What Does It Really Cost to Expand to the US? A Realistic Budget for European Brands
US logistics is structurally different from EU domestic logistics. Here's every cost you need to include in a US expansion budget, with real numbers.
The number nobody tells you upfront
European brands planning US expansion typically budget carefully for marketing: paid social, influencer partnerships, PR. The logistics budget is often an afterthought, or worse, estimated based on domestic European shipping costs. US logistics is structurally different from EU domestic logistics. Understanding the real numbers before committing to US expansion allows you to build a model that actually works.
Every cost, clearly labelled
- International freight (EU to US): air freight 4-8 EUR per kg, sea freight 600-1,500 EUR per CBM.
- Customs duties: 0-5% on goods value for most European consumer categories.
- Merchandise Processing Fee: 0.3464% of goods value, minimum ~$31 per entry.
- Harbor Maintenance Fee (sea only): 0.125% of goods value.
- Customs broker fee: $100-300 per shipment.
- US warehousing: $15-40/month per pallet, or $1-4/month per SKU.
- Fulfillment per order: $2-6 per order (pick, pack, materials).
- Domestic US shipping: $5-12 per parcel for standard 2-3 day delivery.
- Returns handling: $3-8 per return processed.
A worked example: European homeware brand, 150 orders/month
European homeware brand, average order value $90, 150 orders per month, replenishing by sea every 6 weeks. International freight: ~$700-900/month. Customs (5% duty): ~$400-600/month. Broker fees: ~$300-400/month. Warehousing (5 pallets): ~$150. Fulfillment (150 orders at $4): $600. Domestic shipping (at $8): $1,200.
Total logistics: approximately $3,300-3,800 per month. On $13,500 monthly revenue, logistics represents 24-28% of revenue. If your gross margin is above 60%, this model works. If it is below 50%, you need higher order values or better freight rates before scaling.
How costs improve with volume
Once you are filling full container loads (FCL) instead of consolidation slots, international freight cost per CBM drops 30-50%. A partner who aggregates volume across multiple clients gives you access to FCL rates from day one. Per-order fulfillment rates also improve at higher volumes.
What to cut if the numbers are tight
- Switch more volume to sea freight earlier — savings versus air freight are substantial.
- Increase minimum order value for US customers to improve per-order economics.
- Reduce SKU count for the initial US launch to lower warehousing complexity.
- Work with a partner who aggregates volume for better operator rates.
