Establishing a Business in the United States (US) with the Use of an E-Commerce Website:
The United States remains one of the most appealing countries to start a new business. International and domestic entrepreneurs are increasingly turning to e-commerce due to the legal frameworks, a high population, and tech-savvy society.
In this piece, We will provide a guide to setting up an eCommerce business in the United States.
Step 1: Choose Your Product and Business Model:
Before launching an online store, it is crucial to select a niche. A logical business model follows after finalizing the products or services to be sold. Additionally, make the decision of whether you will sell physical inventory, digital inventory, or offer services. Finally, decide whether you will handle the inventory or use the dropshipping model.
Common eCommerce models in the United States are:
- B2C (Business to Consumer): Selling goods and services through direct sales.
- B2B (Business to Business): Purchasing goods and services from other businesses.
- DTC (Direct to Consumer): Companies sell directly to their consumers and bypass retailers.
- Dropshipping: No inventory storage.
Step 2: Setting Up Your Business in The US.
Starting a business as a foreigner comes with its challenges, however, it is possible to establish a Limited Liability Company (LLC) or a C-Corporation. Similar to native citizens, foreigners also need to register their business to legally operate within the country.
Here’s what you’ll need:
– A Registered Business Name
– Choose a state for registration (Delaware, Wyoming, and Florida are popular).
– Hire a registered agent for the legal documents.
– File formation documents with the state.
– EIN (Employer Identification Number) required for banking, taxes, and hiring employees.
Step 3: Set Up a US Bank Account and Payment Gateway:
Establishing a registered business also allows you to set up a business bank account. A business bank account is crucial to streamline finances, especially separating business revenue from personal earnings.
You will also need a payment gateway such as:
– Stripe
– PayPal
– Square
– Authorize.net
These platforms accept credit/debit cards and integrate with e-commerce websites allowing businesses to securely provide their customers with cashless transactions.
Step 4: Create Your E-Commerce Website
Your online store serves as your storefront and it must be visually appealing, mobile-friendly, safe and easy to navigate. You can either:
- Use hosted platforms like Shopify, Wix, or BigCommerce, or
- Build a custom website using WordPress + WooCommerce or Magento.
Make sure to have the following functionalities:
- A product catalog with comprehensive descriptions and high-quality images
- A secure shopping cart and checkout system
- Customer Account Registration
- Mobile responsive design
- SSL certificate
- Chatbot or live support
- Enabled security features
- Features integration with shipping and inventory systems
Step 5: Order Fulfilment and Shipping
A business also has to come up with a strategy for shipping and order fulfillment, some of these are:
- In-house fulfillment: You store and ship your own products.
- Third-party logistics (3PL): Companies like ShipBob, Amazon FBA, or FedEx Fulfillment handle this for you.
- Dropship: You list products from suppliers who sell directly to your clients.
These options greatly vary based on the type of product, budget, and future business growth.
Step 6: Promote Your E-Commerce Business
Now you can work on generating sales now that your website is live. You can use the following methods:
- Search Engine Optimization (SEO) and ensure to rank high on google.
- Social Media Marketing: Use Instagram, Facebook, and even TikTok.
- Email Marketing: Curate a mailing list to foster relations with your clients.
- Pay-Per-Click (PPC) Advertising: Place advertisements on Google or other social media sites.
- Influencer Partnerships: Engage with influencers from specific fields to advertise your business.
Final Thoughts:
Establishing a business in the United States is easier than ever with an e-commerce website, which can greatly streamline the process and enhance scalability. With sufficient strategy, legal registration, and the right digital resources, one can establish a brand that services customers all over the country, and even internationally.
An e-commerce-first approach is especially alluring for either a local businessperson or a foreign businessman looking to set up a venture in the United States, as it provides unparalleled agility and market access.
