Expanding into Europe works best in sequence: pick a first market, decide where stock sits, sort out registration, VAT and EORI, then budget for the costs that rarely appear in plans. Start small and test demand before moving inventory to protect cash and avoid stranded stock.
Many UK brands treat Europe as one market, when in practice it is a set of countries with different customers, tax rules and delivery expectations. Brands that expand well usually go one step at a time and sort out the paperwork before the first pallet leaves.
How Should You Sequence a European Expansion?
Start with demand, not warehouses. Look at where EU orders already come from, which countries return the most revenue, and where delivery complaints cluster. The top country on that list is usually the best first target.
Then move in stages. First, ship from the UK and fix customs data and VAT collection. Second, test faster delivery through consolidated freight. Third, hold stock in the EU only when one market justifies it. Anyone comparing the best fulfilment companies in Europe for that third stage should ask each provider how it handles customs, VAT and returns across borders, not just how many buildings it runs.
Skipping stages is the common mistake. A brand that opens an EU warehouse before it has clean customs data simply moves its problems to a more expensive place.
Where Should Inventory Go First, and Why?
Germany, the Netherlands and Poland are the usual answers. Germany is the largest consumer market and has strong carrier networks. The Netherlands offers excellent port and road links and an English-speaking logistics sector. Poland offers lower labour and storage costs with fast access to Central and Eastern Europe.
The right choice follows your customers. A brand selling mostly to France and Spain may be better served by a site that reaches them quickly, and a brand with a German-speaking audience should look hard at Germany. Before deciding, check carrier cut-offs and delivery times from each candidate site to your top five destinations.
Begin with your fastest-selling products only. Keep shipping slow movers from the UK until the new site has proven itself.
What Do Registration, VAT and EORI Involve?
Three things need attention. First, you need an EORI number to move goods in and out of the EU, and UK sellers need both a UK (GB) and an EU one if they import into the EU. Second, holding stock in an EU country normally requires a VAT registration there, and sometimes a local fiscal representative. Third, you can report distance sales to consumers through the One Stop Shop, which reduces the number of returns you file.
These steps take weeks, not days, so start them before stock moves. A good accountant who knows cross-border trade is worth the fee. Ask your fulfilment provider which duties it handles and which you pay, and get that split in writing.
What Are the Costs Nobody Budgets For?
The visible costs are freight, storage and handling. The hidden ones catch brands out: working capital tied up in stock abroad, accountancy and registration fees, duties on goods that miss preferential origin rules, and return shipping from a country with no local returns address.
Currency movements add risk, as do translated packaging, inserts and customer service in local languages. Even automation is part of the picture, and a short read on 3 technologies to automate your supply chain shows where systems can cut some of that manual cost.
Build a simple budget with a 15 to 20 per cent contingency for the first year. If the numbers still work with that buffer, the expansion is on solid ground.
Frequently asked questions
Which country should a UK brand enter first?
The one already generating the most EU orders, usually Germany, France or the Netherlands.
Do I need an EU warehouse to sell in Europe?
No. Many brands start by shipping from the UK and add EU stock once one market justifies it.
What is an EORI number?
A customs registration number needed to import or export goods in the EU. UK sellers shipping into the EU typically need both GB and EU versions.
Do I need VAT registration in the EU?
Usually, if you hold stock there. You can report distance sales through the One Stop Shop.
How much contingency should I budget?
A 15 to 20 per cent buffer in the first year is a sensible starting point.
