Going global stopped being a phase-two project. The brands winning now are global on day one. Going global profitably is the harder business, and the levers that decide it are the ones nobody puts on a slide.

Matthew Merrilees has spent two decades on the operational side of cross-border, starting at DHL and now running North America for Global-e. He and Rick walk the international P&L line by line. Payment acquiring, which is bigger than most operators assume. Duty and tax. Classification. Drawback.

The math changed underneath everyone. US de minimis went from $800 to zero, so every inbound parcel is dutiable and every SKU needs an HS code. The EU now applies a three-euro charge per unique HS code below the 150 euro threshold, which quietly wrecks any sitewide promotion running a mixed catalog. Seventy-five regulatory changes in the US alone, by Matthew's count.

Also covered: why most brands refund duties and taxes to returning international shoppers and never reclaim them, why the Section 321 play through Mexico is finished, what a real multi-carrier setup looks like in practice, and the thinking behind Global-e buying Passport.

This episode is sponsored by Avalara. Learn more at avalara.watsonweekly.com

Rick asked for the one number an operator should check Monday morning. Matthew wouldn't give him one.

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