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Going all the way to the USA: 4 trends exporters should be across for 2025

Profession
14 January 2025
going all the way to the usa four trends exporters should be across for 2025

Selling into the world’s largest economy will supercharge growth for well-prepared businesses and create a compliance nightmare for their careless counterparts.

With consumer activity and confidence at a low ebb here in Australia, tackling offshore markets is a great way for local suppliers to keep trucking rather than treading water.

In many respects, it’s never been easier to do so. Shipping options are numerous and rates are ultra-competitive. Third-party logistics providers have inventory management, warehousing and fulfilment down to a fine art. Cost-effective digital campaigns can be turned on almost as quickly as you can say ‘localised marketing strategy’.

In fact, it’s not too much of a stretch to say that if you’re not planning to start selling internationally in the next 12 months, you’re not looking after your brand.

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If you are keen to look after your brand, there’s no bigger or better place to begin your export push than the good old US of A. Given its $US30 trillion GDP and 335-million-strong population of potential buyers, making it there will put your enterprise on the fast track to global success.

Here are some of the trends you should be across this year when launching into the world’s largest economy.

Here come the Aussies

First up, Aussie businesses selling stateside won’t have the stage to themselves. Recent times have seen scores of brands clock the opportunity and give it a burl, including the likes of skincare companies Vida Glow and Frank Body, activewear label PE Nation and Night Sweet Thing, homegrown influencer Bridey Drake’s pyjamas brand that’s selling up a storm across the Pacific.

With many more businesses likely to join their ranks in 2025, hailing from Down Under won’t earn you the bonus points for the novelty it once may have done. What will help your enterprise stand out from the crowd: a quality offering backed by super slick marketing, pricing, distribution and aftersales support.

Cross-border confusion coming up

Used to be, you could send goods under the value of $US800 to the US without paying a dime of duty, under what’s deemed the de minimus exemption. That’s set to change, following a September 2024 announcement from the White House, proposing the imposition of tariffs on goods that injure or threaten domestic industry or national security.

Also on the cards: the issue of a proposed rule requiring additional data for de minimus shipments, along with a final rule requiring importers to file an electronic certificate of compliance with Customs and Border Protection and the Consumer Product Safety Commission at the point of entry.

Exactly when and how these changes will come into force remains to be seen but they’ll add an additional layer of complexity to exporting to the US.

The only constant is change

Speaking of complexity, it’s already baked into the US sales tax system, in a seriously super-sized way. There are more than 13,000 sales and use tax jurisdictions in the US alone, along with different laws for remote sellers. Some US states require sellers to apply a fee to orders containing items of personal property that are delivered by vehicle while others impose similar charges on deliveries over a certain value.

Worse still, these many and varied regulations aren’t set in stone. There were thousands of sales and use tax updates in 2024. Will there be just as many coming up in the next 12 months? If past form is anything to go by, it looks like a pretty sure bet.

Compliance crackdown

Irrespective of what your business is selling and where, being prepared is the secret to success. Unfortunately, some of the Aussie businesses trying their luck in the US in 2025 won’t do their homework and it will cost them dear.

With state revenue authorities becoming increasingly proactive about pursuing and penalising foreign firms that don’t register correctly for tax purposes and apply the right charges, these ‘she’ll be righters’ will find themselves facing big bills for back taxes, with a stiff fine or two thrown in for good measure.

Tools to drive your US success in 2025

Adopting automated tax compliance technology can help your business avoid joining their unfortunate ranks. It’s designed to help international sellers do business in a digital world by simplifying and streamlining all the tasks associated with the tax compliance process – think registration, licensing, calculation, exemption management, reporting and e-invoicing.

Once implemented, you’ll be able to calculate a wide range of indirect taxes in real-time, including US sales and use tax, in all 50 states.

If you’re serious about making a go of it over there in 2025, it’s a must-have investment that will underpin your success from the get-go.

Chris Calverley, head of sales and partnerships – ANZ at Avalara

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