GLOBAL BRANDS LOOKING FOR UNIFIED FULFILMENT
The ecommerce landscape is shifting fast, especially for UK and EU brands selling into the US. With tariffs rising, shipping costs stacking up, and delivery expectations only getting higher, the old cross-border model is starting to crack.
If you’re still fulfilling every US order from overseas, you’re likely paying more, delivering slower and absorbing hidden costs that hurt your bottom line. Holding inventory in the US isn’t just a workaround, it’s a strategic advantage.
In this article
- Why US-based inventory is a smart move for ecommerce brands
- The tariff shift reshaping international DTC shipping
- Why absorbing landed costs is no longer sustainable
- The strategic and financial upside of US-based inventory
- How IFGlobal helps brands make the move confidently
Why US-based inventory is a smart move for ecommerce brands
Consumer expectations in the US are sky-high. Fast, low-cost (or free) delivery has become table stakes. If you’re shipping from the UK or EU, those expectations are hard to meet consistently, especially with cross-border delays, customs risks, and rising last-mile costs.
Placing inventory closer to your US customers brings three big benefits.
- Faster delivery times, improving conversion and retention
- Lower shipping costs, reducing cart abandonment and boosting margins
- Improved customer experience, with fewer customs delays and fewer returns
If you’re scaling in the US, or planning to, it’s time to treat fulfilment as a growth enabler, not just an operational line item.
The tariff shift reshaping international DTC shipping
As of 2024, new US import tariffs have come into effect for a wide range of product categories including personal care, apparel, electronics, and more. The new rates (ranging from 25–100% depending on origin and category) can drastically alter your unit economics overnight.
And while larger businesses may be able to restructure their supply chains or negotiate trade deals, most growing ecommerce brands don’t have that leverage. That means increased landed costs on each international shipment, and no simple way to pass that cost onto the customer.
Holding inventory inside the US eliminates many of these tariff-related issues, especially if goods are imported in bulk and cleared once at port before being distributed through a domestic fulfilment network.
Why absorbing landed costs is no longer sustainable
International DTC sellers often face what we call “silent erosion”, where costs eat away at profit margins in ways that aren’t immediately obvious.
- Tariffs and duties per shipment increase as volumes grow
- Split shipments from UK/EU cause duplication of shipping and fulfilment costs
- Currency fluctuations and border friction add hidden financial complexity
- Customer returns become more costly and slower when they’re cross-border
Eventually, these factors stop being operational irritants and become strategic blockers. Brands either raise prices (and risk conversions) or absorb the cost and watch profitability fall. There’s a better way!
The strategic and financial upside of US-based inventory
Relocating inventory into US fulfilment centres is more than a tactical shipping decision; it’s a strategic move that can dramatically improve profitability, operational efficiency and customer satisfaction.
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Lower average cost per order
When you hold stock in the US, you're significantly reducing last-mile shipping distances.
Instead of absorbing high international shipping fees, duties and unpredictable freight costs on every order, you're paying domestic rates. The shorter the distance, the lower the cost (and the faster the delivery). Over time, this shift adds up to substantial savings per unit and stronger contribution margins.
Avoid repeat tariffs and duties
DTC cross-border shipping often means incurring import duties and fees on every single parcel. But when you bulk import inventory into the US, those costs are cleared once at entry.
Not only does this simplify your landed cost calculation, but it also removes the financial unpredictability tied to per-order customs charges and fluctuating rates.
Accelerated delivery speeds
Customer expectations in the US are high, with 2-day shipping now the benchmark. By holding inventory close to key customer clusters (e.g. East and West coasts), you can consistently meet or exceed that promise. Faster fulfilment also means fewer support tickets, fewer delivery complaints and better customer retention.
Predictable, stable landed costs
International DTC fulfilment can wreak havoc on your margins. FX fluctuations, volatile shipping rates, and customs processing delays all contribute to rising and hard-to-predict landed costs.
By switching to a US inventory model, you lock in known costs at the point of import, giving your finance and operations teams the clarity they need to manage margin, pricing, and promotions with confidence.
Improved returns experience
Returns are a fact of life in ecommerce. Managing them across borders can be a logistical nightmare.
Holding stock in the US gives you access to localised reverse logistics, meaning faster refunds, smoother exchanges and better customer satisfaction. It also helps you recapture returned stock for resale, rather than writing-off product due to international return complexity.
Built-in scalability
Finally, the biggest shift is strategic.
Moving stock to the US lays the foundation for scalable, sustainable growth. Whether you're looking to expand into Amazon US, enter retail partnerships, or simply accelerate your DTC channel, domestic inventory makes it all possible. You're no longer reacting to fulfilment constraints; you’re proactively shaping your next stage of growth.
How IFGlobal helps brands make the move confidently
At IFGlobal, we work with fast-scaling ecommerce brands to set up smarter, more strategic fulfilment, especially when it comes to order fulfilment in the US.
Here’s how we help you de-risk and de-complicate the move.
- Fulfil from both coasts with our US-based centres in key shipping zones
- Reduce shipping costs by aligning inventory with customer clusters
- Smart routing and zone optimisation based on your customer data
- Deliver faster and hit your CX benchmarks, with 2-day delivery coverage
- Access full visibility with BladePRO, our proprietary fulfilment technology
- Scale Amazon with confidence via Amplifi, our in-house growth team backed by the IFGlobal fulfilment engine
- Expert onboarding and expansion support, with localised knowledge and real humans by your side
