Expanding to the EU Market: A Guide to Order Fulfillment and Shipping for US eCommerce

For US businesses aiming to expand internationally, the European Union (EU) offers both scale and opportunity. 

With eCommerce in the EU set to grow from $632.7 billion in 2024 to $880.7 billion by 2028, it’s a market that’s hard to overlook. 

However, succeeding in Europe requires more than moving products across the Atlantic. 

With 27 countries, 24 official languages, and a vast range of local preferences, capturing the European market means adapting to regional expectations and delivering a seamless, localised experience.

European consumers, much like their US counterparts, expect quick shipping, transparent communication, and trust at every stage of the shopping journey – all of which are challenging to deliver across this complex continent. 

Of course, the upside is substantial: by getting it right, US brands can tap into one of the world’s most lucrative eCommerce markets, building loyalty and a strong reputation across multiple countries.

This guide will walk you through how to achieve this, from optimising delivery strategies to meeting essential EU compliance standards. 

We’ll explore how partnering with the right fulfillment provider can turn your European expansion from a barrier into a competitive advantage that fuels sustainable growth and lasting customer loyalty.

Challenges For EU Fulfillment 

Achieving eCommerce success in Europe requires more than simply shipping products abroad. 

From navigating customs and VAT regulations to meeting modern expectations surrounding tracking, delivery, etc, expanding into the EU involves tackling a variety of logistical and regulatory factors

Here’s a look at the essential factors you’ll need to master to build a successful fulfillment strategy in Europe:

The Multi-Market Reality

The European Union consists of 27 markets that share common trade rules but operate quite differently in practice. 

Each country maintains its own established carriers and delivery networks, with distinct tracking systems, delivery networks, and pricing models that affect your shipping strategy.

Delivery speed requirements vary markedly, too – from next-day service expectations in major cities to 2-5 days in rural areas.

These variations carry real business impact, as the pressure is still on to deliver items in the timeframes we’ve come to expect. 

For instance, DHL research shows that 95% of EU online shoppers will abandon purchases if their preferred delivery option isn’t available and 85% say they’ll switch retailers after just one poor delivery experience. 

Understanding and adapting to these local delivery preferences directly affects your conversion rates and customer retention.

Shipping Process Complications

Every shipment entering the EU requires comprehensive documentation. Commercial invoices must detail exact product descriptions, values, and country of origin. 

The EU’s Harmonised System (HS) codes demand precise classification – using incorrect codes doesn’t just delay shipments but can result in incorrect duty calculations or even refusals.

Product compliance adds another layer of complexity. Take electronics, for example, where you’ll need:

• CE marking proving compliance with EU safety standards
• Technical files documenting product specifications
• Test reports from accredited laboratories
• EU representative appointment for certain categories
• Registration in the WEEE system for electronic waste compliance

VAT and Customs Requirements

Expanding into the EU means adapting to the region’s unique VAT (Value Added Tax) system, which differs from US sales tax in a few important ways. 

EU VAT must be included in the displayed price and varies by country, usually between 17% and 27%. 

Here’s a breakdown of VAT and customs considerations for US businesses entering the EU market:

1. One-Stop Shop (OSS) for EU-Based Sales

The OSS system simplifies VAT compliance for cross-border sales within the EU. 

If your business has an EU-based shipping or fulfillment center, OSS allows you to register for VAT in a single EU country and report all sales to other EU countries in a consolidated return. 

This eliminates the need to register separately in each member state where you have customers.

• How OSS Works: Once registered, you apply the VAT rate of each customer’s country at checkout. Your business submits a single, quarterly VAT return in the country where you registered for OSS, covering sales to all EU member states.
• Advantages: OSS is ideal for businesses with EU fulfillment operations or those selling digital products and services, as it reduces the administrative burden of managing multiple VAT registrations.

Import One-Stop Shop (IOSS) for Non-EU-Based Sales Up to €150

The IOSS system is designed for non-EU businesses shipping goods directly to EU consumers with a value of up to €150. 

Through IOSS, VAT is collected at checkout, which streamlines the process for low-value imports by avoiding additional fees at customs.

• Intermediary Requirement: For US businesses and other non-EU companies, an EU-based intermediary may be required to register for IOSS, as some EU countries mandate this to ensure VAT compliance. The intermediary handles VAT reporting and payments on behalf of the business.
• How IOSS Helps: Collecting VAT at the point of sale through IOSS eliminates surprise customs fees, improves the customer experience, and reduces abandoned orders due to unexpected costs.

3. VAT Compliance for Orders Over €150

The IOSS does not apply to shipments exceeding €150. VAT and any duties are typically collected at customs upon arrival in the EU. 

In this scenario, the customer is responsible for these fees unless your business opts to cover them. 

Customer Experience Requirements

European consumer protection laws include strong return rights for eCommerce buyers.

While the EU requires a minimum 14-day return window, 28 days has become standard practice among major retailers across Europe.

This longer return window has reshaped European eCommerce in general. Consumers often order multiple sizes or variations, knowing they have ample time to try items and return what doesn’t suit them. 

Studies suggest this actually increases overall sales – when customers feel confident about returns, they tend to buy more frequently and in larger quantities.

However, longer return windows also mean US brands need robust reverse logistics. Most successful retailers now maintain EU-based returns centres to handle the steady flow of returns efficiently and cost-effectively. 

Without local processing, international shipping costs for returns can quickly erode profits, especially in categories with higher return rates, like fashion and electronics.

Understanding Your EU Fulfillment Options

Getting products to European customers efficiently can make or break your EU expansion strategies. 

With EU retailers offering next-day or same-day delivery as standard, your fulfillment strategy needs careful consideration from day one.

Let’s examine the main options available to US brands entering the EU market:

Direct Shipping from the US

Shipping directly from your US warehouse offers a low-commitment way to test the European market. It requires minimal upfront investment and lets you gauge demand before committing to local infrastructure.

However, as your EU sales grow, direct shipping brings some clear challenges:

• Delivery times stretch to 7-14 days
• International shipping costs affect your pricing flexibility
• Customers face customs processing and VAT charges at delivery
• Returns processing becomes more complex under EU consumer laws

As your European customer base grows, many brands find direct shipping becomes less practical. 

Success in the EU market often means evolving your fulfillment strategy to match local service levels and customer expectations. And that means establishing operations on the continent. 

Establishing Your Own EU Operations

Setting up your own EU fulfillment operation gives you complete control over the European customer experience. This typically involves:

• Leveraging warehouse space in a strategic EU location
• Hiring and training local staff
• Implementing EU-compliant systems
• Building carrier relationships
• Managing customs and VAT processes

While this delivers maximum control for already established businesses with high turnover, it requires vast investment and can be risky if things don’t go to plan.

Moreover, aside from the obvious costs of facilities and staff, you’ll need expertise in EU employment law, health and safety regulations, and local business practices. 

Most US brands find this option only becomes viable at very high order volumes.

Working with a Third-Party Logistics Provider (3PL)

For fast-growing, agile US brands, partnering with a 3PL offers the sweet spot between direct shipping and setting up your own EU operation. 

A 3PL handles the entire fulfillment process – from storing your products and processing orders to managing shipping and returns.

Leading 3PLs like J&J Global Fulfilment provide instant access to:

• Strategic EU facilities cutting delivery times
• Established relationships with major carriers
• Local expertise in VAT and customs
• Efficient returns processing
• Real-time inventory management
• Technology that integrates with your sales channels

The key is choosing a 3PL with proven experience helping US brands expand into Europe. Look for clear pricing, multiple shipping options, and a demonstrated understanding of both US and EU requirements. 

Most importantly, ensure the provider can scale with your growth. Many successful US brands start with direct shipping to test the market and then partner with a 3PL as volumes increase.

In the next section, we’ll explore the specific benefits of working with a 3PL like us at J&J, including how it can transform your EU customer experience.

Third-Party Logistics for EU Expansion Success

For US brands expanding into Europe, partnering with a 3PL provider often proves the smartest path to success. 

A 3PL acts as your European fulfillment arm, handling everything from warehousing and inventory management to picking, packing, shipping, and returns processing.

This removes the complicates of managing European operations directly. Instead of building your own warehouse network, hiring staff, and managing carrier relationships across multiple countries, you’ll gain access to an established partner with the infrastructure and expertise already in place and ready to roll. 

Working with a 3PL brings several immediate advantages:

• No need for upfront investment in facilities or staff
• Access to established carrier relationships and bulk shipping rates
• Expertise in EU customs, VAT, and compliance requirements
• Ability to scale operations quickly as demand grows
• Professional returns handling and customer service support

Perhaps most importantly, the right 3PL partnership lets you focus on growing your brand while experts handle the operational complexities of serving European customers.

J&J Global Fulfilment: A Partner for Growth

J&J Global Fulfilment exemplifies how a 3PL can power successful EU expansion. 

Founded in 2010, we’ve grown into a global operation supporting hundreds of US brands with their European growth through our state-of-the-art fulfillment centers.

At the core of our EU operations sits our Venlo facility in the Netherlands. This strategic location enables:

• 1-3 day delivery across major EU markets
• Direct rail connection for efficient stock imports from China
• Rapid customs clearance through established channels
• Cost-effective shipping across the continent
• Strategic position near major EU transport routes

Technology Driving Your Growth

Our proprietary software, ControlPort™ integrates directly with your eCommerce systems, handling everything from inventory tracking to order processing.

Real-time visibility proves essential when managing operations across multiple European markets. ControlPort™ tracks stock levels, monitors order status, and provides detailed analytics in local languages. 

This level of control helps you make informed decisions about inventory placement and shipping strategies, while automated processes ensure orders flow smoothly from purchase to delivery.

Expert Support Every Step of the Way

Beyond technology and facilities, working with J&J means accessing deep expertise in:

• EU customs procedures and documentation
• VAT management across all member states
• Cross-border shipping optimisation
• Returns processing and recycling
• Peak season handling
• Carrier relationship management

Our team handles everything from receiving your inventory to processing returns, enabling you to serve European customers as effectively as domestic customers. 

Working with us means managing a single point of contact for all your European fulfillment needs.

Case Studies: Successful EU Expansion

Let’s look at how two US brands succeeded in Europe with J&J’s support:

Dr. Squatch

• Challenge: After achieving remarkable success in their home market, the cosmetics and beauty brand Dr. Squatch required expert support for international scaling.
• Solution: Leveraging J&J’s EU fulfillment network and expertise in regional logistics, Dr. Squatch implemented a strategy to streamline shipping across multiple European markets.
• Result: “J&J’s regional expertise has helped us improve service and reduce shipping costs exponentially to areas in which we were struggling,” explains Jason Welsh, Senior Fulfillment Manager.

Cards Against Humanity

• Challenge: Supporting Cards Against Humanity’s international growth while supporting their promotional campaigns for Black Friday and other sale events. 
• Solution: J&J developed a flexible fulfillment plan designed to handle rapid scaling, ensuring timely order processing and delivery during peak sales periods.
• Result: “J&J is a great partner. Their operation is highly organised, their technology is sharp and always developing, and best of all, the people are kind, helpful and smart,” says Ben Hantoot, Co-founder and Partner.

These success stories and many others you can read here show how the right technology and expertise can power successful European expansion.

Comparing Fulfillment: US vs EU-Based Operations For Selling Goods in the EU

Expanding into the EU market opens up exciting opportunities for US businesses, but it also brings a unique set of challenges. 

Choosing to base fulfillment within the EU can often make a real difference in efficiency and customer satisfaction. Here’s a comparison of US-based and EU-based fulfillment considerations:

Consideration	Impact of US-Based Fulfilment	Benefits of EU-Based Fulfilment
Shipping Costs	High international shipping fees increase product prices.	Reduced shipping costs due to shorter distances within Europe.
Delivery Times	Longer transit times can lead to customer dissatisfaction.	Faster delivery improves customer experience and satisfaction.
Customs and Duties	Goods may face delays and additional costs at EU customs.	Simplified customs procedures and lower duties for intra-EU shipments.
Value-Added Tax (VAT)	Complex VAT registration and compliance requirements for each EU country.	Streamlined VAT processes, especially when working with EU fulfilment partners familiar with local regulations.
Returns Management	Handling returns internationally is costly and time-consuming.	Efficient and cost-effective returns processing within the EU.
Customer Trust	Customers may hesitate to purchase due to concerns over shipping times and potential fees.	Local fulfilment builds trust through reliable and prompt service.
Market Knowledge	Limited understanding of EU market preferences and regulations.	EU-based partners offer insights into local markets, efficient marketing, and sales efforts.
Scalability	Scaling operations from the US to the EU can be complex and resource-intensive.	EU fulfilment centres provide scalable solutions to meet growing demand efficiently.

Understanding The 3PL Fulfillment Process

Ever wondered what happens behind the scenes to ensure orders move smoothly from the warehouse to your customers? 

3PL fulfillment is a finely tuned operation that manages every step of the process, from receiving inventory to final delivery. 

Let’s break down each stage and see how 3PLs turn fulfillment into a seamless, efficient experience for brands and customers alike:

Receiving and Storage

The whole process kicks off when you send your products to your 3PL’s warehouse facility. 

As soon as inventory arrives, the warehouse team gets to work. They carefully count and inspect each item, ensuring everything matches what they were expecting.

Quality checks at this stage are vital – any missing items or damage needs identifying before stock enters the system. The team also verifies that products meet EU labelling requirements and carry appropriate certification marks.

Products then get logged into the warehouse management system, typically using barcodes to make them easy to find later.

At J&J, we’ll carefully inspect each item, verifying quantities and checking for any potential damage or discrepancies. 

We also ensure your products are properly labelled and compliant with all relevant EU regulations before they enter our system. Attention to detail at the very start of the process sets the stage for smooth, efficient fulfillment.

Order Processing and Picking

When a customer hits “buy” on your online store, it triggers the fulfillment process. 

The order details automatically flow to the warehouse team through integrated software systems.

Pickers use handheld devices to navigate the warehouse and track down the items for each order. As they pick each product, they scan it, automatically updating inventory levels to prevent overselling. 

J&J’s fulfillment software, ControlPort™, seamlessly integrates with your eCommerce platform, automatically capturing order details the moment a sale is made. 

Our pickers use this data in conjunction with optimised picking routes to locate and scan each item with speed and precision. This integrated, technology-driven approach is how we maintain our industry-leading 99.9% pick accuracy rate.

Packing and Shipping

After picking, orders head to packing stations where staff prepare them for their journey to customers. This involves:

• Selecting appropriate packaging materials
• Adding any required documentation
• Applying shipping labels and customs forms
• Sorting orders by carrier and destination

Leading 3PLs maintain relationships with multiple carriers, offering various shipping options to fit different needs and budgets. The best providers can usually dispatch most orders the same day they’re received.

At our packing stations, J&J’s team uses their expertise to select the right packaging for each order, balancing protection with cost-efficiency. 

We include all necessary paperwork, such as customs forms, and clearly label each package for smooth transit. Our extensive carrier network allows us to offer a range of shipping options, from economical to express. 

Thanks to our streamlined processes, we dispatch 98% of orders the same day they’re received.

Returns Processing

When a customer decides to return something – which happens more often in eCommerce than many realise – the 3PL’s returns team takes charge. They:

• Receive and inspect returned items
• Update inventory records
• Process refunds or exchanges based on your policies
• Either restock items or handle disposal

J&J offers a fully managed returns solution. Our dedicated returns team promptly processes incoming returns, carefully inspecting each item and updating your inventory accordingly. 

Cost Considerations for EU Fulfillment

Understanding your fulfillment costs proves vital when expanding to Europe. The cost structure differs markedly from US operations, and getting it wrong can quickly eat into margins.

Here’s a closer look at key strategies to manage these costs effectively while meeting customer expectations:

Shipping Rates and Strategies

Shipping rates across Europe can vary widely depending on factors like destination, shipping speed, and the specific service selected. 

Volume-based discounts often become available as order volume increases, but optimising your rates requires a deep understanding of delivery expectations in each target market. 

For example, offering multiple shipping options – from economy to express – allows customers to choose their preferred balance between cost and speed. 

Returns Management

Returns in Europe can be costly due to the mandatory 14-day return window, which many consumers expect to be even longer (usually 30/31 days, though some are extending return windows to 60 days or even longer). 

Minimising unnecessary returns starts with clear, accurate product descriptions and secure packaging to reduce the chance of damaged items. 

Establishing a local returns centre within the EU is often the most cost-effective way to handle returns, as it reduces both transit time and expenses compared to shipping items back to the US. 

J&J expertly handles returns on your behalf, saving you money while satisfying customers with the slick, professional returns experience they’ve come to expect. 

Hidden Costs

Expanding into Europe introduces various “hidden” costs that can erode profit margins if not carefully managed. 

Currency exchange fees, product compliance certifications, translated packaging, and customs documentation are just a few of the additional expenses you’ve got to keep an eye on. Building these elements into your pricing strategy can help mitigate surprises. 

It’s wise to include a compliance buffer in your pricing to cover these variables, ensuring profitability even with fluctuating expenses.

Optimising Customer Experience for European Buyers

European consumers expect a seamless experience that feels local – whether that’s through payment methods they trust, clear policies surrounding shipping and returns, or customer support in their language. 

Meeting these expectations builds trust and loyalty, helping your brand stand out and thrive in the European market.

1. Localised Payment Methods

Payment preferences vary widely across Europe, so consider offering a select mix of payment methods that consumers are familiar with and trust. 

Consider including:

• Digital wallets like Google Pay and Apple Pay, which are widely used and offer quick checkout
• PayPal, trusted for its security and ease
• Klarna and similar “buy now, pay later” options, which appeal to customers seeking flexible payments
• Bank transfer options, popular in some regions

Offering familiar payment options creates a smoother checkout experience that builds trust and lowers cart abandonment – essential for connecting with customers across multiple markets.

2. Embracing Sustainability

Sustainability has become a key factor for European consumers, with many willing to pay more for eco-friendly products. 

A recent survey indicates that 80% of consumers are willing to pay more for sustainably produced or sourced goods, with an average premium of 9.7%.

To appeal to eco-conscious audiences, consider:

• Using minimal, recyclable packaging and clearly communicating its sustainability on your website.
• Working with green logistics providers who offer low-emission delivery options.
• A new but innovative strategy that’s becoming more popular: implementing a “green returns” policy, where returned items are recycled, repaired, or donated.

Showcasing your brand’s environmental initiatives can help differentiate you from competitors, especially for customers prioritising sustainability.

3. Multilingual Customer Support

Europe’s linguistic diversity means that local-language customer support is essential for building trust and strong relationships.

Consider investing in:

• Multilingual support staff who can respond to queries via phone, email, and live chat.
• Localised FAQs, product information, and shipping details on your website.
• Language-specific social media accounts to engage with customers in their native language.

Building multilingual eCommerce websites is quite straightforward today, but be sure to check that your product and site copy is easily translatable, and evaluate whether the tone and messaging resonate with each target audience. 

Localization goes beyond translation – it’s about creating an experience that feels relevant and familiar to each market while avoiding cultural faux pas. 

Wrapping Up

Expanding into the EU offers massive growth potential for US businesses, although it comes with unique logistical and regulatory obstacles – though nothing that can’t be overcome. 

With the right strategy, EU expansion challenges are entirely manageable. By mastering the specifics of EU fulfillment and establishing a well-structured plan from the outset, your business can thrive in this diverse, dynamic market.

At J&J Global Fulfilment, we’re here to make your EU expansion seamless and successful. 

With our deep eCommerce and fulfillment expertise, advanced fulfillment network, and commitment to exceptional service, we’re dedicated to helping brands unlock their potential in the European market. 

Ready to make your mark in the EU? Contact us today. Our team is here to discuss your goals and show how we can support your expansion.

FAQs About EU Fulfillment

Q: How can a 3PL provider help with VAT compliance in the EU?

A: VAT can be a tricky part of EU fulfillment, as each country has different rates and requirements. A 3PL like J&J Global Fulfilment can support VAT compliance through options like the One-Stop Shop (OSS) and Import One-Stop Shop (IOSS). 

These systems let you handle VAT for multiple countries through a single process, allowing you to focus on growing your business without the administrative burden of managing individual VAT registrations across Europe.

Q: Is an EU-based fulfillment center necessary to serve European customers?

A: While it’s possible to ship directly from the US, an EU-based fulfillment center can greatly improve the customer experience.

Local fulfillment reduces delivery times, avoids customs delays, and simplifies returns – all essential factors in meeting European customer expectations. Many businesses find that having a fulfillment center within the EU is crucial for scaling effectively.

Q: How does Brexit affect shipping to both the UK and EU from the US?

A: Since Brexit, the UK and EU operate as separate customs territories, meaning shipments to each region require separate customs documentation and may be subject to different VAT rules. 

For brands shipping to both the UK and EU, a 3PL experienced in post-Brexit logistics can manage these requirements smoothly, ensuring compliance and avoiding potential delays that could affect your customers’ experience.

Q: What are the best practices for handling returns in the EU?

A: European customers expect an easy, cost-effective returns process. Setting up a local EU returns centre enables faster processing and reduces costs, as items don’t need to be shipped internationally for returns. 

A 3PL with managed returns services can streamline this process, helping you offer a return experience that builds trust and encourages repeat purchases in the EU market.

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