Kasia Davies
Research expert covering the German market
Subscriptions & direct selling in the U.S. - statistics & facts
Although the direct selling and multi-level marketing business model is used in many locations worldwide, major examples being China, Japan, and Germany, the world’s leading market by far is the United States. Subscription box services and direct sellers are both common business models in the United States. Companies using a subscription model sell items to consumers on a monthly or yearly basis at a recurring price, while direct sellers provide products to the customer directly, often via social media or at the customer’s doorstep, and often with the help of a parent organization.
Although direct selling is still seeing success in the U.S., it is seeing less than in previous years. It is probably fair to say that the internet has changed the game as companies are now able to sell their product or service directly to the consumer via a website or app, thus eliminating the need for an intermediary party.
Direct sales in the U.S.
The United States annual direct sales amounted to a total of approximately 36.7 billion U.S. dollars in 2023, which is a decrease compared to the previous year. It marks the second year in which the market has seen a decline in revenue. Not only was the United States the largest market for selling directly to customers, but it was also home to some of the industry’s biggest companies and brands, including Herbalife, Mary Kay, and Nu Skin Enterprises. With an annual revenue of over eight billion U.S. dollars, Amway was the largest multi-level marketing company in the United States and worldwide.Subscription boxes and services
In the last decade, the subscription box has become ever more prevalent in the United States. When asked what features drove them to sign up for retail subscription services, U.S. subscribers often mentioned free shipping and the "no strings attached" nature, i.e., the benefit of being able to cancel the subscription at any time at no extra cost. As the concept has grown in popularity over the years, so has the number of options for people to choose from. Retail product subscriptions were most popular among Millennials and Bridge Millennials, this is an indicator that this market is especially popular among younger generations. This could mean that as the spending power of younger generations such as Gen Z and Gen Alpha continues to increase, they may also change the landscape of the market.Although direct selling is still seeing success in the U.S., it is seeing less than in previous years. It is probably fair to say that the internet has changed the game as companies are now able to sell their product or service directly to the consumer via a website or app, thus eliminating the need for an intermediary party.
