Top global expansion ecommerce markets: Where US-based brands are growing next

Top global expansion ecommerce markets: Where US-based brands are growing next

As cross-border ecommerce continues to outpace many domestic channels, U.S.-based brands are looking beyond their home market for their next phase of growth. Globally, 59% of shoppers purchase from retailers outside their home country, and 35% do so at least once a month, underscoring how mainstream international buying behavior has become. Certain international markets consistently provide the right mix of demand, infrastructure, and consumer readiness to support scalable expansion. According to this article from global ecommerce solutions provider Passport, the following regions stand out as the best places to start for brands pursuing global growth.

1. Canada

Canada is often the first international market U.S.-based ecommerce brands prioritize, with its ecommerce market valued at about $40.3 billion in 2025 and online sales representing roughly 13.6% of total retail. Geographic proximity, cultural familiarity, and strong cross-border buying behavior make it one of the lowest-friction expansion opportunities. Trade agreements such as the United States-Mexico-Canada Agreement simplify shipping and help limit tariff exposure, while shorter transit distances reduce cost and variability, making Canada a practical and scalable entry point for global growth.

Market Overview

Canada has a mature ecommerce environment with high internet penetration and consumers who are accustomed to purchasing from U.S. brands, particularly in beauty, apparel, wellness, and consumer packaged goods. Shopper expectations closely mirror those in the United States, especially around price transparency, reliable delivery, and seamless checkout. When duties and taxes are presented upfront, and delivery timelines are predictable, international conversion rates can closely resemble domestic performance.

Tax and Import Considerations

Canada applies a 5% federal Goods and Services Tax (GST) to most imported goods. Some provinces charge a separate Provincial Sales Tax (PST), while others use a Harmonized Sales Tax (HST) that combines federal and provincial taxes.

For courier (non-postal) shipments entering Canada:

• The tax de minimis threshold is $40 CAD
• The duty de minimis threshold is $150 CAD

For most direct-to-consumer shipments, duties and taxes are assessed at the border, and many U.S. ecommerce brands are not required to register for a Canadian tax ID, simplifying compliance during early expansion.

Recent Regulatory Developments: Starting in 2026, the Canada Border Services Agency is implementing a “Last Sale” mandate that requires duties to be calculated based on the final retail sale that triggered export to Canada, rather than an upstream cost transaction. The change is intended to close valuation loopholes and may increase landed cost calculations for certain direct-to-consumer models. Brands must meet a strict eight-point “Substantial Presence” test to use an earlier sale price; otherwise, the retail price is the default for duty calculation. Brands should review their duty assumptions accordingly.

Product Considerations

While Canada is relatively accessible, certain product categories require closer attention:

• Cosmetics and beauty products must comply with Canada’s Food and Drugs Act and Cosmetic Regulations, including ingredient restrictions.
• Supplements and health products are generally allowed under personal-use exemptions when limited to a supply of fewer than 90 days, though restricted ingredients may trigger additional scrutiny.
• Food products may qualify for personal-use exemptions when quantities remain below established thresholds.
• Pet products, particularly those containing animal-derived ingredients, are more heavily regulated and may face additional clearance requirements.

2. United Kingdom

For many U.S.-based ecommerce brands, the United Kingdom is the first European market they prioritize. Online sales in the UK made up about 28.3% of total retail spending in late 2025, one of the highest ecommerce penetration rates among major European economies, and are projected to reach nearly 30.7% by year’s end. A digitally mature population, strong cross-border buying behavior, and a shared language make the UK one of the most accessible entry points into Europe.

Market Overview

UK consumers are highly comfortable purchasing from international brands, particularly in fashion, beauty, wellness, home goods, and specialty products. Price transparency and delivery clarity are critical to conversion. Unexpected VAT charges or handling fees at delivery are a common cause of cart abandonment, while brands that present total landed costs upfront and clearly communicate delivery timelines tend to see stronger conversion and repeat purchase rates. High mobile commerce adoption and social-driven discovery further reinforce expectations for seamless checkout experiences that mirror domestic standards.

Tax and Import Considerations

The UK applies Value Added Tax (VAT) to imported goods, with specific rules that brands must account for when selling directly to consumers.

For shipments valued at £135 or less, merchants are required to collect VAT at checkout and remit it to HM Revenue & Customs (HMRC). For orders exceeding £135, VAT is typically assessed at the border.

From a customer experience perspective, many brands choose to include VAT in the purchase price to avoid surprise charges and delivery delays, which can negatively impact conversion and customer satisfaction.

Recent Regulatory Developments: The UK has confirmed plans to phase out its £135 duty de minimis threshold by March 2029, signaling a long-term shift toward full duty assessment on low-value imports. While implementation remains several years away, brands should factor evolving customs policies into their long-term UK pricing and fulfillment strategies. A government consultation on the design of these new arrangements is active through early March 2026.

Product Considerations

Although the UK departed from the European Union in 2020, many product regulations remain closely aligned with EU standards.

• Cosmetics and beauty products must comply with ingredient and safety requirements similar to those enforced across Europe.
• Supplements and vitamins are generally regulated as foods and subject to personal import limits intended for individual use.
• Weight loss and sexual wellness products receive heightened scrutiny and may be restricted depending on ingredients, formulation, and marketing claims.

For brands planning to expand further into Europe, launching in the UK can provide valuable insight into regional compliance requirements and customer expectations before navigating additional markets.

3. European Union

After gaining traction in the United Kingdom, many U.S.-based ecommerce brands expand into the European Union to access broader scale and diversified demand. B2C ecommerce turnover across Europe reached approximately €842 billion in the latest reporting year, underscoring the region’s substantial online retail scale. In addition, 77% of internet users in the EU purchased goods or services online, reflecting widespread digital adoption across member states.

Market Overview

The EU spans 27 member states operating under a shared trade framework, giving brands access to hundreds of millions of consumers through interconnected customs and tax systems. While expectations around price transparency, delivery clarity, and checkout experience are broadly consistent, buying behaviors and preferred payment methods vary significantly by country.

Demand for U.S. brands remains strong in beauty, fashion, wellness, consumer electronics, and premium lifestyle goods, but conversion is closely tied to how clearly VAT, duties, and delivery timelines are communicated. Brands that succeed in the EU balance regional efficiency with thoughtful localization, building on infrastructure established in earlier international launches.

Tax and Import Considerations

Value Added Tax (VAT) applies to all goods imported into the EU, though specific rates vary by member state. Standard VAT rates generally range from 17% to 27%, with an average around 21%.

For shipments valued at €150 or less, the EU offers the Import One-Stop Shop (IOSS) framework, which allows VAT to be collected at checkout and remitted through a single monthly return. This simplifies compliance for brands selling into multiple EU countries and helps avoid delays or surprise charges at delivery.

For orders above €150, VAT and duties are typically assessed at the border, and additional customs requirements may apply depending on product category and destination country.

Recent Regulatory Developments: The EU is also implementing broader customs and sustainability reforms in 2026, including the phaseout of the €150 duty de minimis threshold. This bridges the gap until July 1, 2026, when a temporary €3 EU-wide customs duty will begin. Notably, Italy and France both apply an extra €2 fee based on where goods are imported and released into free circulation, rather than just the final delivery destination. Additionally, expanded Extended Producer Responsibility (EPR) enforcement, and new supply chain documentation requirements under the EU Deforestation Regulation (EUDR). These measures may affect landed cost, sourcing, and compliance obligations for ecommerce brands.

Product Considerations

The EU is known for having stricter product and labeling regulations than many other markets, particularly for regulated categories. That said, enforcement often differs between direct-to-consumer shipments and traditional retail imports.

• Cosmetics and beauty products must not contain prohibited ingredients and are subject to safety and labeling standards.
• Supplements and health products must comply with ingredient restrictions and approved concentration levels, with additional requirements for retail distribution.
• Product claims, especially related to health or wellness, are more closely regulated and may require substantiation.

For many U.S. brands, full retail-level compliance is not required when selling directly to consumers, but understanding category-specific rules remains essential to avoid customs delays or rejected shipments.

4. Australia

For U.S.-based ecommerce brands expanding beyond Europe, Australia is often a high-priority market. In the most recent reporting year, Australians spent a record $69 billion online, with about 9.8 million households shopping online, reflecting strong digital adoption and deep ecommerce engagement. Strong purchasing power and widespread comfort with cross-border shopping make Australia an attractive opportunity despite longer shipping distances.

Market Overview

Australian consumers regularly purchase from overseas brands, particularly in apparel, beauty, wellness, lifestyle, and specialty categories. Because international shipping is common, shoppers tend to be more patient with delivery timelines than in closer markets. However, price transparency remains essential. Clearly communicating total cost, taxes, and delivery expectations plays a central role in conversion and repeat purchase behavior. As an English-speaking market with relatively high average order values, Australia allows brands to extend global reach while maintaining operational simplicity compared to launching across multiple countries simultaneously.

Tax and Import Considerations

Australia applies a 10% Goods and Services Tax (GST) to most goods sold to Australian consumers. The country also has a relatively high duty and tax de minimis threshold of $1,000 AUD, meaning shipments below this value generally clear without duties or taxes being assessed at the border.

However, GST registration requirements can still apply. Brands that exceed $75,000 AUD in annual sales to Australian customers are required to register for GST and collect the 10% tax at checkout, even for orders below the de minimis threshold. Once registered, GST must be remitted to the Australian Taxation Office on an ongoing basis.

Product Considerations

Australia maintains stricter controls over certain regulated products, particularly in the health and wellness category.

• Supplements and vitamins are classified as “complementary medicines” and regulated as non-prescription drugs. Some ingredients commonly used in U.S. products are prohibited.
• Personal-use exemptions generally apply to direct-to-consumer shipments when quantities are limited to a three-month supply.
• Commercial resale or bulk imports face significantly higher regulatory requirements.

Brands selling regulated products should review ingredient lists carefully to avoid customs delays or shipment rejections.

A Strategic Approach to Global Expansion for Ecommerce Brands

Successful international expansion is rarely about entering every market at once. The brands seeing the strongest results prioritize countries where consumer demand, infrastructure, and regulatory requirements are well understood, reducing friction early and building momentum over time. Markets like Canada, the United Kingdom, the European Union, and Australia offer proven pathways for U.S.-based ecommerce brands to grow internationally. With the right preparation and operational alignment, expansion into these regions can become a sustainable, repeatable driver of long-term global growth.

This story was produced by Passport and reviewed and distributed by Stacker.