With the global e-commerce market projected to surpass $8 trillion by 20271, brands are presented with a massive opportunity for international growth. This means far more than just new sales channels. It’s about gaining access to larger, less saturated markets, often in regions where demand for certain products or categories is growing faster than in the brand’s home market. Going global also builds a healthier, more balanced portfolio of sales across geographies. If demand softens in the U.S. due to economic conditions, strong performance in Canada or the EU can help offset those dips. To test the waters, most brands begin their global expansion journey with direct cross-border fulfillment from the U.S. It allows brands to start selling internationally without the upfront investment of holding inventory abroad.
However, as international order volumes increase, cross-border fulfillment often proves difficult to sustain. What begins as a convenient and capital-efficient fulfillment strategy can quickly become a strain on operations and create further complications downstream as end consumers face rising shipping costs, longer delivery times, customs delays and surcharges, and limited return options. At the same time, the geopolitical landscape is becoming increasingly volatile, with rising tariffs, shifting trade agreements, and the threat of trade wars complicating cross-border commerce. These challenges have pushed brands to think not only about where they grow—but how they sustain that growth logistically. As a result, there has been accelerated interest in developing local fulfillment as a solution not just to meet growing international demand, but to create resilient, scalable operations that are less vulnerable to disruptions like tariffs and shifting trade policies.
Cross-Border Shipping vs Local Fulfillment
Cross-border shipping refers to fulfilling international orders from a domestic warehouse, typically from the brand’s home country or primary market. Products are picked, packed, and shipped abroad directly to the customer. For example, a U.S.-based apparel brand may receive an order from a customer in the UK, fulfill it from its main distribution center in Ohio, and ship it via an international carrier to London.
In contrast, local fulfillment involves storing and shipping inventory from within the target country or region. This can be done through brand-owned warehouses, outsourced logistics providers, or a single multi-national fulfillment partner. For instance, that same apparel brand may eventually decide to place inventory in a fulfillment center just outside of London. Once orders come in, items are shipped domestically within the UK. This change can shave days off delivery times, cut down on shipping costs, and eliminate most customs delays, leading to a more competitive and frictionless shopping experience.
However, local fulfillment also comes with its own set of tradeoffs. Since it requires placing stock closer to the customer, brands must be willing to shell out upfront for local infrastructure and inventory placement. There’s also the challenge of managing tax and compliance obligations across multiple jurisdictions. Under a cross-border model, taxes such as VAT or duties, and who pays them, depend on the incoterms used: Delivered Duty Unpaid (DDU) or Delivered Duty Paid (DDP). Under DDU, the customer pays duties and taxes upon delivery, while with DDP, the brand covers those costs in advance2. With local fulfillment, however, brands are typically required to register for local VAT, file tax returns, and remain compliant with domestic regulations. Moreover, brands must be prepared to balance stock levels between markets and respond quickly to shifts in demand.
When Is The Right Time To Switch?
There’s no set timeline as to when a brand should switch from cross-border shipping to local fulfillment. But if you’ve been evaluating the move, now may be the right time to act. With trade tensions escalating and tariffs driving up costs, more brands are shifting their focus toward countries like Canada, where trade conditions remain more stable, as a way to protect margins and streamline international operations. As this demand rises, so will competition for infrastructure, driving up costs for warehouse space and fulfillment services. A global fulfillment provider like Stord, with established facilities across Canada and Europe, makes this shift easier, faster, and cheaper.
But ultimately, the decision to invest in local fulfillment and partner with logistics providers depends on a brand’s specific growth trajectory and strategic priorities. It’s an inflection point that usually arrives when multiple market signals and performance indicators all begin to point in the same direction:
Order Volume and Momentum
High and sustained international order volume is the clearest sign that a foreign target market may be ready for local fulfillment. While the exact number varies depending on the product category and average order value (AOV), the shift to local logistics partnership often aligns if your brand handles at least 1,500 international orders per month in a single market3.
To put things into perspective, let’s revisit the apparel brand example. If it's fulfilling almost 2,000 monthly orders to the UK from its Ohio warehouse, it is likely overspending on shipping and under-delivering on customer expectations. Suppose customers expect delivery within 2 days, the AOV is $150, and each order weighs under 4 pounds, the total monthly cost for shipping will hypothetically look like this:
*conservative estimates based on Total Landed Costs (TLC) from Ohio to a warehouse near London4,5,6
**conservative estimate of the total costs for warehousing, labor, tech integration, local deliveries, and tax compliance in the UK, including bulk shipping rates7
At this point, the savings on bulk shipping and customs duties, along with the improved delivery times, significantly outweigh the costs of holding local inventory.
However, in some cases, even if the target market hasn’t yet reached peak order volumes, consistent traffic, conversion, and repurchase rates may warrant preemptive investment in local fulfillment to act as a growth accelerator. A steep upward curve in orders over a sustained period—whether month-over-month, quarter-over-quarter, or year-over-year—is a strong signal of growing market momentum and shows that global fulfillment is no longer in its experimental stages. For example, if a brand sees its Canadian sales doubling every quarter—even if the monthly average hasn’t hit 1,000 orders yet—that’s a sign of strong momentum. Rather than wait for volume to peak, the brand could adopt local fulfillment early to meet growing demand velocity while simultaneously offering faster delivery and cheaper fees for taxes and shipping. Reducing these friction points can significantly improve conversion8 and create a stronger customer experience from the outset.
Delivery Speed
Long delivery windows are one of the most common causes of cart abandonment in both domestic and international e-commerce8. When customers reach the checkout page and see a 10-14 day shipping estimate, they may opt out, even if they’re enthusiastic about the product itself. This is often the case with cross-border shipping, where delivery timelines typically range from 5 to 15 business days9, depending on the destination and shipping method. Packages must pass through Customs and Border Protection (CBP). Policy changes or increased scrutiny at customs can all cause delays that are outside the brand’s control. In many cases, customers are also surprised by additional fees or taxes upon delivery, which weren’t clearly communicated at checkout. When customers exit the checkout page the moment they see long delivery promises, or decline to pay the unexpected fees and request a refund, it’s a clear signal that your current fulfillment setup isn’t meeting consumer expectations.
With local fulfillment, you can offer faster delivery, often within 1 to 3 business days, because inventory is already within the customer’s country. Shorter delivery promises can positively influence online purchase decisions and lead to higher cart conversions10, especially in markets where Prime-like logistics have become the standard for delivery expectations.
Costs
Per-order shipping costs tend to be higher with cross-border shipping due to international carrier rates, fuel surcharges, and limited economies of scale. For example, shipping a 2-pound package from New Jersey to Toronto can easily cost up to $60 via express service11. This forces businesses to rely exclusively on the perceived value of the brand itself to encourage conversion and convince customers to stomach the high shipping fees and slower delivery promises. The product and buying experience are deprioritized in favor of brand name and reputation.
Consider a U.S.-based skincare brand known for its loyal following. With cross-border shipping, Canadian shoppers can face a $45 shipping fee12 and even additional costs at checkout as the package may be subject to a 5% Goods and Services Tax (GST)13. Instead of improving the customer experience, the brand invests in influencer marketing and premium packaging to reinforce its image and justify the added costs. But that approach has limits. Even if your brand is popular, statistics show that you can eventually lose 85% of your dedicated customer base due to a consistently poor delivery experience14. Let’s say that same skincare brand has 500 eager Canadian customers who each order an average of two skincare products per month. It can lose more than $10,000 in potential sales and repeat purchases15 purely because of slow delivery speeds and high shipping costs. Switching to in-region fulfillment, despite the additional costs for local infrastructure and inventory, can open up access to faster deliveries and local shipping rates that are often a fraction of the cost of cross-border shipping16. This results in more palatable delivery fees for customers.
But to further offset the expenses of scaling globally, brands can partner with a logistics provider like Stord that can provide the full benefits of local fulfillment without the capital investment and operational burden of building and managing a new fulfillment network abroad. By eliminating upfront setup costs and leveraging pre-established nodes, brands can protect their margins while offering faster, more cost-effective delivery options to end consumers. So instead of leaning solely on brand recognition, you can compete on a seamless customer experience.
Control and Accuracy Over Inventory
With cross-border fulfillment, brands retain centralized control over inventory and fulfillment operations, which can simplify forecasting, product bundling, and returns management. However, this also creates a bottleneck when shipping globally, since everything is routed through one location. Operational inefficiencies, with legacy inventory solutions, also show up in the form of accuracy issues. A discrepancy of just 2-3% in your global inventory data can lead to fulfillment delays, overselling, or shipping errors17. And when resolving those issues means resending another package from the U.S. to abroad, the costs and delays multiply.
Local fulfillment, powered by a unified digital view of inventory, segmented by warehouse, sales channel (B2B or DTC), and region, offers greater control and real-time visibility, allowing better inventory accuracy at the point of fulfillment. But it also introduces operational complexity as brands must now allocate stock strategically across multiple fulfillment centers, continuously monitor both local and global inventory levels, and coordinate timely replenishments to all locations. Consider a brand that suddenly sees a spike in demand in Western Canada due to a viral campaign. If inventory is still centralized in New Jersey, that demand can't be met without long lead times and high shipping costs. Shifting to a local fulfillment model could solve this, but only if inventory is properly allocated and updated in real-time across systems. Investing in a Canadian fulfillment center won’t help if inventory is still mismanaged. The same fulfillment challenges persist, just closer to the customer.
To grow, your brand needs an integrated fulfillment network and logistics platform that can give you the tools to manage distributed inventory without sacrificing control. Stord’s platform, for example, can give you full visibility into inventory levels across all nodes with real-time tracking and automated replenishment triggers. It can also unify data across B2B and DTC channels, helping operations balance inventory allocations across all customer segments—reducing overstock, understock, and fulfillment delays at scale.
Ultimately, it’s not about having to decide whether tighter central control or faster, region-specific agility is more valuable at your brand’s current growth stage. It’s about choosing a partner who can offer you both.
The Best Global Fulfillment Strategy for Your Brand
There is no one-size-fits-all answer to e-commerce global fulfillment. The right strategy depends entirely on your brand.
Some brands may benefit from continuing cross-border shipping to specific regions. Others may find that a localized fulfillment model is essential for meeting customer expectations in key markets. For others, a hybrid approach that combines local fulfillment in high-demand regions with cross-border support for emerging markets might strike the right balance. In some cases, it may even make sense to stop servicing certain countries altogether if reaching that market is cost prohibitive.
What remains consistent across all scenarios, however, is the need for a centralized, integrated system that provides accurate, real-time visibility across the entire fulfillment network. Without the right tech infrastructure, adding fulfillment centers won’t mean much if stockouts, delays, and manual workarounds are eating away at your margins and the customer experience. A fulfillment provider with both a robust, integrated e-commerce platform and multi-national reach can equip your brand with what it needs to scale globally while maintaining control, accuracy, and efficiency over your entire supply chain.
