As President Trump takes office, there is a renewed emphasis on the “Buy American” movement taking center stage; nonresident sellers must adapt to meet evolving consumer expectations and align their brands with this powerful initiative. One of the simplest yet most impactful ways to begin this journey is through transparency on Amazon—specifically by establishing a visible U.S. presence.
We’ll explore the differences between “Buy American Made” and “Buy from an American Company,” what you can legally claim, how to leverage Amazon’s seller profile system to build consumer trust, and why an expansion plan is critical for aligning your brand with this movement.
What Does “Buy American Made” Mean?
President Trump’s “Buy American Made” policy aims to encourage:
- Consumers to prioritize products manufactured in the United States.
- Businesses to support domestic jobs and economic growth.
- Stronger partnerships with U.S.-based manufacturers.
This policy reflects a growing consumer preference for products that are locally manufactured and contribute to the domestic economy. While this opens opportunities for businesses, it also brings challenges, particularly for non-resident sellers trying to align with these values while navigating the complexities of U.S. regulations.
Key Distinctions: “Made in USA” vs. “Sold by an American Company”
It’s important to understand the difference between these two terms:
- “Made in USA” Claims: These are strictly regulated by the Federal Trade Commission (FTC). To qualify:
- All or virtually all components and assembly must occur in the U.S.
- Minimal foreign content is allowed.
- Documentation and substantiation are required to ensure compliance.
- “Sold by an American Company”: This simply means the business is registered and operating in the U.S., regardless of where the product is manufactured. While this builds trust, it does not equate to “Made in USA.”
By understanding these distinctions, non-resident sellers can better navigate their branding and marketing strategies to build trust while complying with regulations.
FTC Compliance for “Made in USA” Claims
To avoid penalties and consumer backlash, follow these guidelines for FTC compliance:
- Ensure your product meets the “all or virtually all” standard for “Made in USA” claims.
- Use qualifiers if your product includes foreign components. For example:
- “Assembled in USA with globally sourced materials.”
- “Made in the USA with some imported components.”
- Avoid misleading claims that exaggerate the domestic contributions of your product.
Step 1: How Consumers Find Seller Information on Amazon
Transparency is key to earning consumer trust on Amazon. Buyers can access seller information by clicking on the “Sold by” link on product pages, which redirects them to a detailed seller profile.
How to Check Seller Details
- On the Product Page:
- Look for the “Sold by” section under the “Buy Now” button. This displays the seller’s name, which is clickable.
Detailed Seller Profile:
- Clicking the seller’s name reveals essential information, such as:
- Business name.
- Physical address.
- Clicking the seller’s name reveals essential information, such as:
- Example: U.S.-Based Seller (BenShot LLC):
- BenShot LLC provides a U.S. address in Appleton, Wisconsin. This transparency builds trust with American consumers and aligns the seller with the “Buy American Made” theme.
By ensuring that your business profile reflects a U.S. presence, you can enhance your credibility and align with the values of American buyers.
Step 2: Why Transparency Matters for Sellers
Amazon’s seller profile system is more than a compliance requirement—it’s a powerful tool for building consumer confidence. Here’s why transparency is crucial:
1. Build Trust with U.S. Consumers
American consumers value businesses that are transparent and accountable. Sellers with visible U.S. addresses often enjoy higher trust levels, which translates to increased sales and loyalty.
2. Comply with Amazon Requirements
Amazon mandates that all sellers provide accurate business information. Non-compliance can lead to account suspensions or reduced visibility, negatively affecting sales.
3. Align with the “Buy American” Movement
Displaying a U.S. business address, even as a non-resident, signals your commitment to aligning with American values and supporting the domestic economy.
Step 3: For Non-Resident Sellers — Establishing a U.S. Presence
Non-resident sellers can align with the “Buy American” movement by establishing a legitimate U.S. business. This involves:
- Forming a U.S. LLC or Corporation:
- Display a U.S. address in your Amazon seller profile.
- Comply with U.S. business and tax requirements.
- Build trust with U.S. consumers.
- Using Amazon FBA or Third-Party Fulfillment:
- Faster delivery times improve customer satisfaction and align with buyer expectations.
- Adopting Transparent Business Practices:
- Use your U.S. business identity to communicate reliability and accountability.
Step 4: The Role of an Expansion Plan in Aligning with “Buy American”
A strategic expansion plan ensures that non-resident sellers can gradually align their brands with the “Buy American Made” policy. Key elements include:
- Establishing a U.S. Business: Form a U.S. LLC or corporation to create a local presence.
- Transitioning to U.S. Manufacturing: Source one product line domestically to highlight as “Made in USA.”
- Highlighting Domestic Contributions: Use marketing phrases like:
- “Assembled in the USA.”
- “Designed in the USA.”
- “Supports American Jobs.”
Step 5: Outline for Sourcing U.S. Manufacturers
To move toward “Made in USA” claims, non-resident sellers should:
- Research U.S. Manufacturing Platforms:
- ThomasNet, Maker’s Row, and Kompass are excellent resources for finding U.S. manufacturers.
- Test with a Pilot Product Line:
- Begin with one SKU to gauge demand for American-made products.
- Build Relationships:
- Attend trade shows and negotiate with manufacturers to secure favorable terms.
- Ensure FTC Compliance:
- Document your supply chain and assembly processes to substantiate “Made in USA” claims.
Case Study: How a U.S. Address Can Boost Sales
BenShot LLC’s success demonstrates the importance of a U.S. presence. By prominently displaying their U.S. address and aligning with American values, they:
- Built trust with consumers.
- Differentiated themselves from international sellers.
- Increased conversions and customer loyalty.
Conclusion: Positioning Your Brand for Success
Before opening your Amazon account or forming a U.S. LLC, it’s essential to have a clear understanding of the Amazon verification process, how to control the name displayed on your Amazon seller profile, and which U.S. LLC structure aligns with your long-term goals. Additional factors, such as navigating verification requirements, selecting U.S. neo-banks, and planning the financial flow of capital, are equally critical.
This is where we come in. Our comprehensive U.S. expansion plans ensure your setup is optimized for success. If you’ve already taken steps, we can review and amend your LLC, adjust your U.S. business setup, and help you succeed with Amazon verification. However, starting with a solid plan minimizes errors and sets the foundation for sustainable growth.
The “Buy American” movement reflects a significant shift in consumer preferences and policies. For non-resident sellers, aligning their business with this trend is crucial for long-term success. By establishing a U.S. presence, building transparency into their seller profiles, and highlighting their contributions to the American market, they can gain trust, attract loyal customers, and thrive in this competitive landscape.
Book a call with our team today to develop a customized U.S. expansion plan tailored to your brand’s goals.
