As per RBI guidelines, your bank account for Global Selling must be the same as the account where you apply for your AD Code to streamline the payment process. This ensures a smooth “bill squaring off” process, where export bills are closed automatically as soon as payments are received.
2. Monthly Subscription Fees: Keep in mind the mandatory $39.99 subscription fee Amazon charges for Global Selling accounts, regardless of sales activity.
3. Leveraging Reviews and Ratings: If you’re selling the same product both locally and globally, using one account allows you to carry over reviews and ratings to your global listings, giving you a strong starting point with international customers.

Final Thoughts

Global Selling on Amazon is a transformative opportunity for sellers to expand their reach and grow their businesses internationally. With the right preparation, documentation, and understanding of shipping and GST requirements, you can tap into new markets and connect with millions of customers worldwide.

Start your journey from India se duniya tak!  

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About the Author:-

Amar Bedi initiated his E-commerce venture 7 years back after receiving 6 months of comprehensive training in New York, New Jersey, and Los Angeles (LA). During this time, he gained valuable insights into the operations of E-commerce businesses centered around Amazon, working with top-tier companies.

He possesses over 16 years of industry experience, including 8 years of national and international E-commerce exposure. In 2015, he successfully relocated their E-commerce operations to India. Throughout his E-commerce journey, he has successfully facilitated over $70 million (Rs 500 Cr+) in domestic and international sales through the Amazon platform for his clients and his company. He has collaborated with prominent international brands and established partnerships with leading brands in India. Now, after accumulating 8 years of extensive E-commerce expertise, he is eager to share his journey and give back to the community.