Direct selling in the United States in 2023

Direct sellers saw the market taking a new turn the past year, with an average sale of $6016 in 2023. Despite the economic ups and downs, the direct selling industry stood at $36.7 billion in retail sales in the past year, a total contribution of 6.1 million direct sellers of which 0.5 million are full-timers and 5.6 million are part-time direct sellers.

The Direct Selling Growth & Outlook Study 2023 report’s industry overview is a clear portrayal of the industry’s growth graph this past year.

The study reports that direct selling retail sales which was at $40. 5 billion in the year 2022 took a slight curve to $36.7 billion in the year 2023 showcasing a clear decline. Similarly the number of direct sellers saw a slight decrease from 6.7 million in 2022 to 6.1 million in 2023. The number of preferred customers for direct selling products and services also marked an 8% decrease over 2022 recording 37.7 million customers of which 30.8 million are preferred customers and 6.9 million are discount buyers.

Category-wise, the services industry saw a 3% growth contributing 33.7% to the total sales, followed by health and wellness businesses contributing 32.4% to the total sales. Product-wise, cosmetics and personal care and wellness products hold the major share marking 28.9% and 27.2% respectively. A clear example of how customers are building trust on direct selling personal range of products for its quality, effectiveness, and the value it delivers. Yet another significant remark is how women trust the direct selling sector to kick-start their entrepreneurial ventures and enter into the industry. The report shows that 74% of the direct sellers are women, who take part full-time and part-time in the business.

The way forward

The 2023 data is a clear highlight of the sheer resilience of the direct selling industry irrespective of the socio, economic, and cultural fluctuations that took place in the past year. Direct selling businesses in the region are altering their strategies and blending in innovations to march forward with optimism for 2024 and 2025 to combine with the existing opportunities for growth.

With the changing market scenario, varying customer demands, and increasing competition, the direct selling industry has shifted its gear to take new roads of personalization to build a loyal customer base. Brands are largely focusing on developing premium products, offering opportunities for personal growth through additional income for individual sellers to attain growth.

The service category leading the charts, and the rising number of new individuals embarking on direct selling business portray the industry's vast growth potential.

Direct selling business categories are reviving their business strategies to navigate through challenges they came across in 2023. This includes embracing customer-centricity and building strong customer relationships by offering value-driven products. Investing in advanced ecommerce platforms, equipping sellers with mobile apps and digital tools for better reach and engagement. Adopting new-age digital techniques such as collaborating with influencers to improve brand visibility and credibility. Strengthening business transparency and trust by educating distributors and customers on ethical direct selling practices and income disclosure statements. Integrating sustainable business practices to attract environmentally conscious customers. And lastly, reaching out to new customer segments by diversifying product portfolio and tapping into underserved markets.

According to the WFDSA report, the United States has 7 of the 24-billion-dollar markets in the country, which highlights the country’s dominant position in the direct selling growth map. With economy taking new turns, and a hopeful first and second quarters of 2024, direct selling industry in the United States is looking forward to experiments newer tactics and innovative strategies to focus more on customer relationships and thus build sustainable growth and competitions.