For fast-growing US-based direct-to-consumer (DTC) brands, the next opportunity may not be local but across borders. There’s an increasing global demand for US products, and ecommerce makes it easier than ever to reach customers worldwide.
According to Global Market Estimates (GME), the global DTC ecommerce market is estimated to exhibit a CAGR of 24.3% from 2024 to 2029, opening up a world of potential. And brands have seen it work. Take golf lifestyle brand Malbon, for example; they’ve made their way into 75 countries.
The cross-border commerce world offers endless possibilities, and brands have numerous tools to gain notice on the global stage. However, it adds a layer of complexity, especially from the fulfillment and shipping perspective. International operations can create lost margins and a poor customer experience when dealing with everything from customs confusion and surprise tariffs to longer delivery times and the dreaded question, “Where’s my order?”
The good news? The right strategy and retail partners can remove the pain from the process. With expertise and innovative tools, fulfillment partners like Passport and Kase are making global expansion and cross-border commerce almost as easy as sending a package across town. And perhaps more importantly, with the right systems in place, international markets can become a 10X revenue driver for ready-to-grow brands.
International shipping defined
International shipping (also known as cross-border commerce) can be defined as any goods crossing country borders. Far more complex than domestic shipping, global delivery deals with regulatory compliance, customs paperwork, and differing delivery expectations.
Moreover, each country has its own set of rules surrounding imports, including documentation, packaging and labeling, safety standards, tariffs, duties, and taxes. To succeed in this new environment, brands must have a basic understanding of the processes and terminology or have partners that can help.
To navigate global shipping, it’s essential to understand a couple of core concepts and what they mean for retail businesses. Preparing strategies to handle cost and time implications is imperative.
DDP vs. DDU: Know the difference
Two important global ecommerce acronyms are DDP (Delivered Duty Paid) and DDU (Delivered Duty Unpaid). With DDP, a seller is responsible for the duties, taxes, and customs fees. With DDU, those charges are passed to the customer upon delivery. Brands must choose to fulfill in a way that best serves their customers, making DDP the common choice for providing a stellar customer experience.
| Feature | DDP (Delivered Duty Paid) | DDU (Delivered Duty Unpaid) |
| Who pays duties & taxes? | Seller handles all costs upfront | Customer pays upon delivery |
| Customs paperwork | Completed and submitted by seller or logistics partner | Typically requires action from buyer |
| Customer experience | Seamless, transparent, no surprise charges | Risk of surprise fees, delivery delays, or rejected shipments |
| Delivery speed | Faster, cleared in advance | Slower, can be held up at customs |
| Best for | Brands focused on customer satisfaction and long-term loyalty | Brands with limited shipping infrastructure or budget constraints |
International shipping costs and timelines
International shipping rates are influenced by more variables than domestic shipping. For example, distance, customs fees, and fuel surcharges all impact costs for these reasons:
- Longer distances and cross-border transportation fees
- Customs duties, taxes, and brokerage fees that vary by country
- Additional paperwork and regulatory compliance requirements
- Multiple carrier handoffs and less predictable last-mile networks
- Higher risk and insurance costs associated with cross-border commerce
Transit time also varies, facing delays from things such as customs clearance or international holidays.
Retailers can mitigate costs and longer transit times by working with partners that have the right solutions. This includes tech-enabled visibility, intelligent DDP handling, and globally integrated carrier networks. These partnerships provide the coordination and compliance needed to break into cross-border commerce.
Top global markets to target as an ecommerce brand
Deciding where to expand globally will depend on numerous factors. Brands should look into product fit, market demand, purchasing power, and shipping accessibility. The right markets will facilitate faster adoption, better ROI, and less logistical lift. Some of the top markets right now:
Tried and true
Canada, United Kingdom (UK), European Union (EU), and Australia are often a natural step for expanding brands. Our international shipping partner, Passport, finds these four are excellent markets for DTC brands to target because of their sizable economies, internet usage, cultural similarities, and existing agreements.
In Canada’s case, its proximity is also beneficial. However, the key to success in these regions is having a solid understanding of product standards, restrictions, fiscal compliance, and regulatory environments.
Other potential markets
It’s hard to define which international markets will work for each brand. Instead, it becomes crucial to explore where the most potential lies. DTC retailers can begin by advertising in other countries and see where interest takes hold. From there, explore the markets, risks, and complexities. If it’s a solid possibility, strategically make a move.
For many brands, global markets are worth the consideration and effort. A recent survey found that 91% of US ecommerce leaders say international sales are profitable, with 50% attributing over one-fifth of revenue to global markets. Markets to consider beyond Canada, UK, EU, and Australia include:
- Singapore: High ecommerce penetration, strong logistics infrastructure, and English-speaking consumers.
- United Arab Emirates (UAE): Wealthy, digitally savvy population with growing demand for US brands.
- Japan: Mature ecommerce market with a strong appetite for quality international goods.
- South Korea: Tech-forward consumers, high mobile shopping rates, and a strong appreciation for premium DTC brands.
- Mexico: Rapid ecommerce growth, proximity to the US, and favorable trade agreements for cross-border fulfillment.
Streamlined cross-border commerce: 5 tips for success
Breaking into new markets is an exciting time for brands. It opens the door to new growth, revenue, and loyal customers. That said, success depends on more than just shipping overseas. Retailers benefit from the following steps:
Know the rules
Each country a brand expands into has its own set of rules and regulations. Take the time to understand import laws, duties, product restrictions, and anything that ensures compliance.
Optimize packaging
Packaging and labeling must be customer-friendly and accurate for the country. Be sure to note what documentation is required to minimize any bottlenecks. Lastly, prioritize packaging that keeps products safe, reducing the chances of damage while maximizing cost-effectiveness.
Localize the experience
Localization is not a new concept within the US. Retail brands and marketers often make an effort to keep content, advertising, and engagement fine-tuned to specific areas. For example, a soft drink brand will likely adapt language to specific regions: after all, it’s either pop, soda, or the generic “coke.” However, in the UK and Ireland, it may be called fizzy drink or fizzy pop.
Invest in translating your site, displaying local currencies, and offering an international-friendly checkout while adapting to the region’s cultural norms. This lets retailers better reach the target audience and earn trust.
Simplify returns
Return management is difficult enough in the US, but it can be even more challenging internationally. The same is true across the board, though; how you handle returns matters to customers. Create clear policies and easy instructions, and make it a simple process that earns repeat customers.
Work with global shipping experts
Experienced partners can make all the difference in a cross-border commerce expansion. Partner with specialists like Passport and Kase, who understand cross-border logistics, DDP shipping, and compliance inside and out. Here’s what that looks like:
Partnering with a 3PL for international fulfillment
Brands need a 3PL that understands global complexity and has the tools and partners to support global scaling. A modern 3PL provides tech-enabled visibility, strategic inventory placement, and scalable operations. Because fulfillment challenges like delays, lost packages, or compliance issues can kill repeat business abroad, it’s essential to work with a 3PL that has the partners, systems, and knowledge in place beforehand to streamline global shipping solutions.
Passport x Kase: Your end-to-end global shipping solution
Here’s the bottom line: Passport simplifies internationalization through system integration, DDP shipping, landed cost calculation, and compliance expertise. Kase delivers fast, reliable fulfillment with real-time visibility and a flexible network.
Together, they offer a seamless global shipping experience from checkout to doorstep, no matter where in the world your customers live.
Ready to work with cross-border commerce experts? Learn more about Passport X Kase today.
Want to learn more about Passport?
We sat down with our newest partner for a quick Q&A!
Describe Passport in three words
Global. Compliant. Reliable.
What makes Passport’s international shipping solutions unique?
- End‑to‑end logistics + compliance bundle: Passport handles everything from customs duty/tax calculations to shipping and in-country enablement support, ensuring a seamless delivery experience in 180+ countries.
- Owns the parcel network: With our in‑house global carrier setup, Passport offers fast and reliable transit, plus full door‑to‑door tracking, on customizable tracking pages.
- Hands‑on, global customer support: Brands benefit from an expert global trade team and real‑time shopper support, reflected in a strong NPS (~52).
- Flexible global growth model: Offers both Passport Shipping (parcel + compliance) and Passport Global (add localization, storefront optimization, pricing strategies, in-country enablement, and marketplace management) to scale brands from “crawl to run.”
What’s Passport’s biggest tip for brands beginning to expand globally?
“Take compliance‑first, test‑and‑learn steps in-market.” Passport advises committing to strong compliance foundations—accurate duties, customs filings, product certifications—while piloting markets with manageable investment.
What platforms does Passport integrate with?
Passport has built a robust ecosystem with hundreds of integrations to 3PLs, TMS/WMS, ecommerce platforms, and partners like Rebuy, Loop Returns, and more. Visit https://partners.passportglobal.com/integrations for a sample of some of the partners we integrate with.
