In 2023, the United States continues to be one of the most promising markets for global e-commerce. America is sought after by entrepreneurs and investors from all over the world for its stable economy, favorable consumer environment, and constant e-commerce growth. According to a study conducted by Insider Intelligence, the US will be the only established online sales market to experience double-digit growth in 2023.
The United States stands out among the most consolidated markets. The country combines stability and opportunities, driven by widespread internet adoption and American consumers’ willingness to embrace new trends. In this regard, foreign entrepreneurs can explore growth prospects through the adoption of new developments, such as Direct-to-Consumer (D2C) sales, mobile commerce (m-commerce), and artificial intelligence.
Check out how the US e-commerce growth is looking in 2023 and how to adapt to the new trends in the sector.
US e-commerce continues to grow in 2023
Among developed e-commerce markets, the US is leading the sector’s growth. According to Insider Intelligence, the country has established itself as a reliable source of expansion in the global landscape, projecting double-digit e-commerce growth in 2023.
Furthermore and according to Insider Intelligence, the US is expected to reach $1.148 trillion in e-commerce sales in 2023, a 10% growth compared to the previous year. Thus, online sales will represent 15.6% of American commerce this year. By 2027, the online sector is expected to account for over 20% of goods sold in the country.
The clothing, furniture, and electronics sectors are expected to represent over 50% of total e-commerce spending in 2023. However, projections show that by 2027, these categories will closely compete with the healthcare and personal care sectors.
For foreign entrepreneurs, one of the best ways to take advantage of the growth opportunities in the e-commerce sector is by opening a company in the United States. Even with a well-established business in their home country, an American company can help set their presence and participate in major marketplaces in the United States, facilitating global sales. Expand your company to the US now and bring your products and brand to the American market.
What is the current state of e-commerce in the US?
The United States has experienced significant e-commerce growth since the beginning of the Covid-19 pandemic in 2020. According to an analysis by Digital Commerce 360, consumer spending on online purchases in the US increased by an impressive 32.4% in 2020, reaching a total of $791.7 billion. This increase was particularly significant in the electronics, toys, and furniture categories.
In a historic milestone, e-commerce sales in the United States surpassed the trillion-dollar mark for the first time in 2022. According to data from the US Department of Commerce, the sector generated $1.03 trillion in revenue last year. Although forecasts indicate that market growth may slow, it still is expected to surpass pre-2020 numbers.
The success of e-commerce is not limited to the United States but is occurring on a global scale. It is currently estimated that approximately one-quarter of the world’s population shops online. Insider Intelligence reports that by 2025, the e-commerce market is expected to double in size compared to 2019, with online sales reaching an impressive $7.4 trillion. In 2022, sales in this market accounted for 21% of global trade, twice as much as five years earlier.
For foreign businesses, being a part of the e-commerce growth in the American market means expanding their reach and gaining global opportunities. The United States is the world’s second-largest e-commerce market, behind China. In addition to local sales, the country offers more facilities for international sales through trade agreements with over 20 countries and integration with the world’s largest marketplaces such as Amazon and Walmart.
3 Trends to Watch in the American Market
Technological advancements and changes in consumer behavior have been impacting strategies and business models. Therefore, in a competitive market like the United States, entrepreneurs must stay on top of new trends to stand out.
In recent years, the adoption of artificial intelligence technologies, the increase in mobile devices for online shopping, and the growth of direct-to-consumer sales have become pillars for e-commerce business growth. Each of these trends brings unique opportunities and challenges for companies, requiring preparedness to meet the demands of an ever-evolving market.
- D2C Growth: Direct-to-consumer sales in the US are growing, with a projected reach of $213 billion by 2024, representing approximately 17% of online sales in the country. The D2C model offers companies the opportunity to establish a direct connection with customers, understanding their needs and offering personalized products, as well as greater control over the brand and communication.
- M-commerce: Mobile commerce (m-commerce) is on the rise and is expected to surpass computer sales by 2026, accounting for 40% of online sales as early as this year. The popularity of m-commerce is due to its ease, convenience, and availability, driven by technological advancements, allowing retailers to expand and meet consumer needs.
- Artificial intelligence: AI is revolutionizing e-commerce by enabling a deeper understanding of customers and trend prediction, as well as improving logistics for more efficient delivery. With the continuous advancement of AI, even higher levels of success and innovation are expected, providing personalized and relevant shopping experiences for each customer.
Discover how to seize e-commerce opportunities in the US
With the continuous e-commerce growth in the United States and around the world, it is evident that there is vast potential for foreign entrepreneurs to take advantage of these opportunities. Expanding into the American market can open doors to global success, allowing your business to be recognized and reach a larger customer base.
Establishing a company in the United States is a fundamental step to take advantage of the US online sales sector’s benefits. To expand your e-commerce and bring your products to the American market, count on Globalfy! You will have access to a comprehensive platform to conduct business in the US 100% remotely.
Globalfy’s services are designed to help global entrepreneurs start, grow, and expand their businesses.
- Company formation in the US
- Virtual address
- Registered Agent
- Compliance Calendar
- EIN and ITIN processing
- FDIC-insured US business bank account