A guide to selling online in the USA

July 29, 2020
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Sell online in USA

America is a world leader in cross-border eCommerce exports and imports. eCommerce behemoth like eBay and Amazon belongs to America. The USA is the land of opportunity and a superpower in the world of online sales.

According to Statista, U.S. online retail sales of physical goods amounted to 343.15 billion US dollars, in 2019 and are estimated to reach close to 476.5 billion US dollars in 2024.

Apparel retail e-commerce in the U.S. is projected to generate 153.6 billion U.S. dollars in revenue by 2024.

The high purchasing power, big market size, incorporating advanced technologies, and widespread use of social media platforms make it an eCommerce hotspot for growth-minded online sellers.

Overview of USA online market

The USA tops the list of the largest consumer market in the world as per the data and the third largest country with high internet penetration.

The recent recorded total population of the US is more than 329 million with a median age of 38.2 years. English is the official language spoken and the currency of the USA is a dollar.

Sell online in USA statics

The U.S. has a GDP of 16.8 trillion dollars of which 24% constitutes of the gross world product at market exchange rates and over 19% of the gross world product at purchasing power parity (PPP) as stated by the International Monetary Fund.

The statistics of the USA eCommerce users according to Statista are as follows:

  • 288 million active users
  • 87% of the total population use internet
  • 257 users to increase by 2023 from 244 million in 2018
  • 98% of the active users access social media via mobile

According to Digital Commerce, the total retail sales are expected to increase by 3.8% from 3.63 trillion to 3.76 trillion dollars as recorded in 2018.

Online Retailing Tips to sell in the USA

The USA is a huge market to capture, so to grow your eCommerce business following facts should be considered.

Detail Analysis of your product and the market study of the USA is very important. Check out the strategies of other competitive eCommerce websites to have an overview of the customer’s inclination.

Sell online in USA statics

The shopping categories like clothing, shoes, and electronics can be seen leading the marketing segment. So, choose the product wisely. Also, remember that the USA is not a single market but follows a federal system, so the market policies and rules can differ in every entity.

While choosing your product check for the warehousing requirement, shipping charges, refund policies and make sure all of these fees should not turn out to a loss-making venture.

Logistics, packaging, shipping, and returns can burn your pocket if not managed prudently. The USA has high-speed connectivity of railway and air networking. It has also multiple shipping options like UPS, USPS, and FedEx.

But there are certain challenges in cross-border shipping like security and illegal surveillance. The USA economy, recession, and regulations should also be taken into consideration. Also, remember the large and heavy shipments can increase your budget so packaging and weight need to be looked after.

Don’t forget to submit your customs data accurately and clearly as it will speed up your delivery process.

Consumer Online Behavior

US citizens are highly advanced and around 60% of the online consumers shop online at least once a month. It has also been surveyed that 8 out of 10 Americans are satisfied with the overall online shopping experience.

Because online shopping offers a variety of products, easy return policies, coupons and discounts, easy checkout, and various payment options.

But it has been noticed that the customers tend to abandon the shopping cart if shipping charges applied or if there is no return option.

64% of the consumers are more likely to purchase if offered free exchange or shipping. The social media also generates huge online shoppers. The most purchased products online are clothing, electronic goods, shoes, books, and so on.

Payment Methods

The preferred online payment methods in the US, according to the survey conducted byIpsos and ING are as follows:

  • credit card – 62%
  • PayPal – 22%
  • Amazon Pay – 5%
  • Cash on delivery (COD) – 4%
  • Other payment providers – 3%
  • Google Pay – 2%

Sell online in USA statics

The credit card is the most popular and preferred online method by most of the Americans. So, optimize your payment gateways accordingly because the majority of your online customers may prefer credit cards and PayPal.

Mobile eCommerce has become the ultimate source of online shopping. According to the survey, around 57% of the consumers use the mobile app to check products online.

It is considered as the most convenient and cost-effective way of shopping online. So, sellers should also provide their consumers with a mobile-optimized eCommerce website for an easy browsing experience.

Wrapping Up

Entering into the US market is incredibly challenging such as strong competition, evolving technology, and meeting customer’s expectations.

But once if all of this is taken care of you can garner huge benefits like access to millions of buyers, exposed to the well-structured marketplace, and advance payment technology which will help in multiplying your revenue.

To know how Vinculum can help you take your brand to the USA, contact us today.

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