Build your base in the US first: a US company strategy for Amazon sellers

Selling in from outside vs. building from within

A seller operating from abroad always enters the US system as a guest: payment processors offer foreign companies limited options, marketplaces ask for extra documents, every transfer loses money to currency conversion, and months pass between production and sale. With a structure built inside the US, most of these steps become routine, just as they are for any US business.

Doors a US company opens

• Payment processors: PayPal's US business account requires the business to be organized in the US, and the US versions of Stripe and Shopify Payments also require a US-formed company. The owner's identity is verified separately; Shopify Payments may also look for an actual business presence in the US, and approval is always the provider's decision.
• Walmart Marketplace: companies incorporated in Türkiye can apply with a W-8BEN-E, but payouts are then available only through Payoneer. With a US company, you file a W-9 and can receive payouts directly to a US bank account. In every case, Walmart requires a US returns address and an e-commerce track record.
• Brand Registry: Amazon looks for a trademark, not a company; selling in the US store requires a US trademark filing. Filing in the name of your US company keeps the brand owner, invoices and bank account within the same structure.
• Banking: a US business account lets you receive Amazon, Walmart and Shopify payouts in dollars without a conversion service in between. Our separate guide covers which banks open accounts for companies with foreign owners.

How the money flows

In this model, money is managed from a single center. Capital is sent to the US company's account, from Türkiye for example; payments to the manufacturer, warehouse and freight are made from that account; and payouts from Amazon and other channels come back to the same account. The company's income and expenses all appear in the US, in one set of books.

• Funds sent from your home country to the US company account as capital or a shareholder loan (agree on the treatment with your accountant).
• Deposit and balance payments to the manufacturer from the US company account.
• Shipment of goods to an Amazon warehouse or a third-party logistics provider (3PL).
• Payouts from Amazon, Walmart and your own site deposited into the US company account.
• Profit distributions or the next production run planned from the same account.

The hidden costs of manufacturing in China

China still looks attractive because factory prices are low, but the factory price is only part of the unit cost. In common industry practice, port-to-port ocean freight from China to the US West Coast takes 2–3 weeks, or around 10–11 days on express services. From leaving the factory to going live in an Amazon warehouse, including customs at both ends, trucking and check-in, sellers typically plan on 4–7 weeks; in the example below it is 37 days. Production time comes on top of that.

• Freight and customs costs, paid again on every shipment.
• Tariffs: US import tariffs have changed frequently in recent years, so your costs can change between the day you place an order and the day the goods reach port.
• Long cycle: cash stays tied up in inventory during production and transit, and you need more safety stock.
• Quality: if a problem is only spotted once goods reach the US, fixing it costs more and takes longer.
• Intellectual property: the risk of your molds and designs being produced for others; a US trademark and a solid contract reduce this risk but do not eliminate it.

US manufacturing: a shorter cycle, but not cheaper

Manufacturing in the US shortens the cycle, reduces inventory and lets you respond to problems quickly. Unit costs, however, are usually higher. In the same example, suppose a product with a landed cost of $8 from China costs $12 to make in the US: capital tied up in inventory falls (from about $191K to $161K), but contribution per unit drops from $11.36 to $7.36, and the peak cash needed to start from scratch is no lower than in the China scenario (about $245K versus $227K). Our inventory and cash cycle guide shows the full calculation. The real gain from a short cycle is flexibility: when demand shifts, you can change course faster with less stock.

The appeal of "Made in USA" and the FTC rule

Some US shoppers prefer domestically made products, which can make for a strong message on a product page. But the claim can't be used freely. The FTC's Made in USA Labeling Rule (16 CFR Part 323) covers both packaging and online product pages.

• An unqualified "Made in USA" claim requires final assembly and all significant processing in the US, with all or virtually all components of US origin.
• If you use imported raw materials, you need a qualified claim, such as "Made in USA with imported ingredients". This is common with supplements and cosmetics, where active ingredients are often imported.
• Before making the claim, build a file documenting the origin of your materials, and update your product pages if you change suppliers.
• Civil penalties can reach up to $53,088 per violation; the FTC has announced that this amount remains in effect throughout 2026.

One warehouse, every channel

A practical advantage of this model is holding inventory in one place and selling it through several channels. Amazon's Multi-Channel Fulfillment (MCF) ships orders from channels such as Walmart, Shopify and eBay out of your inventory in Amazon's warehouses, so you don't need a separate warehouse or a separate stock pool.

That convenience has a price: a single-unit MCF order costs roughly twice the FBA fee for the same product on an Amazon order. For our 1 lb, 12×8×3 in sample product outside the peak season, that's $12.16 versus $6.13 (standard shipping, including the fuel and logistics surcharge). Per-unit fees drop significantly on multi-unit orders. Walmart allows MCF only with neutral packaging and unbranded delivery vehicles, so these settings need to be in place from the start.

A solid footing: tax, FDA and visas

• Tax: a foreign-owned LLC with no US operations often has only reporting obligations. In this model, however, a US manufacturing contract, US inventory and US customers come together, which makes it considerably more likely that you are treated as engaged in a US trade or business and owe US income tax. State-level tax nexus can also arise. Work with a US tax professional (CPA) before you set up the structure.
• FDA and category rules: for supplements, cosmetics, food and pet products, responsibility stays with you as the brand owner even when manufacturing is outsourced. Supplement and cosmetic labels need a US address or phone number; cosmetics require facility registration and product listing, and supplements are subject to good manufacturing practices and Amazon's testing requirements.
• Visas: setting up a US company does not give you the right to live or work in the US. Running the business hands-on while visiting on a visitor visa is not permitted, and misrepresentation on a visa application can lead to a permanent bar from entry. Investor visas such as the E-2 have their own requirements; plan this with an immigration attorney from the outset, on the basis of full and honest disclosure.

From your US base to new markets

An established US brand, with its product file, test reports and sales history, is your most valuable asset when expanding to other markets. In Canada, natural health products need a license before sale, while cosmetics require a notification within 10 days after the first sale. In the UK, cosmetics need a UK-based responsible person and a notification before being placed on the market. In Gulf countries such as Saudi Arabia, registration and local representative requirements vary by category. Every market has its own rules, but documentation prepared for the US can be a starting point for many of these applications.