Why International Is the Missed Growth Lever in Ecommerce

Passport President Tom Griffin on conversion gaps, tax headaches, and the massive upside of treating global customers like local ones.

For many U.S. brands, international demand doesn’t start as a strategy—it starts as an accident. A few non-U.S. orders trickle in, the site technically allows it, and someone in ops keeps a spreadsheet to manage it. But that ad hoc model breaks quickly.

At Shoptalk 2025, Tom Griffin, President of Passport, outlined what it takes to scale beyond that moment—and why treating international like a first-class channel can unlock 5–10x growth.

Most Brands Start Backwards

“Usually, international customers find you first,” Griffin said. “Then brands scramble to make buying possible.”

But that “let them order” approach—while common—isn’t scalable. Without localization, pricing intelligence, or delivery confidence, brands see poor conversion rates and high customer service overhead. Worse, the experience leaves global customers feeling like second-class buyers.

Griffin’s message: international sales shouldn’t feel like international shipping—they should feel native.

The Friction Is Everywhere

According to Griffin, the biggest pain points fall across the entire customer journey:

• Currency confusion: Pricing not in local currency

• Unexpected costs: Duties, taxes, and shipping fees added at checkout

• Shipping anxiety: Long timelines and little visibility

• Returns paralysis: No clear process or infrastructure for reverse logistics

And on the brand side, the fear is real: compliance complexity, letters from HMRC, or miscalculated duty payouts that cause unexpected tax exposure.

Turning On Growth (Instead of Turning Away)

For most of Passport’s clients, international represents less than 5% of revenue—even when their total addressable market outside the U.S. could be 10x larger. Griffin says this isn’t about creating demand. It’s about unlocking it.

Once brands localize pricing, make tax-inclusive checkout native to EU norms, and show duties upfront with clear tracking, the conversion gap starts to close. Layer in reasonable shipping and intelligent fulfillment, and suddenly the ROI equation flips.

“Brands can see 5x, 7x—even 10x growth,” Griffin noted. “Not over years. In months.”

Paid Media Actually Works Better Abroad

Griffin highlighted a key shift: many of Passport’s customers start advertising internationally after fixing conversion—and discover better ROAS than in the U.S.

Why? Competition is lower. CPMs on Meta, Google, and other platforms can be 30–40% cheaper in markets like the UK, EU, or Australia. With a well-tuned funnel, that lower ad cost plus higher conversion leads to more efficient growth than domestic spend.

The Real Tariff Talk

Tariffs and taxes are where most DTC operators panic. Griffin addressed this head-on: Passport not only adapts pricing in real time to regulatory shifts, but also advises brands on fulfillment strategies that lower tariff exposure.

For example, brands that warehouse inventory locally can pay tariffs on cost of goods—not on purchase price—which softens the blow significantly. Passport now supports in-country fulfillment as part of its expanded services.

Where AI Fits

While AI isn’t Passport’s main product, it’s powering their backend and customer service tools—routing consumer questions faster and helping brands with classification issues like HS codes.

More interesting, Griffin said, is how Passport’s clients are using AI to personalize global storefronts, optimize checkout flows by region, and increase conversion without adding cost. In other words: tech as multiplier, not magic bullet.

What Passport Is Teaching the Market

🌎 International ≠ extra—it’s core revenue
💱 Currency + tax localization drives conversion
📉 Duty missteps are real—but avoidable with the right ops
📈 Global ad efficiency can outperform domestic
📦 Distributed fulfillment isn’t just faster—it’s smarter on tariffs

For U.S. brands sitting at 1% international revenue, the opportunity isn’t hypothetical. It’s massive—and mostly untapped.

Disclaimer: The above podcast episode was generated using AI based on an interview transcript. While the content remains true to the original conversation, the voices, tone, and delivery were synthesized and do not represent actual recordings of the speakers. This AI-generated format is intended to enhance accessibility and provide an alternative way to engage with the discussion.

Independently Created. Not affiliated with Shoptalk.

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