Brands face tariffs & fulfilment hurdles ahead of peak season

Passport Global has released two research-based reports aimed at helping brands address evolving challenges in the retail and eCommerce sectors ahead of the upcoming holiday peak season.

Peak Season pressures

The Peak Season 2025 Playbook, compiled with Drive Research, draws on a mid-2025 survey of 200 senior eCommerce leaders from the US, UK, and Canada. The report details how direct-to-consumer brands are contending with heightened tariffs, the phase-out of de minimis thresholds, and pressures on fulfilment as the busiest quarter approaches.

Key findings reveal a complex market outlook. A notable 96% of eCommerce leaders surveyed expect international order volumes to increase in the fourth quarter compared to the previous year. Despite this optimism, price pressures are evident, with 87% of brands having already raised US prices in response to higher tariffs.

Operational impacts of evolving trade policy are widely felt, with 99% of respondents indicating that tariffs and trade shifts are influencing their peak planning. Of those, 81% say these factors are significantly affecting costs and operations.

Confidence in meeting peak demands is mixed. Only 31% of leaders said they are "extremely confident" about their ability to execute cross-border fulfilment, even though most had begun preparations by the middle of the year. Fast and reliable delivery is the top priority for 57% of the brands surveyed, surpassing both cost reduction and margin improvement as objectives.

Shipping costs remain a prominent concern, with 41% of brands focusing on exploring in-country fulfilment options to enhance speed and profitability. Additionally, 37% of leaders listed customer satisfaction as their primary key performance indicator, underscoring the continued importance of loyalty and customer experience alongside financial considerations.

"We know exactly what success looks like this holiday season-we just don't know if we can deliver it alone," one apparel executive told researchers.

Commenting on the research, Alex Yancher, Co-Founder and Chief Executive Officer of Passport, said, "As our findings show, the stakes are higher than ever this peak season. Brands aren't just fighting tariffs-they're racing against time, customer expectations, and margin pressure. Passport exists to close that execution gap with the infrastructure and expertise brands need to grow confidently."

Focus on international expansion

The second report, Winning the U.S. Market: Expert Insights for International Ecommerce Brands, authored by Thomas Taggart, Vice President of Global Trade at Passport, addresses the needs of non-US brands looking to establish or grow their presence in the US eCommerce market.

According to the report, regulatory readiness is a critical requirement. The guide notes that customs rules, product compliance, and tax obligations in the US differ significantly from those in Europe and Asia, introducing risks for brands that scale too fast without adapting to local standards.

Rising customer expectations are also highlighted. US consumers increasingly expect same-day or next-day delivery, transparent returns policies, and experiences tailored to their location-benchmarks that international brands must match to remain competitive in the market.

Tariffs are reshaping strategies for global brands, the report notes. Many international brands underestimate how tariffs affect landed cost calculations, but Taggart's guide suggests that in-country enablement strategies can reduce effective duty exposure by as much as 70%.

"Breaking into the U.S. market isn't just about shipping faster-it's about building the right foundation. With the right compliance and logistics strategy, international brands can unlock the same level of customer trust and profitability as domestic players," said Taggart. 

Both reports emphasise the necessity for brands to balance cost pressures, regulatory compliance, and customer experience as they plan for a highly competitive peak shopping period, as well as for entry into the US eCommerce sector.