On-again, off-again tariffs have not lessened the opportunities for cross-border expansion. Global consumers still seek quality goods from trusted merchants.
Yet success in international selling requires careful attention to fulfillment, customs, duties, and more. That’s the role of Passport, the provider of cross-border logistics, localization, and support for ecommerce sellers.
I recently spoke with Alex Yancher, Passport’s founder and CEO, on tactics for profitable global ecommerce sales. The entire audio of our conversation is embedded below. The transcript is edited for clarity and length.
Eric Bandholz: Who are you and what do you do?
Alex Yancher: I’m the founder and CEO of Passport. We help brands expand globally through two primary models.
The first is cross-border. We integrate with a brand directly or its third-party logistics provider to internationalize the site and ship products from the U.S. to worldwide destinations. What sets us apart is our own U.S. warehouses in Los Angeles, Chicago, and New Jersey, where we consolidate shipments before sending them abroad.
The second model, designed for larger brands, enables in-country operations. We help companies set up legally, fiscally, and operationally in markets such as Canada, the U.K., the E.U., Australia, Mexico, and even the U.S. Interestingly, one of our fastest-growing services is helping international brands establish operations in America.
We’re known in the industry as a parcel consolidator, competing with firms such as DHL eCommerce. We partner with about 180 3PLs, including ShipBob and ShipMonk. While smaller brands may ship only a few international orders per week, our consolidation model enables us to pool volume from many merchants. For some clients, we run daily full-truckload pickups during peak drops; for others, weekly less-than-truckload shipments are enough. This flexibility makes international fulfillment economical for brands of all sizes.
Bandholz: When should a company outsource international fulfillment?
Yancher: Many small brands start with USPS. It’s easy to use and integrates with tools such as ShipStation. However, USPS shipments are expensive and are usually delivered duty-unpaid. That means when a package arrives in Canada, for example, customers pick it up at the post office and pay taxes before possessing it. It’s a poor experience.
UPS and FedEx are alternatives, but they’re costly and often overkill. Transit times are fast, but most brands, especially subscription businesses, don’t need two-day delivery. That’s where consolidators such as Passport make sense. We not only reduce shipping costs but also enable a delivered-duty-paid model. Duties and taxes are calculated and paid at checkout, so the package clears customs seamlessly.
We typically require at least 10 pounds of daily shipments. That could mean one heavy item, such as a stroller, or dozens of smaller items, like phone cases. If a merchant ships only a few lightweight packages a day, we might offer only weekly pickups, which slows transit. To ensure speed and consistency, we work best with brands that regularly hit the 10-pound threshold.
Bandholz: What are Passport’s fees versus USPS or FedEx?
Yancher: At decent shipping volumes, we shouldn’t cost more than $10 per package — and with higher volume, even less. Compared to FedEx, we’re often $10-$15 cheaper.
The real savings come from prepaying duties. When consumers pay duties upon delivery, local postal services charge additional clearance fees to handle the process, such as sending notices, holding packages, and verifying IDs. In Canada, for example, it costs approximately $9 Canadian. Often, that’s more than the duties themselves, effectively doubling or tripling costs.
Beyond the fees, again, it’s a terrible customer experience. Recipients must rearrange their schedules to pick up the package and pay, which creates frustration and damages brand loyalty.
When I started Passport over eight years ago, most brands shipped Delivered Duty Unpaid, typically via USPS. Back then, about 70%-80% of international ecommerce orders were shipped that way. Today, it’s completely flipped — roughly 80% of orders now ship Delivered Duty Paid, with duties prepaid at checkout.
Bandholz: How do brands present duties and currency fluctuations at checkout?
Yancher: In many countries, such as the U.K., consumers expect the checkout total to include VAT, not listed as a separate line. Seeing duties or VAT listed separately feels foreign, lowers trust, and hurts conversion rates. Instead, brands should incorporate taxes and duties into the final price to present a single, straightforward number.
Another factor is price aesthetics. Customers respond better to clean numbers, such as $99 or €45, rather than, say, $43.72. Many brands lock in local prices to maintain that aesthetic, adjusting only when exchange rates shift significantly. For example, a product priced at €40 may increase to €45 if the currency moves strongly against the merchant.
This approach balances consistency, customer perception, and margin protection. In practice, exchange rates in key markets such as Canada, the U.K., and Australia don’t swing drastically day to day. They may move 7%-8% over 18 months, but rarely shift more than fractions of a percent daily. Rounding strategies and baked-in duties usually work well without requiring daily adjustments.
Bandholz: How does a brand selling cross-border know when to fulfill locally?
Yancher: We recommend in-country expansion once a brand reaches around $2 million in annual sales in a given market. At that level, the benefits outweigh the costs. For example, cross-border shipments from the U.S. to the U.K. typically take five to six business days and incur higher fees. With local fulfillment, shipping times drop to two days or less, and last-mile costs decrease by a few dollars per package. The value proposition improves dramatically.
There are also duty savings. If a $200 sweater ships from the U.S. to Canada, the customer might pay 15% duties, about $30. However, if the same sweater is imported directly into Canada, duties are applied to the cost of goods sold, which may be $20, reducing the tariffs to just $3. That difference can make pricing far more competitive and conversion rates stronger.
Returns are easier with local fulfillment as well. The challenge, however, is compliance. Once you warehouse inventory locally, you must meet that country’s regulatory and labeling requirements. That can be complex, but Passport helps brands navigate testing, compliance, and paperwork. We also serve as the importer of record, utilizing our local business registrations to shield brands from regulatory risk and expedite market entry.
Additionally, we connect brands with trusted fulfillment providers and offer affordable freight options. The goal is to make international expansion as turnkey and low-risk as possible, enabling brands to scale confidently once they hit that $2 million threshold.
Bandholz: Where can people follow you, support you, or buy your services?
Yancher: Our site is PassportGlobal.com. I’m on X and LinkedIn.