Expand Your Ecommerce Business Across Borders: US and Europe

Ecommerce in Europe has grown rapidly for the past few years, opening up an expansive market for international FBA sellers to expand their business across the digital border. At the same time, it is essential to know the different compliance policies and expectations of European countries. In this virtual event, Julia Gall, Product Marketing Manager at Mayan, is joined by industry experts from OFX, HelloTax, and Synder. Together they dive into the necessary tools and strategies for a successful entry into this vast opportunity.

Prefer to watch instead? Check out the video below!

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What is the state of ecommerce in Europe today? 

As of 2021, the ecommerce industry in Europe is estimated to be worth more than $146 million — a number that is projected to only go upwards. Active in 8 European countries, Amazon receives about 1.38 billion monthly visitors with ever growing demands for international products like yours. In fact, across Europe Amazon ranks first among competing online marketing places in terms of total visitors. This marks a great opportunity for you to scale your business into a global brand and grow in an exponentially rising market. 

How can FBA Sellers in the US ensure success in Europe? 

Each country in Europe comes with its own sets of ecommerce rules and guidelines. This can be intimidating to navigate into, but there are a great number of tools and strategies that will greatly increase your success in Europe. 

1. Tailor your marketing and advertising strategies specifically for Europe

It is essential to treat each country in Europe as individual markets with different consumer demands and customs. For one, the current leading market in the EU is Germany, and visitors in this country prioritize the speed at which their products will arrive. In this case, utilizing tools like Amazon’s Multi-Country Inventory solves that need by storing your products in local fulfillment centers. 

Equally important is considering how to reach your product to consumers in different countries. One thing to consider is localizing your listings – this can be changing keywords, product images, or descriptions. The best way to achieve this is by setting separate campaigns for each country you expand into, and closely monitoring their performances. 

2. Know the difference between European and American accounting methods 

In the US, accounting is usually done by the standard of Generally Accepted Accounting Principles (GAAP), while in Europe it’s the International Financial Reporting Standards (IFRS). Reporting in either standard affects how your profit is calculated and your tax liabilities: essentially, how much money you’re getting at the end of the day. 

There are a few ways to manage these regional differences, including enlisting accountants with experience in both the US and Europe, as well as using an automation tool to keep track of your finances for each region separately. 

3. Be aware of international payment fees 

Many of your international payments to and from Europe — for inventory management, VAT compliances, and international suppliers among others — will incur fees that could translate to huge amounts of money lost over time. This is why it’s important to constantly monitor fee transfer rates if you’re transferring through a bank or third-party, and to look for locked rate contracts that could help mitigate currency volatility caused by events like Brexit. 

4. Register for VAT in each country you expand into 

Value-Added Taxes (VAT) are taxes added to your product depending on their value, and often differ in rates and delivery thresholds within each country. Registering for VAT means you can sell more of your goods once you reach the distance selling threshold, and that you can store your inventory locally. 

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