Cross-border e-commerce

What is cross-border e-commerce?

Cross-border e-commerce simply means selling products online to customers outside your own country's borders. A webshop in the Netherlands that receives orders from Belgium, Germany or even China is engaging in cross-border e-commerce. The term thus refers to international online sales, which often involve multiple currencies, VAT rules, languages and shipping conditions. Case study: Suppose you run a shop with phone accessories in the Netherlands. A customer from France orders a charger from your shop. Different VAT rules apply to that sale and possibly additional product safety requirements. You also have to arrange the logistics properly: longer delivery time, correct transport document and clearance at the border when your products come from outside the EU. In short: cross-border e-commerce offers huge opportunities to expand your market, but also requires a solid approach to customs, VAT and logistics.

Advantages

1. Expanding the sales market: You reach customers outside the Netherlands, increasing potential sales.
2. Greater growth potentiall: Companies can quickly expand internationally, especially within the EU where borders are blurring.
3. Risk spreading: By selling in multiple countries, you are less dependent on the Dutch market.

Challenges

1. Laws and regulations: Each country has its own rules (such as VAT, privacy and product standards).
2. Logistics: Shipping, delivery times, shipping costs and return flows are more complex than domestic.
3. Culturalization: Language, payment methods and preferences of foreign customers vary by country

What options are available for international sales?

A commonly used model within e-commerce is dropshipping, where you have products shipped directly from the supplier to the customer without inventory. But there are more ways to reach foreign markets. Each model has its own advantages as well as points of interest.

• International marketplaces
  Platforms such as Amazon, eBay or Alibaba offer instant access to a large customer base. You benefit from the marketplace's reach and trust, but competition is fierce and you have less control over your brand and customer experience.
• Localized websites
  By setting up a separate webshop for each country, you retain maximum control over your brand and customer communication. However, this does require investments in translation, localization and marketing so that the content connects with the local target audience.
• Third-party e-commerce platforms
  Systems like Shopify or BigCommerce make international sales easier thanks to built-in features for multiple currencies, language options and links to international shipping partners. A great solution for business owners who want to expand scalably without developing everything themselves.
• Direct-to-Consumer (DTC).
  With your own online store, you sell directly to consumers and have complete control over the customer experience. On the other hand, you have to invest more in marketing, customer acquisition and fulfillment to be successful.
• Partnerships with local distributors
  Partnering with distributors or retailers abroad can reduce logistical obstacles and provide access to existing distribution networks. However, you share the margin and relinquish some control over your brand experience.

Customs and VAT in cross-border e-commerce

With cross-border e-commerce, you almost always have to deal with customs and VAT rules. Different arrangements apply within the EU than for sales to countries outside the EU. Within the EU: Do you sell to consumers in other EU countries? Then you can use the OSS scheme. With this you pay VAT in one go in your own country, instead of in each separate country where you sell. Outside the EU: Do you deliver directly from a non-EU country to an EU customer? Then the IOSS regulation applies to orders up to €150. Orders above this amount often incur import duties and require a full import declaration. Want to get this process right? ECC offers e-commerce support for customs matters and helps you avoid unexpected delays or costs.