What does it really take to scale your ecommerce brand internationally? If you’re running a US-based ecommerce brand and are considering expanding globally, the answer should be a resounding YES.

Here are 3 solid reasons why:

• Over the past decade, the cost to acquire new customers has skyrocketed by 222%, with brands now losing an average of $29 for each new customer acquired.
• Nearly 40% of online sales occur in the last three months of the year, leading to significant revenue peaks and valleys. 
• Your brand may already be attracting international visitors who can't purchase due to shipping limitations or lack of localized support.

International expansion offers unmatched opportunities to boost revenue, capture a diverse customer base, and future-proof your brand. With recent advancements in ecommerce technology and logistics, international expansion is more achievable than ever.

Before diving into strategies, let’s explore the scale of opportunity that global expansion brings to ecommerce brands.

What you’ll learn

• Current trends in cross-border ecommerce
• Why international expansion is key for ecommerce growth
• When should an ecommerce business expand internationally?
• Challenges in International Expansion
• Key steps for successful international expansion
• Building a long-term international strategy
• Leveraging technology and partnerships for growth

‍

Current Trends in Cross-border Ecommerce

The numbers are compelling. According to a 2024 report by Cognitive Market Research, the global cross-border ecommerce market is currently valued at $791.5 billion and is projected to expand at a 30.5% CAGR from 2024 to 2031. Here’s a breakdown of key market shares and growth rates:

‍

Why International Expansion is Key for Ecommerce Growth

Is there more to going global than just revenue? Yes, for sure. 

Here are 5 key compelling reasons (including revenue, of course) to expand your business internationally. 

1. New Markets, New Revenue Opportunities
   Expanding into international markets lets you reach untapped audiences, expanding your total addressable market and revenue streams. As per a study by EY, D2C companies expanding internationally experience greater resilience and revenue diversity, enhancing their stability and competitiveness.

Emerging markets like Southeast Asia and Latin America offer high growth potential with lower competition. Focusing on these regions can minimize risk, while larger, established markets provide greater long-term returns.

Takeaway: Start with markets showing high demand but fewer players to maximize growth with minimal risk.

2. Competitive Advantage in Global Markets
   Though obvious, it helps to state the fact that going global often can place you ahead of the game by helping you build market share while competitors remain local. Additionally, international expansion is often a better option for growth than adding new sales channels domestically, where markets can become quickly saturated.

Early international expansion gives you time to optimize strategies and build brand recognition before competitors catch up.

Takeaway: To capitalize on this, you need to move swiftly. Consider starting with 1-2 key markets, testing your product offering, then optimizing based on local response.

‍

3. Seasonal and Counter-Cyclical Revenue Streams
   Operating in multiple regions allows your brand to benefit from counter-seasonal trends, helping smooth out revenue dips during off-peak seasons.  For example, while winter apparel may experience high demand in North America in Q4, summer apparel and outdoor gear spike in Australia during the same period.

Patagonia, a brand known for outdoor gear, sees counter-cyclical sales by operating in both hemispheres. While winter jackets are in demand in the U.S. during the colder months, the brand experiences a boost in summer-related gear in Australia during the same period.

Takeaway: Leverage regions with opposite seasonal trends to maintain steady revenue year-round.

‍

4. Brand Recognition and Trust
   Studies indicate that consumers tend to view brands with a global presence as more credible and reliable, often associating them with quality. This is particularly evident during major global shopping events like Black Friday and Cyber Monday, which increasingly attract a global audience.

Takeaway: Begin by establishing a strong presence in 1-2 countries, optimizing for customer experience, and expanding from there.

5. Product Innovation and Market Insights
   When you expand globally, the world is your oyster. International expansion exposes your brand to new consumer preferences and trends, which can lead to product innovation. For instance, demand for sustainable and eco-conscious products is especially high in European markets, where over 60% of consumers are inclined toward eco-friendly brands.

Takeaway: Research regional preferences and trends, but also be agile. You can launch in select markets, gather insights, and then adapt your product or service offerings accordingly.

‍

Insights from these markets can help brands refine their product offerings or even inspire entirely new product lines that appeal both locally and globally.

‍

When should an ecommerce business expand internationally?

Now that we’ve established the ‘why,’ it’s important to know when your business should embark on international expansion. For many ecommerce brands, expanding globally is the logical next step after solidifying their domestic market. However, readiness is key—not just ambition.

Look for specific indicators of readiness for international expansion, such as:

• A stable and profitable domestic operation
• Regular international traffic on your website
• A unique value proposition that can translate across cultures

Brands that already attract international site visits can achieve up to 15% growth by converting this existing demand through a strategic market entry.

Follow this checklist to evaluate your readiness:

Challenges in International Expansion

The path to international expansion is not without hurdles. From compliance and logistics to understanding local customer expectations, these challenges can make going global seem overwhelming. However, understanding these issues and proactively addressing them makes international expansion achievable and rewarding.

‍

1. Compliance and Regulation

Navigating taxes, product standards, and data privacy regulations in each target market is essential for sustainable success. Each country has its own complex regulatory landscape covering aspects such as employment laws, environmental standards, and data protection.

Pro Tip: Partnering with a compliance expert can streamline this process. For instance, OpenBorder provides end-to-end solutions that handle tax remittance, logistics, and compliance, so you can focus on growth.

2. Logistics and Shipping

Reliable international shipping is crucial, yet logistics challenges remain a top concern in global ecommerce. Geopolitical issues, such as trade route disruptions, can add up to 10 extra days on certain shipments.

Pro Tip: Establish relationships with international carriers and consider warehousing options in your key markets to reduce shipping costs and lead times. OpenBorder’s network of international carriers provides flexible solutions tailored to your needs.

3. Localization and Cultural Barriers

Localizing your website and customer experience for each market is essential. For instance, European and Asian customers expect VAT-inclusive prices, while U.S. customers are accustomed to seeing tax added at checkout. Additionally, customer support should be available in the local language, as 74% of consumers prefer support in their native language.

The Cost of Neglecting Localization

• Cart Abandonment: Unexpected fees (e.g., VAT or currency conversion) account for 20% of cart abandonment globally.
• Customer Dissatisfaction: 74% of consumers prefer support in their native language; failing to provide this can lead to negative reviews and lost sales.
• Missed Opportunities: Competitors catering to local preferences quickly gain market share.

Pro Tips to Avoid Friction: 

VAT-Inclusive Pricing
European shoppers expect upfront pricing with taxes included. Tools like OpenBorder automate tax compliance to meet regional norms.

Currency and Language Adaptation
Show prices in the local currency and offer translated product descriptions and messaging.

Localized Customer Support
Provide native-language support via live chat or AI tools.

Use automated tools to manage currency conversion and adapt your site content to local languages and cultural nuances.

Key Steps for Successful International Expansion

Now that we’re clear about the Why and When, it’s time for action. Let’s dive deep into the HOWs of expanding globally.

Step 1: Market Research and Choosing the Right Markets

Find your global sweet spots, where demand is high and the competition is low.

Start by identifying regions that combine strong demand with low competition, like Western Europe, Canada, and Australia. Use tools that can give you analytics to help you go deep into each market—uncovering consumer behavior, demand trends, and competitor strengths—so you can choose markets primed for brand success.

Pro Tip: As part of early research, assess any local tax requirements that may influence your market choice. In certain countries, tax registrations can take 3-6 months, and may even require you to establish local entities. Knowing these needs upfront can help you avoid costly delays later.

Outcome: By the end of this step, you’ll have a laser-focused list of high-potential regions, ready to start driving revenue with minimal upfront investment.

Step 2: Setting Up Operations and Infrastructure

Want to make global work? Start with a nimble logistics plan that’s ready to scale.

Setting up regional infrastructure as demand grows can transform your shipping costs and customer satisfaction. Initially, direct U.S. shipping might be enough, but as volume builds, local warehouses reduce delivery times, cut costs, and create a frictionless fulfillment experience. Leveraging a 3PL partner lets you scale without the operational overload.

Pro Tip: Before shipping inventory, ensure your fulfillment provider’s Inventory Management System (IMS) and Warehouse Management System (WMS) can sync with your own. System integration questions are key early on, as they affect real-time tracking and invoicing with new partners.

Outcome: With this setup, you’ll reduce costs, speed up deliveries, and establish a lean, scalable logistics model.

Step 3: Ensuring Compliance and Handling Duties

Navigating international taxes, VAT, and import duties is complex, but critical.

Transparent, fully inclusive pricing at checkout ensures customers aren’t surprised by hidden fees at delivery. Using automated compliance tools keeps you aligned with each country’s rules, so you stay compliant without extra hassle.

Pro Tip: Compliance goes beyond tax. Labels, ingredients, and tags may need to be adapted to each market’s standards. Research whether your products require testing, certification, or notification to local authorities—and be ready to bring in experts if needed to handle these compliance demands.

Outcome: With solid compliance practices in place, you’ll earn customer trust, avoid shipping delays, and provide a seamless experience that keeps customers coming back.

Step 4: Optimizing the Customer Experience

Think global, act local: winning in new markets means being one of them.

To thrive internationally, localizing your brand is essential. Adapt currency, promotions, and even the language to fit each market, and consider using local influencers to connect authentically. Customers are quick to spot brands that understand their culture and needs, and a localized experience builds loyalty and trust.

For international growth, relying solely on your own site leaves money on the table. Create a well-thought out action plan on how you’re going to work with Amazon, local retailers, and distributors to give you access to established customer bases without needing to build that trust from scratch. 

The most successful brands lean into these channels strategically, using tools like Amazon FBA to scale operations without added complexity.

Additionally, refunding taxes upfront is one of the easiest ways to build goodwill with international customers. Pair that with local return hubs, and you remove a key friction point that often stops first-time buyers from converting. Make returns simple, and you’ll not just solve a logistics problem; you’ll also ensure that your customers keep coming back.

Pro Tip: When localizing, consider prioritizing bestsellers or products most likely to resonate with each region. Shipping a full catalog may sound appealing, but focusing on key items ensures that your marketing aligns with actual consumer preferences and minimizes inventory complexity.

Outcome: By delivering a personalized, local feel, you’ll capture customer loyalty, boost repeat purchases, and turn your brand into a trusted favorite in each new market.

Building a Long-Term International Strategy

A brand’s international strategy must be adaptable. Changes in local regulations, market demand, and competition require brands to keep evolving. Investing in tools and partnerships that support this agility is key to long-term success.

Leveraging Technology and Partnerships for Growth
Brands that use technology and partners like OpenBorder stay nimble, adjusting to regulatory changes and consumer trends while keeping operations efficient. Our comprehensive support enables brands to focus on growth, not on logistical roadblocks​.

OpenBorder is designed to support ecommerce brands at every stage of their international journey. From initial market entry to ongoing market management, OpenBorder takes on the operational heavy lifting, handling logistics, compliance, and customer experience needs.

Key Benefits of Partnering with OpenBorder

• Streamlined Compliance Management: We manage VAT, tax remittance, customs clearance, and product compliance, making compliance straightforward.
• Optimized Logistics: Through partnerships with international carriers, we offer flexible, cost-effective shipping options for timely delivery.
• Enhanced Customer Experience: With features like multi-currency pricing, regionalized promotions, and seamless returns, we help brands create an experience that feels local to customers abroad.

The Global Ecommerce Market Is Your Oyster

The global ecommerce market is rich with opportunities for brands ready to go beyond borders. International expansion allows brands to access new customers, diversify revenue streams, and establish a competitive edge by building a global presence. Yet, the complexities of compliance, logistics, and localization often make this journey challenging.

That’s where OpenBorder comes in. As a dedicated partner, OpenBorder simplifies international expansion by managing tax compliance, streamlining logistics, and creating a seamless experience for customers across regions. Our comprehensive platform enables you to focus on growth, while we handle the operational intricacies of going global.

Ready to take your brand to the world? 

Connect with us today to learn how our end-to-end solutions can make your international expansion smooth, scalable, and successful.

‍