Fulfillment
Global E-commerce Strategies for 2025: Navigating Tariffs, Fulfillment, and Profitability
As global e-commerce leaders chart their strategies for 2025, they are navigating an increasingly complex landscape marked by tariffs, fulfillment challenges, and profitability concerns. According to a recent survey, 81% of senior e-commerce leaders expressed concern that tariffs could disrupt their international strategy. Despite these challenges, 91% of brands report that international sales remain profitable.
The Complexity of Global E-commerce
Global e-commerce is becoming more intricate due to a confluence of factors, including new tariffs, rising fulfillment costs, emerging technology, and shifting regulations. Brands are investing heavily in flexibility to remain competitive. With nearly half of brands generating 20% or more of their total revenue from global markets, the stakes are high.
One significant factor is the rise in fulfillment costs, prompting 94% of global e-commerce leaders to plan for scaling in-country fulfillment within the next five years. This focus is driven by the need to support business growth, provide faster delivery speeds, and enhance the customer experience. In fact, 66% of decision-makers are investing in in-country fulfillment to support business growth, while 63% are doing so for faster delivery and improved customer experience.
Adapting to a Changing Landscape
As brands navigate this evolving landscape, they are rethinking their fulfillment strategies. DTC brands, for instance, are blending in-country and cross-border fulfillment approaches based on market maturity and regional demand. This adaptability is crucial, as 44% of e-commerce leaders identify navigating international compliance as a top concern.
Brands are also increasing their international advertising budgets, with 69% of e-commerce leaders planning to do so this year. The focus is on leveraging paid social, influencer marketing, and search to expand their global reach. In this environment, flexibility is paramount; 44% of e-commerce leaders consider it the most important factor when evaluating a global partner.
Investing in Infrastructure and Partnerships
Successful global expansion in 2025 involves building adaptable infrastructure behind the scenes. This includes investing in flexible fulfillment models, region-specific compliance systems, and forming global partnerships. Notably, 75% of brands now rely on third-party providers for in-country fulfillment.
The commitment to global growth is unwavering. Nearly half of the surveyed e-commerce leaders are investing in advertising to support their expansion efforts. Despite the challenges, global expansion isn't slowing down; rather, it is being actively invested in.
Looking Ahead
The path to global e-commerce success in 2025 is fraught with challenges, but also rich with opportunities. By prioritizing flexibility, investing in infrastructure, and forming strategic partnerships, brands can navigate the complexities of tariffs, fulfillment, and profitability. As the global e-commerce landscape continues to evolve, those who adapt will thrive in an increasingly interconnected world.
"The future of global e-commerce is not just about overcoming challenges, but about seizing opportunities in a dynamic and ever-changing environment," said a senior e-commerce leader.