Expanding to the U.S.? Here’s What Every International Seller Needs to Know

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The United States is one of the most lucrative markets in the world. American consumers power countless industries and products. Breaking into the US market can grow your e-commerce business to a whole new scale. Here are the basics that you need to know about before getting started.

Manufacturing & Safety Requirements

Whatever you’ll be selling, you need to make sure that all of the individual product components or ingredients are legal for sale in the United States. This doesn’t just refer to weapons, drug paraphernalia, and pharmaceutical products, either: Whether it’s cosmetics, electrical appliances, housewares and clothing, toys, food, or something else, American safety regulations may make existing product designs unsuitable for sale in the US.

Don’t neglect this step! The US is a highly litigious country, and you could easily end up being sued and forced to exit the American market if you run afoul of these laws, so it is best to screen your products for suitability in the US prior to putting them up for sale on your site. The Food & Drug Administration, the Consumer Product Safety Commission, the American Society for Testing and Materials, and US Customs & Border Protection are some of the key federal agencies that set standards and oversee compliance. It is also a good idea to contact manufacturers directly and ascertain whether their products are approved for sale in the US: Many manufacturers have separate production lines specifically for the American market.

In addition to federal laws, different states and local jurisdictions have their own safety laws. The State of California has some of the most stringent safety laws in the US, and is also a major market, so its state agencies make a good reference point to use as a benchmark for safety compliance research. However, be aware that other states and localities do sometimes have more stringent laws than California’s. Don’t treat California’s rules as nationally definitive!

Import Requirements

Upon arriving at an American seaport, airport, or land crossing, your merchandise will face screening and possibly inspection by US Customs & Border Protection, and will be assessed any applicable customs, duties, and fees.

This includes the notorious tariffs now dominating the news. The current American administration in Washington, D.C. is pursuing a chaotic tariff policy that frequently changes and has proven erratic and unpredictable to business forecasters around the world. This presently makes it hard to know in advance how much it will actually cost to get your goods into the US. It’s also important to know that the administration has signalled that most “de minimis” tax exemptions for small-dollar packages are going away, which will have significant impacts on the import costs of most e-commerce sellers.

A licensed US customs broker can help you navigate this difficult step in the process of entering the US market.

Logistics Solutions

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You will need to arrange shipment from your manufacturers abroad to international ports for travel into the United States, then aboard ships, planes, or trucks for the journey into America, and finally by shippers inside the United States for final delivery.

The good news is that international logistics is easier than ever, and major international providers like UPS, FedEx, and DHL can often handle the entire shipping journey from the factory warehouse to the American consumer. The United States Postal Service also handles a lot of package deliveries inside the United States.

Sales Tax Laws

The United States taxes the sale of most items most of the time. If you want to do business there, you will likely trigger what is called an “economic nexus,” which means you will be required to collect and remit sales taxes to each state you do business in.

US sales tax laws are notoriously complex. There is generally no federal sales tax. Instead, individual US states as well as counties, municipalities, and special tax districts issue their own sales tax laws and rules on product taxability. In fact, there are currently over 12,000 state and local taxing jurisdictions in the United States, and they frequently change or update their rules.

There are a lot of rules to learn, but there is also some good news: Tax consultancy firms can help you navigate this process smoothly so that you can find exemptions and minimize your tax burden wherever possible, while still remitting the taxes you legally owe. Moreover, most US states try to make it helpful for you to look up their state and local tax information, and you should be able to find the information you need on their websites and integrate it into your database.

Doing Business in the United States

It can be difficult, though not necessarily impossible, to set up to do business inside the United States without an American component to your business, such as a bank account and an American address. This is another area where professional consultancies can help you out.

Website, Payment Processing, & Customer Service

You will need a safe, reliable, easy-to-use website for your business that is accessible both on mobile phones and desktop computers. Rather than trying to build your own website, major e-commerce website providers can help you set up your online shop for business in the US smoothly. They and their partners will usually handle functionality such as virtual shopping carts, payment processing, and technical problems.

You will also need fluent English-language writers to build the site navigation and product descriptions. Americans often do not trust e-commerce websites that are poorly written.

Great Opportunity Awaits

There are many other factors to consider as well, such as legal counsel, liability and product insurance, advertising, a social media presence, and more, but now you know the basics.

This is an interesting time to take your e-commerce business into the United States, but if you can navigate the chaos while others back away, great opportunities await you.