As an Indian exporter selling on Amazon.com (USA) via Fulfillment by Amazon (FBA), one of the biggest financial challenges is misalignment between the invoice value and the actual payout received after Amazon’s deductions. Many sellers assume they will receive close to their invoice amount, but in reality, Amazon fees, shipping, customs, and advertising costs reduce the received amount to as low as 50% of the invoice value.
The Solution? Adjust Your Invoice by 30-40% or even more!
To ensure your invoice covers all expenses and still allows for profitability, you must strategically increase the invoice value by 30-40% to match actual earnings. This blog provides a practical method to calculate and adjust your invoice for better financial planning and smoother cash flow.
Most exporters generate an invoice equal to the total selling price on Amazon:
| Invoice Component |
Amount (INR/USD) |
| Total Sales (100 Units x 2,000 per unit) |
2,00,000 ($2,400) |
| GST (Exports – LUT Applied, 0%) |
0 ($0) |
| Total Invoice Amount |
2,00,000 ($2,400) |
Issue: While this invoice correctly represents sales, it does not reflect actual cash flow. After Amazon fees, logistics, and other deductions, the amount received in the bank account is much lower.
Deductions & Fees Breakdown
| Fee Type |
Amount Per Unit (INR/USD) |
Total for 100 Units (INR/USD) |
% of Invoice Amount |
| Amazon Referral Fee (15%) |
300 ($3.60) |
30,000 ($360) |
15% |
| FBA Fulfillment Fee (Shipping, Handling, Storage) |
400 ($4.80) |
40,000 ($480) |
20% |
| Amazon Closing Fee |
20 ($0.24) |
2,000 ($24) |
1% |
| Amazon Storage Fee (Per Unit) |
10 ($0.12) |
1,000 ($12) |
0.5% |
| Amazon PPC Ads (Estimated 10%) |
200 ($2.40) |
20,000 ($240) |
10% |
| Product Cost (Manufacturing, Packaging) |
600 ($7.20) |
60,000 ($720) |
30% |
| Shipping from India to USA (Avg.) |
200 ($2.40) |
20,000 ($240) |
10% |
| Import Duty & Taxes (5%) |
100 ($1.20) |
10,000 ($120) |
5% |
| Miscellaneous Costs (Returns, Damage, etc.) |
50 ($0.60) |
5,000 ($60) |
2.5% |
| Total Deductions & Expenses |
1,880 ($22.56) |
1,88,000 ($2,256) |
94% |
Net Amount Received in Bank Account
- Total Invoice Value: 2,00,000 ($2,400)
- Total Deductions: 1,88,000 ($2,256)
- Final Payout Received: 12,000 ($144) (Only 6% of the invoice amount!)
If a low amount is received for an export transaction, it may lead to an Electronic Bank Realization Certificate (eBRC) issue, potentially affecting export compliance.
Instead of invoicing only for the selling price of 2,000 ($24) per unit, we increase the invoice by 35% to account for expenses and ensure higher net earnings. Now let us take the new example
New Invoice Calculation (35% Higher Invoice)
| Calculation Component |
Original Invoice (INR/$) |
Adjusted Invoice (INR/$) (35% Increase) |
| Selling Price per Unit |
2,000 ($24) |
2,700 ($32.40) |
| Total Invoice Value (100 units) |
2,00,000 ($2,400) |
2,70,000 ($3,240) |
"By increasing the invoice amount, we ensure a better payout. However, the percentage increase must depend on the product and actual trade cycle expenses. Here, we have taken a percentage just for your basic understanding of different scenarios."
Expected Amount Received After Deductions
Even after increasing the invoice, Amazon will still deduct its fees and expenses. However, the final received amount will now be closer to 70% of the new invoice instead of 50%.
Updated Payout Calculation
| Deduction Type |
Original Invoice (INR/$) |
Adjusted Invoice (INR/$) |
| Amazon Referral Fee (15%) |
30,000 ($360) |
40,500 ($486) |
| FBA Fulfillment Fee (Shipping, Handling, etc.) |
40,000 ($480) |
40,000 ($480) |
| Amazon Closing Fee |
2,000 ($24) |
2,000 ($24) |
| Storage & Misc. Amazon Costs |
1,000 ($12) |
1,000 ($12) |
| Amazon PPC Advertising (10%) |
20,000 ($240) |
27,000 ($324) |
| Product Manufacturing & Packaging |
60,000 ($720) |
60,000 ($720) |
| International Shipping (India to USA) |
20,000 ($240) |
20,000 ($240) |
| Customs Duty & Import Taxes (5%) |
10,000 ($120) |
13,500 ($162) |
| Miscellaneous Costs (Returns, Damages, etc.) |
5,000 ($60) |
6,750 ($81) |
| Total Deductions & Expenses |
1,68,000 ($2,016) |
2,10,750 ($2,529) |
Final Amount Received in Bank Account
- Original Invoice Scenario: 1,00,000 ($1,200) (50% received)
- Adjusted Invoice Scenario: 59,250 ($711) (70% received!)
By increasing the invoice, you receive a significantly higher payout and avoid unnecessary losses.
Why This Works (The Financial Logic)
-
Amazon’s deductions are based on selling price, NOT invoice value.
- When you increase your invoice, the Amazon fees remain the same, but your final payout increases.
-
Customs duties are charged on declared invoice value.
- Increasing the invoice helps better cover import costs.
-
PPC ad costs increase over time.
- A higher invoice ensures you don’t go into loss due to advertising expenses.
-
Better currency conversion rates.
- Banks often deduct forex conversion charges; a higher invoice offsets these losses.
Why You Should Increase Your Invoice by 30-40%
| Factor |
Before Adjustment |
After Invoice Adjustment (35% Higher) |
| Total Invoice Value |
2,00,000 ($2,400) |
2,70,000 ($3,240) |
| Amazon Fees & Expenses |
1,00,000 ($1,200) |
1,89,000 ($2,268) |
| Net Amount Received |
1,00,000 ($1,200) |
59,250 ($711) |
| % of Invoice Amount Received |
50% |
70% |
Increase invoice value by 30-40% to improve cash flow.
Ensure the invoice aligns with Amazon’s payout reality (not just the selling price).
Track deductions and adjust pricing strategies accordingly.
Negotiate shipping & advertising costs for better profitability.
Now let us understand Invoice & Payment Management for Indian Amazon Exporters: Holding Funds in USD for Better Cash Flow
A powerful solution to this problem is using a payment gateway that allows holding funds in USD, instead of receiving direct payments from Amazon into an Indian bank account. This strategy allows Indian exporters to:
Hold USD funds until the exchange rate is favorable
Withdraw money at the right time to maximize conversion value
Better manage invoicing and financial reporting
In this blog, we explore the best payment service providers that allow Indian exporters to hold funds in USD before withdrawing to INR, and how to use them strategically.
Step 1: Understanding Why Holding USD Payments is Important
Typically, when Amazon pays sellers in India, the amount is automatically converted to INR and deposited into their bank account. This creates three key problems:
-
Currency Fluctuations
- Amazon converts USD to INR at its own exchange rate, which is often 2-3% lower than real-time forex rates.
- If you could hold funds in USD, you could withdraw when INR is weaker, maximizing your payout.
-
Invoice Adjustments & Taxation
- Once the money is deposited in INR, you cannot adjust your invoice or manage the forex component.
- Holding funds in USD allows better invoicing flexibility and tax planning.
-
Cash Flow Optimization
- Many exporters need funds in USD to pay international suppliers, logistics, or Amazon PPC campaigns.
- If the money is directly converted to INR, you lose the ability to use USD for business expenses.
To solve this, Indian exporters can use payment gateways that allow them to hold, manage, and withdraw USD funds at the right time.
Step 2: Best Payment Solutions for Holding Amazon Payouts in USD
Several payment service providers offer USD holding accounts for Indian sellers. Below are the top platforms:
1. PingPong Payments
Allows Holding USD Funds
Lower Forex Conversion Fees (Better Than Amazon)
Faster Withdrawals to Indian Bank Accounts
Supports Amazon FBA Sellers
Can Pay International Suppliers in USD
How It Works:
- Register for a PingPong USD account.
- Amazon pays the USD amount into PingPong instead of directly into your Indian bank.
- You can hold USD and withdraw when rates are favorable.
- You can also pay Amazon fees, suppliers, or reinvest in ads directly in USD.
2. Payoneer
Holds USD, GBP, EUR, and Other Currencies
Allows Direct Payments to Suppliers
Accepted by Amazon for Payouts
Withdrawal Flexibility (Set Your Own Rate & Timing)
Why It's Useful:
- It allows sellers to hold USD and withdraw at the best forex rates.
- Funds can also be used for paying business expenses in USD.
3. WorldFirst
Provides Multi-Currency Holding Accounts
Competitive Forex Rates
Good for Global Business Payments
Works with Amazon & Other Marketplaces
Why It's Useful:
- Offers a dedicated USD account where Amazon can deposit earnings.
- You can hold the funds indefinitely and withdraw at the best rates.
4. Wise (Formerly TransferWise)
Multi-Currency Account (Including USD Holding)
Low Forex Conversion Fees
Easy Withdrawals to INR at Live Rates
Why It's Useful:
- Allows sellers to store funds in USD, convert when needed, and withdraw at the best rates.
- Ideal for exporters who frequently deal in multiple currencies.
Step 3: How to Set Up a USD Holding Account for Amazon Payouts
Follow these steps to switch from direct INR deposits to a USD holding system:
Step 1: Choose the Right Payment Gateway
- If you want maximum flexibility, go for PingPong or Payoneer.
- If you need multi-currency holding, WorldFirst is a strong option.
- If you want low conversion fees, Wise is excellent.
Step 2: Register & Get a USD Receiving Account
- Create an account with the payment service provider.
- They will issue a USD virtual account (e.g., PingPong will give a USA bank account number).
- This account can be added to Amazon Seller Central as the default receiving account.
Step 3: Update Amazon Seller Central Payout Settings
- Log in to Amazon Seller Central
- Go to Payment Settings > Deposit Methods
- Enter the USD account details from PingPong, Payoneer, or WorldFirst
- Save changes and verify
Step 4: Start Holding USD & Withdraw When Profitable
- Amazon will now pay in USD to your PingPong/Payoneer/WorldFirst account instead of converting to INR.
- Monitor forex rates and withdraw only when the rate is favorable.
- If needed, use the USD balance to pay for suppliers, ads, and international expenses.
Step 4: How This Strategy Helps Invoice Management
Once funds are held in USD, Indian exporters gain better control over invoicing and tax reporting.
| Factor |
Before (Direct INR Deposits) |
After (USD Holding & Smart Withdrawals) |
| Exchange Rate Control |
Amazon decides the conversion rate (Lower) |
Seller decides when to convert (Higher) |
| Invoice Flexibility |
Fixed at time of sale |
Can adjust based on final withdrawal amount |
| Profit Margins |
Lower due to poor forex rates |
Higher due to strategic withdrawals |
| USD Expense Management |
Difficult (INR to USD conversions needed) |
Easy (Hold USD for direct payments) |
| Amazon Fee Payments |
Paid in INR |
Paid in USD (Saves forex charges) |
By using USD holding accounts, Indian exporters can optimize cash flow, protect profits, and ensure better invoicing flexibility.
Why Indian Amazon Exporter Should Use USD Holding Accounts
- Hold USD Instead of Immediate INR Conversion – Avoid forex losses and maximize earnings.
- Withdraw Money at the Best Exchange Rate – Get a 2-3% better rate compared to Amazon’s conversion.
- Better Invoice Control – Since withdrawals happen at the seller’s discretion, invoice amounts can be adjusted accordingly.
- Direct USD Payments for Ads, Logistics & Suppliers – Save on unnecessary conversion fees.
- Higher Net Profit – A smart payout strategy can increase total earnings by 5-10%.
By switching from direct INR payouts to USD holding accounts, Indian sellers can significantly improve profitability, optimize invoices, and gain full control over their earnings.
One of the biggest challenges Indian exporters face while selling on Amazon.com (USA) via Fulfillment by Amazon (FBA) is dealing with eBRC (Electronic Bank Realization Certificate) compliance. Since Amazon deposits payments in INR, sellers often struggle with documentation, especially when they use payment gateways like Payoneer or PingPong to hold USD before transferring funds to India.
A powerful solution to simplify eBRC compliance and manage export formalities smoothly is to set up a virtual company in the USA. This approach allows Indian sellers to:
Bypass complex eBRC documentation
Receive Amazon payouts as a local US business
Easily repatriate funds to India with proper documentation
Access better financial tools like business credit and tax benefits
Now let us explore how a virtual USA company can help Indian exporters solve eBRC issues, streamline international payments, and improve business operations.
Step 1: Understanding the eBRC Problem for Indian Amazon Sellers
What is eBRC?
The Electronic Bank Realization Certificate (eBRC) is a crucial document required for:
- Export compliance in India
- Claiming GST refunds under LUT (for zero-rated exports)
- Proving that foreign exchange payments have been received
The Challenge for Amazon Sellers
- Amazon does not issue eBRCs because it is a marketplace, not an importer.
- Payments from Amazon arrive via foreign remittance, but banks do not always classify them as export proceeds since Amazon acts as an intermediary.
- Using payment gateways like Payoneer or PingPong complicates eBRC reporting because funds are first received in a USD account before being withdrawn to an Indian bank.
What Happens Without eBRC?
- No GST Refunds on Exports – Indian sellers cannot claim their GST refunds under LUT (which can be 18% of the invoice value).
- Bank & Customs Compliance Issues – RBI requires eBRC for tracking foreign exchange inflows.
- Audit & Taxation Problems – Without eBRC, sellers may face higher tax liabilities due to misclassified income.
Step 2: How a Virtual Company in the USA Solves the eBRC Issue
A virtual USA company allows Indian exporters to receive Amazon payments as a US-based business. This helps in two key ways:
Amazon Pays to a USA Business Account Instead of Directly to India
- When you set up a virtual company in the USA (like an LLC in Delaware, Wyoming, or Florida), Amazon payments are made to your US business bank account.
- This eliminates the issue of classifying payments as export proceeds in India.
You Can Repatriate Funds to India with Proper Documentation
- Instead of receiving direct INR deposits from Amazon, your US company remits foreign exchange earnings to India as a business transfer.
- This simplifies the eBRC process since the money arrives as a legitimate export remittance from your own company rather than from Amazon.
Step 3: Setting Up a Virtual Company in the USA for Amazon FBA Sales
Step 1: Register a Virtual US Company (LLC or C-Corp)
- Choose a state with low fees and easy compliance (e.g., Delaware, Wyoming, Florida).
- Use services like Stripe Atlas, Firstbase.io, or ZenBusiness to register.
Step 2: Open a US Business Bank Account
- Get a US-based checking account using services like:
Mercury Bank
Relay Financial
Wise (for Business)
Brex (for larger businesses)
Step 3: Change Your Amazon Payout Method
- Update your Amazon Seller Central deposit details to your US business bank account instead of an Indian bank or Payoneer.
Step 4: Transfer Funds from the USA to India
- Instead of receiving direct payments from Amazon, your US business sends money to India as a business income transfer, which is easier to classify for eBRC compliance.
- Use international transfer services like Wise, Payoneer, or bank wire transfers to remit funds.
Step 4: How This Helps with eBRC Compliance
| Factor |
Without a USA Virtual Company |
With a USA Virtual Company |
| Amazon Payments |
Deposited to Indian bank (no eBRC) |
Deposited to US business bank |
| eBRC Compliance |
Difficult due to Amazon’s payout system |
Funds repatriated as proper export income |
| GST Refund Eligibility |
Hard to claim due to missing eBRC |
Easier to claim as official export proceeds |
| Foreign Exchange Control |
No control over Amazon’s forex rate |
Hold USD and transfer at best rates |
| Banking Issues |
Banks misclassify deposits as marketplace income |
Banks classify deposits as legitimate export revenue |
Step 5: Additional Benefits of a USA Virtual Company for Indian Exporters
Improved Access to International Banking – Hold USD in US banks and pay suppliers directly.
Lower Foreign Exchange Losses – Convert USD to INR at the best forex rates instead of accepting Amazon’s lower rates.
Better Tax Optimization – A US LLC can reduce tax liabilities for global earnings.
Access to Amazon Business Loans – US-based businesses get better financing options from Amazon & Payoneer.
No RBI Restrictions on Remittances – Since the money is repatriated as export income, RBI compliance is easier.
Why Every Serious Indian Amazon Exporter Should Consider a US Virtual Company
- Simplifies eBRC Compliance – Since funds are received in a US business account first, they can be transferred to India as export remittance.
- Solves Foreign Exchange Issues – Hold USD in a US bank and remit at the best forex rates.
- Improves GST Refund Claims – Proper export documentation ensures GST refunds are processed smoothly.
- Enhances Business Credibility – Having a US LLC makes you look more legitimate to American buyers and suppliers.
- Gives Better Financial Control – With a US-based company, you control cash flow, invoices, and international payments more effectively.
Need Help Setting Up a Virtual US Company for Your Amazon Business?
For expert consultation on US company formation, Amazon payouts, and eBRC compliance, contact us via WhatsApp:
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By implementing this strategy, Indian exporters can eliminate eBRC issues, optimize tax benefits, and maximize profits while selling on Amazon.com via FBA!
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