Fulfillment

Global E-commerce Trends: Navigating Tariffs and Fulfillment in 2025

Global e-commerce is facing increasing complexity as new tariffs, rising fulfillment costs, emerging technologies, and shifting regulations reshape the landscape. As businesses navigate these challenges, adaptability and strategic planning become paramount.

The Impact of Tariffs on Global E-commerce

According to a recent survey conducted by Passport in partnership with Drive Research involving 100 senior e-commerce leaders, 81% believe tariffs could disrupt their international operations. The imposition of tariffs poses a significant risk, prompting brands to reassess their global strategies and fulfillment processes.

Direct-to-consumer (DTC) brands are at the forefront of this shift, actively rethinking fulfillment strategies, investing in advertising, and prioritizing profitability to maintain competitiveness. The study highlights how these brands are adapting to the evolving e-commerce environment.

"81% of e-commerce leaders believe tariffs could disrupt their international strategy," the survey reveals.

Despite these challenges, 91% of brands report that international sales remain profitable. Nearly half of the surveyed brands generate at least 20% of their total revenue from global markets, underscoring the importance of international operations.

Fulfillment Strategies and Compliance Concerns

In response to rising fulfillment costs, 94% of global e-commerce leaders plan to scale in-country fulfillment within the next five years. In high-demand markets, in-country fulfillment has become a competitive necessity.

However, navigating international compliance remains a top concern for 44% of e-commerce leaders. The complexity of international regulations requires robust compliance systems tailored to each region's specific needs.

"44% of e-commerce leaders consider navigating international compliance a top concern," the survey indicates.

To address these challenges, 75% of brands rely on third-party providers for in-country fulfillment. This collaboration allows businesses to leverage expertise in navigating the complexities of international logistics and compliance.

  • 44% of e-commerce leaders prioritize flexibility over cost and speed when evaluating global partners.
  • 69% of e-commerce leaders plan to increase their international advertising budgets this year.

Leveraging Section 321 for Cost Efficiency

Section 321 of the U.S. Customs regulations provides an opportunity for e-commerce sellers to save up to 20% on duty costs by allowing duty-free shipping of low-value goods (less than $800) to the U.S. from multiple countries. This regulation enables businesses to import bulk shipments into Canada and fulfill individual orders from Canada to the U.S. duty-free.

By effectively utilizing Section 321, businesses can achieve transit times comparable to domestic shipments within the U.S. Customs authorities can clear eligible shipments more efficiently, facilitating faster delivery.

"E-commerce sellers can save up to 20% on duty costs by utilizing Section 321 effectively."

However, products such as firearms, alcohol, tobacco, and goods subject to quotas or anti-dumping duties do not qualify for Section 321. Additionally, the legislation surrounding Section 321 is subject to change, with potential political initiatives to restrict imports and increase checks.

The Role of Technology and Partnerships in E-commerce

As e-commerce continues to evolve, technology plays a crucial role in streamlining operations. Electronic Data Interchange (EDI), although a decades-old technology, remains vital in the supply chain industry. Modern, cloud-based EDI solutions have the potential to transform supply chain operations, as will be discussed in an upcoming webinar scheduled for June 11, 2025.

Successful global growth in 2025 requires adaptable infrastructure, region-specific compliance systems, and strategic global partnerships. Brands are increasingly collaborating with third-party logistics (3PL) providers to navigate the complexities of international operations.

"Smarter strategies and the right partners are required to keep growth profitable."

In conclusion, while tariffs and fulfillment complexities present challenges, global growth in e-commerce fulfillment remains attainable. By leveraging strategic partnerships and technology, businesses can continue to thrive in the dynamic landscape of global e-commerce.