Global-E Online (GLBE) Piper Sandler 4th Annual Growth Frontiers Conference summary

Policy and tariff impact

• Recent tariff enforcement has had minimal impact on cross-border e-commerce trading patterns, especially into the U.S., due to diversified brand portfolios and limited price sensitivity among luxury and celebrity brands.

• Brands with significant U.S. exposure either raised prices globally by a small percentage or, if necessary, increased U.S. prices, resulting in lower quantities sold but higher prices, with little effect on overall GMV.

• The removal of the de minimis exemption for goods from China, Hong Kong, and Macau affected only about 3-4% of the market, with only a few brands severely impacted due to high concentration of Chinese manufacturing.

• The broader removal of de minimis is expected to have limited impact, as similar low-value goods taxes exist in other countries, and current trading patterns remain stable post-change.

Growth drivers and 3B2C offering

• The 3B2C model allows brands to set up a U.S. entity, reducing duties by paying on wholesale rather than retail value, providing a middle ground between cross-border and full local inventory models.

• Brands can switch to the 3B2C model quickly, often within days, with high interest and adoption among both existing and new brands seeking to manage duties more efficiently.

• The new model is opening doors for additional business, with some brands now handing over their U.S. operations due to increased complexity from tariffs and duties.

• Trading patterns and brand onboarding remain strong, with positive growth and a diversified pipeline of new brands, providing good visibility for the remainder of the year.

AI and technology strategy

• AI is viewed as a significant opportunity, not a threat, due to the company's combination of proprietary data, service layers, and complex third-party orchestration that cannot be easily replicated.

• AI tools are used internally to automate customer service, duty classification, and to drive efficiencies, with over 50% of customer service already handled by bots.

• Proprietary data and know-how are leveraged to improve conversion rates and provide differentiated value to merchants, beyond what generic AI solutions can offer.