As mentioned in other blogs, Europe is a surprisingly easy market to import and distribute your e-commerce products from.
As demonstrated in our Free Kickstarter document, the Dutch government along with assistance from the European Union has made the Netherlands one of the most important Logistics hubs for European e-commerce fulfilment and distribution, reducing the complexity of tax compliance (VAT) for offshore companies.
A common comment we hear from offshore companies when they first enter the European market is they need an overnight delivery service. While there are a lot of nuances within that comment, the reality is that they often need an option for faster service to the main markets within the 27 EU countries and standard service to the rest.
We have met with one or two companies that shelved their EU distribution simply based on the high distribution costs, confusing the European market expectations with their own market demands.
Considering that you can pay aware between €16 to €25 for a premium service, often with an added fuel surcharge, many e-commerce companies find it represents 30% to 50% of their average order value.
From a European customer’s perspective, they are often happy to have their purchases delivered via the postal system. It may take a few more days for delivery, however, it’s dependable and robust, especially outside of the main markets.
More importantly for the majority of cost-conscious Europeans, the same goods can be delivered a few days later at costs between €6 and €9.
For countries outside the European Union, Norway, UK, Switzerland, Iceland we find the postal services excellent, not only is it up to 50% cheaper, it includes all of the customs documentation needed.
An excellent example is sending a 1kg parcel from the Netherlands to the UK through a premium brand courier company
Premium Brand Base rate + fuel surcharge + import paperwork = Between €19 and €24, service 1-2 days.
Postal Service The same parcel postal €8.51 including everything, service 2-3 days.
So don’t fall into the same trap, depending on your product type, the markets you are specifically targeting and the customer delivery expectation, we can help you to understand the best mix of distribution to meet client expectations at the right cost.
Email email@example.com to find out how we can help you maximise your growth within the European and UK markets and get your Free Kickstarter guide.