Exporting can generally be described as a multi-step and complex process carried out by large-scale companies. With the rise of e-commerce, these kinds of activities with high returns have gained a business model identity that can be carried out by companies at all levels. Because the operation’s shift to the internet environment has made it easier in almost every aspect to reach potential customers in different countries and to carry out marketing activities for these areas.
After making a decision about e-export, it is time to choose a country. Of course, you can do international e-commerce for more than one region without any limitations. But such a large-scale operation can force you to use your resources effectively, especially at the beginning. Therefore, it will be more advantageous to focus on specific countries in the first place. It is possible to say that America, one of the centers of e-commerce, is ideal for such activities, even when considered without going into too much detail. So what data should you review before exporting to America?
What are the Things to Learn Before Starting E-Export to America?
According to the data on statista.com, the total retail e-commerce amount of the United States in 2021 is approximately 767.7 billion dollars. It is predicted that this figure will increase every year and will exceed the 1 trillion dollar threshold in 2023. In the light of these data, it can be easily deduced that exporting to America over the internet would be a very appropriate decision.
Another detail that makes re-export to America advantageous is the majority of Turks living here. About 250 thousand of our citizens live in the country and it is not wrong to think that these people can order products they are familiar with online. Meanwhile, joining the companies exporting to the USA stands out as an ideal way to earn money, especially in foreign currency.
What are the products that Turkey exports to the USA?
Taking a look at the list of products we export to the USA provides important data on which sectors you can focus on in e-commerce operations for this country. We can list the products and sales figures in this list as follows:
- Automotive – $308.3 million
- Carpet – $284 million
- Defense and aerospace – $280.2 million
- Chemicals – $252.9 million
- Apparel and ready-to-wear – $196.7 million
In addition to these data, it is useful to look at the most ordered product groups over the internet in the country when deciding on what can be exported to the United States. Again, according to Statista’s data, fashion, electronics, toys, and personal care supplies are the most purchased products from e-commerce platforms in America. Based on the information we have provided, we can say that ready-made clothing stands out as one of the ideal sectors for exporting to the United States.
What is the Trade Volume between Turkey and America?
Turkey-USA export and import figures show that it would be advantageous to trade between these two countries. By 2021, the USA has become Turkey’s second-largest market. Our total export to this country is around 16 billion dollars. Similarly, import figures from the USA have been on an upward trend recently. Last year, the level of our purchases from this country reached 12 billion dollars.
What are the Channels That Can Be Used While E-Exporting to America?
Virtual marketplaces that already hold a significant customer base can be preferred for exporting to the USA over the Internet. Platforms such as Amazon, Walmart, eBay, and Etsy stand out as ideal choices with their high transaction volumes and popularity. We can say that especially Amazon and Walmart seem even more attractive as they are in the top three in the e-commerce sector of the USA.
Another way you can choose to sell products abroad is to use your own website. The fact that there are two different methods that can be preferred in the same direction inevitably brings up the issue of which one is more advantageous.
Is It More Advantageous To Use These Channels While E-Exporting To The USA Or Is It To Use Our Own Site?
Both answers to the question of how to export to the USA have advantages and disadvantages. Virtual marketplaces enable you to reach a large audience with high user numbers without carrying out intense marketing efforts. This is an important opportunity, but it also brings intense competition. In this case, it becomes difficult for you to stand out from your competitors who have similar goals and to increase your brand value. In addition, the commission rates applied by these platforms per sale can also be an obstacle to the increase in the amount of profit you earn.
It is a financial advantage to not have applications such as commissions on your own website. Similarly, since the design and other features of the site you will sell are under your control, you can easily convey your brand identity to your customers and establish a stronger relationship with your audience. However, in this type of operation, reaching the said audience may be relatively difficult and costly. For this, your site’s SEO strategies and advertising efforts should be carried out in the most effective way possible. In addition, your site must have the necessary infrastructure for export to America. Preferred e-export payment methods in this country and currency must be backed by your website. IdeaSoft’s re-export module, IdeaExport, provides you with all these features and much more that you need to take your activities to a global scale.
In the light of the information we have provided, we can say that using a single method for e-export to the USA may prevent you from reaching your potential. Therefore, you can reach your goals more easily by balancing the advantages and disadvantages with a business model that includes both methods.
What are the Points to Consider During E-Export to America?
While exporting to America, all operation steps should be designed according to this country. E-export advertising strategies should appeal to the customers here, and logistics processes should be determined accordingly. Of course, at this point, we also come across export procedures to America.
What are the Permits and Documents Required for E-Export to America?
The vast majority of sales to the United States over the Internet fall within the scope of micro-exports. This type of transaction, which is required for products whose amount does not exceed 15 thousand euros and whose weight does not exceed 300 kilograms, reduces the required documents and allows the process to run much faster. It is sufficient to have the following documents when exporting to the USA within the limits we have specified:
- Electronic Commerce Customs Declaration (ETGB)
- Commercial invoice
- International cargo delivery information
ETGB is organized by the cargo companies that carry out the process of moving the products you sell abroad. This situation makes the export operations to the United States considerably practical, as it disables the customs consultancy processes that take a long time and require the collection of many different documents.
What Are the Taxes Payable to the Government When E-Export to America?
Taxation in e-export is one of the most curious subjects when selling to the United States. The products subject to processing are exempted from customs duty by the USA if the amount does not exceed $ 800. For figures exceeding the specified level, you must pay a tax of 15%. This country also has a VAT application of 8.18%. It will be beneficial for you in terms of transparency to inform your customers that you will reflect this rate to the general amount during the sale.
How Does the Logistics Process Work While E-Exporting to America?
The logistics process to be carried out while exporting to the USA is largely under the control of the transport companies. After you reach an agreement on this matter, the officials of the relevant company come to your workplace to receive the products sold. The original commercial invoice and, if necessary, other documents are given to the officers at this time. The next steps continue in line with the company’s own operation plan. First of all, the product is taken to the warehouses at the airports and ETGB is arranged. This document will be sent to you via e-mail. It is then loaded onto a plane to be transported to America. After the completion of the customs procedures when entering the country, the delivery is carried out. As it can be understood from here, customs clearance processes in micro-level e-commerce are also the responsibility of the carrier company.
As an alternative to the classical method we mentioned, you can also use the fulfillment or Turkish storage method in export processes to America. This method is based on the logic of sending some of your products to America in advance and keeping them in warehouses. When the order comes, the products are packed by the warehouse staff and the cargo process is started. This system, which is especially advantageous for operating in large marketplaces such as Amazon, significantly reduces the delivery time for the customer and facilitates returns. In order to use the fulfillment method, you need to purchase services from companies working in this field for a certain fee and pay the taxes determined depending on the state.
What is the Billing Process for E-Export to America?
In accordance with the tax rules in our country, export invoices are issued without VAT. In such invoices, it is sufficient to include the unit and total prices as amounts. You can get a VAT refund for the expenses you incurred in Turkey to make the related sale. What you need to do for this is to apply to the tax office with which your company is affiliated.
What are the Advantages and Disadvantages of E-Export to America?
Doing e-commerce from Turkey to America brings many important advantages. We can list them as follows:
- Opportunity to earn in dollars
- Making the process easier with e-export incentives offered by official institutions
- Many Turks live in this country.
- Chance to get VAT refund and benefit from tax exemptions
- Opportunity to operating in the world’s largest e-commerce market
- Conveniences provided by the micro export concept
Although re-export is an attractive business model for companies operating in countries such as Turkey, it also has some disadvantages. If we approach the issue in the USA, we can say that the lengthening of the cargo processes is one of the issues that customers here complain about the most. Therefore, when meeting with the carrier companies you will work with, it is important that you clarify this issue completely and inform your customers about the delivery times. The intense competition environment and the necessity of allocating significant budgets for many expensive items, especially marketing activities, are other negative aspects of exporting to the USA.