How does sales tax work in the US?

Unlike VAT in Europe, US sales tax is determined at state and local levels, with no federal sales tax. Rates range from 0% (Oregon, Montana) to 10%+. After the 2018 Wayfair ruling, online sellers must collect sales tax in states where they have economic nexus.

Do I need a US entity to sell on Amazon.com?

No, Amazon allows international sellers to list and sell on Amazon.com without a US entity. However, you'll need a US bank account (or use Amazon's currency converter) and comply with US tax obligations. Many sellers use EIN registration for tax purposes.

What is the best way to enter the US market?

Amazon FBA is the most practical entry point. Ship your inventory to Amazon's US warehouses, and they handle storage, fulfillment, returns, and customer service. This gives you Prime eligibility and 2-day delivery, which is essential for competing in the US market.

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Sell in United States

Complete guide to entering the United States e-commerce market

$1.1T+

E-commerce Market Size

95%

Internet Penetration

Annual Growth

335M

Population

Market Overview

The United States is the world's largest e-commerce market, with annual online sales exceeding $1.1 trillion. With 335 million people and 95% internet penetration, the US offers an unparalleled addressable market for international sellers willing to navigate its complexities.

The US market is dominated by Amazon, which commands roughly 40% of all e-commerce sales. Walmart, eBay, and a growing number of specialized marketplaces provide alternative channels. American consumers expect fast shipping (often free), competitive pricing, easy returns, and excellent customer service.

Consumer Behavior

Free shipping is an expectation, not a differentiator — Amazon Prime has set the standard
American consumers are highly review-driven — product ratings heavily influence purchasing
Mobile commerce accounts for 55%+ of online purchases
Holiday shopping (Black Friday, Cyber Monday, Prime Day) drives massive seasonal spikes

Payment Preferences

Credit/debit cards — the dominant payment method

PayPal — widely used and trusted

Apple Pay and Google Pay — growing rapidly

Afterpay, Affirm, Klarna (BNPL — especially popular in fashion)

Amazon Pay (within the Amazon ecosystem)

Top Marketplaces in United States

Amazon.com

The dominant global marketplace

40%+

Walmart Marketplace

The #2 marketplace, growing rapidly

7%+

eBay.com

Strong for used, refurbished, and collectibles

5%+

VAT & Tax Guide

Shipping & Logistics

USPS, UPS, and FedEx are the three primary carriers
Amazon FBA is the standard for marketplace sellers — enables Prime eligibility
Standard shipping costs vary widely by distance ($5–15 for standard parcels)
Popular carriers: USPS, UPS, FedEx, DHL (for international inbound)

Estimate shipping costs

Legal Requirements

Sales tax nexus determination and compliance (varies by state — no federal sales tax)
Product safety compliance (CPSC regulations)
FDA compliance for food, supplements, cosmetics, and medical devices
FTC advertising and labeling regulations
State-level consumer protection laws (California Prop 65, etc.)

Challenges & Opportunities

Opportunities

Largest e-commerce market in the world by a wide margin
English-speaking market reduces localization costs
Amazon FBA handles fulfillment, returns, and customer service
Diverse consumer base with demand across every product category
Walmart Marketplace is rapidly growing with lower competition than Amazon

Challenges

Sales tax complexity — 50 states with different rates, rules, and nexus thresholds
Extremely competitive market with established domestic and international sellers
Amazon dominance means high advertising costs for visibility
Long shipping distances increase fulfillment costs for cross-border sellers
Product liability exposure and litigation risk higher than in Europe

Tips for Success

1Start with Amazon FBA — it solves fulfillment, Prime eligibility, and returns simultaneously
2Use an automated sales tax solution (TaxJar, Avalara) — manual compliance is impractical
3Research your product category for FDA, CPSC, or other federal regulations before shipping inventory
4Consider Walmart Marketplace as a second channel — lower fees and growing traffic
5Price in USD and ship from US-based fulfillment to avoid long delivery times and customs friction