Want to sell into the EU? Here are our 5 key watch-outs

If you’re a UK-based Amazon seller or e-commerce business looking to expand globally, you’ve more than likely thought about starting close to home – by offering your products to customers in the EU.

Since the UK left in 2020, it’s become much more difficult to do business successfully with our neighbours, but by understanding the key watch-outs it is still possible to win this market and expand your customer base.

Rob Boyle, Head of Marketplaces here at Infinity Blue shares his expertise and advice on the common pitfalls businesses face when starting out.

1. Shipping costs

Yes, this might seem blindingly obvious but it’s often the first hurdle many UK sellers trip up on. Rising fuel costs are also having an impact on delivery fees and selling cross-borders can be a headache all of its own.

Sending directly to a customer in the EU may seem like a good option, but once delivery fees are calculated and duty is added, it can often make the cost of your product comparatively high to EU-based sellers. 

Rob says: “You can get around high delivery fees by using Amazon’s European fulfilment network (FBA) – but don’t go wild and list all your SKUs at once.

“Pick a few of your bestsellers as Amazon will penalise you for products taking up shelf space in their warehouses after a certain amount of time.”

2. New packaging laws

In 2018, the EU launched its Packaging Waste Directive, and a year later, Germany built on this with the German Packaging Act – also known as VerpackG. 

Both laws focus on the principle of ‘extended producer responsibility’, or EPR for short.

“VerpackG aims to incentivise ‘producers’ – basically importers and retailers – to minimise wasted resources and choose recyclable materials by charging a small fee for the recycling of their packaging waste. The money raised is then invested into Germany’s national recycling system,” explains Rob.

If you’re planning to sell into Germany it’s good to be aware of this and get ahead of the curve, as other EU countries may quickly follow suit to meet their obligations to EU climate directives.

3. Record keeping

Now the UK is out of the EU, you need to assign yourself as or appoint an Importer of Record (IOR).

Rob explains: “As an IOR, it’s your responsibility to make sure your goods comply with local laws and regulations, to file a completed customs entry summary form and associated documents, to pay the import duties and other taxes on those goods, and to act as the consignee (owner) of your shipment.”

Even if you are using FBA, Amazon’s fulfilment service, they will not act as your IOR or consignee, so the onus is on you to record and declare the correct information – or risk hefty fines.

4. Duty

Now that we’ve left the EU, it’s likely that you will be liable to pay duty and import VAT on the products you sell into the bloc, and if you are delivering directly to your customers, you will need an EU VAT registration.

Rob says: “It can seem tempting to just go with Amazon’s auto-pricing suggestion when adding your listing but the duty you have to pay on top can sometimes be the same if not more than the product’s retail price.

“It’s really important you work out how much duty will be and add that to your listing price. Again, do your research (or get us to do it) to see if you can realistically compete with sellers of similar items based within the EU.”

5. Translation

While this is last on our list, it’s by no means least and can be the difference between your products selling in Europe or gathering dust on the shelf.

Amazon’s ‘Build International Listings’ tool is handy – but it’s important to understand that the translation might not be all that accurate. It’s vital you get a professional translator to review and amend your listing.

“Keywords can disappear or be different in other languages so if you skip this important step, there’s a chance no one will even be able to find your products,” adds Rob.

“Make sure you translate any graphics too, as Amazon won’t auutomatically translate copy on images.”

A final word of advice…

Starting your journey to selling to countries in the EU can be expensive, so it’s important to put in the research to get it right.

Rob adds: “Start small. Test, optimise and roll out. Then repeat. Making sure your products will sell before you take them to the market is absolutely key.

“We can help you identify your strongest lines and analyse your position when it comes to the competition to help you make back your investment and importantly, more on top.

“Yes, it can be a little daunting – but done well, it’s worth the effort.”

Speak to our team today to find out more about growing your business in Europe.