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The Benefits Of Expanding Your eCommerce Company Into America

As the CEO of an eCommerce consultancy, I often get asked about the benefits of expanding an online business to the American market.


And for good reason - the United States is home to one of the largest and most lucrative eCommerce markets in the world.


But before we dive into the specific benefits of expanding to the American market, it's important to understand the current state of eCommerce in the United States.


According to data from the Department of Commerce, eCommerce sales in the United States reached a staggering $794.50 billion in 2020, representing over 11% of total retail sales for the year. This number is only expected to continue to grow in the coming years, with eCommerce sales projected to reach $1.5 trillion by 2023.


So, what does this mean for your business? Simply put, the American market presents a huge opportunity for online retailers. But before you make the leap to expand your business to the United States, it's important to consider the potential challenges and opportunities that come with such a move.


Benefits of Expanding to the American Market


Large and Growing Market

As mentioned, the American market is enormous, with a population of over 328 million people and an economy that is the largest in the world. This presents a huge opportunity for businesses of all sizes to tap into a market that is hungry for new products and experiences.


High Levels of eCommerce Adoption

Not only is the American market large, but it is also highly advanced in terms of eCommerce adoption. According to data from the National Retail Federation, over 79% of Americans shopped online in 2020, with the majority of these purchases being made on desktop computers and laptops. This high level of eCommerce adoption means that consumers in the United States are comfortable with the online shopping experience, making it easier for businesses to sell their products online.


Strong Infrastructure for eCommerce

The United States also has a well-developed infrastructure for eCommerce, with reliable shipping networks, advanced payment systems, and a strong legal framework for protecting businesses and consumers. This makes it easier for businesses to set up shop in the United States and start selling their products to American consumers.


Diverse Consumer Base

One of the great things about the American market is its diversity. The United States is home to people from all walks of life, with a wide range of preferences and needs. This diversity presents an opportunity for businesses to reach a wide range of consumers with their products and services.


Access to Major eCommerce Players

Expanding to the American market also gives businesses the opportunity to partner with major eCommerce players, such as Amazon, eBay, and Walmart. These companies have a strong presence in the American market and can provide valuable exposure for businesses looking to reach a wider audience.


Challenges of Expanding to the American Market


Highly Competitive Market

The American market is highly competitive, with businesses of all sizes vying for market share. This can make it challenging for businesses to stand out and attract customers, especially if they are new to the market.


Cultural Differences

Another challenge of expanding to the American market is the cultural differences that businesses may encounter. The United States is a melting pot of cultures, with a wide range of customs and traditions. It's important for businesses to do their research and understand the cultural differences that may impact their products and marketing efforts.


Legal and Regulatory Challenges

Expanding to the United States also requires businesses to navigate a complex legal and regulatory environment. This includes understanding and complying with federal and state laws and regulations, as well as any industry-specific requirements. It's important for businesses to do their due diligence and seek out legal guidance to ensure that they are fully compliant with all applicable laws and regulations.


Shipping and Delivery

It's important to have a reliable and cost-effective shipping and delivery strategy in place to ensure that your products reach your customers on time and in good condition. This may include partnering with a fulfilment centre or a third-party logistics provider to handle the storage and shipping of your products. Partnering with a fulfilment centre or 3PL also allows your business to benefit from its carrier relationships.


Customs and Import Regulations

If you are shipping products from outside of the United States, you will need to comply with customs and import regulations. This includes paying any applicable duties and taxes, as well as ensuring that your products meet all applicable safety and labelling requirements. It's important to familiarise yourself with these regulations and seek out the help of a customs broker or logistics provider if needed.


Returns and Exchanges

Handling returns and exchanges are an important aspect of the eCommerce experience, and it's important to have a clear policy in place for how you will handle these requests. This may include offering free returns or exchanges or charging a restocking fee depending on the reason for the return.


Customer Service

Providing excellent customer service is crucial to the success of any eCommerce business, and this is especially true when expanding to the American market. It's important to have a dedicated customer service team in place to handle inquiries, complaints, and other issues that may arise. This may include providing support via phone, email, or social media.


Despite these challenges, the benefits of expanding to the American market far outweigh the potential drawbacks. By tapping into the large and growing market, accessing major eCommerce players, and taking advantage of the strong infrastructure for eCommerce, businesses can increase their revenue and reach a wider audience.


But expanding to the American market is not a decision to be taken lightly. It requires careful planning, research, and resources to be successful.


Businesses should consider the following steps when planning to expand to the United States:


Research the Market

Before diving into the American market, it's important to do your research and understand the current state of the market and your target audience. This includes understanding consumer preferences and trends, as well as the competitive landscape.


Develop a Strategy

Once you have a clear understanding of the market and your target audience, it's time to develop a strategy for how you will enter the market and succeed. This should include a detailed plan for marketing, sales, operations, and logistics.


Build a Strong Team

Expanding to the American market requires a strong team with the skills and expertise to navigate the unique challenges of the market. This may include hiring local talent or partnering with experienced professionals who can help you succeed.


Seek Legal and Financial Guidance

As mentioned, navigating the legal and regulatory landscape in the United States can be challenging for businesses. It's important to seek out legal and financial guidance to ensure that you are fully compliant with all applicable laws and regulations.


Invest in Marketing and Advertising

Marketing and advertising are key to success in the American market. It's important to invest in a comprehensive marketing and advertising strategy that targets your specific audience and showcases the unique value of your products or services.


In conclusion, the American market presents a huge opportunity for online businesses looking to expand their reach and increase their revenue. While there are certainly challenges to consider, the benefits of tapping into the large and growing market, strong eCommerce infrastructure, and diverse consumer base far outweigh the potential drawbacks. By carefully planning and executing a strategy, businesses can succeed in the American market and take their business to new heights.


Speak to us today if you’re ready to take your next step toward US domination!


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