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Noah Peterson's avatar

This recap really highlights how crucial iteration and customer validation are in the early stages of building a startup. Chen's journey with Palmstreet is such a great example of staying scrappy and learning directly from user behavior before scaling.

When it comes to cross-border e-commerce, especially with localized fulfillment centers, how are smaller brands balancing the upfront costs of setting up warehouses versus the long-term benefits of faster shipping and customer trust?

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EntreConnect's avatar

Great question! Balancing the upfront costs of localized fulfillment with the long-term benefits is a critical challenge for smaller brands in cross-border e-commerce. Many brands take a phased approach, starting with third-party logistics providers or leveraging existing marketplace fulfillment networks (like Amazon FBA or TikTok Shop’s fulfillment services) to test demand before committing to their own warehouses.

Others offset initial costs by partnering with distributors or using a hybrid modelβ€”storing best-selling SKUs in local warehouses while shipping less frequent items directly from overseas. The key is data-driven decision-making: brands that analyze sales velocity, regional demand, and shipping times can gradually optimize their logistics strategy, ensuring that investments in fulfillment directly contribute to higher conversion rates and customer trust.

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