New research from Omnisend, a leading email and SMS marketing platform for ecommerce brands, ranked every US state based on factors relevant to ecommerce entrepreneurs and found that for an average ecommerce brand earning $1 million yearly and selling primarily out of state, the top three scores belong to South Dakota, Wyoming, and North Dakota. Notably, these three states combine zero corporate income tax, lean regulations, and above average household purchasing power.
At the other end of the spectrum, the non-contiguous states of Hawaii (50th) and Alaska (49th) consistently rank lowest on the Index. Among mainland states, California (48th) and Louisiana (47th) perform worst for an average company – though for different reasons. California’s steep tax and cost burdens add up quickly, while Louisiana struggles with poor infrastructure and one of the most complex tax systems in the country.
Omnisend’s Ecommerce Opportunity Index ranks every state on ten factors, including…
taxes, purchasing power, infrastructure quality, red tape, regional opportunities, and more, to pinpoint the best places to base an online retail business.
“The ideal home base for an online store isn’t the same for every company — what works for a startup selling within state might restrict a bigger brand shipping nationwide,” said Marty Bauer, ecommerce expert at Omnisend.
“But once you match those company specifics against each state’s taxes, buying power, broadband, and logistics, a handful come out on top, while high-cost or infrastructure-poor states sink.” Top 10 U.S.
States for Ecommerce Rank State Overall Score Tax & Law Economy Access Business 1st South Dakota 1 0.68 0.98 0.66 0.42 2nd Wyoming 0.98 0.73 1 0.68 0.42 3rd North Dakota 0.97 0.47 0.83 0.71 0.53 4th Delaware 0.91 0.67 0.37 0.93 0.76 5th Idaho 0.88 0.27 0.65 0.85 0.6 6th Pennsylvania 0.87 0.4 0.5 0.59 0.91 7th Ohio 0.85 0.42 0.61 0.65 0.64 8th Indiana 0.84 0.36 0.61 0.71 0.64 9th Kentucky 0.84 0.36 0.58 0.59 0.69 10th Montana 0.84 0.8 0.6 0.57 0.52 Source: Omnisend’s Ecommerce Opportunity Index [$1M; semi-remote] From coasts to the Midwest – ecommerce success shifts with scale The Index tells a different…
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