2025 year in review
January 8, 2026
2025 marked a turning point for global ecommerce. Tariffs accelerated, de minimis ended, compliance became unavoidable, and AI shifted from experimentation to execution.
Despite the volatility, brands shipping with FlavorCloud grew faster year over year:
- Sales volume increased 16% YoY, reflecting sustained international demand
- Revenue grew 37% YoY, outpacing order growth
- Average order value (AOV) increased 4% YoY, signaling stronger unit economics despite rising landed costs
Throughout the year, FlavorCloud helped merchants navigate these changes with clarity, data, and confidence while becoming a trusted voice on the future of cross border commerce.
Here are some of the biggest moments from the year.
A look at the year by the numbers
Growth by segment
Year over year, FlavorCloud saw strong growth across both sales volume and revenue, with enterprise merchants leading the way. Enterprise (ENT) merchants saw sales volume growth of 93%, nearly doubling year over year. Mid-market (MM) merchants also saw substantial volume gains at 79%, while SMB volume grew 16%. Enterprise revenue increased 71% YoY, outpacing all other segments and underscoring how larger merchants leaned into cross border expansion despite tariff and regulatory headwinds.
Growth by industry (YoY)
International growth was broad-based, with particularly strong performance in regulated and emerging categories:
- Health & wellness
- Sales up 73.4% YoY
- Revenue up 58.0% YoY
- Assorted consumer goods
- Sales up 52.0% YoY
- Revenue up 65.7% YoY
- Apparel & fashion
- Sales up 6.3% YoY
- Revenue up 31.9% YoY
- Beauty, cosmetics & fragrance
- Sales up 9.3% YoY
- Revenue up 26.3% YoY
Conversion trends through 2025
Conversion rates fluctuated throughout the year, reflecting the impact of new tariffs and pricing adjustments early in 2025. Following an initial dip, conversion rates rebounded steadily through the second half of the year, peaking above 20% during late summer before stabilizing toward year-end.
This pattern suggests that merchants who adapted pricing, compliance, and checkout strategies were able to recover performance despite increased friction.
Top destination markets (YoY revenue growth)
International revenue growth was led by a mix of established and expanding markets:
- France: revenue up 68.6% YoY
- Germany: revenue up 37.2% YoY
- Canada: revenue up 22.1% YoY
- Australia: revenue up 12.3% YoY
- United Kingdom: revenue up 9.0% YoY
Product innovation that met the moment
In 2025, FlavorCloud shipped product updates designed for a world where every shipment is a formal import and every pricing decision matters.
This year, we brought AI powered capabilities to the forefront across the entire value chain of cross border to simplify complexities of ever-changing global trade landscape.
Highlights included:
- Localized market pricing, enabling brands to price by SKU and destination using real landed costs
- Flash AI, automating HS classification with high accuracy to reduce risk, delays, and fines
- The first-ever DDP B2B network, bringing guaranteed DDP certainty to wholesale and B2B freight shipments
- New region expansion across Canada, United Kingdom, European Union and Australia.
And more → Explore product updates and deep dives in our press releases: https://flavorcloud.com/press-releases/
Partnerships that expanded what’s possible
In 2025, FlavorCloud strengthened its ecosystem to help merchants scale globally with fewer handoffs and more intelligence embedded upstream.
Partnership announcements included:
- Shipium, connecting landed-cost intelligence to order orchestration
- Airwallex, bridging global payments, FX, and cross border commerce
- DCL Logistics, supporting scalable international fulfillment
- Sendflex, expanding regional and last-mile delivery options
- Loop Returns, gives merchcants a powerful way to protect margins and move returns cross border.
And more →
View partnership announcements and integrations:
https://flavorcloud.com/press-release
The year tariffs and de minimis went mainstream
No topic defined 2025 more than tariffs and the end of de minimis and FlavorCloud content became a go-to resource for merchants, 3PLs, and partners trying to keep up.
Top-performing and most-cited content covered:
- The ripple effects of de minimis removal on Canada, parcel networks, and postal carriers
- EU de minimis removal timelines and how ecommerce brands should prepare
- Practical tariff strategy guidance, from FTZs to country-of-origin planning
And more →
Browse tariff and de minimis coverage:
https://flavorcloud.com/resources/trade-and-tariffs-hub/
Practical guidance for merchants under pressure
As global shipping became more complex, merchants turned to FlavorCloud for cutting edge technology and AI innovation that ensured they stayed compliant, did not erode margins and outpaced the market with international growth.
Some of the most-read resources focused on:
- International shipping deadlines and peak preparedness
- Carrier surcharges and how to combat margin erosion
- Smarter international returns strategies after de minimis
- Labeling, compliance, and customs valuation fundamentals
And more →
Explore merchant guides and how-tos: flavorcloud.com/blog/
Recognition and awards
FlavorCloud’s work at the intersection of AI, logistics, and global trade earned industry recognition throughout 2025.
Highlights included:
- FlavorCloud Ranks No. 1785 on the 2025 Inc. 5000 List of America’s Fastest-Growing Private Companies
And more →
See awards and company announcements:
https://flavorcloud.com/press-release
Industry- and vertical-specific expansion insights
In 2025, FlavorCloud doubled down on vertical expertise, publishing targeted guidance for high-growth and high-risk categories.
Strong-performing content covered:
- Shipping beauty and cosmetics internationally
- Importing and shipping supplements into the U.S. and Canada
- Case studies highlighting real merchant growth across borders
And more →
Browse industry-specific insights and case studies on our industry pages for wellness, apparel, and beauty.
Data that anchored the year
To bring structure to a volatile trade environment, FlavorCloud released the State of Cross Border with industry benchmark reports on Consumer Insights and Tariffs and Customs. Grounded in real shipment data and merchant behavior.
The report explored:
- How tariffs reshaped sourcing and pricing strategies
- Which categories continued to see international growth
- Why compliance and landed-cost accuracy became growth enablers
And more →
Read the full report:
https://flavorcloud.com/state-of-crossborder/
Looking ahead
2025 made one thing clear: global commerce is no longer about moving packages it’s about navigating trade with precision.
As we move into 2026, FlavorCloud remains focused on helping brands:
- De-risk compliance
- Protect margins with accurate landed costs
- Scale globally with confidence
The future of cross border commerce is data-driven and FlavorCloud is building the AI-powered, operating system for it.
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With international sales on the rise, the opportunities have no borders. With FlavorCloud, you can tap new markets risk-free by offering global guaranteed delivery promises. Go global today.