European D2C Brand Expands into US Markets

28. August 2023

Table of Contents
European D2C Brand Expands into US Markets

Example

A popular lifestyle supplement brand, well-established in the EU, has garnered a strong following on social media and boasts a robust Shopify presence. Thanks to their impactful social media presence, the brand has attracted a dedicated fanbase in the USA. Driven by the opportunity to serve this burgeoning audience, the brand seeks to establish a foothold in the USA market.

Challenges

While the brand has a solid foundation, expanding into the USA presents several unique challenges:

  1. Regulatory Requirements: The brand needs to register as an FDA Food Facility, a critical step to sell supplements in the USA.
  2. Serving US Shopify Customers: The brand faces logistical hurdles when handling Shopify customers in the USA due to high shipping times and even higher logistics costs.
  3. Importer of Record: The brand must establish a responsible entity in the USA for customs declarations and duties.
  4. Product Insurance: The USA market requires product insurance to cover potential liabilities.
  5. Breaking into Offline Retail: The brand lacks contacts and a network to enter the offline retail scene in the USA, where local trust and connections are essential.

Solution

SPACEGOATS offers a comprehensive solution to overcome the brand’s challenges:

  • FDA Registration Support: SPACEGOATS assists the brand in registering as an FDA Food Facility, ensuring compliance with US regulations.
  • Optimized US Shopify Handling: By leveraging SPACEGOATS’ infrastructure, the brand can now serve US Shopify customers more efficiently, reducing shipping times and logistics costs.
  • Importer of Record: SPACEGOATS acts as the importer of record for the brand, managing customs declarations and duties, ensuring compliance with all relevant laws and regulations.
  • Product Insurance Coverage: SPACEGOATS provides the necessary product insurance, safeguarding the brand against potential liabilities in the USA market.
  • Offline Retail Entry: SPACEGOATS leverages its network to facilitate the brand’s entry into the offline retail space, tapping into the American consumer preference for local purchasing.
  • Compliance Consulting: SPACEGOATS’ experts guide the brand through all compliance-related matters, ensuring the products meet the requirements of the target market.
  • B2B Inquiry Handling: SPACEGOATS can handle B2B inquiries, and potentially generate leads through their partner Paul, catering to the preference of Americans to work with American companies.
  • Local Point of Contact: With KD Global and SPACEGOATS, the brand has a local point of contact that can react quickly if needed.
  • Import and Pre-FBA Handling: SPACEGOATS manages the entire import process, ensuring the products meet Amazon FBA requirements.
  • Earnings in Euro: The brand receives its earnings in Euro through SPACEGOATS, avoiding the hassle of dealing with exchange rates.

Result

The collaboration with SPACEGOATS brought transformative results:

  • Quick and Smooth Market Entry: The brand was able to quickly establish a presence in the USA market without bureaucratic and logistical roadblocks.
  • Diversification: By adding a new region and sales channels, the brand diversified its revenue streams and reduced reliance on its EU market.
  • Test the Waters: The brand could explore the potential of the USA market without establishing entities, sales tax infrastructure, or other administrative overheads.
  • D2C Advantages: The brand could enjoy the benefits of D2C sales without actually transitioning to D2C, leveraging SPACEGOATS’ infrastructure and network.

Conclusion

This use case highlights how a lifestyle supplement brand successfully expanded into the USA market. With expert support from SPACEGOATS, the brand navigated regulatory and logistical complexities, established a presence in offline retail, and unlocked new revenue streams. This partnership illustrates the power of leveraging specialized support to conquer new markets and drive sustainable growth.

Are you a lifestyle brand with a strong social media following, seeking to tap into the potential of the USA market? Regulatory, logistical, and strategic barriers can seem daunting, but they don’t have to be. SPACEGOATS offers a comprehensive solution to seamlessly expand into the USA, unlocking new revenue streams and audience segments.

Benefit from a quick and smooth market entry, explore new markets without administrative burdens, and enjoy the advantages of D2C sales without the complexities. Book your initial consultation with SPACEGOATS today, and let’s chart a path for your successful expansion into the USA market.

Simplified e-commerce expansion

Our
Newsletter

Get the latest e-commerce trends and SPACEGOATS news straight to your inbox!

By entering your email, you agree to our Privacy Policy.