One fulfillment center in China is all that you need to tap into the European market to increase sales while reducing operational costs
Europe, a place renowned for its history and culture, is also where the eCommerce market is growing rapidly. With revenue from online sales projected to reach $632 billion this year, the continent is ripe with opportunities for brands to increase their global presence. But how can an online business break into Europe without significant investment? The answer is to start with direct China order fulfillment.
In this blog, we’ll dive into the European eCommerce landscape and explore how your business can benefit from 3PL fulfillment services to enter this lucrative market.
Europe’s eCommerce market: Overview
Let’s discover how the European online retail sector is projected to grow and uncover which products are driving online sales.
Ecommerce revenue in Europe to hit $1 trillion
If you’re thinking of expanding your presence globally, now is the time! After a brief decline in 2022, Europe’s eComm revenue has rebounded. The market is set to grow annually by 9% on average in the next 5 years. Projections indicate that revenue will hit an impressive $1 trillion by 2029.
Cross-border eCommerce: Most popular products Europeans are buying
Some products are selling faster than others in Europe. A survey targeting European online buyers shows that clothing and footwear are by far the most important products in cross-border eCommerce. Revenue from this category is also high and surpassed the $150 billion mark last year.
Beyond fashion, consumer electronics, cosmetics, and homeware are also trending. These categories are especially popular in stores fulfilling orders directly from abroad, such as Temu, Shein, and other emerging brands.
Key players in the European market
Similar to the US, the European market is also denominated by Amazon. But despite the retail giant’s large market share, there is a host of other brands with notable market shares, indicating potential for competition and growth within the sector. In 2023, Shein made it to the top 5 online stores with $9 billion in sales, thanks in part to the brand’s focus on the China order fulfillment model.
Things to consider for a successful online business in Europe
To grow your business in this thriving continent, you need to understand the nuances that differentiate Europe from other major markets like the US.
Understanding the culture
Take your time to research and understand the cultural differences in Europe. There are many countries that have their own languages, pain points, and buying habits. Don’t just focus on the differences – there are similarities among EU countries as well, which can help you develop a unified approach to your strategy.
Invest enough in marketing
As a new online brand in the continent, doubling down on marketing can help you get the recognition and online presence you need. Try to have multiple strategies and learn from the stores that are already popular. Europe’s population is richly diverse, so it’s essential to tailor your campaigns to resonate with different audiences.
Stay informed about regulations
Europe is heavily regulated, with a wide range of laws in place to protect both consumers and businesses. One key regulation to be aware of is the value threshold for importing products without incurring customs duties. In the EU, brands using China eCommerce fulfillment can sell products duty-free with a maximum value of 150 euros, while in the UK, the threshold is 135 British pounds.
Why direct China order fulfillment is the way to go for new business in Europe?
Entering new markets is hard and capital-intensive. Since most brands source their products from China, it’s best to keep inventory there and ship it to European customers directly upon placing an order. The optimal way to do this is through China eCommerce fulfillment, which helps optimize cash flow and reduce risk by minimizing the need for upfront investment in warehousing and logistics. This approach also allows you to efficiently manage inventory and respond swiftly to market demands.
The growth of Shein and Temu in the continent has proved that Europeans are willing to wait a few extra days for delivery if they can get better offerings and lower prices. Whatever you’re selling on the market, you’ll be able to sell it in Germany, France, the UK, and many other countries.
Grow your sales in Europe with Lansil Global
It’s important to find a reliable fulfillment company like Lansil Global that understands your needs and has experience in serving European businesses. With a China eCommerce fulfillment center, we can store your inventory in Shenzhen and ship it to any European country within days. Our Shenzhen headquarters is near major factories, meaning you can benefit from much shorter lead times and receive the best ecommerce fulfillment services.
In addition, Lansil Global is among the leading brands in China sourcing and manufacturing. So if you’re looking to get quality products at competitive prices, we can connect you with over 2,000 suppliers across the country.
Ready to scale your business in the European market? Reach out to us today to get a custom quote.
