2020 is the year ‘Digital Commerce,’ and U.S.’s sales report proved it. The e-retail sector displayed growth of 14.9% in 2019 and 16.1% by the second quarter of 2020. The U.S. alone holds the credit of 10% of e-commerce sales every year. In 2019, the figure for global e-commerce sales was roughly $3.5 trillion, and it will hit $4.9 trillion by 2021.
The year-on-year percentage growth of e-commerce across the globe is expected to be 15%. The retail comparison of the U.S. for every quarter since 2010 clearly shows the linear growth of the market. Being a developed country, people in the U.S. are more adaptive to the trend of online shopping.
The e-commerce giants like Amazon, eBay, and retail chains like Walmart are based in the U.S., ensuring the success rate of online merchants there. Let us help you get more convincing reasons to set up your e-commerce business in the U.S.
- Adaptability to varying business models: Amazon Seller model, dropshipping
- There are multiple models in online businesses like the Seller model, Affiliate model, Dropshipping, and Social Sales. Models like the Affiliate model are focused on using communities’ power and allow customers to turn their network into a business opportunity.
- Technological advancements:
- In the USA, eCommerce, ready infrastructure allows for developing a robust supply chain and continuous states. Now, as corporate giants like Amazon are experimenting with ideas related to automation based delivery with drones and flying warehouses, we can expect to see a new revolution that will dramatically change our lives. Dominos has already set an example by delivering pizza via drone. Even Uber has come up with the idea of a drone taxi.
- Declining traditional Retail:
- Traditional Retail is facing a lot of problems lately. Stores face threats, riots, mobsters, and even robberies. Also, the high cost of initialization and investment is a big problem. On the other hand, setting up a simple ecommerce store is way more comfortable.
- Low upfront cost
- Setting up an eCommerce store is easy and inexpensive. If you have an existing store, it is as simple as signing up for an email address. Almost all the paperwork, from Zero to Zenith, gets complete within a week. Also, to get clearance and approval, the procedures are mostly single-window.
- Low operational cost
- Most traditional businesses face one big problem: the high cost of operations or the money they spend to stay in place. No matter how much business your store does, your staff, your local authority, your bank, and even your electricity meter, they all are going to run no matter how much you do in sales.
- Federal Support
- The government has launched several initiatives to promote business and help them survive the damage this pandemic has caused to them. Various government departments are providing guarantees and assistance for loans that can help businesses resurge back with pace.
- Pandemic safety
- eCommerce businesses have a very low degree of contact with their clients. Also, in the times of this disease, it’s always better to switch to an option with minimum contact and the highest possible safety level.
The technology of eCommerce
A lot of technology will come up with the time for eCommerce. Augmented Reality, Voice Search, and Chatbots will grow. Why Augmented Reality? Because it will allow you to have an idea of how the new dress will look like or how the new furniture will feel in your living room. With mobile phones getting hands-on with such technology is easy and inexpensive.
The most dominant player in the eCommerce technology space is Artificial Intelligence. It has many applications, such as allowing businesses to know more about their customers and developing algorithms that allow data analysis of the collective data.
All the resources will be based on one important thing: data. The data that will we will create and will be the one that will bind us all. Edward Deming once said, “In God I trust, all others must bring data.” How important is that? Today we handle more information in a day than all of the human race has received in the last millennium. We will need the input, process, store, and generate more data for all electro-commercial activity than ever before.
Chatbots are taking the eCommerce by storm. Call center services are getting expensive and for even those who use them. Chatbots have and will solve the problems in the future as well. It can filter leads, create workflows, and manage general FAQ-style queries by customers.
How is it doing in the United States?
In the United States, eCommerce has been making astronomical growth. Industries such as
Food and Beverage, Personal Care & Beauty are able to maintain the pace, while the consumer appliances sector has made a positive path as more people are looking for automation and personal equipment.
Although the recent turn of events has hit the industry, online businesses predicted to have a praiseworthy growth rate of 18% in these times. Amazon, the biggest player in eCommerce, will see its share grow to 38%. The traditional retail sector is hit hard by the pandemic due to lockdowns and other precautionary regulations and is expected to slip down by 14%. This change will allow internet-enabled businesses to have the highest ever growth rate in a single year. This will go for the next many years.
The pandemic will end soon, but the impact that it has created will stay for long. We will soon recover from the impact and create something significant for the journey ahead.
How to set up your ecommerce business in the U.S.?
Depending upon your location in the U.S., you have to get your business registration done and get tax certifications. Based on your market analysis and business niche, design a business plan for you. Meanwhile, you can register your business at Builderfly and start designing your store. The cataloging, customization, and planning on the strategies will take your time; if you have everything ready ahead of the time, you will be ready to start as soon as you get the registration certificates ready.