Global-E Acquires Borderfree In Further Consolidation of Cross-Border Market

Global-E Acquires Borderfree In Further Consolidation of Cross-Border Market

Borderfree has had a long history - both ups and downs here. I worked there for about 3 years as part of Pitney Bowes post-acquisition.

The history of the Borderfree brand itself started as part of Canada Post originally and there was a very complex and sorted history between Pitney Bowes and Canada Post and Borderfree with multiple twists and turns that perhaps only David Coulson and Kris Green and Craig Reed can explain ;-). I seriously have an email in my inbox from Craig in about 2001 from Craig@Borderfree. Truly one of the OGs of the whole market.

Anywho....

The company got its start as a foreign exchange hedging platform E4X in Israel, the company later became 51 (dot) com (Canada being the 51st state, after all) and then rebranded to become Borderfree, acquiring the name from Canada Post.

Suffice to say, Borderfree invented Global-E's model and killed many other cross-border companies on the way to its IPO -- which was one of the most perfectly timed IPOs -- at a time of extremely low value of the dollar and low tariffs.

What does Global-E get for this?

Primarily Macy's and Nordstroms and maybe Crate & Barrel. I'm sure they would have liked to get Neiman's, but Farfetch picked them off earlier.

There are many Borderfree names which are not Enterprise level which will probably be moved to a more Flow-like solution, as they are not high volume enough to support on the more expensive Borderfree model.

Who is the biggest loser in this?

I would think ESW. Anything that makes Global-E stronger puts pressure on ESW (who recently acquired ScaleFast to expand their portfolio -- odds are this acquisition will not be the best culture-mesh).

Get your popcorn out in the cross border ecommerce market.

Rick Watson

Rick Watson founded RMW Commerce Consulting after spending 20+ years as a technology entrepreneur and operator exclusively in the eCommerce industry with companies like ChannelAdvisor, BarnesandNoble.com, Merchantry, and Pitney Bowes.

Watson’s work today is centered on supporting investors and management teams incubating and growing direct-to-consumer businesses. Most recently, in partnership with WHP Global, Rick was a critical resource in architecting the WHP+ platform, a new turnkey direct to consumer digital e-commerce platform that powers AnneKlein.com and JosephAbboud.com.

Watson also hosts a weekly podcast, Watson Weekly, where he shares an unbiased, unfiltered expert take on the retail sector’s biggest players.

In the past year alone, Rick has spoken at many in-person and virtual events as well as podcasts on topics ranging from retail/ecom to supply chain/logistics and even digital grocery including CommerceNext IRL, ASCM Connect, and Retail Innovation Conference.

https://www.rmwcommerce.com/
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