When you’ve successfully launched an ecommerce business in the US, it’s only natural to start thinking about growing your business globally. One of the most popular regions sellers look to expand into is Europe. But before you make your move into global selling, it’s important to gain a better understanding of your intended international market and how your products fit into that landscape.
In this article, we’ll explore the differences between selling with HAQM in the US and Europe, how to assess the demand for your product in Europe and start selling, European VAT and how it impacts your business, and more.
What are the main differences between selling with HAQM in the US and Europe?
Some of the main differences between selling with HAQM in the US and Europe include:
- Regulations and compliance: The US and Europe have different approaches to regulations and compliance. For example, Europe has the VAT—or Value Added Tax—which has rules that can vary depending on the country you want to sell in. You’ll also need to comply with other initiatives such as the General Data Protection Regulation (GDPR). And the US and Europe have different regulations surrounding safety and labeling that you’ll need to be aware of, as HAQM product compliance follows each country’s specific rules.
- Languages: While most of the US speaks English, Europe has a kaleidoscope of languages across multiple countries. Because of the diversity of languages across Europe, it’s important for product listings to be in the native language of the country you’re planning to sell in. Crafting copy in regional dialects can also be key to a successful SEO strategy. Finding a service provider who is fluent in local languages can be a big help in successfully launching your international ecommerce business.
- Holiday shopping seasons: There are some shopping seasons that are basically universal, like Prime Day. But beyond that, Europe often has region-specific holidays that are considered big shopping days, as well as standard holidays—like Mother’s Day—that are celebrated in different months depending on the country. Doing some extra research on your country of choice can help you prepare for their shopping seasons so your ecommerce store can meet the moment.
How do I start selling in Europe?
HAQM Global Selling makes it easy for you to list and sell your products in Europe, along with the Americas, Asia-Pacific, and the Middle East and North Africa. If you’re new to selling in the HAQM store, you’ll first need to register for a selling account in the country or region you want to start selling in. Then you’ll create additional regional or country-specific accounts, cross-list your products, ship internationally, and more.
If you already have a selling account, login to Seller Central and select Inventory from the main menu, then Sell Globally. From there, you’ll be able to register to start selling in another store.
Get started with HAQM Global Selling
How do you assess demand for a product in Europe?
One of the best ways to determine potential demand for products is through HAQM’s Marketplace Product Guidance tool. It helps you identify the stores you may want to expand into based on forecasted opportunity. You can also gain insights across various product categories for stores you already sell in. Using this information, you can determine which European countries would be most beneficial for you to expand into.
Get started with Marketplace Product Guidance
Once you’ve explored demand for products in your intended country, you can select the products you want to sell. Remember: If a product is part of a brand enrolled in HAQM Brand Registry, your ability to sell it may depend on your relationship with the brand. There are also some products and categories that require you to have a Professional selling plan or approval from HAQM.
What is VAT?
VAT stands for “value-added tax.” It’s a type of tax added to goods through production and distribution in Europe and other countries. You can calculate your VAT by adding the value of your products to the percentage of customs duty, shipping costs, and insurance. This calculates to roughly 20% of the shipment’s value.
To sell in Europe, you’ll need to register for VAT using either a Standard Rate or Flat Rate depending on where you’re selling from—the Flat Rate is only available to UK sellers. You can reclaim Import VAT under the Standard Rate. If you’re selling in more than one European country, you may need to register for VAT in every country you sell in—especially if you’re storing your products there.
If you store your products outside Europe and ship to European customers, you’ll also need to stay on top of distance selling thresholds. If you exceed a certain amount, you’ll need to be registered for VAT in the country where you surpassed those thresholds. Thresholds vary depending on the country, so make sure to do your research so you know the guidelines you need to follow.
How do you manage European taxes and regulations?
Every country has legal and industry requirements for products in ecommerce stores, including safety requirements and environmental considerations. Taxes and regulations vary by country, so you should review them for every country you plan to sell in. Make sure you’re up to speed on:
- Taxes and customs
- Intellectual property rights, in particular IP law restrictions on parallel imports
- Export controls
- Product markings and labels
- Environmental, health, and safety considerations
- Product compliance
Learn more about taxes and regulations by country
It’s best to consult with your own tax and regulatory advisors so you’re fully aware of your rights and know how to follow the letter of the law in the countries you want to sell in. If you don’t have tax or regulatory advisors, HAQM’s Service Provider Network offers a group of vetted third-party service providers who can help with almost every step of selling with HAQM. You can search our network to find an advisor who can help you launch your online business in Europe with a greater understanding of the rules and regulations you need to follow. An advisor can also help answer any questions you may have about the process.
Explore the Service Provider Network
How do you manage product compliance in Europe?
The Manage Your Compliance tool is an excellent resource for sellers who are expanding to Europe. The tool can help you manage, submit, track, and complete safety and regulatory requirements in one place. From the dashboard, you can find:
- Required compliance documentation for your products
- The product name and image, the HAQM Standard Identification Number (ASIN), and the stock keeping unit number (SKU) for each product with compliance requirements
- The specific documents or information required for each product and the date by which they must be provided
- The approval status for any documentation or information you’ve submitted
You can upload and manage all of your product compliance documents one at a time or through bulk uploads. You can also submit documents as needed, or appeal compliance requirements.
Use the Manage Your Compliance tool
Another tool you might want to use is Compliance Reference, which lets you search for the latest compliance requirements for a product and find service providers who may help you fulfill the requirements.
Use the Compliance Reference tool
How do you ship inventory to Europe and fulfill customer orders?
While it’s certainly possible for you to manage your own shipping and fulfillment to European customers, one of the easiest ways to handle shipping and fulfillment is through HAQM’s Pan-European FBA program. Pan-European FBA takes the guesswork out of order fulfillment throughout the EU, so you can focus on running your business.
If you already sell with FBA on HAQM.com, you can use our Global Selling program to expand to Europe and take advantage of Pan-European FBA. Just create a Europe selling account, cross-list your products, and export inventory to European fulfillment centers. While distribution won’t cost you, there may be other costs associated with your Pan-European FBA account, such as fulfillment costs, storage costs, and removal costs.
Learn more about costs for Pan-European FBA
To enable Pan-European FBA as part of Global Selling, all you have to do is:
- List products in our France, Germany, Italy, and Spain stores using the same SKUs.
- Enable at least two of the following countries for FBA storage: France, Germany, Italy, Spain, or Poland.
- Register for VAT in each country where you’ve enabled FBA storage, then go to your Fulfillment by HAQM Settings page in Seller Central. Under “Cross-Border Fulfillment Settings,” select Edit, then select I have a VAT number in the row for each country you want to enable for Pan-European FBA.
- Export inventory to an HAQM fulfillment center in one of the countries you enabled for Pan-European FBA storage.
Learn more about Pan-European FBA
*A Professional selling plan is $39.99 a month + selling fees. Learn more
