European countries most lucrative expansion ops

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95% of UK retail and ecommerce businesses see expanding into new territories as important in diversifying their brand, with many viewing European countries as lucrative marketplaces, according to new research. However there are still significant barriers to trade (some if we’re honest due to Brexit, but others such as payments/currencies which are not Brexit related).

Nearly half (46%) see Germany as the most lucrative European country for selling internationally, followed by France (43%), Spain (30%), Italy (19%) and the Netherlands (14%). This is according to Huboo, the ecommerce fulfilment provider that uses great people and smart tech to enable every kind of business to grow.

Well over half (59%) of businesses plan to add at least one new B2C sales channel in the next 12 months and 57% plan to expand into at least one new territory. 

However, tax is considered the biggest barrier to operating cross border by half (50%) of all respondents. This is followed by customs (45%) and payments/currencies (33%). In addition, nearly half (46%) see warehousing, assets and logistics as the biggest cost when expanding into new territories. 

Expanding into new territories can be complex. Especially for businesses that have only traded domestically and just don’t have the in-house knowledge or experience of international markets. Each country has different tax, VAT and exporting regulations and it can be a minefield. However, our research clearly shows that virtually all eCommerce and retail businesses see expansion into different markets as key for rocketing their growth. So they have to find a way to bridge the gap between knowledge and taking action.

Any business – no matter what their size and scale – will face headaches and complexities when it comes to tax, customs and payments. The quickest and simplest way is for businesses to partner with providers that already penetrate international markets, enabling them to stay focused on the business strategy as opposed to the day-to-day logistics.

Many of our UK customers are looking for an EU warehousing and distribution partner, as well as access to a large untapped local market potential.

– Rob Gannon, Enterprise Sales Manager, Huboo

In the past 12 months Huboo has launched in the Netherlands, Spain and Germany, with plans to expand into more European markets in the next year. Huboo’s ever-growing network of fulfilment centres and global couriers means brands can have their ecommerce orders fulfilled all over the world, seamlessly. 

We have worked with Huboo since we launched into the UK in 2020. It’s been a great success having a fulfilment partner in place to support us along our journey, especially as our company has experienced exponential growth. Working with Huboo has made our expansion into Europe a seamless process, thankfully removing the stress of having to find a new warehouse.

– Hermione Underwood, EU & UK CEO of Australian founded supplement brand, JSHealth Vitamins


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