Despite all of the doom and gloom, you might be surprised to learn that there is one consumer channel in the United States that has experienced double digit growth right through the recession. The US is home to the largest and most sophisticated e-commerce market in the world that presents a plethora of opportunities for Australian companies. According to the US Department of Commerce online sales totaled US$194.3 billion in 2011, up 16.1% from US$167.3 billion in 2010.

Even before the internet gained popularity, the US (unlike Australia) had a very strong home shopping culture. Today more than 70% of households regularly purchase items online or by other virtual means and e-commerce accounts for well over 5% of US retail sales. The advent of the smartphone has only served to increase consumer appetite. According to a new study by Click IQ, 29% of consumers who use a smartphone to research a product while in a retail store end up purchasing the item online.

Amazon.com
Amazon.com is the largest online retailer in the world with over 140 million active customers across the globe. Net sales increased 41% in the 2011 calendar year to US$48 billion, compared with US$34 billion in 2010. North American net sales totaled US$26.7 billion, up 42.8% from US$18.7 billion in 2010. The site has over 65 million unique visitors per month which is more than Walmart.com and Target.com combined. Amazon has built its business on selection, personalisation & customer service and is now ranked as the number 1 brand in the States.

Products of Interest
Amazon provides the largest selection of products in the world with over 40 product categories. Some of the top categories on Amazon include:

• Books   
• Electronics
• Toys               
• Sports & Outdoors
• Home & Kitchen       
• Jewelry
• Beauty               
• Health & Personal Care
• Tools & DIY           
• Lawn and Garden
• Automotive           
• Baby
• Gourmet Food

Secrets of Success
There is a very big difference between just selling on Amazon.com and selling successfully on Amazon.com (or any other website for that matter). Some of the secrets to maximizing exposure and revenue include:

1. Representation: Specialist Manufacturers’ Representatives have established relationships with key buyers at Amazon to get you in the door and best position your product(s) for a multitude of targeted marketing programs which are conducted by category and region. 

2. Brand Exposure: Keep in mind that Amazon.com is now the top retail site where people go to do market research. Taking time to build a strong brand presence on Amazon will have flow on benefits to your ‘bricks and mortar’ business around the US.

3. Amazon Fulfillment: Drop shipping directly to Amazon customers from your US warehouse is generally inefficient and costly. Amazon has fulfillment centres across the States so that orders come directly from the retailer – Saving you time and money.

4. Optimise Product Searches: We all know the increasing importance of search terms and ‘ad words’ in online marketing. Make sure you optimise search terms for specific SKUs to ensure that they are the ones people see when they have a specific need.

5. Customer Ratings: Good customer ratings are key to success on Amazon. Shoppers pay close attention to feedback, as does Amazon for your performance rating. Again, take the time to accurately describe your items and be proactive in addressing any concerns raised.

"The Internet will help achieve "friction free capitalism" by putting buyer and seller in direct contact and providing more information to both about each other."- Bill Gates

Author:
Ian Smith
CEO – Access USA Pty Ltd
0417 020 429
ian@accessusa.com.au
www.accessusa.com.au