Expanding to the EU Market: Order Fulfillment & Shipping for UK Businesses

The European Union (EU) has always been a fantastic market for UK businesses, and in 2024, it’s more exciting than ever.

The EU eCommerce market is thriving, with a value of $632.70 billion in 2024 and counting – some five times larger than the UK alone, at $129.71 billion. 

Fulfilling orders across the EU is also considerably faster than it once was. The France-Netherlands corridor, for instance, boasts an impressive average parcel transit time of just 1.68 days – faster than some domestic deliveries in the UK!

While the opportunity is evident, expanding your operations to the EU will present some challenges – though they’re far from insurmountable. 

This guide is about bridging the short gap to the EU – helping you deliver on your promises as your business scales across the continent. 

We’ll examine how to strengthen your EU fulfillment strategy, ensure compliance with regulations, improve inventory placement for faster delivery, and create a framework for lasting success.

The Changing Face of UK-EU Trade

Let’s address the elephant in the room – Brexit. 

Some ten to twenty years ago, selling to the EU was as simple as popping your products on a lorry and waving them off at Dover. 

Today, it’s not quite as simple, but post-Brexit trade processes are finally settling into a new norm. 

Customs Procedures

First, customs procedures are now required for every shipment, meaning each shipment must have a detailed customs declaration stating what’s being sent, its value, and its quantity. 

This documentation is essential because it determines how quickly goods move across borders and whether tariffs will apply. 

VAT Changes for UK-EU Trade

VAT rules have undergone major changes since Brexit. For lower-value goods (up to €150), the Import One-Stop Shop (IOSS) allows businesses to collect VAT at the point of sale, simplifying the process. 

Higher-value goods, on the other hand, incur VAT at the point of import into the EU. 

This has forced many UK businesses to register for VAT in multiple EU countries, also leading some to reassess their pricing strategies. Some have opted to absorb the extra costs to remain competitive, while others have passed the costs on to customers.

Understanding Rules of Origin

Rules of Origin determine whether goods can be traded tariff-free between the UK and EU. 

Goods must meet specific criteria to qualify – it’s not enough for them to be shipped from the UK or EU. They need to be either wholly produced within the UK or EU or undergo ‘significant transformation’ there.

This has led companies to reassess their supply chains, change suppliers, or modify manufacturing processes to ensure their goods meet the required criteria. 

EORI Numbers

Businesses trading between the UK and EU are now required to have an Economic Operator Registration and Identification (EORI) number. This number helps customs authorities track shipments and facilitates the customs clearance process.

Without an EORI number, businesses can’t move goods across UK-EU borders. Many businesses need both a UK EORI number and, if they operate within the EU, an EU EORI number as well. 

Applying for an EORI number is straightforward and typically takes a few days, but to avoid disruption, you need to grab one before trading begins.

Essential Documentation for UK-EU Trade

To ensure smooth customs clearance, businesses must provide the correct documents:

• Commercial Invoice: This is the key document for customs clearance. It must include the sender and receiver details, a detailed description of the goods (including weight, quantity, and origin), VAT and EORI numbers, the product’s HS Code (used for tariff classification), and the declared value of the goods. Any errors in this document can lead to delays, additional fees, or rejected shipments.
• CN22 and CN23 Forms: These forms are used for postal shipments. They are less relevant for bulk shipments to EU fulfillment centers but still essential for businesses sending goods directly to customers. CN22 is used for parcels under 2kg, valued up to £270, while CN23 is for parcels weighing 2 to 20kg or valued over £270.

Post-Brexit UK-EU Trade Has Become Easier

There is good news for businesses eyeing the EU market: the initial chaos is subsiding, and new best practices are being established.  

Plus, there are ways to circumvent UK-EU compliance rules by shipping your goods directly from the producer or wholesaler outside the UK (e.g., from China) to an EU fulfillment center. More on this shortly. 

Overall, most shipments to and across the EU now move with little friction, thanks to improved processes and growing familiarity with post-Brexit procedures.

Understanding Major EU Carriers and Their Services

When expanding into the EU market, you’ll need to consider two types of shipping: getting your inventory to an EU fulfillment center and delivering orders to customers within the EU. 

While businesses traditionally rely on road or air freight to ship inventory to EU fulfillment centers, transport from China via rail is becoming increasingly popular.

For shipping across the continent, there are a few well-known choices of carriers:

Carrier	Key Features
DPD	Extensive coverage across Europe Known for reliable tracking and delivery predictions Offers both standard and express delivery options
GLS (General Logistics Systems)	Covers virtually all European countries (not just the EU) Specialises in B2C and B2B parcel service Owned by Royal Mail Group, offering familiarity Extensive ParcelShop network for convenient customer pick-ups
DHL Parcel	Strong presence in Germany and neighbouring countries Offers a range of domestic and international services within the EU
UPS	Global carrier with extensive European network Known for reliable tracking and delivery services Strong B2B and B2C delivery reputation across Europe
FedEx	Global network with comprehensive European coverage Offers express and economy services across the EU Known for time-definite deliveries
Chronopost	Specialises in the French market Part of the DPD group Market leader in France for express parcel delivery
SEUR	Strong presence in Spain and Portugal Also part of DPDgroup

Strategies for EU Fulfillment Operations

EU expansions offer enormous growth potential, but executing it successfully demands a carefully planned strategy.  

The key lies in building the right fulfillment strategy for your business – one that balances cost, speed, and compliance with EU regulations.

Shipping on Your Own: Control at a Cost

Some businesses prefer to manage their own shipping processes, which can provide greater control over stock, customer service, and delivery schedules. Self-managing EU fulfillment comes with its own set of challenges:

• Customs and VAT Regulations: Since Brexit, all shipments from the UK to the EU must pass through customs, requiring detailed documentation and strict VAT compliance. Mistakes can cause delays, fines, and extra costs.
• Longer Delivery Times: Shipping directly from the UK can lead to longer delivery times due to customs processing. This can impact customer satisfaction.
• Higher Shipping Costs: Without the advantage of bulk shipping rates, shipping individually across EU countries can become costly, reducing margins and limiting profitability.

For many, managing these aspects can become overwhelming, especially as orders increase. This is where partnering with a 3PL provider comes in.

Partnering with a 3PL For EU Expansion

EU expansion is far simpler when you work with a 3PL. In short, a 3PL is a company that handles logistics and fulfillment for other businesses. They take care of warehousing, inventory management, order processing, and shipping. 

For eCommerce store owners, a 3PL can provide professional fulfillment services without building their own warehouses or hiring additional staff.

Key services offered by 3PLs typically include:

1. Warehousing and inventory management
2. Pick and pack services
3. Shipping and delivery coordination
4. Returns processing
5. Real-time inventory tracking
6. Integration with eCommerce platforms

By working with a 3PL, businesses can focus on growing their brand and developing products, while the 3PL handles the day-to-day fulfillment tasks.

And for EU expansion, 3PLs with facilities within the EU can be especially helpful. 

They can assist with post-Brexit regulations, VAT compliance, and customs clearance – all while delivering orders to EU customers faster.

Partnering with a 3PL: Introducing J&J Global Fulfilment

J&J Global Fulfilment is a leading 3PL provider. We help businesses streamline their fulfillment operations and scale efficiently. 

Established in 2010, we’ve become a trusted partner for eCommerce brands worldwide, with fulfillment centers located in the UK, Europe, North America, and Australia.

To support EU expansion, we offer a state-of-the-art fulfillment centre in Venlo, Netherlands – Europe’s logistics hotspot. Venlo’s location near major EU markets makes it an ideal hub for distributing products across the continent quickly and efficiently. 

You can import your goods directly from the supplier to the centre using Venlo’s Cabooter Rail Terminal. This is quicker than shipping from China by sea and air.

By directing goods to Venlo and bypassing the UK, you avoid many customs delays and paperwork that complicate cross-border shipments from the UK.

Additional Benefits of Partnering with a 3PL like J&J

Beyond the strategic advantage of our Venlo fulfillment center, partnering with a 3PL like J&J offers a host of benefits that can transform your expansion efforts. 

Feature	Description
Cost-Effective Solutions	We secure better shipping rates and reduce warehousing costs, allowing you to maintain competitive pricing as your business grows without cutting into margins.
Flexible Scalability	Our operations adapt to your needs, handling seasonal surges or rapid expansion, eliminating the need for additional infrastructure or staff.
Efficient Returns Management	We manage the entire returns process, from receiving and inspecting items to restocking, ensuring smooth operations and customer satisfaction.
ControlPort™ Technology	Our ControlPort™ platform provides real-time visibility into stock, orders, and costs, integrating with your eCommerce system for better fulfilment management.
Partnership Advantage	By partnering with J&J, you offload EU fulfilment complexities while ensuring your business can scale, meet customer expectations, and grow efficiently.

Case Study: Successful EU Expansion with J&J

Let’s look at how Frenchie Bulldog successfully expanded across the EU with J&J’s support:

Frenchie Bulldog

• Challenge: Frenchie Bulldog needed to expand into the European market while managing rapid growth and a diverse product range.
• Solution: J&J set them up with their EU fulfillment center, integrating their eCommerce store with the ControlPort™ system for seamless order processing.
• Result: Victoria Shanley, Global Distribution Manager at Frenchie Bulldog, said: “Our customers know the shipping speed is freaky fast and the accuracy is 100%. They also enjoy the personal touches, such as custom packaging and knowing the name of the person who packed their order. It makes it feel like we’re still a small family business.”

These success stories – and many others from our case studies – highlight how J&J’s expertise and technology empower partners to expand successfully into the EU market.

Order Fulfillment Process for the EU Market

Fulfilling orders in the EU might seem similar to in the UK, but the scale, diversity, and expectations across different EU countries catch many off guard. Here’s a closer examination of the process:

Receiving and Processing Orders

EU customers expect swift order processing. This means implementing a tightly orchestrated pipeline between your sales channels and fulfillment operations.

J&J’s ControlPort™ software integrates with popular eCommerce platforms. When a customer places an order, ControlPort™ immediately captures:

• Customer information
• Product details
• Shipping preferences
• Any special instructions

This automation speeds up order processing and improves accuracy, reducing errors that could lead to shipping delays.

Picking and Packing Best Practices

J&J maintains a 99.9% pick and pack accuracy rate in our EU operations. We achieve this through:

• Optimised warehouse layout: Fast-moving items are easily accessible
• Barcode scanning: Ensures the correct products are picked every time
• Quality control checks: Multiple checkpoints catch potential errors
• Appropriate packaging: Protects products and optimises shipping costs

These practices allow us to dispatch 98% of orders on the same day they’re received, speeding up the entire shipping process.

Shipping and Tracking

EU customers expect detailed tracking. Through ControlPort™, you’ll receive end-to-end tracking data, enabling you and your customers to monitor shipments in real-time.

Returns Management

Offering a rock-solid returns policy can be a key benefit for your business. J&J offers a fully managed returns solution, including:

• Receiving returned items
• Inspecting returns
• Updating inventory levels
• Processing refunds or exchanges

Optimising EU eCommerce Operations For Success

Expanding from the UK to the EU involves more than just logistics. Here are a few key considerations to ensure a successful expansion:

Picking Your EU Markets

For one, the union is exceptionally diverse, consisting of 27 countries stretching all the way from Ireland in the west to Bulgaria in the east, Finland and Norway in the north, and Portugal in the south. 

Rather than tackling the entire EU at once, it’s often shrewd to zero in on markets that fit your product and brand:

• Look into market size, rivals, and shopping habits in different EU countries
• Think about cultural links and how well-known your brand is
• Work out the costs and complexities of logistics for each market
• Check your current customer data and website visits to spot existing interest

You might find that certain EU countries are already visiting your UK website or placing orders. This can help you choose where to focus first, making better use of your resources while you lay the foundations for further expansion.

Adapting to Customer Needs

Once you’ve chosen your markets, adjust your approach to meet local expectations:

• Delivery Choices: Offer different delivery options that suit different tastes. Some places prefer pick-up points, while others like home delivery. Some choose economy, some premium, fast delivery. 
• Clear Information: Provide easy-to-understand details about delivery times and any extra fees. Consider offering multilingual websites and customer service.

Using Tech to Grow Smartly

Make the most of our ControlPort™ software to run your EU operations:

• Keep track of stock levels for your chosen markets
• Look at how well you’re doing to decide if you should expand to more EU countries
• Connect with local online marketplaces and sales channels
• Use up-to-the-minute tracking to keep customers informed

Rest assured, by focusing on these areas and leaning into J&J’s EU expertise and technology, you can master the nuances of the EU market and set your business up for success.

Summing Up

Expanding from the UK to the EU is a logical next step for growing businesses, particularly if international buyers are already showing interest in their products. Yes, there are challenges, but they’re far from insurmountable. 

Keep in mind that success isn’t about conquering the entire bloc at once. It’s about smart, strategic growth, starting with the markets where you’re most likely to succeed. 

If you’re looking for help in your expansion efforts, J&J has a proven track record of success with brands like yours. 

Our state-of-the-art Venlo fulfillment center vastly simplified compliance processes, while ControlPort™ gives you the tools you need to truly master your shipping strategies while satisfying customers. 

Partner with J&J to tap into the EU’s diverse market and scale your business to new heights. Speak with us today to learn more and get started.

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