How Foreign Brands Test the U.S. Market

You have a product. You’ve done the research. The U.S. market feels like the obvious next step, but you haven’t launched there yet. You’ve wondered, “What if it doesn’t work?”

That voice is right to ask. Most products fail not because the item is bad, but because of inadequate preparation and misjudged demand.

I’m the founder of OT Growth Labs, a Los Angeles-based agency helping international brands launch and scale in the U.S. Since 2008 I’ve served worldwide in executive ecommerce marketing roles for leading consumer companies.

The U.S. is the world’s largest consumer market. But for brands coming from Europe, Asia, or Latin America, it’s often where products die quietly. Consumers are different, compliance is different, and your domestic playbook won’t travel.

So before spending big money, test the demand in two ways:

  • Virtual testing measures interest before inventory exists.
  • Physical testing sells a real product in small quantities.

Virtual Testing

Screenshot of a person looking at a computer screen.

Virtual product demonstrations are low-cost, fast to launch, and require no inventory.

Virtual testing gauges whether consumers want your product — before you make it. It’s ideal for early-stage brands, limited budgets, or high-risk products. It won’t replace physical sales, but it’s a smart first filter.

Start with a landing page.

Explain your product thoroughly and the problem it solves. Disclose packaging, format, ingredients, claims, and label design. Give visitors an action step, such as joining a waitlist, requesting early access, or opting in to receive launch notifications.

Drive traffic through ads, social media, and influencers. It’s an encouraging signal if visitors sign up.

Brands with a platform or app already generating traffic can avoid a separate landing page by upselling to existing users. It saves time and money.

Don’t test a single concept. Run two or three variations and compare results. In my experience, the version that wins in the U.S. is rarely the one that worked at home. U.S. consumers respond to numbers and to bold, specific language: “clinically tested,” “formulated by veterinarians,” “organic.” They want proof up front.

Virtual testing:

  • Pros. Low cost, fast to launch, no inventory.
  • Cons. Measures interest only, not product or purchase intent.

Physical Testing

Image of a physical bottle

Selling a physical test product offers real data, reviews, and market validation.

The most reliable way to validate demand is to sell a product. Ship a small batch to the U.S. from your current manufacturer, or produce in the U.S. with a minimum run.

The latter option, manufacturing in the U.S., is longer and more expensive, but often worth it in my experience. “Made in the U.S.A.” on the label is frequently a strong selling point.

Physical testing answers questions that a landing page cannot: Does the product perform? Does the packaging hold up? Is the formula good? Is the price right? What do customers say?

Sales will tell you more than months of research, as will reviews, which are critical. An overwhelming percentage of U.S. consumers rely on reviews before buying.

Brands in adjacent categories often use physical testing as a learning loop. They launch a small batch, collect reviews, improve the formula or positioning, and then scale. The final version wins because of findings from the tests.

Physical testing:

  • Pros: Real sales data, reviews, market validation.
  • Cons: Expensive and slow. A small batch can take a year from start to shelf. It requires compliance prep, label and design creation, and formula testing. Finding a manufacturer willing to run small batches is a challenge.

Test, Then Scale

Entering the U.S. market is getting harder. Tariffs are rising, and regulations are tightening. Imports valued at less than $800 are no longer exempt from duties — a direct hit on international companies shipping small quantities.

Foreign brands succeed in the U.S. through testing and information-gathering, not just superior products.

Start small, the market will tell you the rest.

Payment Friction Wins in Africa

The ideal ecommerce checkout is frictionless and linear: enter one’s address and payment details and then await product delivery.

In Africa, providing digital payment info is a leap of faith. The checkout process is often conversational and skeptical.

Consumers may click “Buy,” but they aren’t reaching for their payment details. They first need proof of the product and company. They may ask via WhatsApp for real-time product photos and delivery timelines. They might demand a voice note to ensure a human is on the other side of the screen. It’s a do-it-yourself verification system.

“Cautious consumers” is McKinsey & Company’s term for Africa and Middle East-based ecommerce shoppers in its 2020 report (PDF).

Conversational Commerce

It is a mistake to view this reliance on WhatsApp as a workaround. For consumers in Africa, a WhatsApp chat is akin to looking a seller in the eye.

Consider the January 2026 partnership in Nigeria between PayPal and Paga, the mobile payment platform. After two decades of restrictions, Nigerians could finally receive international funds from PayPal into their Paga wallets.

The reception, however, was not great. Freelancers flooded Nigerian X with vitriol and skepticism stemming from a long memory of frozen PayPal funds.

This collective memory creates a psychological barrier that the partnership may struggle to overcome.

Trust

Paystack’s instant bank transfer settles transactions in one day.

Local payment platforms such as Flutterwave and Stripe-owned Paystack have succeeded because they understood consumers’ memories of money restrictions and failed transactions. The infrastructure of both reflects how people actually move capital.

Bank transfers. In Nigeria, merchants need settlement within one day of the transaction to keep their businesses running. For the customer, the transfer is final and verifiable.

 M-Pesa. In Kenya, STK Push is a consumer-controlled security protocol enabling money transfers on mobile devices. Africa accounts for roughly 70% of global mobile money payments; ignoring STK Push is costly.

Kiosks. In Egypt, consumers often demand physical confirmation before payment. Fawry’s cash-at-kiosk model allows shoppers to order online but pay at one of thousands of physical kiosks.

Success

Foreign ecommerce merchants cannot buy their way into Africa with tech alone. Success comes from leaning into the friction consumers require.

  • Use social media to consummate transactions. In Africa, an abandoned cart could mean that a shopper is waiting for the merchant on WhatsApp to prove it’s real.
  • Localize the rails. Don’t force a Kenyan to use a Visa card or a Nigerian to rely on an international gateway that might flag the transaction as high risk. Use recognizable payment methods such as instant transfers, mobile payments, and in-person dialogue.
  • Invest in the boring stuff. Don’t invest excessively in technology while ignoring operations. Logistics and customer support are where trust is either cemented or broken.
Low-Value Imports Upend E.U. Ecommerce

The demand by E.U. consumers for low-value imports is reshaping the region’s online retailing.

In 2025, about 5.9 billion parcels valued at €150 or less (roughly $177) entered the E.U., continuing a multi-year surge that saw such shipments rise from 1.4 billion in 2022. At approximately one parcel per E.U. citizen per month, the scale reflects not just rapid growth but widespread consumer engagement.

The European Commission estimates that, in 2025, low-value goods accounted for less than 5% of the overall value of imports but 98% of the volume. Depending on the source, roughly one-third of 2025 ecommerce revenue in the E.U. came from imported products.

Still, low-priced goods now arrive in massive quantities, with slow delivery times that shoppers accept. Customs authorities struggle to process the flow, and policymakers describe the system as unsustainable.

The effect reshapes the competitive environment for all merchants operating in the E.U., domestic and foreign.

Even if parcel volumes stabilize or decline under regulatory pressure, consumer price norms rarely revert.

Price Expectations

U.S. merchants often underestimate the impact of product categories dominated by items priced under €10. They assume competition comes mainly from local European brands. In practice, they face a global supply chain that has normalized ultra-low prices and conditioned buyers to accept slower delivery.

Hence expansion into the E.U. now carries elevated risk for specific categories, including:

  • Commoditized products,
  • Mid-priced goods without visible differentiation,
  • Products where quality, safety, or after-sales support is unclear,
  • Offers driven mainly by branding rather than features.

Despite these pressures, the E.U. remains one of the world’s largest ecommerce markets. Opportunities remain in segments where price is not the primary factor, including:

  • Products with clear functional or technical differentiation,
  • Categories where safety, durability, or compliance matters,
  • Premium or specialist goods supported by service and logistics,
  • Offers backed by guarantees, support, and transparent returns.

Risks

E.U. policymakers are responding to the surge in low-value parcels. Measures include removing the €150 customs duty exemption, imposing a €3 flat customs fee on such parcels, and shifting responsibility to marketplaces deemed importers.

The E.U. ecommerce market remains attractive for merchants with strong positioning and operational discipline.

The real risk for U.S. and other foreign merchants is entering the E.U. with an outdated view of the market. Success now requires goods clearly superior to €10 alternatives.

How Ecommerce Succeeds in Africa

Most global ecommerce businesses outsource customer deliveries. The process depends on standardized addresses, reliable couriers, predictable delivery windows, and successful online checkout.

Yet many African markets lack these pillars. This disconnect is apparent in the first fulfillment step.

Logistics in Africa

Informal, landmark addresses

Automated routing software is ineffective when a driver relies on directions like “turn left at the blue gate after the mango tree.” A driver who makes 100 drops in New York may only complete 20 in Lagos or Nairobi because of the need for multiple phone calls to locate the customer.

This inefficiency inflates the cost per delivery by making it unfeasible to ship low-value products (such as a $5 t-shirt) without charging a delivery fee that equals or exceeds the item’s value.

Consumer skepticism

Delivery mistakes and failures are routine, eroding consumer trust. The problem is illustrated by the “What I ordered vs. what I got” trend, a viral meme originating in Nigeria, where consumers share photos of inferior goods.

The result is that many shoppers in Africa refuse to prepay. They demand cash on delivery and insist on inspecting the package at the doorstep before paying.

If they reject an item (due to poor quality or simple preference), merchants must pay for the return trip, doubling the logistics cost for zero revenue.

Two photos of shoes, purporting to show the difference in the online image versus what actually arrived.

In Nigeria, consumers share “what I ordered vs. what I got” photos. This example is from TikTok.

Infrastructure gaps

Adding drivers or warehouses does not automatically reduce unit costs. Poor roads, limited city-to-city transport, and port congestion persist. The asset-heavy approach of owning trucks and distribution centers often becomes financially unsustainable.

 Third-party couriers inherit these flaws

Merchants hoping to outsource these bottlenecks find that third-party logistics providers hit the same reality. The market limits a driver’s efficiency. Even if a courier has a flawless local network, delays in cargo clearance or urban gridlock often cascade downstream.

Local solutions

Local players are rewriting the rules by investing in systems that function effectively regardless of the environment. These include:

Human agent networks, which decentralize and delegate the “last mile” to locals. The local agent knows the neighborhood (solving the address problem), and the customer knows the agent (removing mistrust).

Jumia, Africa’s dominant marketplace, recently pivoted to this model with its JForce program that recruited over 30,000 localized agents in rural areas and smaller cities.

Informal fleets. Another emerging solution is building software layers that coordinate the millions of motorcycles and tuk-tuks (three-wheeled vehicles) on the road. This avoids the costs of fleet ownership while using vehicles better suited for navigating traffic.

In Lagos, for example, Kwik, an on-demand courier, deploys independent motorbike riders who can weave through traffic and gridlock that would trap a delivery van.

Similarly, Loop in South Africa develops software that dynamically adjusts routes for third-party fleets based on real-time traffic.

Photo of a Kwik courier on a motorcycle

Kwik deploys motorbike riders in Lagos, Nigeria, who can weave through traffic and gridlock. Photo: Kwik.

Deliver in bulk to intermediaries. Delivering bulk goods to known, informal retailers rather than individuals allows couriers to drop 50 items at one location (a shop) rather than making 50 trips to customers’ houses.

Anticipate failures. Implementing “pre-failure” checks and contingency tools for drivers can prevent minor friction points from escalating to failed deliveries.

For example:

  • “Cash floats” protect cash-on-delivery revenue. Delivery provider Glovo mandates that drivers carry pre-counted small bills, preventing failed deliveries from the inability to provide change.
  • Verify first. Loop uses automated WhatsApp flows to contact the customer before the driver leaves the hub. If the customer does not confirm availability, the system flags the order to prevent a wasted trip.

The new playbook

Consumers in Africa are concentrated and accessible. The Big Four markets of Nigeria, Egypt, South Africa, and Kenya command nearly 70% of startup capital.

Yet capital alone cannot fix the ‘trust deficit’ or pave the roads. Ecommerce winners in Africa adapt to hyperlocal challenges for profitable selling.

Why E.U. Ecommerce Rules Seem Complex

Merchants often ask me to explain E.U. ecommerce regulations. I usually start with a warning: There is no single framework. Instead, an ecosystem of overlapping rules now shapes how online commerce operates in Europe and how consumers behave.

That ecosystem has largely succeeded from a policy perspective. But it’s increasingly difficult for merchants.

I’m the co-founder of an ecommerce marketing firm in Poland. Here is my operator’s explanation of ecommerce laws in Europe.

European Commission home page

The European Commission proposes most E.U.-wide ecommerce regulations.

Consumer Trust

E.U. ecommerce regulation is not accidental or piecemeal. It reflects a deliberate policy choice of building consumer trust through enforceable rights, transparency obligations, and accountability across borders.

Legal and academic practitioners support this direction. Rules around seller identification, truthful pricing, authentic reviews, product safety, and complaint handling aim to close loopholes that once allowed unsafe or misleading offers. The result is a market where consumers expect to know who they are buying from, what they are paying for, and what happens if something goes wrong.

Those expectations stem largely from regulation rather than culture. European consumers are trained by law to demand clarity and redress. Foreign sellers often allege excessive consumer caution when, in reality, it is compliance-driven behavior.

Overlap

Observers largely agree on the objectives but differ in the extent to which regulation has expanded.

What used to be governed primarily by the E.U.’s E-Commerce Directive and the General Data Protection Regulation (GDPR) is now supplemented by the Omnibus Directive, the Geo-blocking Regulation, the Digital Services Act, the General Product Safety Regulation, accessibility rules, packaging and environmental requirements, and, soon, the Digital Product Passport.

Each addresses a specific risk. Together, they affect nearly every operational layer of ecommerce: marketing, product pages, review systems, onboarding, fulfillment, customer service, data handling, and documentation.

In my experience, merchants usually understand individual rules, but not multiple overlapping requirements.

Part of the confusion is institutional. Various offices of the European Commission propose most major rules. Laws are adopted legislatively through the European Parliament and the Council of the E.U., both consisting of representatives from member states. Some rules, such as the Digital Services Act and GDPR, apply directly to all E.U. countries. Others, including many consumer-protection measures, are E.U.-level goals requiring country adoption. Hence merchants face a combination of E.U.-wide rules and country-level enforcement. Compliance is centralized theoretically but fragmented in practice.

Industry executives are clear-eyed about the consequences. Compliance now requires sustained operational investment, not just legal review. Seller verification, review transparency, pricing history disclosures, and risk management processes are resource-intensive, particularly for marketplaces.

Large sellers can absorb those costs. Smaller ones often can’t.

This is where E.U. regulation risks undermining its own objectives. Small-to-midsize businesses face higher relative compliance costs, increasing documentation demands, and greater exposure to takedowns or account suspensions. Even formally proportionate rules are, practically, overwhelming.

E.U.-based merchants often fear unfair competition, as their businesses are easier to supervise and sanction than foreign rivals. The result, the merchants assert, is the opposite of the level playing field that policymakers intend.

Accessibility and More

One area of consensus is accessibility.

What was once a “nice to have” is rapidly becoming a legal requirement under the European Accessibility Act and national implementations. Ecommerce interfaces, checkout flows, customer communications, and terms and conditions increasingly fall within scope.

From my perspective, accessibility is also an operational tactic. Merchants that invest early tend to have better user experiences, fewer complaints, and stronger trust metrics. Latecomers often find that remediation is far more expensive.

Moreover, clear disclosures, transparent pricing, verified reviews, accessible design, and robust documentation increasingly function as trust indicators, differentiating serious merchants from opportunists.

In that sense, E.U. regulation indirectly drives performance. Merchants who integrate compliance into operations and brand strategy tend to perform better over time.

The trajectory of E.U. ecommerce regulation is toward more accountability and oversight — consumer protection over transactional speed. Whether that balance is ideal remains open to debate. For merchants selling into Europe, however, it’s a fixed condition of success.

When Heavy Products Make Global Sense

Many ecommerce businesses sell products that do not fit in a flat-rate envelope, so to speak.

Fitness equipment, safes, arcade machines, specialty furniture, and other freight-grade items are heavy, expensive, and complicated to ship domestically, let alone abroad.

Nonetheless, Robert Khachatryan, founder and CEO of Freight Right, argues that some of those merchants may have international demand they are not serving.

Demand

Learning if a product or company has overseas appeal can be as simple as reviewing the analytics. A U.S. merchant, for instance, could check visitors’ locations, such as the United Kingdom, Australia, or Canada.

Selling to those would-be customers at just half the domestic conversion rate could generate significant revenue.

Robert Khachatryan

Robert Khachatryan

A second indication of an untapped, cross-border profit opportunity comes in the form of freight quotes. A merchant’s website says it ships 800-pound kayak trailers only within the United States, but in reality, shipping to, say, Latin America is comparable in cost.

Visitors from Latin America who checked the U.S.-only shipping policy likely looked elsewhere.

Proper Products

Thus if international visitors express an interest, decide if the cost of delivery makes a sale worthwhile.

For example, Khachatryan was not suggesting that any bulky, awkward, or heavy item is a candidate for global ecommerce. The math only works when the product has enough margin to justify freight, duties, and taxes.

“Nobody pays $700 or $1,000 to ship a $500 product,” Khachatryan said.

Yet bulky products are often candidates for international shipping when their selling price reaches into the thousands.

Such high-ticket purchases are common in B2B transactions. Need a high-speed laser welder in Idaho? Order it from Germany. It’s worth the freight.

The same may be true for select B2C or D2C cross-border items. Examples include commercial-grade fitness equipment, arcade machines, and even above-ground pools, a U.S. product marginally popular in the U.K.

Local Scarcity

Locally scarce goods can imply demand.

Commodity products rarely work. “People don’t buy a couch from another country. They buy from their local Ikea,” Khachatryan said. If a comparable product is readily available locally, international freight becomes difficult — even impossible — to justify.

Compliant

As a final check, would-be ecommerce exporters need to ensure a product is legal, usable, and compliant with safety and consumer regulations in the destination country.

Common differences are voltage and plug standards. Others are less obvious. Mattresses, according to Khachatryan, can have different requirements in Europe than in the U.S., for example.

Investigate whether incompatible or noncompliant products are easy to modify. Would a relatively small change open a promising cross-border market?

Regardless, shipping heavy wares internationally can be easier than expected.

Freight forwarding services will do the quoting, logistics details, and even white-glove delivery. Many, including Khachatryan’s Freight Right, have a Shopify App and an API to calculate freight at checkout.

Moreover, freight forwarders usually manage cross-border taxes and regulatory compliance.

Returns

Returns, in contrast, can be the most challenging aspect of cross-border selling. Return shipping is expensive, and recovering taxes and fees can take time.

The key, says Khachatryan, is having a plan.

He noted that products in good working condition could remain in a local warehouse until the next order.

Finally, shipping insurance can be a good idea. Some insurers, such as Xcover, cover the cost of return freight for rejected orders.

In short, cross-border ecommerce for large items is not for every merchant. But those selling high-value, differentiated products with existing international interest can unlock meaningful growth.

The Top Conversion Barrier in the E.U.

European consumers shop amid strict regulatory transparency and protection. Since its inception in 2018, the E.U. General Data Protection Regulation has imposed fines totaling €5.6 billion ($6.6 billion), raising public awareness of data rights and privacy. Consumers expect clear policies, compliant data handling, straightforward returns, and transparent pricing, especially from an unfamiliar seller.

Lack of trust is the top conversion barrier for non-European merchants.

Expectations

The GDPR requirements on sellers are explicit: the ability of consumers to grant and withdraw consent, and clear explanations on the use of personally identifiable data. These requirements shape shoppers’ expectations.

For example, the E.U.’s Consumer Rights Directive grants shoppers a 14-day right of withdrawal for most online purchases — a de facto baseline for returns across member states.

Under the E.U.’s consumer protection laws, the final price shown to shoppers must include all taxes and fees, including VAT. The Omnibus Directive adds further requirements, such as prices from advertised discounts must not exceed the lowest amount charged in the previous 30 days.

The United States has no comparable federal regulatory equivalent. There’s no nationwide right to withdraw from online purchases, and fewer mandatory disclosures about business identity or tax-inclusive pricing. U.S. shoppers often evaluate trust based on brand familiarity, convenience, and store-specific policies rather than legal guarantees.

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Reviews: Local and Verified

Customer reviews play a significant role in how European shoppers assess an unfamiliar merchant. Cross-border ecommerce is common, and many consumers buy from retailers they don’t know, increasing the reliance on third-party validation. The Omnibus Directive reinforces this behavior by requiring merchants to disclose whether customer reviews are verified and by prohibiting misleading practices related to authenticity.

For example, shoppers in Germany and other parts of Central Europe rely heavily on Trustpilot and Trusted Shops as indicators of merchant reliability.

All shoppers, notably those in France, prefer reviews in their native language.

The volume of reviews matters, too, especially from unfamiliar merchants — the more reviews, the better, especially when clearly verified and in the buyer’s native language.

Conversely, U.S. consumers purchase with limited review volume when the seller is recognizable or the experience is convenient.

Policy Pages and Disclosures

For European shoppers, credibility often starts in the footer. Before they buy from an unfamiliar merchant, many will scroll to the bottom of the page to check the company behind the site and what rights they have if something goes wrong. That behavior is reinforced by law.

Under the E-Commerce Directive, online sellers and other service providers must disclose specific business information “easily, directly, and permanently accessible.” At a minimum, that includes:

  • Legal name,
  • Physical address,
  • Contact details,
  • Applicable trade or VAT registration numbers.

Several countries go further. Germany, Austria, and Switzerland, for example, require an Impressum — a legal statement — that consolidates this information on a single page.

In the U.S., shoppers typically accept limited company details.

Reliable, speedy contact is also a trust signal. Per the E-Commerce Directive, a website can’t rely solely on an email address; sellers must communicate in a “rapid and effective” channel. Sites that offer no quick method of immediate dialogue raise questions about their reliability.

Payment Security

European shoppers rely on local payment methods. Pay-by-invoice and Klarna’s buy-now-pay-later are common in Germany. iDEAL dominates in the Netherlands, Bancontact is standard in Belgium, and Nordic consumers expect Klarna, MobilePay, or Vipps (pay by phone number).

In parts of Central and Eastern Europe, bank transfers, cash-on-delivery, and marketplace-specific payments remain popular.

For many buyers, familiar payment logos and clear fee transparency are essential to completing a purchase.

U.S. retailers often underestimate E.U. payment methods, launching only with credit cards and PayPal.

In short, ecommerce traction in Europe starts with understanding the trust factors that shape the customer journey. Clear disclosures, verified reviews, familiar payment methods, and compliance with regional standards all contribute to credibility and success.

Expat Money CEO on Moving Abroad

In “How to Leave the U.S.A.,” the venerable New Yorker magazine recently addressed what many residents have apparently considered.

Yet Mikkel Thorup has lived outside of his native Canada for 25 years. He’s visited 120 countries and resided in nine of them. His business, Expat Money, helps others do the same while protecting assets and lifestyle.

Why relocate overseas? What are the risks and the rewards? Mikkel answered those questions and more in our recent conversation.

Our entire audio is embedded below. The transcript is edited for clarity and length.

Eric Bandholz: What do you do?

Mikkel Thorup: I am the founder and CEO of Expat Money, a consulting firm that helps people relocate to a foreign country. We focus on international tax planning, immigration, foreign investment, and global structuring, as well as the lifestyle adjustments that come with living abroad.

I’ve been an expatriate for 25 years, visited 120 countries, lived in nine, and circled the globe many times. My family, business, and hobbies are all international. I love the work and am excited to talk about it.

I was born and raised in Canada, which does not impose worldwide taxation. Once you leave and cut ties with the Canada Revenue Agency, you’re free to live abroad without ongoing tax obligations.

For Americans, it’s very different. The IRS levies taxes based on citizenship, not residency. No matter where you live or how long you’re gone, the IRS wants a portion of every dollar you earn. Only two countries tax this way: the United States and Eritrea, a small African nation.

Americans can sometimes avoid tax if they earn below standard thresholds, but anyone with meaningful income — whether living in the U.S. or abroad — remains subject to the IRS.

Renouncing citizenship is an option if you want to end all U.S. reporting requirements, but it’s a deeply personal decision and not something I generally recommend. Some people choose it, and we assist clients with the process, but most of our work does not require giving up citizenship.

We help Americans move overseas all the time, and there are legal tools that can significantly reduce their tax burden. I’m not giving individual tax advice here, but there are viable strategies available. Still, at higher wealth levels, those tools eventually hit limits, so it’s important to understand what’s possible.

Everything we do follows the law. My goal is to help people gain more freedom, not less, and that means full compliance with the IRS, U.S. Treasury, and all reporting rules. I have no interest in ending up in an orange jumpsuit, and I don’t want that for clients either.

Bandholz: Do people come to you mainly for freedom or to reduce obligations?

Thorup: Most clients want a “Plan B,” an economic backup. They’re productive people, typically in two groups: about half are highly paid professionals such as doctors, lawyers, and accountants, and the other half are business owners or entrepreneurs, such as consultants and Amazon sellers.

For many, the goal is preparing an exit option in case things get bad enough that they want to leave. Others feel things are already bad and choose to relocate now, often to the Caribbean or Latin America for more freedom, lower taxes, safer communities, and better weather. When they make that move, opportunities open up quickly.

But leaving isn’t required. Plenty stay in the U.S., Canada, the U.K., or elsewhere while setting up offshore components — bank accounts, property, company structures, or residency options. Others go all-in and decide to work from a beach somewhere. My job is to create those legal, compliant structures so they have choices, whether they stay or go.

Around 90% of my clients are from the U.S. and Canada; the remaining 10% are mainly from Europe or Australia. Latin America and the Caribbean are the top destinations because that’s where people often find the most freedom — pro-business, low taxes, and governments that welcome foreign investment.

Eric Bandholz: How can someone protect assets if a government freezes accounts?

Thorup: Bitcoin is one tool — specifically, self-custody Bitcoin, not coins held on exchanges such as Kraken or Binance. If you don’t control the keys, you don’t control the coins. I’ve used Bitcoin since 2016, and it’s useful, but it’s not the only solution.

Offshore bank accounts are another strong option. That means holding a bank account in a country where you’re not a resident. Debanking — where financial institutions terminate services —  happens more often than people think, even in one’s own country.

Every adult, company, or trust should have bank accounts in three countries, each with a different currency and legal system. If a home-country bank freezes or closes your account, you have alternatives.

Properly structured offshore accounts make it much harder for lawsuits or government actions to reach your money. Asset forfeiture and account freezes happen, and they’ll continue to happen, so planning is essential.

Bandholz: Where do people typically open offshore bank accounts?

Thorup: Offshore banking usually means choosing a country with low or zero taxes, strong asset-protection laws, and political stability. There’s no point banking in a place where you can’t reliably move money in or out. The most common offshore jurisdictions are in the Caribbean, the British Channel Islands, and the Isle of Man. In Europe, Liechtenstein, Luxembourg, and Switzerland serve that role. Hong Kong, Macau, and Singapore are popular in Asia.

Central America also has several strong options, such as Panama, where I live. It has no tax on foreign-sourced income, a stable banking sector, a U.S. dollar economy, and access to both the Caribbean and the Pacific.

Bandholz: Where should people start if they want to explore international options?

Thorup: I recommend three key fronts.

First, get a second citizenship or permanent residency. If you have European ancestry, you might qualify for citizenship by descent. If not, consider citizenship by investment or naturalization through long-term residency. If citizenship isn’t an option, permanent residency is fast, affordable, and effective in Paraguay, Costa Rica, or Panama.

Second, secure a second home. Even a small property provides a place to live if needed. Ideally, it can generate rental income. In Latin America, condos start around $65,000 and beachfront homes around $100,000, paid in cash, with clear property titles. These are long-lasting, tangible assets that protect wealth outside stocks or business accounts.

Third, hold capital offshore, whether in a bank, precious metals, or other assets. This ensures access to your money if domestic accounts are frozen or restricted due to politics or other issues.

Bandholz: Where can people follow you, connect with you?

Thorup: ExpatMoney.com. Follow my YouTube channel and connect on X or LinkedIn.

How U.S. Merchants Fail E.U. Consumers

U.S. merchants eyeing European expansion see 450 million consumers unified under common trade regulations. The reality is different. The European Union harmonizes cross-border commerce rules, but it doesn’t harmonize the people doing the buying.

This misunderstanding costs conversions in every country. Without payment after delivery, German shoppers bounce. Absent the French language, buyers in France lose trust. Parcel delivery lockers are critical for Polish consumers.

Yet U.S. merchants launch uniform “European” storefronts and wonder why conversion rates lag. The problem is they’re treating many distinct cultures as one.

  • The European Union consists of 27 member countries and operates with 24 official languages.
  • In 2023, 75% of Europeans made at least one online purchase.
  • 86% of businesses selling online use their own website or app, while 45% also rely on marketplaces.
Map of the European Union

The E.U. consists of 27 member countries and 24 official languages.

One Europe, Many Markets

I’m the co-founder of a digital marketing agency in Poland. For more than a decade, we’ve assisted ecommerce brands and technology providers in positioning themselves across Europe. Here’s what sets the major markets apart.

Germany: Precision and proof required

Online shoppers in Germany are detail-oriented and risk-averse. They expect comprehensive product specifications, comparison tables, and transparent return policies. Germany consistently produces the highest return rates in Europe, particularly in fashion and electronics.

According to Stripe’s 2023 payment behavior study, 43% of German shoppers prefer payment on invoice after delivery, enabling them to receive and confirm products before paying, which aligns with their strong focus on security.

France: Language and brand identity first

French consumers emphasize brand storytelling and visual presentation, with language as a key trust signal. Research from the European Commission shows that most E.U. consumers prefer to browse and shop in their native language, and many avoid foreign-language sites altogether.

In France, this preference is even more pronounced: Studies reveal that three out of four consumers favor buying products presented in French, and most rarely (or never) complete purchases on English-only sites.

Moreover, French buyers gravitate toward culturally attuned sellers. They expect localized ecommerce experiences not just in wording but also in photography, tone, and native nuances.

Nordics: Digital sophistication meets sustainability

Consumers in Scandinavia are among Europe’s most digitally advanced. Mobile commerce is prominent, accounting for nearly 40% of sales by 2027. Buyers expect frictionless mobile experiences, quick checkout, and are generally willing to pay more for quality and convenience.

Sustainability is a priority. Shoppers seek details on sourcing, materials, and environmental impact rather than vague claims.

Payment preferences vary by country. Klarna remains dominant in Sweden; MobilePay is popular among Danish consumers, and Finnish buyers favor bank transfers.

Southern Europe: Price sensitivity and delivery focus

Shoppers in Spain, Italy, and Portugal are more price-sensitive. Promotional campaigns and limited-time offers typically perform well, as consumers compare prices closely before buying. They are also among the fastest E.U. adopters of mobile commerce.

Shipping expectations are key. A 2022 survey by Seven Senders, a Berlin-based logistics firm, found that many Italian shoppers tolerate higher shipping costs for guaranteed fast delivery. Hence clear, reliable delivery information is critical, particularly in Spain and Italy, with many first-time buyers expecting service transparency.

Central and Eastern Europe: Marketplaces and value seekers

Poland, Czechia, and Romania are among Europe’s fastest-growing ecommerce markets — the region collectively recorded a 15% increase in B2C turnover in 2023. Yet consumer behavior here differs sharply from Western Europe.

Domestic marketplaces shape much of Eastern Europe’s ecommerce landscape.

  • Allegro dominates in Poland, generating €12.8 billion in gross merchandise value ($14.8 billion) in 2024 and capturing nearly half of the country’s online retail market.
  • In Romania, eMAG plays a similar role with €1.3 billion in GMV ($1.5 billion), leading key categories such as electronics, fashion, appliances, and toys.
  • In Czechia, Mall.cz (part of the Allegro Group) and Heureka are the most popular.

Unlike Western Europe, where Amazon is dominant, regional players drive ecommerce in Central and Eastern Europe.

CEE shoppers rely heavily on reviews and social proof, which makes established marketplaces — Allegro, eMAG, Mall.cz — a practical first step for new sellers before moving to standalone sites.

True Localization

True localization means adjusting the entire value proposition to match how consumers in each market shop, decide, and pay.

The E.U. opportunity for foreign merchants is enormous yet daunting. Partnering with a regional ecommerce consultant or local technology providers can help identify the right mix of payments, logistics, and platforms for each country.

Canada Still Works for U.S. Sellers

Cross-border ecommerce between the United States and Canada has rarely been more uncertain than in 2025. Nonetheless, for U.S. merchants, Canada remains an easy first step into international sales.

Canadian shoppers buy heavily from U.S. sites. But this year’s holiday shopping season is testing even experienced sellers. Tariffs, a postal strike, and shifting taxes have turned what should be a smooth northern route into a logistical puzzle.

Tariff Dust-Up

Many pundits have described recent trade relations as a war. Helaine Rich, the vice president of strategic sales and administration at ePost Global, an international shipping provider, was more tactful.

“The current administration really took a look at what countries are asking [American businesses] to pay when we’re shipping into their countries and what they’re charging as a premium on U.S. goods,” said Rich.

The result was a tariff for the United States that upset North-South relations. The back-and-forth trade negotiations included on-again, off-again reciprocal tariffs and surtaxes from the Canadian government — in some cases, up to 25%.

At peaks in the U.S.-Canada dispute, ecommerce “shipment volumes dropped quickly as tariffs rose and some Canadian consumers began avoiding U.S. brands,” Rich said.

Yet duties existed long before the recent dust-up.

Canadian Duties

“Nothing is more frustrating than thinking you paid for a product and then getting surprised at the door that you have to pay this, that, and the other duty,” said Rich.

Unfortunately, this is a common occurrence for Canadian shoppers buying from American ecommerce stores. Here are a few examples of what Canada typically adds.

  • Duties. Based on the type of goods, their origin (including whether they qualify under the United States–Mexico–Canada free-trade agreement or other treaties), and classification (harmonized system code).
  • GST. The Canadian goods and services tax applies to most imported goods, calculated on the Canadian-dollar value of goods plus duties.
  • PST or HST. Depending on the destination province, the importer or consumer may also owe provincial sales tax (PST) or harmonized sales tax (HST), combining federal and provincial components.

Postal Strike

The final challenge, beyond a volatile trade environment and duties due, is getting a package delivered in Canada.

Rich noted that the Canadian Union of Postal Workers is again holding strikes during the holiday season, delaying most holiday shipments, as it did last year.

Canada Post is the nation’s primary last-mile delivery service. Thus sending shipments via the U.S. Postal Service or any other carrier that partners with Canada Post is a risk.

For instance, Walmart Marketplace does not allow Canada Post or any affiliated services. Sellers who try to circumvent Walmart’s restriction face suspension.

Opportunity Nonetheless

Despite tariffs, taxes, and strikes, Canada remains a significant growth market for U.S. ecommerce retailers.

Depending on the projection, total Canadian ecommerce sales will range from $40 billion USD to $43 billion in 2025. About 20% of those sales will go to American stores, making the Canadian market worth around $8 billion for the year. (In contrast, 2024 U.S. retail ecommerce sales were roughly $1.2 trillion.)

Canada offers U.S. merchants geographic proximity, familiar consumer behavior, and lesser competition. Plus, nearly all consumers speak English.

If a U.S.-based online store wants to expand internationally, Canada is a great place to start.

Selling to Canada

Success requires researching three factors: cost competitiveness, duty-paid pricing, and carrier contingencies.

Cost

Before marketing to Canadian shoppers, merchants should model the total landed cost — product, shipping, duties, and GST/HST — to ensure each sale is profitable, according to Rich at ePost Global.

This step includes identifying and understanding tariffs or product restrictions. Canada forbids the import of some products sold domestically in the United States.

Bottom line: Can a U.S. business competitively sell its products into Canada?

Duty-paid pricing

Duty-paid pricing is akin to free shipping.

Shipping fees create friction, prompting shoppers to abandon orders if too expensive. Ditto for import duties.

Free shipping offers remove that friction.

The equation is similar to “delivery duty paid.” If paying Canadian duties for customers increases sales volume enough to offset the cost and generate more profit, do it.

Carriers

Finally, no carrier is a good choice when it is experiencing a strike. Shipments will almost certainly encounter delays.

Have a contingency plan that uses carriers not impacted by the current Canadian strikes.