Expanding your business to the USA?Market contextWith the world’s largest economy and a population of over 317 million, the USA is an important market for Australian online businesses to consider.1 eCommerce in the USA has been expanding for over a decade. Over the past five years eCommerce industry revenue has grown at an annual growth rate of almost 10%, to:

The importance of eCommerce in the USAThe online overseas shopping market is currently valued at US$40.6 billion, and is expected to grow to over US$80 billion by 2018.3

The USA consumer

What are they buying?The most popular items for online consumers in the USA are computers and TVs. It is common for households to own several electronic goods, and the number of these per household continues to rise. Clothing, footwear, accessories and jewellery are the second most purchased category, followed closely by sporting goods, toys, hobby items and games.2 The majority of shoppers buying goods and services from outside of the USA are purchasing items from:3

UK 49%

China 39%

Canada 34%

Hong Kong 20%

Australia 18%

USA Online Store & Auction Site Sales 20132

Half of the 192 million American internet users above the age of 15 are purchasing online.

USA consumers also have a high proportion of smartphone and tablet ownership (59% and 40% respectively), with half or more of these shoppers purchasing on these devices.4

1. US Census Bureau and Australian Government department of Foreign Affairs and Trade. 2. E-commerce & Online Auctions in the US: IBISWorld Industry Report, 45411a, December 2013 3. Modern Spice Routes: The Cultural Impact and Economic Opportunity of Cross-Border Shopping, PayPal, 2013. 4. 2013 UPS Pulse of the Online Shopper: A Customer Experience Study conducted by comScore, September 2013.

Did you know?Social commerce has recently gained widespread acceptance in the USA. This involves retailers using social media to reward their customers with discounted prices5.

4. 2013 UPS Pulse of the Online Shopper: A Customer Experience Study conducted by comScore, September 2013. 5. State of the U.S Online Retail Economy in Q3 2013, comScore, November 2013.

Customs, duty and taxes to be aware ofIt’s always best to check what you can send and how you can send it, before you send. For more information, visit: auspost.com.au/parcels-mail/dangerous -and-prohibited-items.html

For more specific information, visit the US Customs and Border Proection website: www.cbp.gov/trade

Get started

Marketing in the USALike Australians, Americans are

becoming increasingly accustomed to making purchases online. Almost half of US frequent online shoppers appreciate

online retailers giving smartphone users special offers

while they are in their physical stores, or close by. These shoppers also appreciate

the ability to buy online and collect their purchases in-store4. Furthermore, half of

American online shoppers recently surveyed say that delivery tracking is ‘essential’ to

online purchasing. Some popular tracking traits include email notifications and alerts

sent from retailers, and the ability to track delivery from retailers’ websites4.

Before you begin1. Do your research

Research your target market and consider the unique selling points of your product or service.

2. Develop your strategy Consider recent market trends and your long and short-term strategies.

3. Confirm your logistics Contact Australia Post to see how we can help streamline your logistics and help you reach your customers in the USA.

How we can help get you thereThrough the combined services of Australia Post and StarTrack, we can offer you a range of products and services to help you reach your customers in the USA. Whether you require urgent or standard delivery, supply-chain solutions, sea or air freight, we can tailor a solution for you. For more information, contact your Account Manager or visit auspost.com.au/international-business