Selling internationally was further challenged by the need to accurately calculate and remit taxes and duties in each local market, and Outerknown was struggling to manage this complexity. The brand’s ideal solution was to offer consumers a choice as to whether to pay taxes and duties at checkout or on their doorstep. However, the complexity of executing this strategy from a technical perspective limited Outerknown’s ability to offer consumers this clear choice.
Outerknown tried to solve these challenges using legacy solutions available in the market, but found the cost of shipping to be prohibitive. Without sustainable unit economics in each market, it was becoming difficult to justify the international business case. Further, legacy technology solutions did not offer any control over the consumer experience leading to a lack of visibility into international sales which, combined with high shipping rates, made their approach unsustainable.