How to do online sales in the US? Cultural differences

Today, sales is a process that follows you from the beginning of your company journey. And it is crucial that you know this process, and if you are skilled at it – it will be super beneficial. However, online sales in the US have its specifics,

America is a land of possibility, as a huge market, with buying power, is a logical destination for your online business. But, there are some cultural differences in the approach. As well as regulations, that you need to address prior to entering the market.

In this article, we will dive deeper into cultural differences, and specifics of online sales in the US market behaviors and tendencies.

Let’s find out what makes the US unique, along with some advantages and disadvantages.

Specifics of online sales in the US

The United States is twice as big as the European Union. Also, it is one of the world’s largest online marketplaces

209.6 million people are shopping online in the United States, and there are 282.2 million Internet users in the US. (source Statista)

The populations that are most likely to buy online are Millenials (18-34 years old) and females.

The high demand for online shopping is, without a doubt, a big possibility, but customer expectations are also high.

High customer expectations mean that you need to be familiar with the local requirements in order to properly meet their needs.

For example American people buy a lot more during holidays. Therefore, it is especially beneficial to keep an eye out for US holidays and Black Friday and Cyber Monday events.

Increase your marketing activities in this period, have special deals for this period, special promotions, packages, discounts, new releases, etc.

Advantages and disadvantages of the biggest internet market – the US

Advantages of the American market are that the language barriers are less.

English is often the first language in which people develop their products because of global opportunities.

If English is not your product’s first language, then localizing your content, and translating it into English is a pre-condition to entering the US market.

A translation management system can help you with this. Do it quickly, with high quality, and have a continuous database for this.

American English differs from British English, not only in terms of spelling. US descriptions tend to be simple and not so idiomatic as the British ones.

Americans are among the first nations to adopt cutting-edge technologies.

They are often referred to as online-savvy consumers, with well-developed infrastructure and an advanced payment culture.

The American people are more direct in their speeches and presentations. In order to close the deal, you are expected to be straightforward and direct and to represent the value of the product early on.

Some of the disadvantages of the US market that deserve your special attention and workaround strategies and research:

1. Strong domestic competition – research your competitors carefully, and be aware of your unique selling point.
2. State and local taxes and regulations – each state and locality have its own tax and regulation systems. You need an expert with this background to ensure that you have a legal foundation to enter the market.
3. Rapidly transforming technology – the fact that Americans adopt new technologies fast has its downsides too, you need to stay up to trends, and to it fast (or even better be innovative!) to be competitive and
4. High consumer expectations – Americans are familiar with their options and possibilities on the market, so it is crucial to have responsive technical support or service support if some problem or delay occurs, so customers feel their problem is something you are working on.

Type of corporation in the US

We will not go into detail about the legal structure and types of corporations. But it is imperative for you to know all the types, and to have a local attorney that is an expert in the area and a person of trust. Doing online sales in the US does not liberate you from following the local structure.

If you have any referrals for a specific attorney, we highly recommend using them.

Taxes in the US

Taxes vary from state to state within the United States. There is common law in the US, but each state has its own regulations, and each locality can have its own taxes and way of calculating them. For online sales in the US you need to know local taxes.

Here is the same recommendation as for the attorney, find an expert accountant from the specific area that you can trust.

Look for recommendations and testimonials.

Topics to consider when entering the US market:

• Do the localization of your product (all must be in English), include dollar prices
• Develop a return strategy that is as simple as possible.
• Make sure your email and social campaigns are more aligned with American culture. This is a more direct approach and includes special offers during numerous national holidays and discount days.
• Ensure you have registered and protected your trademarks and intellectual property in the US and at home.

Ways to do sales

Every transaction that involves the exchange of goods is a sale. There are different types of sales:

1. Inside sales
2. Outside sales
3. B2B sales
4. B2C sales
5. Agency sales
6. Business development sales
7. Direct sales
8. Account-based sales
9. Direct sales
10. E-commerce sales

Which type of sale you will be doing depends on the business and on your goals.

People often use a variety of sales methods.

In this article, our examples are mostly tied to e-commerce sales.

A little more about each sales method

Inside sales are sales done remotely between team members and potential customers. While outside sales refer to all face-to-face meetings and deals.

B2B stands for business to business sales, while B2C stands for business to customer sales.

Agency sales are either project-driven or retainer-based. The retainer-based are not so focused on bringing a new client, but rather on retaining the existing one and monitoring their satisfaction levels.

In business development, pipeline sales are built within the organization while reaching out to various stakeholders.

Account-based sale is a type of sale for businesses that have several points of contact. In this type of sale, you establish a relationship inside your company with your clients.

Direct sales are one-on-one transactions, where the seller usually earns a commission.

E-commerce sales are something that is booming in 2022.

And in the previous years as well, especially with the Corona crisis.

If you are selling online, and your customer can find all the needed information about your product online then you are in the e-commerce sale. This is the sales process that requires the least effort for human connection in the process.

Wrapping

Online sales in the US are well developed, robust, and technologically advanced.

With e-commerce booming in the US for several years already, and English as a global language, this is a market that is considered a premium market for developing your product.

After the local market, the US market could be your next move, because a vast majority of internet users, precisely 82% of them buy online. (source Statista)

What a fascinating era to be alive, and sell for example software as a service subscription in the US from your favorite spot on the globe.