Why sell in the United States with your Shopify store?

How and why export your Shopify store to the United States?

The United States is positioned as the second largest market in the world behind China and remains the country which produces more than a third of the world's wealth ahead of China. Even if the French and European market is booming, it is worth considering the benefits that the development of your Shopify e-commerce store can have by settling there permanently.

The United States has a diverse population. For good reason, 1% of the inhabitants of the United States own 63% of the wealth of the country. This gap is explained by more liberal policies and a healthier economy than in Europe.

With a gigantic market and enormous purchasing power, America is a paradise for web sellers. Discover immediately four reasons to offer your products on the American Net thanks to the advice of an international shopify agency.

In this article we will see why it is important to orient your Shopify store towards a larger market, if the United States is the right choice to make, as well as the different advantages of positioning yourself in a richer market.

Summary

Why orient your Shopify store towards a larger market?

Selling in the United States means opening the doors to a vast and unique market for your online business. Once you cross the US border, you have access to more than 320 million consumers who are all ready to discover your brand and the added value you will bring to them.

Moving towards a richer market

We cannot repeat it enough, but the United States is the richest market in the world. With more than 24,000 billion dollars in terms of GDP, it is one of the economies that has recorded its highest growth rates since the glorious thirty (5.2% in 2021).

Developing its services and products

Directing your e-commerce site towards a larger market is the logical next step following good development in Europe or on a national scale. This will allow you to do distance selling from your online store by reducing efforts while multiplying your services and products.

Moving towards a richer market

While there may already be players similar to your store in the US market, don't underestimate the power of a disruptive player. New and fresh blood can really work in your favor. By positioning yourself as a newcomer to the market, many people will take an interest in you and test your products and recommend you. Don't forget to do an influencer campaign to tell people you're in the market!

Good thing Shopify International is here. A Shopify site allows you to deploy in a country with minimal effort and making your life easier. Your dashboard remains the same, and your domain name (if taken as .com) can easily be modified to adapt to this new market. All you have to do is add extensions, or use a plugin like Weglot to easily translate your site.

Be careful all the same to pay attention to the translations which can sometimes be approximate and/or misinterpreted. We recommend hiring Shopify experts to translate your site and roll it out in a given market.

As a bonus, you have little to worry about in terms of regulations. In addition, you are exempt from all taxes when you do not have a physical store in the country. This is because businesses only have to pay state sales tax when they have a physical “connection” to the state to which a good is being shipped.

A link can include a storefront, warehouse, sales force, or other physical state connection. Even if the sale does not involve said physical connection, the company represented has a duty to pay tax and taxes. Tax rates vary from state to state.

It should also be noted that warehousing with third party logistics and fulfillment companies in the United States is always a physical link. Fortunately, the physical link can be avoided entirely if you maintain your operations in your country. From then on, all you have to do is ship the products directly to consumers.

In terms of physical infrastructure, the United States offers a large and robust logistics system that helps keep the entire country within easy reach. Depending on the size of the package, shipping an item may cost less across the United States. Logistics options are available for businesses of all sizes, from small and medium-sized businesses (SMBs) that pack and ship to homes, to large enterprises that use third-party logistics partners such as FedEx, UPS, or DHL.

Does the United States have a diverse population?

Selling online in the US is 70% research, 20% planning, 10% execution. If your business is selling to a niche audience, then you need to try to understand where that audience is. Define the best way to reach it with purely online marketing or offline channels. The most comprehensive method would be to conduct market research, but for now let's focus on just three variables.

To be successful, you need to consider three key demographic factors: age, income, and urbanization. This step should be the beginning and not the end of your search. These are starting points that apply to the United States and to e-commerce in general.

What is the average age of consumers in the United States?

In 2016, the "millennial" generation eclipsed the "baby boomer" generation as the largest in the United States. Today, this younger generation generates 40% of online purchases. It's an age group around 25 to 35 years old.

The age of consumers is therefore an important factor. It conditions the attractiveness of technology and e-commerce. It is also strongly linked to purchasing power. But also, this generation has a strong attraction to digital.

What is the average income of consumers in the United States?

The average income in the United States is $63,100 (approximately €52,000), which is much higher than the average salary in France, which is around $34,000 (or €30,000).

Income influences the likelihood of buying online, how often they do so, and how much they spend. Only 20% of people with low incomes (under $30,000 a year) “do a lot or not a lot” of online purchases, compared to 24% in 2012.

This stands in stark contrast to the 62% of high-income earners (over US$100,000 a year) who “do a lot or not a lot” of online shopping, up from 45% in 2012.

So be sure to adapt the prices of your products and services if possible according to the average budget of your target.

What about urbanization?

According to e-commerce company MicrosD, metropolitan consumers spend about $853 online per year, compared to $768 for suburban shoppers and $684 for rural shoppers.

It is therefore necessary to assess whether your target is more of a rural target or a metropolitan target, because first of all the budget is not the same, and secondly, their expectations and needs are not at all the same.

The Benefits of Positioning for a Wealthier Economy

The United States is undoubtedly one of the markets where development is the fastest. The adoption of the latest technologies and the dogma that Americans have to be up to date on all subjects is a big strong point.

As a market entrant for your e-commerce store, you will easily attract early adopters who will test you, then you will have to persuade them that you are legitimate in the US market.

The country has solid fundamentals and economic bases and a healthy economy compared to the rest of the world. You will have no trouble finding customers and growing if you operate your e-commerce project well.

The Power also has one of the strongest economies in the world. With the largest gross domestic product ($24 billion in 2021, +5.2%), the United States has the largest consumer market in the world and the second largest e-commerce market.

With a consumption peak of $612 billion in 2021 for the e-commerce market (526.72 billion in 2020), 2021 marks a record year for e-commerce and online sales sites. This is an increase of 16.4% compared to 2021 and definitely marks the entry of e-commerce into the lives of American consumers.

Many savvy companies and brands are using this digital immersion to build reputation with consumers and create sales opportunities.

Finally, the integration of Internet technology into consumers' lives is only set to continue, as people increasingly rely on the Internet to access information, make decisions, and perform daily tasks.

Mobile devices (smartphones and tablets) have become particularly important facilitators of this integration process and now represent nearly 61% of website traffic in 2020, which makes it possible to recall two points: The first, that consumers consume more and more content on their smartphone (especially on social networks) and that it is therefore necessary to meet them by producing Brand Content, and then that it is absolutely necessary to bet responsive if one wants to be referenced on mobile search engines.

In November 2021, the average conversion rate of an e-commerce in the United States was then 2.42%. This is lower than that of France, which is around 3%, but we are talking here about a potential market of 320 million consumers, so we have to multiply the proportions, it is 5 times the French market, and the investment therefore remains largely profitable.

How to adapt your Shopify site to the United States market?

The American market is very fond of the "French Touch" that French e-commerce has to offer. We could notably talk about Dr.Brandt which is a very popular French e-commerce in the United States. However, it is a winning strategy only if you know how to adapt your offer to this very special market.

Adapting your offer will be based on three essential pillars, which are the management of the stocks that you will offer, the good design of your sales message, as well as that of your product page.

Inventory management is mainly there to prevent you from accumulating delays with your customers residing in the United States, will you have a stock directly on site or will you send your products from Europe? This is a crucial question to determine the time that your prospect will have to wait from the order and until the reception of the package. It should be remembered that for 72% of consumers the delivery time is a crucial choice in their purchasing decision process.

The message you are going to convey cannot be the same as the one you convey to Europeans. The culture is different and the message will not pass in the same way with the language barrier. So be sure to work with qualified Shopify experts who have a background in marketing and lead nurturing/generating.

Selling online is an obstacle course. So to facilitate the shopping experience and above all increase your conversion rate, be sure to work well on your product sheets, which should facilitate the shopping experience and make it as minimal as possible.

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In summary, selling Shopify in the United States:

The United States is undoubtedly the Eldorado of online sellers. With a gigantic market, a strong economy and ever-growing opportunities, the country offers golden opportunities for brands wishing to stand out on the international scene. Add to that the fact that e-commerce is becoming an increasingly important part of the lives of American consumers.

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