FlavorCloud, a global leader in AI-powered cross-border shipping and trade compliance, has released the industry’s first comprehensive State of Cross-Border Commerce Report. The report offers a data-driven look at international shipping trends from Q1 2024 to Q1 2025, highlighting how merchants achieved an average of 76% year-over-year growth in global sales by tapping into rising consumer demand across borders.
Based on proprietary data from hundreds of millions in gross merchandise value (GMV) shipped to over 220 countries, the report is a benchmark for direct-to-consumer (DTC) and business-to-business (B2B) brands seeking to expand internationally. The findings aim to guide merchants, third-party logistics providers (3PLs), and trade professionals in identifying growth markets and navigating evolving tariff challenges.
Key Takeaways from the Cross-Border Commerce Report
Tariffs Impact International Shopping Cart Conversions
In early 2025, the introduction of new and retaliatory tariffs led to a drop in international shopping cart conversions, falling from 16% to 13%. U.S.-to-Canada shipments of “Made in USA” goods were hit particularly hard due to a 25% import tariff, which caused conversions to plunge from 20% to 14%.
Fastest Growing Global Markets for U.S. Shippers
Emerging international markets have seen significant growth:
- United Arab Emirates: +198% YoY
- New Zealand: +131% YoY
- Ireland: +106% YoY
These surges reflect increased global appetite for U.S. goods and suggest strong cross-border opportunities for exporters.
Health & Wellness Products Lead Cross-Border Demand
The health and wellness sector showed the largest growth in cross-border shipments, jumping 201% year over year. Global trust in U.S. wellness products continues to drive demand.
Regions with Highest Cross-Border Order Values
- Middle East: $160.86 average order value
- Asia: $128.88
- Latin America: $123.47
These figures suggest high purchasing power and brand trust in these regions, presenting key targeting opportunities for high-margin products.
Regional Loyalty Insights
- Latin America: 43% of international orders were repeat customers
- Asia: Lowest repeat rate at 21%
This data indicates where retention strategies may be most effective or most needed depending on the target market.
Strategic Insights for Brands and 3PLs
The report also breaks down:
- Global conversion rates by industry
- Top-selling products by region
- Customer loyalty patterns
- Outlook for post-tariff growth in 2025
“In 2024, brands that took a data-driven approach to cross-border expansion saw remarkable success,” said Rathna Sharad, CEO and Co-founder of FlavorCloud. “By removing friction with seamless automation and trade compliance technology, we’re empowering global shippers to meet demand and grow profitably.”
Looking Ahead: The Future of Cross-Border Commerce
Despite rising tariff challenges, the report emphasizes that cross-border commerce is accelerating. With advanced AI and logistics platforms, businesses can now adapt to regional complexity and global compliance more easily than ever.
For full insights and strategic recommendations, download the full State of Cross-Border Commerce Report from FlavorCloud. An in-depth discussion of the data will be held on Wednesday, May 14 at 9 a.m. PT.
About FlavorCloud
FlavorCloud operates the largest carrier-agnostic cross-border network for global shipping and returns. With a reach of 220+ countries and a network of over 300 carriers, the platform powers seamless international commerce for DTC and B2B brands. Its AI-driven tools simplify trade classification, customs compliance, and supply chain optimization.
Contact:
Rachel Trindade, FlavorCloud
rachel.trindade@flavorcloud.com
[Visit FlavorCloud on LinkedIn, Facebook, YouTube, X, Instagram]
What This Means for Newnan Pallet Company
As global shipping trends continue to evolve, Newnan Pallet Company remains committed to supporting businesses across Georgia with reliable, scalable pallet solutions that meet both domestic and cross-border logistics needs. Whether you’re a manufacturer expanding into international markets or a distributor navigating new tariff environments, our custom pallet services help ensure your supply chain stays strong, compliant, and cost-effective.
Originally published via EIN Presswire.