GEARLAUNCH Blogs

UNITED STATES OF AMERICA E-COMMERCE MARKET GUIDE

September 17, 2021

The United States of America’s e-commerce market is vast and ever-changing. It’s easy to feel intimidated or lost trying to navigate it. Don’t worry, we’ll be right next to you, holding your hand every step of the way.

Overview of the U.S.

  • Also known as the U.S., US, USA, or U.S.A (United States of America)
  • National symbols: American Bison, Oak Tree, Bald Eagle, Rose, and the American flag
  • The American flag has 13 stripes to represent the 13 colonies that declared independence from Britain and 50 stars for each state in America
  • The U.S. is home to many different cultures, religions, and ethnicities. It’s referred to as a “melting pot” because of this
  • There is no official language in America: English is the most used, but Spanish is becoming more common
  • The U.S. shares borders with Canada and Mexico
  • As of January 2021, the U.S. has a population of 332 million people
  • 82.8% of Americans live in urban areas while 17.2% live in rural areas
  • The largest city is New York with almost 8.4 million people living in it
  • Popular holidays: Easter, 4th of July, Halloween, Thanksgiving, and Christmas
  • The U.S. has a wide range of environments and weather
  • Famous landmarks include the Empire State Building in New York, the Statue of Liberty in New York, the Lincoln Memorial in Washington DC, The White House in Washington DC, the Golden Gate Bridge in California, and Mount Rushmore in South Dakota
  • The U.S. is 1 of 3 countries that have not switched to the metric system
  • The U.S. is home to more billionaires than any other country
  • Out of the 10 richest people in the world, 7 are American

Helpful Facts for E-Commerce in the United States of America

  • National colors are Red, White, and Blue
  • Americans love dogs and cats
  • Americans love football, basketball, baseball, racing, and golf
  • Americans make online purchases several times a month
  • Around 90% of Americans use the internet, compared to 54% of the global population
  • Big buying holidays: Black Friday, Cyber Monday, and the month before Christmas
  • The USA is the largest cross-border B2C e-commerce market for both imports and exports
  • Favorite trading partners are the UK, China, Canada, Hong Kong, and Australia

Market Potential

The great thing about the U.S. market is that it’s huge and open for anyone to join.

The difficult thing about the U.S. market is that it’s huge and open for anyone to join.

What we mean is that this particular market is full of competition fighting for customers’ attention.

We don’t say this to discourage you, we just want to make sure you’re aware of the time and effort it will take to establish yourself. Marketing and advertising are key! Once you do, you’ll be reaping the benefits.

The U.S. market is constantly growing. Look how much it’s changed from 2017 to now, and how much it will grow in the future.

graph showing America's e-commerce market growth

Other Important Market Facts

Let’s talk about your competition. There are competitors you can compete with and competitors you can’t. For example, you can compete with other independent businesses, but it will probably be too difficult to compete with big-name brands.

That doesn’t mean you can’t learn from them. You can study how they handle marketing, how they price their products, and what sells the most.

The top e-commerce companies in the U.S. as of February 2020 are:

  • Amazon
  • Walmart
  • eBay
  • Apple
  • The Home Depot
  • Wayfair
  • Best Buy
  • Target
  • Costco
  • Macy’s

What You Should Do Before Jumping into the U.S. Market

There is some preparation you should do before joining the U.S. market. Luckily, you’re already taking your first step by reading this guide. Researching and learning about what your potential customers want is key to a successful business.

Learn about Your Customers

Who buys the most items online? Here is a breakdown, by age, of American digital buyers

Graph showing the age of American online shoppers

It’s also important to know how they shop. The most popular ways of shopping are from smartphones and desktop computers. This means your store needs to be easy to navigate on both devices.

Customer Service

Americans expect to have quality customer service. They’re all about respect and will leave a store if they feel they’re being disrespected. To them, good customer service is a right, not a privilege.

94% of Americans use customer service as a way to decide whether to buy from a brand or not. 58% of customers will go to a competitor if they give them better service.

On the bright side, 91% of customers are likely to make another purchase after a positive customer service experience.

Luckily for you, GearLaunch offers amazing multi-channel customer service! Your customers will always be getting help quickly and with a smile.

Americans believe that part of good customer service is having free shipping, free returns, and free exchanges available. Most U.S. consumers understand they have to reach a certain threshold before getting free shipping.

Language

American English is different from UK English. The differences can seem subtle, but it’s important that you’re spelling things correctly. Not only would it be spelled wrong for your target audience, but it will be obvious that you didn’t pay attention to who they are.

Make sure to research spelling and terms when using text in your designs. Use Grammarly, a free app, and choose American English.  

Figure Out Top Selling Products and Niches in the U.S.

You can’t gain Americans’ attention if you don’t know what they like to buy. It’s essential that you research what the most popular products and niches for e-commerce are.

The most popular e-commerce products in the U.S. are:

  • Books, music, and video
  • Computer and consumer electronics
  • Toys and hobbies
  • Office equipment and supplies
  • Apparel and accessories
  • Furniture and home decor
  • Health, personal care, and beauty products
  • Other
  • Auto and parts
  • Food and beverage

Popular Niches Include:

  • Pets
  • Fitness
  • Eco-friendly
  • Sports
  • Gardening
  • Cooking

Important Things to Note When Setting Up a Store for the U.S.

We’ve already talked about customer service and the love free shipping gets, but now we need to get to the core of e-commerce: the exchange of goods and services for money.

Americans typically use cards, mobile wallets like PayPal, or buy now, pay later programs. Cards are used the most often, around 47% of online purchases are paid by debit/credit cards. Make sure to display which cards you take prominently so your customers don’t have to go look for them.

If you live in another country, make sure you see how your prices translate to the American dollar ($).

Important Information for Running Ads in the U.S.

Social media will be the best way for you to reach potential U.S. customers. There are around 233 million social media users in the U.S.

Depending on your targeted audience’s age, some social media platforms are better than others.

  • For people between the ages of 12 and 34, Instagram is used the most often
  • For people between the ages 35 and 54, it’s Facebook
  • For people 55 and older, Facebook is used the most often

The best time to post on social media depends on which platform you use. Though, it’s been said that overall the best time is 10 AM on Tuesdays, Wednesdays, and Thursdays.

But we can do better than general times.

  • Facebook’s best time is between 8 AM to 12 PM on Tuesdays and Thursdays
  • Instagram’s best time is 11 AM on Wednesdays
  • Twitter is 8 AM on Mondays and Thursdays
  • Pinterest is Fridays and Saturdays between 8 and 11 PM

Don’t be afraid if these times don’t work for you. They’re the result of studies of various audiences.

It’s best to start with these times and then look at your followers’ activity to see if you need to make changes. See what your most engaging posts are and when you posted them. Make a list of the times and types of posts so you can make similar posts in the future.

Also, keep in mind your audience’s time zone and if it’s different from yours. The U.S. is made up of six different time zones:

  • Eastern Standard Time (GMT-5)
  • Central Standard Time (GMT-6)
  • Mountain Standard Time (GMT-7)
  • Pacific Standard Time  (GMT-8)
  • Alaska Standard Time (GMT-9)
  • Hawaii-Aleutian Standard Time (GMT-11)

Ad Guidelines

Americans don’t need a lot of extras when it comes to ads. They want to know what the product is, how it will benefit them, and how much it costs.

Product Description:

Our indoor pet bed is perfect for furry friends to snuggle into thanks to its soft fleece covering. The best part for you, as the pet parent, is that the covering is machine washable, so easy cleaning after a mess.

CTAs for Major Holidays

American Independence Day

Celebrate Independence Day with our special patriotic collection!

Halloween

Trick-or-treat! We have a delicious discount on all our Halloween merchandise.

Black Friday

It’s finally here! The best deals of the season are happening NOW!

Cyber Monday

Get ready to shop, we’re offering some special Cyber Monday only discounts on everything!

Christmas

Only (#) days until Christmas! Have you gotten everything on your list yet?

Staying Current with the U.S. Market and Trends

The best way to stay up to date with U.S. trends is to listen to your customers, look at social media and see what’s trending in the U.S., and reading The New York Times, The Wall Street Journal, and USA Today.