10 Things To Know About the US Market Before You Start Selling There

The big advantage of operating in the United States is its friendly business environment. However, a heavily diversified market and immense competition make the US potentially challenging for companies that want to start selling there.

Let’s look at a few regulations, consumer preferences, and trends shaping the US market.

1. No VAT, but Sales Tax

The United States has a two-tier tax system. Accordingly, there are:

• taxes at the federal level (uniform throughout the country),
• state taxes.

There is no VAT in the US, but a sales and use tax is collected at the state level.

Sales tax is currently collected by 45 states and the District of Columbia. Each state regulates the tax rate.

In New York State, for example:

• the state sales tax rate is 4%,
• range of local top rates is 0-5% (some jurisdictions have no sales tax),
• local rates apply to use tax.

Regulations at the state level apply not only to taxes but to other issues as well — like data protection.

2. Sales Tax Holidays

The US has Sales Tax Holidays or tax holiday periods. During this time, individual states (not all) allow sales tax exemptions or reductions. They cover certain groups of goods, and the rules and rates vary from state to state.

Examples of products covered by tax holidays:

• New Mexico — revenues from retail sales of tangible goods that took place at the exact time specified by the state (November 30, 2024).
• Florida — retail sales of impact-resistant windows, doors, and garage doors (July 1, 2022 – June 30, 2024).
• South Carolina — clothing and certain accessories, footwear, school supplies, certain bedding and bathroom items (August 2-4, 2024).

3. Emphasis on Data Protection

We hear a lot about million-dollar fines for data leaks in the US. Data protection is an extremely important aspect there, not only for authorities controlling the proper collection and processing of data.

75% of US consumers believe that data privacy is a human right.

On top of that, the HubSpot US Consumer Trends report notes that 72% of consumers are more likely to make a purchase if they know how companies use their data.

It means that investing in data security is beneficial both legally and image-wise.

4. Product Labelling Regulations

Products offered by weight, measure, or number must have labels that comply with the Fair Packaging and Labelling Act. Some are subject only to state laws.

Any product that comes from overseas must have the country of origin labelled in English (unless regulations provide an exception).

5. American System of Measurements

Most countries in the world use the metric system. However, the United States uses a system based on the imperial system.

The American customary system of measurement differs a little from the British imperial system. The differences are in measures of volume, such as:

• A British imperial fluid ounce is equal to 28.413 ml.
• The American fluid ounce is equal to 29.573 ml.

6. Language Diversity

The US does not have an official language, although English serves that function in some states.

English is spoken exclusively by 78% of the US population (2019).

An additional language to consider in marketing efforts is Spanish. Spanish speakers are the largest minority group in the US (62%), and their language was the most widely spoken (next to English) in US homes.

Among the top 5 most used languages other than English are Chinese, Tagalog, Vietnamese, and Arabic.

7. Social Media Shopping

The United States has the third largest number of social media users (308 million) in the world. It is surpassed only by China and Brazil.

Social media in the US is not only a source of entertainment and communication but also a sales channel. The most popular social platform through which American consumers purchase items is Facebook.

According to the HubSpot report, search engines are the primary source people turn to when they want to find answers to their questions. Still, it is impossible to ignore the role of social media, where 32% of consumers look for answers.

8. Immediate Delivery

Due to consumer expectations of fast delivery, the popularity of the Quick Commerce market is growing in the US. The product category where consumers are particularly concerned about delivery times is food. Ideally, delivery should be on the same day or even within an hour.

This market continues to grow. In 2023 it generated $26 billion, and estimates for 2027 put it at $40 billion.

9. Mobile E-Commerce

A website optimised for mobile devices should be a priority for a company that wants to sell in the US.

Smartphones generate the most visits and sales on retail websites. In Q1 2024, these devices accounted for two-thirds of orders and the majority of traffic.

Consumers expect convenience and time savings from technology. Mobile devices fit into this landscape of needs.

So does AR/VR (augmented and virtual reality) technology, which makes it possible, for example, to measure clothes and shoes without leaving home.

A March 2023 survey says that about 69% of US shoppers would like to use an AR-based app to try on clothes and shoes.

10. Microsoft Bing

Bing, although less popular than Google, has a significant share of the search engine market and is worth considering in SEO strategies. Microsoft’s search engine has almost 7.5% of the search engine market share in the United States.

Of course, Google is second to none in this ranking, claiming an 87.45% share.

Bing’s user satisfaction index is 77 points out of 100 and has remained at 82-75 from 2010 to 2023. In comparison, Google’s rating in 2024 is 81 points.

In this evaluation, indicators such as the quality of the mobile app, the number of ads on the site, and privacy are taken into account.

Source: www.statista.com/statistics/1383612/us-customer-satisfaction-with-bing/

Summary

Understanding local regulations, consumer preferences, and effective use of communication channels are helpful in entering the US market. To sum up:

• Taxes in the US are complex, with differences at the state level. 
• Labelling regulations and the measurement system require products to be brought up to US standards.
• Data protection is a priority for consumers.
• Customers expect fast delivery and convenient accessibility of offerings via smartphones.
• Language diversity is worth considering in marketing communications. 
• Social media, especially Facebook, is an influential sales channel in the US, and the search engine Bing can be an additional source of website traffic.

Author

Dominika Sliwa

Content Marketing Specialist

Content marketing specialist and content designer. She plans, creates and customizes content to provide users with the best possible experience. Professionally, she is interested in consumer behavior and how people make purchasing decisions. Privately, she loves reading, writing poetry and walking.

Author

Raf Chomsky

Chief Executive Officer (CEO) & Co-Founder

Experienced CEO with a proven track record in the marketing and advertising industry. Skilled in search engine optimization (SEO), sales, management, business development, and marketing strategy. Strong business development professional with a Bachelor’s degree in Economics.