North America usually refers to the United States, Canada and Greenland. As we all know, North America has always been the main battlefield of cross-border e-commerce. This article will start from the main countries in North America – the United States and Canada, and take sellers to explore the economy and e-commerce in North America.
Summary of this article:
U.S. economy & e-commerce market overview
Canadian Economy & E-Commerce Market Overview
Mainstream platforms in North America: Amazon, Walmart, eBay – who are competing for hegemony? (Click the platform name to help connect with the official manager of the platform)
Popular platforms in North America: Wayfair, Etsy, Wish, Newegg, Tophatter – strong momentum, each is king (click the platform name to enter the platform’s official cooperation channel)
- Overview of the U.S. economy & e-commerce market:
· Economic recovery in 2021: The United States is currently the largest economy in the world. It was affected by the epidemic at the beginning of 2020, and its GDP declined slightly; The U.S. economy is picking up speed;
· Strong consumption: As the third most populous country in the world, the United States has strong spending power – according to Statista data, the per capita e-commerce sales in the United States will be US$2,400 in 2020, ranking second in the world
· Ethnic and cultural diversity: As a country of immigrants, the genes of immigrant countries determine that the United States presents ethnic and cultural diversity in its population structure. Therefore, when going to the US market, the group attributes, traditions, languages, customs, beliefs and experiences of target consumers must be considered.
Trade relations: Cross-border trade and trade relations with China are tense, and China remains the third trading partner of the United States
· High Internet penetration: The developed Internet foundation and social media have laid a solid foundation for the development of the US e-commerce market. Consumers’ heavy use of social media, coupled with the increasingly mature shopping environment of social media, makes social e-commerce in the United States more likely. According to eMarketer data, the Internet penetration rate in the United States is as high as 90%, and social media is swiped for an average of 2 hours a day, which has given birth to the development of social e-commerce.
· The world’s second largest e-commerce sales: Based on the good Internet foundation and the impact of the epidemic, US e-commerce will usher in explosive growth in 2020. In 2020, e-commerce sales will rank second in the world, setting a record high in 20 years. In 2021, the growth rate of e-commerce in the United States will slow down, but in general, the penetration rate of e-commerce is still increasing year by year.
· Consumer Profile – Pursuit of Value for Money: According to data, overall consumer spending in the United States will decline in 2020. Financial constraints and epidemic prevention requirements have prompted American residents to prefer cheaper and safer online consumption. The pursuit of cost-effectiveness and the demand for the home economy are still strong.
- Overview of the Canadian economy & e-commerce market:
· GDP will rise in the future: Affected by the epidemic in 2020, the International Monetary Fund data shows that the overall Canadian economy will shrink by 5.4%. In 2021, with Canada’s economic incentives and higher Covid-19 vaccination rates, the World Economic Outlook report predicts that Canada’s GDP will rise by 5% going forward.
· Trade relations: Since Canada established diplomatic relations in 1970, bilateral economic and trade cooperation with China has maintained a good momentum of development. According to the data, China will be Canada’s second largest export market and second largest source of imports in 2020.
Consumers are more inclined to shop from domestic retailers: Canadian consumers are highly receptive to cross-border shopping, but in 2020, Canadian consumers began to turn to domestic e-commerce sellers to support domestic companies.
· High Internet penetration: Canada’s e-commerce infrastructure is highly developed. Based on developed social media, Canada’s social e-commerce has made great progress in 2020; the main social media used is Facebook, with a usage rate of 95%.
E-commerce sales may continue to climb: In 2021, Canada has more than 27 million e-commerce users, accounting for 72.5% of the population, and is expected to grow to 77.6% by 2025. The increase in e-commerce users and online shopping spending means that e-commerce sales in Canada may continue to rise.
· Consumer Profile – Focus on Free Shipping/Returns: Canadian consumers value a simple, affordable, and convenient return process, and when choosing a seller, focus on free shipping and free returns.
- Year-end summary of mainstream platforms in North America: Amazon, eBay, Walmart
· Amazon – A few thoughts under the wave of bans:
1) The unselfish title policy allows sellers to return to the product value itself. Amazon expects the platform to move from “high-speed development” to “high-quality growth”.
2) In 2021, logistics will still be tight, the FBA turnover level will decline, a large number of sellers will have a backlog of inventory, and Amazon will also frequently issue storage capacity policies. After the crackdown on the number of titles, the industry will gradually move towards compliance, and Amazon is constantly helping sellers think about how to optimize inventory turnover and make enterprises better.
3) Fight local tyrants, divide fields, and redistribute traffic/resources – Before the tide of titles, Amazon’s ecology had stabilized, and categories and traffic were monopolized by big sellers. In the event of the title wave, some big sellers have closed down and closed their stores, and their monopolized traffic and resources have also been released. From the perspective of many sellers, Amazon is still one of the most worthy e-commerce platforms to invest in. Its revenue, number of users, and traffic are still growing, with huge potential.
4) Respond to public opinion and win consumers – In recent years, the public has more and more negative feedback on Amazon’s platform “shuandan”, “manipulated reviews” and “inferior products”, so Amazon’s handling of illegal sellers is also an explanation for public opinion. Only by winning users can we continue to develop.
5) Have questions about Amazon? Click to consult an Amazon professional consultant now >>>
Walmart – 2020 overtakes eBay to become the second largest online retailer in the US:
1) In 2020, Walmart’s share of US online sales was 5.3%, surpassing eBay for the first time to become the second largest online retailer in the US. In 2021, Chinese sellers will be officially opened, and 5,000 Chinese sellers will be added in half a year.
2) More and more Amazon sellers plan to expand Walmart. According to JS “2021 Amazon Seller Report”, among the top ten e-commerce marketplaces that Amazon sellers are interested in, Walmart ranks first.
3) Platform advantages: ①High exposure: more than 100 million unique visits per month ②Authority and credibility: the world’s largest retailer, with guaranteed traffic ③Low cost: no monthly fee, only a certain advertising fee based on product categories ④Easy transaction: Faster and simpler checkout and transaction ⑤Flexible returns: sellers can set their own return policy
4) Hot-selling categories: electronics, home equipment, home appliances, sports and outdoor equipment
5) Requirements for opening a store: US site – ①A single account on mainstream e-commerce platforms in Europe and the United States has annual sales of more than 1 million US dollars ②Have self-built overseas warehouses or use third-party overseas warehouse services ③rating>85% ④Guarantee the authenticity and effectiveness of company information and information; Canada Station – ①The annual sales of a single account on mainstream e-commerce platforms in Europe and the United States is more than 500,000 US dollars ②Have self-built overseas warehouses or use third-party overseas warehouse services ③rating>85% ④Guarantee the authenticity and effectiveness of company information and information
6) Want to contact the official Walmart manager? Click to help you connect with Walmart’s official investment manager >>>
eBay: an established cross-border e-commerce platform, with slow growth in recent years
1) In 2020, the number of Chinese sellers plummeted, and the number of sellers from China among the top 1,000 sellers on the platform dropped by 69%. The main reason is suspected that eBay cracked down on virtual warehouse shipments, triggering a series of bans.
2) Platform features: professional customer service support, diversified pricing methods
3) Popular categories: digital products, fashion categories, home and garden, auto parts, commercial and industrial categories
4) Requirements for opening a store: ①Enterprise settlement ②Company address certificate ③Legal person ID card④Note: Pay attention to the eBay WeChat public account and scan the QR code for investment promotion It is not recommended to enter