With global trade dynamics shifting and U.S. tariffs remaining unpredictable, the EU is re-emerging as a priority market for UK retailers to boost sales. Andrew Scanlon from Paxon – a newly formed third-party logistics brand created by bringing together three specialist providers: Active Ants, Staci and Radial – shares top tips for fulfilling European growth ambitions.
The EU opportunity
UK exports of goods and services to the EU topped £388billion last year, according to the Department for Business & Trade, and this figure is expected to rise further in the coming years. E-commerce continues to mature in Europe, creating new and scalable opportunities for cross-border trading for UK retailers.
Eurostat data shows the number of online shoppers in the EU increased from 62% in 2015 to 78% last year, with growth being seen across a broad range of age groups. Top e-commerce categories include fashion, consumer electronics, beauty and wellness, and homewares – and there’s vast potential for UK retailers to tap into this growth. The European Commission has previously reported that more than a quarter (27%) of EU shoppers buy from outside the Union. Seizing on this opportunity demands focus in three key areas.
1) Plan early for customs compliance and duties
Exporting goods to the EU requires a GB Economic Operator Registration and Identification (EORI) number, as well as specific customs declarations and compliance with rules of origin. Declarations have to be made to HMRC via the Customs Declaration Service (CDS) and preparing all the correct information will enhance compliance and streamline the process.
CDS submissions require a range of data, such as the description of goods and commodity codes, consignment details and references, customs procedure codes and details about logistics and transportation. Fulfilment partners can act as intermediaries and handle CDS submissions on behalf of retailers.
2) Determine your supply chain strategy
Retailers have several warehousing and fulfilment strategies to consider when selling to EU customers. Operations can remain in the UK by fulfilling orders domestically and shipping each one directly to EU shoppers as an international export. Or SKUs can be exported in bulk to the EU and orders fulfilled in closer proximity to shoppers.
Dual-entity warehousing has become a go-to option for UK retailers expanding in Europe. By holding stock in both the UK and EU, businesses can minimise border delays and duties, and get orders to customers faster. Bonded warehouses in the EU are another option and can be used to store goods in the Union, without paying duties until products enter free circulation.
Each of the warehousing and fulfilment approaches offers its own advantages and trade-offs, which will be influenced by a series of variables. For example, where are customers located across the EU? What’s the frequency and volume of orders? What’s the value of the goods being sold? What type of products are being exported? An in-depth understanding of these different factors will help inform a strategy that manages costs and mitigates risks of border delays. Partnering with a logistics provider that has global reach can make this process easier and more effective.
3) Stay informed
Selling across the EU means navigating a complex web of varying VAT rates, tax rules and country-specific regulations. Early preparation will help address these challenges but must remain an ongoing process to ensure fulfilment strategies keep pace with a fast-changing market.
From 1 July 2026, the EU will introduce a flat €3 customs duty on low value parcels valued under €150 entering the EU from non-EU sellers. This interim measure is designed to address the rapid growth in cross border e-commerce shipments and will remain in place until the wider EU Customs Reform programme is implemented around 2028, when the current €150 duty exemption will be fully removed.
There are also changing regulations for all packaging placed on the EU market, which applies to non-EU businesses. This will make new requirements for packaging recyclability, as well as introducing restrictions on the size of empty spaces in packaging.
UK retailers must stay on top of evolving EU regulations to avoid costly compliance failures and to ensure they keep products moving smoothly and cost-effectively to customers throughout the Union.
Click here to find out more about fulfilment strategies that can drive growth across the EU.
