For international businesses, the allure of the US market is undeniable. The huge consumer base, 134 million consumers as of 2022, and high buying power offer an enticing opportunity to boost a company’s sales but these opportunities come with challenges. International businesses selling their products in the US can run into unexpected logistical hurdles and confusing consumer behavior that can upend their success. A plan to address these challenges is crucial for businesses to prosper in the US market. Sometimes, however, even US-based partners won’t have knowledge of unanticipated events. For example, hurricanes, a poor NASDAQ performance or labor strikes could impact sales. So how can your business capitalize on consumer behavior?
Consumer habits, seasonal changes to buying cycles, and the ability to cater to customer shopping preferences impact potential sales. These factors can be challenging for businesses unfamiliar with the US market. Partnering with a US-based logistics partner can offer a significant advantage by leveraging the expertise of a logistics partner who understands the intricacies of the US market.
The Value of Partnering with a US-Based Logistics Provider
The back-to-school season is just one of many passing events with a unique impact on the US consumer’s behavior. Forbes commented in a recent article that several key events in 2024 will change US consumers’ buying behavior. The Paris Olympics, the presidential election, and the shorter than usual holiday season will all shift behavior in the final months of 2024.
One of the primary advantages of working with a US-based logistics partner is their innate understanding of the market’s nuances. One example is the impact of the back-to-school season in the US, which peaks in August. This time frame is a busy sales season for many products including, backpacks, shoes, classroom supplies, clothing, and electronics. Left unprepared for the surge in demand during this season, some ecommerce sites may fall short on inventory and miss out on increased sales. For example, if you are in the business of selling backpacks, you could lose out to another retailer if your shipping times lag behind your competitors. Those who already have their product ready in the US and available for quick delivery to last-minute shoppers will capture the sale instead of you. A logistics partner with intimate knowledge of the US market can help international businesses time their inventory shipments to ensure products are available when the demand is the highest. This keen market insight can make a significant difference in your sales performance.
Leverage Market Knowledge to Increase Sales
A thorough understanding of the US market will help international businesses increase their sales to US consumers. This understanding allows companies to be proactive in boosting sales instead of reacting to unanticipated events. So, what are two ways to capitalize on US consumer behavior and increase sales?
Tip #1: Product Bundling
Product bundling involves packaging multiple related products together at a lower price compared to buying each item separately. US consumers want to feel they are getting an excellent value for their purchase. They are also interested in trying new products and feel more comfortable trying something new if the new product is offered at a discounted price. Offering a few products together for a lower price gives the consumer the feeling that they are receiving a good value for their hard-earned money. It also encourages them to spend a little more to try something new since it lowers the risk of wasting money on a product they may not like. Not to mention, the tactic of product bundling benefits the seller just as much! The University of Delaware notes that bundling can boost overall revenue by increasing sales and decreasing marketing costs. The article points out that marketing expenses associated with labeling and packaging are reduced when items are sold together. Hard to sell products can be offered with popular items which helps decrease inventory that has not been moving quickly off the shelves.
Tip #2: Integrate E-commerce Sites
Americans are savvy shoppers. They often compare product offerings and prices on multiple sites before making a final purchase. Making products available everywhere consumers are shopping increases the likelihood of capturing sales but managing multiple e-commerce sites leaves the potential for problems. Inventory management issues arise when your sales channels aren’t integrated. Integrating e-commerce platforms enables consistent product availability across multiple channels. For example, if you sell your product on your website, Amazon and Etsy without integrating your platforms your customers may find your product listed as in stock on your website but out of stock on Amazon. This misinformation causes potential customers to find another option. Integrating your e-commerce sites with a centralized inventory management system ensures stock levels are automatically updated across all channels. It provides the consumer with a seamless shopping experience, reduces backorders and delays, and drives more sales.
Smart Move for International Success
Partnering with a US-based logistics provider is a smart move for international businesses facing the unique challenges of the US market. Without the right business partner, businesses can experience missed sales opportunities during key seasons or see fewer sales due to inadequately addressing the unique demands of American consumer behavior.
Guidance from a seasoned service provider like Sweetwater Logistics helps international companies navigate complexities with confidence and edge out uninformed competitors. This positions businesses for sustained success in the competitive US market. Sweetwater Logistics, supports over 50 eCommerce systems including shopping carts, marketplaces and ERP’s. This type of partnership allows international companies to focus on marketing and customer engagement instead of order fulfillment from multiple sites.
For more information on the services provided to international clients by Sweetwater Logistics visit our Shipping into the US page or contact us today.
