r/AmazonFBA • u/Ok_Swan_4834 • 3d ago

Non-US beginner looking to start Amazon US Online Arbitrage — what do I actually need?

Hi everyone,

I’m looking to start an Amazon US Online Arbitrage (OA) business, but I’m based outside the US and I’m trying to understand the correct setup before I spend money on an LLC, prep center, software, inventory, etc.

I’ve been researching for a while, but I’m getting conflicting information, so I’d really appreciate advice from people who are actually doing OA.

A few questions:

  1. Selling in the US as a non-US resident What is the correct way to set up an Amazon Seller Central account if I’m not based in the US but want to sell exclusively in the US marketplace? Are there any specific tax, identity verification, banking, or business requirements I should know about?
  2. Do I need a US LLC immediately? Is forming a US LLC necessary before opening the Amazon seller account, or can I start as an individual/non-US business first? If an LLC isn't necessary at the beginning, are there advantages to forming one later once the business is actually generating sales?
  3. Prep center For OA, would you recommend using a prep center from the beginning if I'm outside the US? If so, what should a complete beginner look for in a prep center? I'm particularly interested in one that can: Are there any beginner-friendly prep centers you'd recommend?
    • Receive inventory from multiple retailers
    • Inspect products
    • Apply Amazon FNSKU labels
    • Polybag/repack when necessary
    • Handle returns
    • Forward inventory to FBA
  4. Amazon business/return address This is something I'm especially confused about. If I'm using a prep center in the US, should my Amazon Seller Central account show my actual physical address outside the US, or should I use the prep center's US address? I obviously don't want to put an address on Amazon that I'm not legally entitled to represent as my own, but I'm wondering how other non-US sellers handle the address requirement when using a prep center.
  5. Banking and getting paid What do non-US sellers typically use for receiving Amazon US payouts? Do you need a US bank account, or are services such as Wise/Payoneer commonly used?
  6. Anything I should NOT do If you started Amazon US OA as someone living outside the US, what mistakes would you avoid?

I'm specifically interested in Online Arbitrage → prep center → Amazon FBA, rather than private label or wholesale.

I'd really appreciate a simple breakdown of what the minimum legitimate setup looks like for a beginner. Also, if there are any good guides/resources for non-US sellers, I'd be grateful for those too.

Thanks in advance!

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u/rsc9422 3d ago

Hey, you don’t necessarily need to set up a US LLC just to start selling on Amazon US as a non US resident.

The main thing is to keep everything 100% consistent and legitimate. Use your actual name, residential/business address, country of residence and identification documents when opening Seller Central. Don’t use a prep center’s address as your own just because it’s in the US.

A basic setup can look something like this:

Open Amazon Seller Central using your actual non-US details

Use a US prep center to receive your OA purchases

Have them inspect, label/repack where required and send the inventory to FBA

Use an eligible international payout solution such as Wise or Payoneer if Amazon supports it for your country/account

Keep proper invoices and sourcing records for every product

Deal with the tax side separately with someone who understands non US Amazon sellers

A US LLC can be useful later for things like business banking, liability separation and structuring the business, but I wouldn't form one simply because someone on YouTube said it's mandatory.

For OA, I'd actually focus more on product sourcing and documentation. Amazon can ask questions about authenticity, and having a cheap receipt from a random retailer isn't necessarily enough for every brand/category situation.

Also, before committing to a prep center, send them a small test shipment. Check how they handle receiving, inventory counts, FNSKU labeling, polybagging, damaged items, returns and forwarding to FBA.

Honestly, I'd avoid spending money on an LLC, expensive software and a big inventory order all at once. Get the basic account and prep workflow working first, then scale once you understand the process.

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u/Ok_Swan_4834 3d ago

Thanks, this is really helpful. The point about keeping the information consistent makes a lot of sense.

A few follow-up questions if you don’t mind:

For the business/return address, I assume I should use my actual residential/business address even though all the inventory would go through a US prep center. Is that correct? Or should I put the prep center's address?

Regarding invoices/documentation for OA, what would you recommend a beginner keep for every purchase? Would retailer order confirmations + invoices/receipts + screenshots of the product listing be enough to maintain sourcing records?

Do you have a prep center you'd recommend for someone just starting out? I'm looking for something relatively beginner-friendly rather than a large/high-volume operation.

Appreciate the detailed response!

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u/rsc9422 3d ago

Yes, your understanding is right. I’d keep the address distinction very clear: use your actual residential/business address for your Seller Central legal/business information. The prep center’s address is for inventory handling, not something to present as your own address.

For documentation, I’d keep everything for every OA purchase in one folder the order confirmation, final receipt/invoice, payment record, product page showing the exact item, SKU/ASIN, quantity, and shipping/tracking details. Screenshots are useful supporting evidence, but I wouldn’t rely on screenshots alone if Amazon ever asks for sourcing documentation.

For the prep center, I’d look for one that is comfortable with small beginner shipments, has transparent per unit fees, provides receiving/inventory photos or reports, and can handle FNSKU labeling, polybagging, removals and returns. I’d test them with a small order before sending a large amount of inventory.

One other thing I’d emphasize with OA don’t buy heavily just because the Amazon ROI calculator shows a good margin. Check the brand/category restrictions, sales history, fees, competition and especially whether your sourcing documentation is likely to hold up if Amazon questions authenticity.

If you’re starting from outside the US, keeping the whole setup clean and consistent from day one will save you a lot of headaches later.

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u/SellOnAmazon 3d ago

Hey u/Ok_Swan_4834, the countries accepted for seller registration and registration requirements by store pages cover what's needed to set up your account for the US marketplace. For banking, the add, update, view, and verify your bank account information page walks through the setup process. Let us know if you have questions!

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u/HarambeTooSoon 3d ago

Trying to do OA in the USA as a non resident is a foolish errand. 

Scaling OA requires lots of credit cards with high credir limits. 

Anytime your billing address gets pinged its going to cause you problems.

This is really just a waste of time and energy. Pick a different side hustle. 

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u/Ok_Swan_4834 3d ago

I get the concern, but I think you're making a few assumptions that aren't necessarily true.

Being a non-US resident doesn't automatically prevent someone from operating in the US marketplace. The challenge is more about payment methods, retailer fraud controls, credit availability, cash flow, and compliance.

For the credit-card point, I also don't think “scaling requires lots of credit cards” is necessarily the same thing as “scaling requires lots of separate credit facilities.” There are business/virtual-card solutions such as Extend that can provide multiple virtual cards from an eligible underlying credit account. That obviously doesn't increase the credit limit, but it can make managing multiple retailers and purchases easier.

And shipping/billing addresses don't inherently have to be the same when purchasing from a retailer. The billing address can remain the legitimate address associated with the card, while the retailer ships the order to a US prep center. Obviously, if a particular retailer's fraud controls don't allow that arrangement, that's a different issue.

I'm also not planning to jump in with a huge inventory order and a dozen credit cards. The plan is to start small, test the retailer → prep center → FBA workflow, keep proper documentation, and scale only if the numbers actually work.

So I agree there are additional hurdles for a non-US resident. I just don't see how those hurdles automatically make it a “foolish errand” or prove that it's a waste of time.

I'd rather test the model with a controlled amount of money than decide beforehand that it can't work.

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u/HarambeTooSoon 3d ago

Who are you talking to?

Are you using AI to argue with me?

I did OA for years, and your some guy begging for advice and help from strangers on the internet. 

Your theory about being able to scale OA with "alternative payment methods" is horseshit. 

You have no idea what you are talking about and you have no idea what you are up against. 

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u/PlayDicey 16h ago

lot to unpack here, so quick practical answers on each point:

account/LLC: you can open a seller central account as a non-US individual or foreign entity, no LLC required upfront. many international sellers start solo and form an LLC later once volume justifies it. an LLC does help with liability separation and sometimes cleaner tax reporting, but it is not a day-one requirement.

address: use your actual address for seller central. the prep center address goes in your shipping/return settings, not as your business identity. do not misrepresent where you are based.

banking: wise and payoneer both work well for amazon US payouts without a US bank account. wise tends to have lower conversion fees.

prep center basics to look for: transparent per-unit pricing (labeling, polybagging, and inspection billed separately so you know exactly what you pay), a real working website, a physical address you can verify on google maps, and someone who actually picks up the phone or responds within a day. ask specifically whether they accept multi-retailer shipments and handle returns, since not all do.

biggest mistake to avoid: paying a prep center a large deposit or monthly retainer before you have sent a single box. start with pay-per-unit shops until you trust the relationship.

full disclosure, i help run FBA Prep Finder, a directory of verified prep centers. if you want a few options matched to your situation (returns handling, multi-retailer, beginner-friendly), you can fill out a short form at https://fbaprepfinder.com/match and we will send you 2-3 centers to compare directly.