What Cross-Border E-commerce Taught Me About Customer Acquisition


Avinash Banavathu
Growth Marketing Expert
Dec 13, 2025
What Cross-Border E-commerce Taught Me About Customer Acquisition
Cross-border e-commerce often looks similar to domestic e-commerce from the outside. The channels are the same, the funnels look familiar, and the metrics appear comparable.
At Dista , where we serve customers across 40+ countries and offer one of the largest collections of Indian products, this assumption breaks very quickly once customers enter the funnel. Our catalog ranges from Ayurveda in Wellness to Kids Fashion, and that breadth adds its own complexity.
Working on cross-border customer acquisition has forced us to rethink many things that are usually taken for granted in e-commerce. These are a few learnings that kept showing up again and again.
Conversion drops because of late surprises, not low intent
When US tariffs on Indian goods were introduced, there was uncertainty around which products would attract how much customs duty. Adding an estimated duty as a separate line item at checkout felt like it would only add more ambiguity, so we avoided that approach.
Instead, we absorbed most of the duties and increased product prices only slightly, with “Inclusive of tariffs and duties” clearly mentioned on the product page.
Cross-border shopping already comes with enough uncertainty around delivery timelines, customs, and returns. Removing ambiguity upfront helped build trust. Customers who felt the price was fair completed checkout with much less friction.
Categories do not convert in the order you expect
Category behaviour in cross-border commerce is not intuitive.
At Dista, Wellness customers consistently show the highest purchase intent, while Fashion shows the lowest in addition to the seasonality play. This helped us decide where limited marketing dollars should actually go.
At the same time, not all categories have the same depth of demand. Some categories saturate faster, while others have much larger demand pools. Beauty and Fashion have far more demand to tap into, while Wellness, despite strong intent, can plateau sooner.
Understanding category-level behaviour changed not just what we marketed, but when and how we prioritised spends.
Customer reviews are a goldmine for actionable insights
A large part of my day starts with reading customer reviews.
At Dista, with over 100k customer reviews and being the highest rated cross-border e-commerce store for Indian products, reviews are one of the most honest inputs we have.
They surface real problems, often long before dashboards do, and those problems frequently turn into actionable insights.
One simple review about excessive plastic bubble wrap changed how we operate. Today, more than 70 percent of our orders are packed in eco-friendly materials. Ethical sourcing may not be a key consideration in domestic markets, but international consumers are particular about it
Reviews do not try to sell. That is exactly why they are valuable.
New and returning users break the funnel at different points
There is a stark difference between how new user funnels behave and how returning user funnels behave.
At almost every step, new user funnel metrics are nearly half of returning users. New users tend to drop early due to trust gaps. This is usually around pricing clarity, delivery expectations, and brand familiarity.
Returning users usually drop much later. Their friction is mostly operational, such as payment failures, delivery speed, or last-mile experience.
Treating new and returning users the same hides where the real problems are.
Middle East traffic behaves very differently from Western markets
We often see large volumes of traffic coming from Middle Eastern countries, but conversion rates are lower compared to Western markets.
Beyond obvious factors like competition or pricing, one learning stood out clearly. The cost of traffic from these regions is nearly one-fifth of what similar traffic costs in Western countries.
That difference alone changes intent and behaviour. Without understanding how marketing inventory cost varies country by country, conversion rates can be misleading.
Closing thought
Looking back, most cross-border growth challenges were not about demand or acquisition channels.
They were about understanding customer behaviour, expectations, and uncertainty at every step of the funnel.
Cross-border e-commerce does not require an entirely new growth playbook. It requires knowing exactly where the old one quietly stops working.
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Distacart Inc.
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