What are the biggest risks brands face when expanding into new markets, and what strategies can help mitigate them?

Entering new markets comes with layers of financial and regulatory complexity, from managing duties and taxes to navigating country-specific requirements. It’s a major operational challenge; in fact, 74% of U.S. business leaders say regulatory compliance is one of the biggest hurdles to international growth.

Over the last decade, cross-border tax compliance has become increasingly complex for ecommerce brands. Today, more than 160 countries worldwide impose VAT (value-added tax) or GST (goods and services tax) on imported products.

Increasingly, countries are shifting tax responsibilities directly to merchants, requiring companies to register locally and collect taxes at checkout once they surpass specific sales thresholds. 

For US-based ecommerce brands, this change introduces new operational hurdles, turning global selling into a complex process that may now include obligations such as:

• Registering for local tax IDs in multiple markets
• Collecting and remitting taxes based on country-specific rules
• Submitting tax filings and responding to inquiries from foreign government authorities

Traditionally, companies have relied on a Merchant of Record for cross-border tax compliance, but these models often come with trade-offs such as delayed cash flow, limited pricing flexibility, and reduced control over your own storefront.

Recognizing the need for a more adaptable solution, Passport designed Seller of Record – a more flexible alternative that provides the same level of tax compliance while allowing brands to maintain direct cashflow and full control over their store, business, and data.

Seller of Record provides a more flexible approach to international tax compliance, striking the perfect balance between adaptability and regulatory requirements. It allows brands to maintain control over core aspects of their business while staying compliant in global markets.

Trump Tariff Talk: Navigating the Changing Global Trade Landscape in 2025

The global trade landscape is quickly shifting as new tariffs and policy changes from the Trump administration create uncertainty for ecommerce brands and 3PLs. 

The evolving tariff environment is complex, but brands that adapt quickly will be best positioned for long-term success. By shifting fulfillment strategies, diversifying supply chains, and optimizing customs processes, brands can mitigate the impact of these tariffs and continue to scale globally.

Want real-time updates? Check out TrumpTradeTracker.com – a resource Passport created to track every tariff-related development.

New Trump Tariffs Are Coming: What Ecommerce Brands Need to Know About the Latest Trade Policy Changes

For ecommerce brands selling internationally, these policy shifts could have major financial and operational consequences — impacting shipping costs, supply chains, and overall market strategies.

For ecommerce brands navigating these trade shifts, understanding tariffs and de minimis thresholds is crucial.

If your business sources products internationally, fulfills orders cross-border, or relies on cost-effective shipping, these tariffs may significantly impact operations. 

The global trade landscape is shifting rapidly, and ecommerce brands must adapt quickly to stay competitive. With higher tariffs, potential de minimis changes, and retaliatory measures, businesses must:

• Reassess supply chains and fulfillment strategies
• Monitor de minimis policy shifts to avoid unexpected costs
• Plan for price adjustments and explore duty-saving options
• Leverage in-country fulfillment to reduce tariff exposure
• Rely on Passport’s expertise and reliable service to help your brand reach its full global potential

Need help navigating these changes? Passport is here to guide you through these evolving trade policies, ensuring compliance and minimizing disruptions to your global operations.

Mastering Cross-Border Ecommerce Shipping: Your Guide to Global Success

Providing a localized experience is essential for attracting and retaining international customers. This can include displaying prices in local currencies, implementing tailored pricing strategies, creating region-specific landing pages, and more. Just as important is ensuring a transparent checkout process, so customers aren’t surprised by unexpected costs from duties and taxes.

Tailor the shopping experience with region-specific preferences like local currencies, payment methods, customized messaging, and pricing structures. As an example, UK customers expect VAT to be included in the price, and failing to do so may lead customers to reconsider their purchase.

Cross-border shipping is more than just moving products from point A to point B. Navigating customs regulations, dealing with taxes, and managing customer expectations all add layers of complexity to international expansion.

Getting cross-border ecommerce right means focusing on localization, clear communication, and transparency. These elements help foster trust and elevate the experience for your international customers. When done well, they lead to transformative growth and set your brand up for long-term success in global markets.

Shopify Localization: Strategies Every Ecommerce Brand Should Know to Maximize Sales

Shopify makes it easy to reach consumers all over the world with powerful tools for global commerce. However, expanding your Shopify store internationally requires more than just replicating your domestic strategy. To succeed on a global scale, it’s important to embrace a local approach for each market. By tailoring your content, pricing, and shopping experience to resonate with different audiences worldwide, you can amplify your international sales and drive significant growth.

Growing your ecommerce brand globally goes beyond just launching your website in new markets – it requires a thoughtful, region-specific approach. However, developing an effective localization strategy can be challenging, especially with limited personnel and resources. That’s where partnering with an internationalization expert like Passport comes in. We guide you in implementing Shopify localization strategies that drive higher conversions and bring in new customers, all while ensuring a seamless shopping experience worldwide.

Product Compliance: Ecommerce Guide for Expanding to Global Markets

Incorrect classification can result in shipments being held up at customs or rejected, potentially causing delays and fines. Due to the complexity of certain product categories, professional guidance is often necessary, especially when detailed HS codes beyond the six-digit level are required. Only licensed customs brokers are authorized to classify products at these detailed levels.

Brands need to ensure all product components comply with local guidelines by checking for prohibited substances and limiting any specified ingredient concentrations. This is especially important for cosmetics, supplements, and food & beverage, which are directly applied to or ingested by consumers and often subject to more stringent rules.

Selling products internationally can present notable compliance challenges for ecommerce brands:

• HS Classification – Properly identifying and categorizing goods using Harmonized System codes can be complex and requires accuracy.
• Regulatory Variations – Each country has unique compliance standards. Understanding and keeping up with evolving regulations can be difficult and time-consuming.
• Ingredient & Chemical Restrictions – Global markets often have different restrictions and permissible levels than the US for certain substances, adding complexity.

Overcoming these international barriers requires a proactive approach to compliance and staying informed about regulatory updates. Leveraging industry expertise can ease the process and accelerate access to new markets.

Shipping directly to customers offers an efficient way to test foreign demand without all the regulatory hurdles of traditional retail. While full compliance is ideal, it can be expensive and often unnecessary for DTC brands. Personal use exemptions allow individuals to import limited quantities of goods without the strict regulations applied to B2B shipments. These exceptions cover items intended for personal consumption and not for resale, with specific rules varying by country. This makes international shipping more manageable, allowing ecommerce businesses to gauge market interest and adapt strategies accordingly. By leveraging this flexibility and lower regulatory barriers, brands can effectively build a global customer base

Why Transparent Pricing Wins: The Importance of Landed Cost in Global Ecommerce

Overlooking the importance of landed costs can lead to significant challenges in international shipping, where inaccurate calculations might result in underpricing products, reducing profit margins, or overpricing, which could deter potential buyers. Additionally, a lack of transparency in costs can negatively impact the customer experience, leading to decreased sales and hindered growth. 

While several tools and software options are available for calculating landed costs, not all are created equal. Some offer basic estimates, whereas better options ensure recipients won’t face any unexpected charges at delivery. However, choosing the best solution for global shipping involves more than just accuracy. Other important factors to consider are the ability to apply reduced rates for qualifying products, like nutritional supplements, and the capability to account for compliance documentation that can lower or eliminate duties and taxes, such as those provided by preferential tariff agreements. Additionally, it’s crucial to monitor selling thresholds in specific markets to ensure taxes are only paid when necessary.

As an international solutions provider, Passport® delivers these services and more, combining innovative technology with an extensive shipping network and in-house expertise. Our easy-to-integrate software makes it simple for DTC brands to implement accurate landed-cost pricing, providing buyers with a transparent cost breakdown at checkout. For an all-in-one internationalization tool, Passport Global™ even includes localization, growth advisory, and compliance services, enabling businesses to adjust their strategies for various markets and effortlessly navigate import regulations. 

E-Commerce International Shipping: A Starter’s Guide for Going Global

When it comes to e-commerce international shipping, it’s vital to understand country-specific regulations, duties, and taxes to ensure compliance. Failure to do so can result in costly fines, shipment delays, or even legal action. Research the import rules of your target markets and be aware of any restrictions or packaging requirements for the types of products you plan to sell. Duties and taxes can also significantly impact your pricing strategy, so it’s essential to account for them in your cost calculations. 

Clear communication about shipping costs is essential for building trust and customer satisfaction in international e-commerce. Hidden or unexpected fees can lead to abandoned carts and lost sales. To avoid this, clearly outline all shipping costs, duties, and taxes upfront, providing a detailed breakdown if possible. When customers know exactly what they’re paying for, it establishes realistic expectations and strengthens long-term loyalty. 

ABOUT PASSPORT

Founded in 2017, Passport is a global ecommerce solutions provider that empowers merchants—like Dolls Kill, Ridge, Ogee, OneSkin, and HexClad—to grow profitably and confidently in over 180 countries. Combining innovative technology, global logistics, and expert compliance and growth support, Passport delivers the right solutions for the right markets at every stage of global growth. From cross-border logistics to in-country enablement services, Passport offers a seamless, flexible experience to help D2C brands unlock their full global potential. To learn more about the company, offerings, and careers, visit passportglobal.com.