Take your business to the next level

Reaching millions of new customers across Europe through online platforms can take your business to the next level. But shipping within the US is quite different from shipping to Europe. Here you will come to know about what steps are involved in the process and will help you avoid unpleasant surprises, such as extra shipping costs and delayed delivery times or having inventory held up by customs.

4 steps for shipping to Europe

1. Choose the right shipping partner: Given the complexity of international shipping, most sellers hire a freight forwarder to handle all the details, including door-to-door transportation, customs compliance, and insurance. But don’t just hire anyone. To avoid problems down the line, be rigorous in choosing your international shipping partner. For shipping to Europe, it’s critical for sellers to work with a shipping partner who understands their specific needs and the online platform's requirements. Sellers often appreciate having a single solution provider when it comes to international fulfilment.
2. Understand your shipping considerations and options, including FBA vs. MFN: As in the US, one of the main things to decide is whether to fulfil orders yourself, use FBA, or use a combination of both. Benefits of FBA? can provide an ideal way to get started to selling in Europe. Skipping the warehouse and just using a freight forwarder can help reduce inventory costs, which will also work out a system that will get the inventory straight from the manufacturer to the fulfilment centre. As soon as you ship inventory into Europe, you might have to pay import value-added tax (VAT) upon its arrival. For example, in the UK, the import VAT rate is currently 20%.
   To maximize their listings and get a better sense of what sells well, some sellers list items as merchant fulfilled network (MFN), which can be an effective option for sellers whose products are less influenced by fast delivery speeds. Another benefit of self-fulfilling into Europe is that, because you’re not holding inventory in the country, you don’t have to pay import VAT. When researching MFN, one must be sure to review international carrier rates and delivery times.
3. Understand the requirements, including import and export regulations: Regardless of which fulfilment method you choose, shipping to Europe involves certain requirements. Two of the most important ones are, providing an importer of record (IOR) and using delivery duty paid (DDP). These largely involve who is responsible for paying fees such as import duties and taxes.
   To sell in Europe, an importer of record (IOR) is required. The IOR is the entity responsible for paying import duties and taxes, ensuring that your imports comply with local laws and regulations. Note that neither the ecommerce marketplace nor its fulfilment centres can serve as the IOR for fulfilment shipments. The seller must ensure to list the right entity as the IOR, which is typically the seller.
   Another requirement for sellers related to duties is DDP, as opposed to delivery duty unpaid (DDU). DDP basically means that you pay the duties, taxes, and other charges upfront so that your customer pays no additional charges upon delivery.
4. Shop for the best shipping rates: Depending on the nature of your business, getting a competitive rate can be one of the most critical factors affecting your profitability in Europe. It can take years to build up relations and volume with a carrier that enables you to get discounted rates. Sellers often find that they can get significant discounts off published carrier rates through using a freight forwarder who has existing relationships and ships in volume.

Courtesy: Source - https://sell.amazon.com/global-selling/case-studies/shipping.html