Velocity Sellers, Inc

Why should international Sellers expand into the US market?
March 17, 2023

Why should international Sellers expand into the US market?

Expanding your business to the USA can be an exciting prospect. Whether you’re a small business owner or an entrepreneur looking to take your venture to the next level, there are several advantages to setting up a shop in this country. As a successful entrepreneur, it’s just natural to expand in the U.S. With an unrivaled consumer market and world-renowned entrepreneurial ecosystem, there’s much to gain by establishing your operations here.

Why expand in the U.S. now?

Reselling in the U.S. can be a smart business move for several reasons. The COVID-19 pandemic has led to a surge in online shopping as more consumers stay home and turn to e-commerce for their shopping needs. This has created a ripe market for resellers to reach customers and sell their products. Moreover, the U.S. economy is experiencing a solid recovery, with consumer confidence and spending rising. This creates a favorable environment for businesses to generate revenue and grow their customer base. With US’s strong and well-developed e-commerce infrastructure, you can quickly sell your products online. This infrastructure includes established online marketplaces, payment gateways, and shipping and logistics services, which can help reach customers and manage their operations effectively.

Benefits of expanding in the U.S.

The U.S. market is highly competitive, which can drive innovation and growth in the reselling industry. By entering the U.S. market now, you can benefit from the competitive environment and learn from other successful businesses.

Widen consumer base

The United States is one of the largest e-commerce markets in the world. It’s home to more than 200 million online shoppers, and its growth is projected to continue rapidly for years to come. Expanding into this lucrative market allows you to reap significant benefits over time. The U.S.’s high Internet penetration rate and active user base make selling products online ideal. No matter your sales volume, you could always make more money. Extending your brand to U.S. customers will introduce your products to millions of users. 

The United States is a savvy, internationally-minded consumer base well-acquainted with the online shopping experience. This means you can access many online shoppers who are already accustomed to making purchases online. 

Opening up your online store to cross-border selling maximizes the number of shopping hours in a day and the number of shopping seasons in a year. If you only sell domestically, there are many hours when your site is more or less dormant. Targeting buyers in other time zones even out your daily traffic spikes.

Stay ahead of the competition

Every business faces competition. You need to establish your presence in the U.S. market before your competitors. Expanding into the U.S. allows you to get ahead if your market is saturated because it gives you access to new customers. U.S. expansion is one of the best ways to get ahead of competitors. It allows you to establish your brand in a new market, giving you access to a new pool of customers and keeping other companies out. It also gives you access to new technology and business ecosystems to improve your operations before anyone else hears about them.

Diversify risks

The U.S. is the largest e-commerce market in the world. It’s also a growing market, with an estimated 26% annual growth rate through 2022. The U.S. has not only been a gateway to other markets but has become an important one on its own, with more buyers and sellers than any other country.

The high number of products available on Amazon makes it easier for international sellers to enter this market at once by selling their products directly from their own websites instead of going through third parties like Alibaba or eBay, which require them to have separate accounts for each platform, they want to be present on.

By expanding into international markets, you can reduce the risk of relying on one market or group of customers. If your local market slows down, having access to a global market will help cushion your company during slower economic times. You can also reduce your dependence on your local market or group of customers by expanding in the U.S. The business is less vulnerable to economic downturns and changes in customer preferences with a strong U.S. market presence. No matter how high-end your product is, it can still appeal to price-conscious buyers.

Increase brand awareness

Successfully marketing your products or services to an international audience can boost your brand image. As a global brand, you will have access to new markets, attract new customers and create long-term loyalty among your existing ones. Suitable social media campaigns and digital marketing strategies can establish your brand globally.

Access talent and new resources

Expanding into new markets can give businesses access to new sources of talent, resources, and raw materials. Doing so lets you stay innovative and competitive while lowering your manufacturing costs. This typically happens if you source raw materials locally or find cheaper labor. 

Nevertheless, you must research to make sure it makes financial sense to manufacture abroad. With reduced manufacturing costs, selling your products at a competitive price will be easier – making international expansion more feasible.

Reselling in the U.S.

Reselling-in-the-US market
With wide consumer base and advanced infrastructure, now is the perfect time to penetrate the US market.

The availability of e-Commerce tools makes it a prime time to expand in the U.S. market. However, reselling in the U.S. comes with solid domestic competition, changing demographics, rapidly transforming technology, and high consumer expectations. On top of these, you need to consider the following:


Managing your local inventory is one thing, but staying on top of your inventory overseas can be overwhelming and exhausting. Keeping on track with your inventory allows you to meet customer demands and produce sales. It sets you apart from the competition and builds your reputation. 

If you resell in the U.S., do you have a warehouse to store your inventory? Is the space enough to keep up with the shifting demands of your target consumers? How can you track the orders? 

Once you know where to look, you can get incredible inventory for your business without breaking the bank. eCommerce companies like Amazon and Walmart have their own inventory methods and systems for resellers, so you don’t have to stress about tracking and managing your inventory. Research which platform delivers efficiently and works well with your existing inventory management method.

International Banking

The most common online payment methods in the United States are credit cards, debit cards, and digital payments. It’s important to offer payment options that your shoppers prefer to reduce cart abandonment—a problem that affects more than one-third of online resellers. 

You can open an account from your home country, so you don’t have to fly to the U.S. to set it up beforehand. Most banks even have web services to set up a bank account online. If you’ve ever visited the U.S. and opened a personal bank account, try contacting your bank (preferably the same branch) and see if they’ll open an account for your business remotely.


You may have economic nexus if you sell products in the United States without a physical presence. Economic nexus means that you must collect sales tax from buyers in the states where you make sales. Even if you live outside the United States and sell on FBA or have established any other type of sales tax nexus, such as an employee, office, satellite branch of your business, or warehouse where you store inventory, you must comply with the laws of the state where you have nexus.

The complexity of U.S. taxes can make selling products to American consumers challenging. Some online retailers only show the tax owed once the buyer reaches the checkout page. This may be risky because many consumers may see unexpected extra charges and abandon their shopping carts. It’s better to calculate and display all local taxes upfront to satisfy buyers’ orders. Taxes impact the amount of money you get to keep from a business transaction. The most significant variable is how much you’ll have to pay in taxes. With proper planning, there’s a risk of mishandling the transaction, which can be beneficial when it comes to taxes. 

It’s important to consider whether you’ll be paying taxes on the profits from your business. The most significant variable is how much you’ll keep from a sale. Sales tax is an important consideration when it comes to selling products online because the more states involved in your business, the higher the chance you’ll have to pay taxes in those states.

Sales tax compliance is a genuine concern for any online seller who wants to grow their business. If you fail to collect, file, and remit sales tax in states where you have nexus, you could be subject to late payment penalties, collection fees, and interest payments. It’s best to consult a tax professional to ensure your business complies with tax laws in different states.

Research the US Market

Reselling in the US market comes with challenges but with the right understanding of how the market works and partnering with the right team, you can navigate through reselling online.

Market research is an excellent way to gain insight into the U.S. market. You can use various research methods, such as surveys, focus groups, and interviews, to gather data about your target audience and the market as a whole. Social media platforms like Twitter and LinkedIn can be excellent sources of information about the U.S. market. Follow relevant accounts and hashtags to gain insights into what’s happening in the market. 

Check if the product you’re offering has a lot of competition and demand. You may need strong, established competition or potential customers to sell your products. Research on the products that U.S. consumers are buying. Check the global trends to determine the suitable products you can sell in the U.S. When you start a business, it’s best to keep it modest. You don’t get to be a significant player all at once. You must begin with tiny steps. Choose a small group where your item has a lot of demand. Decide before you start.

Social media platforms like Twitter and LinkedIn can be excellent sources of information about the U.S. market. Follow relevant accounts and hashtags to gain insights into what’s happening in the market. Use data analysis tools and techniques to identify trends and patterns to help you make informed decisions.

Sales Volume

The U.K. market is still behind the U.S. market regarding e-commerce penetration. European e-commerce penetration is slightly less than in the United States (14.4% vs. 15.3% of all retail sales).

The U.S. market is one of the world’s largest and most competitive markets, with a wide range of products and services available to consumers. This market offers significant potential for higher profits for businesses that can successfully tap into it. You can target different market segments with tailored products and services, increasing their chances of success.

Moreover, the U.S. market has a high level of purchasing power. This creates an opportunity for your businesses to price your products higher and achieve high sales volume, resulting in higher profits. Additionally, the country has a well-developed infrastructure, meaning businesses can benefit from efficient supply chains, logistics, and distribution networks. This can reduce costs and increase profitability.

Challenges in reselling in the U.S. market

Reselling in the U.S. market can present several challenges for businesses. Here are some of the key challenges that businesses may encounter when reselling in the U.S.


The U.S. market is highly competitive, and resellers may struggle to differentiate themselves from other resellers and retailers. The presence of large, established players in various industries can make it difficult for new entrants to gain market share. As a reseller, focus on your competitive edge. This could include offering unique products, exceptional customer service, or competitive pricing. You must also invest in marketing and advertising to build brand awareness and attract customers.

Shipping and Logistics

Shipping and logistics can be a significant challenge for resellers, given the vast expanse of the country. You must have reliable logistics partners and an efficient supply chain to ensure the timely delivery of products and invest in technology and tools to track inventory and streamline their operations.

Regulations and Compliance

Resellers must comply with all relevant laws and regulations, including product safety standards, labeling requirements, and other rules that vary from state to state. Failure to comply can result in penalties and legal issues. You should also work with legal advisors and industry associations to stay informed and address any compliance issues. It’s essential to familiarize yourself with U.S. export and shipping regulations. Understand the customs restrictions, shipping and return policies, etc. Make sure that you assess the taxes and fees before going overseas to determine your profit. Remember to include the packaging, shipment materials, and more. Look for any loopholes that may stop you from selling your products and find ways to resolve them.

The U.S. market has a diverse consumer market with high-level purchasing power, offering your business potential for high-profit margins. You have access to savvy online shoppers with diverse interests who are primed to purchase what you offer. Reselling in the U.S. market also diversifies risks and boosts your brand. Despite common challenges, researching and working with reliable partners can help you navigate the U.S. market.

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