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The U.S. e-commerce market is slowing down. Before the pandemic, growth numbers were still in double digits. By 2025, that has dropped to around 5–6% per year. On top of that, import duties and rising logistics costs are putting margins under more pressure than ever. The same trend is visible outside the U.S. from the U.K. to Canada and from Australia to Asia, businesses everywhere are feeling the squeeze.
That’s why many D2C brands are looking for new growth opportunities beyond their saturated home turf. Europe is often the logical next step: a market of more than 500 million consumers, strong economies, and rising e-commerce volumes. But how do you scale into Europe without losing control over your margins, delivery speed, or brand experience?
In this blog, we’ll explore why Europe is a smart move, the main challenges you’ll face, and why fulfilment plays such a key role in getting it right.
The U.S. market is saturated, and margins are under pressure
The impressive growth figures of the past few years hide a tougher reality: many U.S. e-commerce players have hit a ceiling. Order volumes skyrocketed during the pandemic, but that boom has flattened out. Meanwhile, costs keep rising. According to Statista, average fulfilment and shipping costs per order have gone up by more than 18% since 2020. The main reasons? Higher wages, more expensive warehouse space, and volatile shipping rates due to inflation and fuel prices.
On top of that, customer acquisition costs are climbing. Competition for new customers is fiercer, while ad rates are more expensive than before. Consumers also expect faster, more reliable deliveries. Delivery promises are tightly monitored, and any deviation is punished with poor reviews or lost sales. Big players like Amazon set the bar for expectations, leaving smaller or niche brands struggling to compete without eroding their margins.
The result: for many companies, the U.S. market isn’t just expensive, it’s becoming riskier, too.
Europe requires a country-by-country approach
With more than half a billion consumers and well-developed e-commerce infrastructure, Europe is an attractive market. Countries like Germany, France, Spain, and the Netherlands have shown solid online retail growth for years. But Europe is anything but one uniform market. Each country comes with its own payment methods, return policies, customer expectations, and regulations.
For example, while U.S. customers are used to paying by credit card and expect free shipping, German shoppers see free returns as standard. French consumers value customer service and phone support, while Dutch buyers pay extra attention to sustainability and delivery transparency. What works in one country may not resonate at all in the next.
That’s why expanding into Europe isn’t just about adjusting your marketing or product range; it’s about getting fulfilment right at the local level. That’s where the real difference is made.
Local fulfilment is a must
Many non-EU brands start their European expansion by shipping everything directly from their home country. At first, it looks easy, no big changes needed. But soon, the problems show up: long delivery times, high shipping costs, complicated returns, and customs delays.
European customers are less forgiving. A 5–7 day delivery window often won’t cut it, especially in consumer electronics. They expect fast delivery, easy local returns, transparent costs, and customer service in their own language.
This makes local fulfilment a necessity, not a luxury. A European warehouse helps you:
- Deliver faster across multiple countries
- Handle returns locally
- Optimize customs and VAT processes
- Improve customer experience without losing control of costs
In short, fulfilment isn’t just a logistics decision it’s a strategic part of your growth model.
Picking the right location: the benefits of a central hub
When choosing a European fulfilment location, several countries come into play; Germany, France, Poland, Belgium, and the Netherlands are among the most common options. Each has its own advantages. Germany offers scale and high domestic demand. France is strong in service-driven customer experience. Poland provides relatively low labor costs.
The Netherlands, however, often comes out on top as a central hub. Why? Its strategic location, world-class logistics infrastructure, and expertise. The World Bank’s Logistics Performance Index consistently ranks the Netherlands in the global top 3. With the Port of Rotterdam and Schiphol Airport, inbound cargo can be distributed quickly and efficiently across Europe.
Even more importantly, the Netherlands combines logistics strength with a business-friendly climate for international brands. Import procedures are smooth, and the Dutch tax authorities provide clear arrangements for non-EU companies.
That makes the Netherlands a practical entry point for many international brands allowing you to serve key markets like Germany, France, and Scandinavia from a single hub without setting up multiple fulfilment sites.
Tax benefits that improve your cash flow
One advantage of setting up in the Netherlands is often underestimated: its VAT rules for non-EU businesses. In many European countries, import VAT has to be paid upfront, which puts heavy pressure on your cash flow. The Netherlands, by contrast, offers VAT deferment through an Article 23 license.
This means you don’t have to pre-finance VAT at import; you simply declare and offset it in your regular VAT return. Combine that with digital customs processes and fast clearance, and you avoid unnecessary delays at the border.
The EU has introduced tools like OSS (One-Stop-Shop) and IOSS (Import One-Stop-Shop) to simplify VAT, but these systems are often limited. For example, IOSS only applies to parcels worth under €150, while most international retailers deal with higher-value shipments. The Netherlands stands out by offering scalable VAT solutions and clear fiscal frameworks that also work for bulk shipments.
For businesses aiming to grow sustainably in Europe, this makes the difference between being buried under admin or building a scalable, manageable operation.
Grow step by step to avoid costly mistakes
Expanding into Europe takes preparation, but it doesn’t have to be a leap in the dark. Successful companies often follow a phased approach:
- Start with one European fulfilment center
- Connect your webshop with your fulfilment partner through a solid interface
- Set up local returns and customer service in the right language
- Launch in 2–3 countries to test your processes
- Scale up only once the foundation is profitable
This way, you stay in control, remain flexible, and avoid expensive mistakes or reputational damage. A good fulfilment partner helps you every step of the way from integrations to returns management.
Fulfilment as your growth accelerator
Europe isn’t just a backup plan for uncertain times elsewhere. It’s a growth market in its own right. But success depends on thinking, and acting locally. Fulfilment is the key link between your brand and your customers’ expectations.
At Fulfilment Solutions, we help non-EU e-commerce brands scale in Europe with reliable, flexible, and customer-focused fulfilment. From our warehouse in the Netherlands, we support your growth with smart integrations, local expertise, and a strong focus on your brand experience.
Want to find out how we can support your European expansion?
