Data suggests that the vast majority of cross-border e-commerce stores derive a significant portion of their sales from the U.S. market. By the end of 2019, U.S. retail e-commerce sales are expected to reach nearly $561 billion. This undoubtedly makes it a big piece of "pie" coveted by a large number of sellers.
The following article will give sellers some insights and tips on how to enter the U.S. market with the help of a seller's case study.
What are the reasons for your choice?
Bill is a young man from France and the founder of a trendy brand. The brand is an online store that specializes in T-shirts, hoodies and other apparel. For the store, the sale of "vaporwave" and future funk styles is in line with current trends in the U.S. "These trends came from the U.S. initially, and that's why I chose this market," says Bill.
"Trends change all the time. That's why it's important to follow local trendsetters on social media and gather feedback and comments from customers." He said. Consumer preferences and concerns from target markets can be a source of inspiration for new products and designs.
As for which products are suitable for the US, Bill says: "I wouldn't try to enter the US market with a geographically dependent niche product. For example, Americans probably won't buy a Bastille Day-themed product because French Independence Day isn't relevant to them."
What do consumers like?
Bill says, "Americans are at the top of the 'food chain' when it comes to online shopping. Not only are they more receptive to new products than conservative Europeans, but they often seem to be more receptive to different marketing strategies."
Statistics show that Americans click on ads twice as often as Europeans. U.S. consumers are also very open to email marketing. 61% of people are willing to receive promotional emails at least once a week. Europeans are more concerned about their online privacy. In addition, Americans are also more accustomed to aggressive marketing than Europeans. For example, advertisements with catch phrases such as "buy now," which are sometimes considered too aggressive in Europe, are very effective in the United States.
At the same time, Americans have high expectations for online shopping. First, they want fast, free shipping - Amazon Prime is a benchmark, and consumers expect the same fast delivery from other sellers. Second, they want more affordable pricing and discounts, "second sales, promotions, discounts, every seller targeting the U.S. should be doing this." Bill concludes.
Legal Issues to be Aware of When Entering the U.S. Market
Complying with local laws and regulations may be a more stringent part of entering a foreign market, especially for the United States, where different states have different laws to comply with. The U.S. does not have a national sales tax, but different states have different sales taxes. If your products come from outside the US and you ship your products, this will not affect you. However, if you store your inventory in a US warehouse center, please use a local dropshipper. Even if you are a U.S. Affiliate, if your inventory is held in a California distribution center, you will be charged a sales tax of 7.25% for purchases or shipments to California, while New York consumers will not be charged this tax.
For sellers who aren't ready or willing to engage with U.S. taxes and laws, Bill recommends choosing a local partner to help shield you from these risks. For example, Printful (a US e-commerce platform and on-demand manufacturing and fulfillment company) keeps track of new regulations and laws, and then gives their sellers instructions on what changes they should make, such as updating tax settings and checking designs for copyright infringement.
Lessons Learned
-Apart from selling geographically dependent products, the United States is actually a very good target market.
-Understand the target market's audience, geographic culture and shopping expectations.
-Build your business on trends, use the Internet to spot trends and move with them.
-Can use a more aggressive marketing approach to sell to U.S. consumers than to European consumers.
-Make sure you meet the demands of American consumers for great prices and, more importantly, fast shipping.
-When choosing a local partner, don't lower your standards and don't compromise on funding.
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