Why Global Shipping Is a Defining Growth Moment
For many direct-to-consumer (DTC) brands, the U.S. market provides a large and competitive playing field. But growth plateaus, increased competition, and customer acquisition costs often push brands to look beyond domestic borders. Expanding internationally can unlock new audiences, diversify revenue streams, and strengthen brand equity.
Yet the leap is not without risk. International shipping adds complexity in logistics, compliance, and customer experience. Moving too early drains resources; waiting too long risks missed opportunities. So the question is: when to start shipping internationally?
Fulfillment Models for International Expansion
The logistics of global growth can be broken into three models:
1. Cross-Border Shipping from a Domestic Warehouse
Best for: Testing demand in new markets with minimal upfront investment.
Pros: Simple, no need to pre-position inventory.
Cons: Long delivery times (5-15 days), higher shipping costs, and higher cart abandonment rates.
2. Regional Warehousing Through a 3PL
Best for: Brands with consistent demand in a specific region.
Pros: Faster delivery, lower per-order shipping costs, and local returns processing.
Cons: Requires forecasting accuracy and local compliance setup.
3. Hybrid Model
Best for: Brands scaling into multiple regions with uneven demand.
Pros: Combines the flexibility of cross-border with the speed of local fulfillment.
Cons: Requires advanced inventory management across nodes.
The Right Timing for International Shipping
Expanding into international markets can be a powerful growth driver, but success depends on timing and preparation. Not every brand is ready to go global, and knowing when to make the leap is just as important as how you execute it.
Here are the signals that suggest your brand may be at the right stage:
1. Consistent Domestic Growth
If you’ve proven product-market fit in your home market, built a loyal customer base, and established reliable fulfillment operations, you’re in a stronger position to expand. Without a stable domestic foundation, international challenges will only magnify.
2. Organic International Demand
A clear indicator is demand already showing up at your digital doorstep: high traffic from outside your home country, abandoned carts with international addresses, or customers asking if you ship abroad. A healthy benchmark is when 10-15% of visitors come from international markets or when requests for global shipping are frequent.
3. Established Market Fit
A brand is ready for international expansion when it understands not only where demand exists, but also how local market conditions may affect performance. This includes knowing whether your product category resonates in a given region, accounting for cultural nuances, and identifying how local competitors may shape customer expectations.
4. Margins That Can Absorb Added Costs
International expansion introduces higher fulfillment costs—shipping, duties, returns. Brands need to model landed costs by region and confirm their margins can sustain the higher costs without eroding profitability. If your domestic margins are already thin, expanding globally may create more risk than reward.
5. Operational Capacity and Infrastructure
A strong signal of readiness is having the operational capacity to deliver a seamless international customer experience. This means working with partners that have true global reach, ensuring your OMS/WMS can manage multi-currency, multi-carrier, and multi-node complexity, and providing accurate delivery timelines at checkout. It also means having a clear fulfillment strategy, whether that’s starting with cross-border shipping, investing in local fulfillment, or both.
6. Returns Management
International returns are one of the most complex aspects of global commerce. Being ready means having a clear process for who bears the cost of returns, whether they will be centralized domestically or managed regionally, and how resaleable versus non-resaleable items will be handled.
How to Prepare for International Duties and Tariffs
One of the biggest challenges in international shipping is navigating duties and tariffs. These costs, imposed by governments, can vary by country, product category, and shipment value. Mishandling them can lead to surprise charges for customers, customs delays, or even rejected shipments. Here are key steps to help your brand prepare:
Understand HS Codes Every product must be classified under a Harmonized System (HS) code.1 This determines the duty rate. Misclassification can cause delays or fines.
Decide Between DDU vs. DDP
Delivered Duty Unpaid (DDU): The customer pays duties and taxes upon delivery. But it can create a poor customer experience if these fees are unexpected.2
Delivered Duty Paid (DDP): The brand covers duties upfront, creating a seamless checkout experience. Preferred for customer satisfaction but requires accurate cost modeling.3
Forecast Landed Costs Calculate the full landed cost for international orders: product + shipping + duties + tariffs + handling fees. Transparency prevents sticker shock.
Plan for Tariff Volatility Trade policies shift quickly. Build flexibility by diversifying fulfillment locations and monitoring tariff changes in key markets.
Pro Tip: Build a “duty calculator” into your checkout flow so customers see a fully landed price before purchase.
Action Steps for DTC Leaders
Once the timing is right to expand internationally, execution becomes the make-or-break factor. Here are steps to building a resilient, scalable fulfillment strategy while avoiding the most common pitfalls that trip up global growth:
1. Select the Right Entry Strategy
Evaluate whether to start lean with cross-border shipping, accelerate delivery with regional warehousing, or balance both with hybrid models. Emerging micro-fulfillment hubs4 can also provide flexibility and speed without heavy capital commitments.
2. Build Compliance Foundations Early
Customs documentation, HS codes, and clarity on DDP vs. DDU terms must be embedded into operations. Compliance readiness prevents costly delays and protects the customer experience.
3. Present Localized Total Costs
Go beyond simple product pricing by factoring in duties, tariffs, shipping, and last-mile fees. Present the true total cost upfront clearly shown in the local currency, with applicable taxes and preferred payment options to create a seamless experience that feels native to each market. Transparent, fully landed pricing reduces cart abandonment and builds trust.
4. Establish a Returns Framework
International returns are often the first major operational challenge. Provide localized drop-off options and in-market processing to help reduce costs while preserving customer loyalty. When returns are treated as an afterthought, the result is a weak process that erodes both trust and margins.
5. Pilot Before Scaling
Test your fulfillment, compliance, and returns processes in one priority market before rolling out to others. A measured pilot ensures systems are stress-tested and scalable. Expanding into too many markets all at once spreads resources thin. Focus on one or two high-demand, manageable trade environments first.
Real-World Case Scenarios
Apparel Brand Testing Canadian Market
A U.S.-based apparel brand saw 15% of web traffic from Canada. They began with cross-border shipping from their New Jersey warehouse. After confirming consistent demand, they partnered with a Canadian 3PL to cut delivery times from 7 days to 2 days, reducing cart abandonment.
Supplement Brand Scaling Subscriptions to the EU
A supplement brand with a growing subscription base tested EU demand through cross-border shipping. But long delivery times caused churn. Transitioning to regional fulfillment in Germany enabled 2-3 day delivery and improved customer retention by 18%.
Beverage Brand Managing Cold Chain in Asia
A functional beverage brand tested demand in Singapore through cross-border air freight but faced spoilage risk. They shifted to local cold chain warehousing, which allowed them to maintain product quality and protect margins.
Final Thoughts
Deciding when to start shipping internationally is one of the most strategic calls a DTC brand can make. The right timing depends on demand signals, margin readiness, and operational capacity. Preparing early for international duties and tariffs and designing scalable fulfillment for international expansion ensures you enter new markets with confidence.
Want to learn how Stord can support your brand for international shipments? Talk to one of our experts today.
