The United States of America (USA) holds immense significance as a market for Thai sellers seeking global expansion. With a vast population of over 330 million internet-savvy consumers and a thriving economy, the US presents a golden opportunity for businesses looking to tap into its potential. In the first quarter of 2023 alone, the country's e-commerce revenue reached a staggering US$272.6 billion, accounting for 15.1% of its total retail sales.
However, it's important to note that the US market also presents challenges, including intense competition from established domestic brands and complex tax regulations. Despite these hurdles, the sheer size of the US economy, its purchasing power, advanced technologies, and the population's affinity for shopping make it a hotspot that international businesses of all sizes cannot ignore.
To overcome these common challenges and unlock the vast potential of the US market, Thai sellers must focus on understanding the preferences and behaviours of US buyers. Additionally, navigating the complex tax landscape and being aware of all the regulations of shipping to the US are crucial steps for successful expansion. By doing so, Thai sellers can seize the opportunities offered by this lucrative market.
The US market: A golden opportunity for Thai sellers
As mentioned, the inherent diversity of the massive US consumer market poses an excellent opportunity for Thai sellers to cater to a wide range of consumer preferences and interests.
In addition, the booming e-commerce scene in the USA makes it an ideal space for Thai sellers to market their products. With the rise of online marketplaces and the convenience of cross-border shopping, US buyers are increasingly open to purchasing goods from international sellers. As a matter of fact, statistics from Insider Intelligence show that American consumers have a strong affinity for discovering and purchasing products from cross-border brands, with over half of them engaging in online shopping from foreign sites. This openness to international brands provides a promising avenue for Thai sellers to showcase their products and capture the attention of US buyers.
With exports from Thailand to the USA having grown by 1.7% in March 2023, it is made even clearer that Thai sellers can leverage the popularity of certain products to expand into the US market. According to Trading Economics, key exports from Thailand to the USA include electronics, precious stones, furniture, and articles of apparel. By understanding the demand for these goods, Thai sellers can tailor their product offerings to meet the preferences of US buyers.
But what exactly are the preferences and behaviours of the American buyer?
Understanding the American buyer
Understanding the motivations behind American shoppers buying from cross-border brands is crucial for shaping your marketing and sales strategy. And to do that, Thai businesses need to be aware of the key factors driving US shoppers to purchase from overseas markets.
One significant reason is the appeal of lower prices. In the US, consumers have become more price-conscious due to financial and pandemic-related challenges. As such, promotions and price comparisons play a significant role in their purchasing decisions. Moreover, American consumers tend to perceive bulk purchases as providing value for money. And since manufacturing prices are often lower in APAC regions compared to the US, it is common for American wholesalers to buy products overseas in bulk for resale.
With more consumers actively seeking value, price is also the primary motivation behind brand switches. This has indirectly led to new purchasing behaviours, with more and more consumers trying new products and private-label brands. Since international businesses bring something new to the table, offering products that domestic sellers can't, the appeal of international businesses is made more apparent.
By understanding these preferences and behaviours of American buyers, Thai sellers can tailor their strategies to meet their demands and preferences.
