The United States is a power in the field world of e-commerce, providing a large and diverse marketplace for online sellers. With its strong economy, tech-savvy population, and growing preference for online shoppingTHE The United States remains a lucrative destination for B2C and B2B e-commerce companies. However, success in this market comes with a unique set of challenges, including fierce competition from local giants like Amazon, Walmart and Target, complex tax regulations and changing consumer preferences.
In this guide, we will study the key aspects of e-commerce in the United States and provide valuable information for cross-border sellers are looking to exploit this market.
The United States has the 12th highest disposable income in the world.
34% of American online consumers shop across borders, with 3% of all e-commerce transactions coming from foreign merchants .
Understanding the US e-commerce landscape
1. The growth trajectory
Despite economic challenges such as inflation and global economic slowdown, the American economy has demonstrated resilience. At the end of 2022, the country returned to positive growth and is expected to maintain a moderate growth rate before COVID-19. by 1.8% until 2033. This economic recovery has led to a increase in disposable income, which, combined with a pandemic-driven increase in digital commerce, is pushing more Americans to change their online shopping habits. In this context, the United States remains an attractive market for Ecommerce Businesses.
3 out of 4 American buyers (74%) made an online purchase in 2022 .
2. Size and potential
The United States boasts one of the highest disposable incomes in the world, making it a country lucrative market for cross-border sellers. Currently, the country has more than 300 million Internet users, which represents 92% of its population. This vast base of digitally connected consumers makes the United States the third largest pool of potential buyers in the world, behind China and India.
In 2021, the American digital economy produced $3.7 trillion, compared to $3.3 trillion in 2020 .
3. The rise of mobile commerce
Itinerant trade (mobile commerce) is on the rise in the United States, driven by factors such as the COVID-19 pandemic and the popularity of social commerce. In 2022, mobile shoppers spent $387 billionanalysts predict annual growth rates by more than 20%. This trend suggests that mobile commerce could overtake desktop-based e-commerce in the next 5-10 years, highlighting the importance of optimize your e-commerce site for mobile devices.
Navigating the US e-commerce market
1. Understand buyer preferences
American buyers have high expectations when it comes to online shopping. They appreciate fast delivery, a wide range of product choices, seamless payment experiences and excellent customer service. Meeting these expectations is crucial to succeeding in the U.S. market. Additionally, it is essential to stay up to date with emerging trends as social commerce,’buy now, pay later,’ And new markets in order to adapt to changing consumer behaviors.
2. The influence of price
Economic insecurity and high inflation have made American consumers more price conscious. They are willing to trade fast delivery for lower prices, which economical points of sale more attractive. Cross-border sellers should consider competitive pricing strategies to gain market share.
3. Social and Live Commerce
Although social commerce in the United States does not rival the Chinese market, it has seen significant growth, particularly among Generation Z and millennials. A growing number of consumers are making purchases through social media, it is therefore important for e-commerce businesses to have a presence on social media platforms and interact effectively with customers.
60% of Generation Z buyers use Instagram to find new brands, products and services .
4. B2B eCommerce
The B2B digital sector in the United States is large, with wholesalers, distributors and retailers transition to online channels. Retail B2B e-commerce is increasing and is expected to reach $1.8 trillion by 2023. With more and more businesses buying and selling online, it is a a market rich in opportunities for cross-border sellers.
The software market
The United States has the the world’s largest software marketplaceand has been growing robustly since 2016. As enterprise software aims to generate approximately $130.1 billion (USD) in revenue by 2026, the US software market offers opportunities for software companies of all sizes because of his robust productivity software segment.
The maturity of the American market is reflected in the diversity of its online consumer offerings. While Americans shop across various categories, a substantial portion of online spending is concentrated in specific areas:
- Food and personal care: 27.3%
- Toys, hobbies and DIY: 25.6%
- Fashion: 20.5%
- Furniture and appliances: 13.4%
- Electronics and media: 13.2%
These data highlight the immense size and diversity of American software marketmaking it an attractive destination for software companies of all types and sizes.
The US software market is expected to reach more than US$388 billion by 2026.
Subscription status
The subscription economy is booming in the United States, home to a staggering 17,000 SaaS companies. This rise has resulted in an abundance of subscription-based products and services, offering consumers and businesses a wide range of choices.
Key growth areas include video streaming services (SVOD), generating $30.31 billion in revenue with nearly 70% of American consumers subscription to three or more services. In addition, Ecommerce Subscription Products and services saw significant growth, totaling $38.2 billion, driven by a preference for convenience and pleasure on cost savings.
In 2022, an investigation revealed that 65% of consumers subscribed to new services for the fun and convenience they offer, while only 20% cited cost savings. Amazon’s Subscribe & Save program leads with 21 million subscribers, but competition is intensifying as providers focus on email.improve customer experience and reduce friction in the subscription process.
65% of new American subscribers seek pleasure and increased convenience .
Selling Online in the United States: Key Considerations
1. Payment Method Preferences
In the United States, credit and debit cards remain the dominant e-commerce payment methods, representing 36% of transactions. However, alternative methods like digital wallets are gaining ground, driven by the growing demand for real-time payments. To accommodate various preferences, sellers must offer a range of payment optionsincluding major card issuers and popular digital wallets.
2. The shopping cart and checkout experience
The preference for local markets and merchants with a physical presence can pose challenges for cross-border sellers. To be successful, it is crucial to provide smooth shopping experienceincluding localized language, currency and social proof. Testing and optimizing shopping cart flow can also improve conversion rates.
According to data from our platform, 96% of buyers have their browser configured for English .
Confidentiality and taxation
In the USA, privacy issues are gaining attention, with federal efforts like the American Data Privacy Protection Act underway. Some states, including California, Virginia, and Colorado, implement privacy laws similar to GDPR. The absence of standardized national regulations, however, poses challenges for businesses, particularly with regard to sales tax. The United States lacks a unified approach, leaving tax policies to be determined by more than 12,000 separate jurisdictions requiring or exempting sales taxes on digital goods and services.
Get an introduction to the taxation of digital goods sales in different US states with our eBook, Taxation of Digital Assets in North America.
Entering the US e-commerce market
While the United States presents significant opportunities for e-commerce businesses, it also poses unique challenges. Understanding buyer preferences, staying informed about market trends, and taking into account payment, location, and regulatory considerations are essential to succeeding in this space. dynamic and competitive market. With the right strategies and tools in place, cross-border sellers can master e-commerce in the United States and thrive in this lucrative market.
For cross-border sellers looking to tap into the US e-commerce market, leveraging a complete monetization platform as 2Checkout (now Verifone) can simplify the complexities of modern commerce.
Learn more by downloading a free copy of our cross-border trader’s guide on how to effectively venture into the online market in the United States.