Developments in e-commerce technologies are offering opportunities to open to global marketing. Cross-border e-commerce to Europe is one of these opportunities. A product sold in a physical store can be marketed to various countries in Europe with cross-border e-commerce. This giant market with ever-changing e-commerce volume offers great opportunities to retailers in Turkey. You can make cross-border sales with cross-border e-commerce. European countries which have relatively close geographical location are closer with cross-border e-commerce. It is important to be careful about certain things for cross-border e-commerce to Europe that has various advantages for selling abroad. What is the e-commerce volume of Europe? Which logistic processes are necessary for cross-border e-commerce to Europe? The answers for these questions and many more are in our article…
Commercial Volume Between Turkey and EU Countries
Turkey is busy with European countries in economic terms. Although there are problems in diplomatic relationships between EU and Turkey, commercial relationships are increasing. The commercial volume between Turkey and European Union countries exceeded 180 billion dollar in 2019. The share of EU countries in Turkey’s export has reached 50%. The top 3 highest export was Germany (1.4 billion dollars), Italy (889 million dollars) and United Kingdom (870 million dollars). Turkish firms that want to grab a piece of this share see cross-border e-commerce with Europe as an advantageous business.
Micro Export to Europe
Micro export from Turkey to a foreign country is limited with 15,000 Euro and 300 kg. Within these limits, it is possible to do micro export with Electronic Commerce Customs Declaration (ETGB). If the micro export limits is exceeded, ETGB will not be sufficiency and paid normal customs declaration must be submitted. Export limit to Europe is 22 Euro. If the total amount on the invoice does not exceed 22 Euro, there is no need to pay VAT or tax. If the shipment is more than 22 Euro, 19% tax must be paid.
International carrier operators such as DHL and UPS with Electronic Commerce Customs Declaration can conduct the customs operations for firms. Therefore, it might be a logical solution to work with these firms to send products abroad. Carrier firms contracted to deliver any product to Europe will organise the necessary documents. For this purpose, invoice, ETGB and abroad delivery documents are required.
At the same time, ATR certificate is required. ATR document is a customs document used in commerce between EU members and Turkey to benefit from low tax ratio. These documents required under EU-Turkey Customs Union agreement are not valid for all products. ATR document that is used in preferential trade under Customs Union with European Union countries provides customs tax exemption for import and export of industrial and processed agricultural products.
Popular E-Commerce Product Categories In Europe
E-commerce in 28 member states in European Union is accelerating. The most popular product categories for online shopping are fashion, electronic and media products, toys, hobby, furniture, home appliances, food and personal care products.
Statista graphic above shows the most preferred categories for online shopping in Europe region and e-commerce sales amount in these categories. According to this graphic, with a correct technical market research, any product that is sold in Turkey can be sold on EU countries with cross-border e-commerce to Europe!
Cross-Border E-Commerce and Logistic in Europe
One of the things to consider in cross-border e-commerce to Europe is logistics. Online consumers in Europe are sensitive about fast delivery. The brand loyalty and the habit to shop from the same firm tendency is high for online consumers with high-quality and fast delivery. Therefore, it is important to warn about delivery time when an agreement is made with a shipment firm. Late deliveries might be cancelled. This will incur additional costs for the firms. Therefore, it might be better to work with international shipment firms.
Another important topic is logistic costs. For example, let’s assume that an order from a foreign country is send to the buyer with cross-border e-commerce in Europe. The delivery cost for this order will be 7-8 Euro for European countries. But if the buyer returns the product, reverse logistic process will take place. This means increased costs. In short, shipment fee is paid to send to product. If the product is returned, shipment fee is paid again. Additionally, there will be additional costs since export procedures are involved. There might be serious damages in case of return. This might not be a problem for large-scale sellers. But if you are a small-scale firm or if you are new in cross-border e-commerce in Europe, this might be a problem.
Cross-Border E-Commerce in Europe and Fulfillment
The most practical way to eliminate delivery problem and cost is the fulfillment services. Fulfillment is a process that includes storage services. Fulfillment services are delivering the products from a warehouse in the target market to the buyer. With this service, it is possible to eliminate the high cost to send products abroad. With an agreement with a fulfillment service provider in the target country, all or partial product delivery is possible to the warehouse. When an order is received from abroad, this fulfillment firm will pack and deliver the product.
In case of product returns in fulfillment services, the product will come back to the warehouse and the firm will not have to bear an additional logistic cost. The returned product will be stored in the abroad warehouse. When a new order is received, the product is send to the new buyer. For fulfillment services, products are send abroad in bulk form. All other logistic processes are handled by the fulfillment firm. The fulfillment service fee will depend on products. Fulfillment fees are 5-6 Euro per product. In case of product returns, this fee must also be paid.
If the product is sold on the e-commerce website of the firm, fulfillment services must be integrated to this e-commerce website. Fulfillment companies must support the firms in this integration process. If the product is sold on a global marketplace such as Amazon Europe, Zalando and Otto, these firms offer their own fulfillment services. These marketplaces do not have integration problems. For example, products in Amazon Fulfillment services are send by Amazn warehouse. The products are listed and stored for a certain order. When the order is received, Amazon packs the product for the firm and delivers to the buyer. Moreover, Amazon manages the aftersales customer satisfaction services.
E-Commerce in Europe
E-commerce is a popular commerce model in Europe. Statistics show that European e-commerce market shows a positive growth. E-commerce is one of the most dynamic and fastest growing sectors.
Some data for e-commerce in Europe are as follows:
- In 2019, total online cross-border market (except travel) in Europe showed 14.4% increase compared to previous year and reached 108.75 billion Euro revenue.
- The share of cross-border e-commerce among total online sales in Europe was approximately 24%.
- In 2019, e-commerce sales in Europe reached 621 billion Euro. In 2020, these numbers are expected to be 717 billion Euro.
- Online revenue of West Europe forms approximately 70% of the total European online retail revenue.
- Amazon was the most visited online marketplace in Europe in 2018. The largest 10 online retailers in Europe are as follows: Amazon, Staples, Apple (All three are in the USA), Otto (Germany), Tesco (England), Groupe Casino (France), Shop Direct Group, Home Retail Group (Both in United Kingdom), Zalando (Germany) and John Lewis (United Kingdom).
- Internet penetration in Europe is 82.5%.
Make Cross-Border E-Commerce to Europe with WORLDEF!
Cross-border e-commerce to Europe is one of the commercial activities at the centre of Turkish companies. Which products can be sold with cross-border e-commerce to Europe? Which Europe countries should be key focus for sales on special days? What are the countries with highest cross-border e-commerce potential in Europe? Direct your sales targets to Europe with WORLDEF!