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How to expand your eCommerce to the US

The United States, known for its vibrant economy and innovative spirit, presents immense opportunities for eCommerce businesses. With record-breaking sales and a vast consumer base, the American market is ripe for expansion.

In this blog post, we go through what you need to know to successfully enter and thrive in this dynamic market.

Why the US?

The United States is not only the world’s largest economy but also a leader in eCommerce. In the fourth quarter of 2023, eCommerce sales reached an impressive $324.82 billion. The country’s GDP is projected to grow from $26.24 trillion in 2023 to $39.23 trillion by 2033. Furthermore, with 218.8 million online shoppers each spending an average of $5,381 annually, the potential for growth is substantial.

Key Statistics

  • Population: 333 million
  • GDP: $26 trillion (2023), projected to reach $39 trillion by 2033
  • Internet Penetration: 91.8%
  • Active Internet Users: 312.09 million
  • Active Social Media Users: 302.35 million
  • Online Shoppers: 218.8 million

The US Marketplace Landscape

The B2C eCommerce market in the United States is expected to grow steadily with a CAGR of 6.30% from 2023 to 2027, increasing from $1,593 billion in 2022 to $2,182 billion by 2027. 

Benefits of marketplaces

  1. Enhanced visibility: Leverage the marketplace’s audience and reputation.
  2. Customer reach: Access new customers who might not discover your products otherwise.
  3. Increased sales: Marketplaces can significantly boost your sales.
  4. Cost control: Only pay when a sale occurs, saving on marketing and development costs.
  5. Risk management: Enjoy protections against unpaid bills, fraud, and disputes.
  6. International expansion: Easily enter new markets with automatic product translations.

American consumer habits

American consumers are discerning shoppers, prioritizing product quality, composition, and pricing. A staggering 70% have shopped online from abroad, driven by:

  • Cheaper Prices: 49%
  • Access to Unavailable Brands: 43%
  • Unique Products: 35%

The leading category for cross-border shopping is clothing and apparel, showcasing a strong demand for diverse product offerings.

See how Prime Penguin helped Macade Golf to expand to the US here.

Cross-border challenges

Expanding into the US involves navigating logistical complexities and varying state regulations. Key considerations include:

  • Local legislation compliance
  • Import and trade restrictions
  • Shipping and fulfillment
  • Taxes and duties
  • Listing localization
  • Paperwork and form requirements

A thorough understanding of international trade regulations is essential to ensure smooth operations and compliance.

How Prime Penguin can help

Prime Penguin offers a comprehensive solution to ease your expansion into the US market. Here’s how:

1. Extensive network of logistics partners: Prime Penguin’s curated network of third-party logistics partners spans across North America, including the United States, Canada, and Mexico. These partners provide a full spectrum of services from warehousing to last-mile delivery, ensuring that your products reach customers efficiently and on time.

2. Seamless integration: By connecting your existing systems to Prime Penguin’s logistics module, you can manage all logistics operations from a single, user-friendly interface. This integration eliminates the need for expensive development work and multiple one-to-one connections, saving you time and resources.

3. Cost-effective solutions: Utilizing Prime Penguin’s established logistics network allows you to avoid the high costs of building your own infrastructure. This means you can scale your operations without incurring significant overhead expenses, focusing instead on growing your business.

4. Flexibility and scalability: Prime Penguin offers scalable solutions that grow with your business. As your brand expands, our services ensure you can handle increased demand without logistical constraints. This includes pan-North American fulfillment with strategically placed inventory to minimize delivery times.

5. Compliance and expertise: Navigating US regulations and compliance requirements can be challenging. Prime Penguin’s expertise in international logistics ensures that all aspects of your expansion, from import regulations to tax obligations, are handled efficiently. Our partners stay updated on local laws to keep your operations compliant and hassle-free.

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Expanding into the United States is a strategic move for eCommerce businesses. The US market, with its thriving digital landscape and vast consumer base, offers immense potential. To succeed, you need meticulous planning, strong partnerships, and a deep understanding of local regulations and consumer preferences.

Seize the opportunity by:

  • Keeping a keen eye on consumer trends
  • Tailoring your approach to resonate with the American audience
  • Aligning your brand values with market aspirations

The real power lies in your dedication, strategy, and ability to win over American consumers.

Ready to take the next step? Partner with Prime Penguin and watch your business thrive in the US market.