Watch the video, or read the Blog Post below.
First off, why the U.S.? You want to focus your attention on reaching out to and making the most sales from people in the United States simply because the country has a good paying audience. Now, I'm not saying that you should disregard other countries; it's just that the U.S. has a relatively well performing economy, and a lot of people usually have money to spare. Plus, in the United States, some products are sold by bulk, and with you offering single-item purchases, local citizens might as well need you more than you need them.
So we've just established that it is a good idea to dropship to the United States. However, a great number of aspiring dropshippers from all over the world are usually discouraged to get started by the fact that they are not U.S. citizens themselves. In fact, they are quite unsure whether they are even allowed to operate and sell in the country at all.
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Can you dropship to the United States, even if you are not a U.S. citizen?!
In this post, we'll tackle on one of the most popular question in the field of dropshipping.
Why You Should Create a U.S. Dropshipping Account
I won't keep you here for long. YES, it is, in fact, possible to dropship in the United States, even if you are not a citizen of the country. At the end of the day, we have got to consider that dropshipping is an eCommerce business model -- we add products to our website, we get an order request, we forward that request to our suppliers and have them send the product straight to our customer's address. In light of all this, it doesn't really matter where your company is located at, nor where your products come from, as long as you get to successfully fulfill your orders and keep your customers satisfied.
With all that said and done, it's still important for you to create a U.S. dropshipping account for the following reasons:
You want to have all of your transactions in USD, mainly because you want to avoid having to convert your money back and forth your current currency.
Let's say that you're just like me -- an Australian whose dropshipping business mainly targets U.S. audiences. With the "customer is always right" mindset, of course, I would set all of my products' prices in USD for the sake of my audience's convenience. That would, however, put me at a disadvantage when it's time for me to convert my revenue onto AUD, because then I would have to deal with forex rates from payment gateways such as PayPal and Stripe -- which, by the way, are different from and quite frankly lower than the standard exchange rates.
Now, you might be thinking: "It's just a small fee; I'm sure it won't significantly affect my overall profit." This might be true for small- to medium-sized business, but once you start scaling up and receiving more and more orders, those "small fees" will eventually accumulate, and the loss itself will sooner or later make itself known and recognized.
In this time of the global pandemic, people are, more than ever, cautious when it comes to receiving packages from different countries, most especially those from China. And you wouldn't want people to find out that you're outsourcing your products from said country, as it might severely affect your sales.
No Bank Fees
Last but not least, with a U.S. identity, you can say goodbye to fees imposed by your banks for international transactions. With that, you can also avoid having your bank convert your funds into USD, then reverting it back to your current currency once they have deducted funds from your account.
How to Setup a U.S. Dropshipping Account
The best way to setup a U.S. account for your dropshipping business is for you to personally fly all the way to the country and have a U.S. business banking account registered. I actually have what is called a U.S. LLC, which is a business entity in the United States. It's sort of similar to a sole trader in a sense that I don't pay corporate taxes or anything, though I do get a U.S. tax ID that I can use to register with Stripe and PayPal as a U.S. business. And with it, I can hold money in USD, which I can then transfer to my U.S. bank account.
For a more hassle-free way to register a U.S. account, simply go to WorldFirst, get your U.S. LLC and use it to register to Stripe and PayPal.
The smartest way to collect, convert and transfer money globally.
BONUS: Setting Up a U.S. Customer Service
There might be instances wherein your customer would want to somehow prove that you are indeed a United States-based company. They would do this by looking for your phone number and actually speaking with a customer service representative.
If you open up a U.S. LLC, you would obviously get that U.S. tax ID, and then you can set up what is called mail forwarding. This would give you a U.S. address, and you can put that on your contact form on your website, so when you are sending traffic to it, your customers can see and verify for themselves that you are based in the U.S.
Keep personal and business calls separate.
In terms of your customer service representative, you can go to websites such as Grasshopper, which is a virtual phone service wherein you can get and register toll free numbers, vanity numbers and even U.S. local numbers. Then, you can outsource a natural U.S. citizen to do a voice-over or a recording for you and have your customers redirected to your email form instead, so as to avoid a long conversation. Easy!
Let's Wrap It Up!
Not being a U.S. citizen should not get in the way of you expanding your business to new heights. It is always a good idea to make your presence known to other countries, especially the United States, to increase conversion and improve your online presence.
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If you have any more questions about U.S. entities, U.S. bank accounts, creating the most profitable dropshipping stores, dropshipping in Australia or anything regarding this video, feel free to personally contact me via the Contact Form HERE. You can also leave your comments and feedback below, and our team over at WagePirate will definitely get back to you with a response. For more reviews, news and updates, do not forget to subscribe to my YouTube channel!