By the year 2020, economics experts predict that international sales from US e-commerce will increase five-fold to $50 billion.
U.S. International E-Commerce Market is Surging
By the year 2020, economics experts predict that international sales from US e-commerce will reach $50 billion, nearly five times the amount it is now. Currently, international sales from U.S. e-commerce markets stands at $11 billion, according to a study by OC&C Strategy Consultants, a global consulting firm based in Boston. The firm’s study, which examined retail search trends in six economic markets, outlines how international consumers are increasingly becoming more enamored with U.S. products. The U.S. is among several countries with surging e-commerce platforms.
Entertainment, Electronics Driving U.S. E-Commerce
More and more international consumers are turning their attention toward the U.S. when making purchases, particularly for electronics, entertainment and fashion products. Based on online searches, the report even detailed which countries are turning to U.S. e-commerce most often. Brazil appears to be the most interested in U.S. e-commerce with 42 percent of the country’s online product searches geared toward the states. Additionally, Australia is close behind at 39 percent while Mexico and Italy follow at 38 and 37 percent, respectively.
It is common for international tourists who travel to the U.S. to bring along a few extra luggage pieces. Why? U.S. brands – particularly clothes – are on average much less expensive than they are in places such as Europe, which supports OC&C’s research. Predictably, online retail giants Amazon and E-Bay have had a major impact on cross border trade. The OC&C report cites the two retailers have reported that more than 50 percent of their sales are from international consumers.
U.S. E-Commerce Brands Have Long Reach
The U.S. has done well in reaching other countries with its brands, but there is room for growth, again underscoring OC&C’s research. US e-commerce brands have reached more than 50 countries worldwide while many U.S. brand websites offer multiple languages such as Spanish, French, German and Portuguese. A prime example would be Walmart, which offers country-specific websites in five languages over eight countries. When Doug McMillon was named the new CEO of Walmart in November, part of his commitment was to expand the retail giant’s e-commerce efforts.
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