The internet has made some of our wildest dreams come true. You can virtually walk through museums thousands of kilometers away. You can order groceries online and have them delivered to your doorstep. You can book a vacation with just a few clicks. You can even find a professional service, like a plumber or a designer, without leaving your couch.
This seamless convenience is precisely the hallmark of modern eCommerce, powered by innovations like cross-border shipping software.
With global eCommerce, in particular, the world has become a marketplace where everything feels effortless for consumers. From shopping for international brands to accessing unique products from across the globe, eCommerce has made convenience the new normal.
It's all nice and rosy for customers who can have pretty much anything delivered to their houses, from anywhere—but for many eComm businesses, cross-border eCommerce might still pose a (or multiple) question mark(s).
Why would you attempt it? Is it the right time? And what should you know about it?
We're tackling this topic below, so keep reading if you want to find out more.
There's no doubt that COVID made eCommerce move to the major leagues. It was already well on its path, but five years ago, when lockdowns were imposed and offline businesses were forced to shut down, the entire industry shifted.
Where are we now?
Today’s consumers demand more from eCommerce businesses than ever before, especially when it comes to delivery options, return policies, and sustainability practices.
Fast and flexible delivery is now a baseline expectation, with many customers prioritizing same-day or next-day shipping. Additionally, seamless and hassle-free return processes are no longer just a bonus—they’re seen as a standard part of a positive shopping experience.
On top of this, there’s increasing pressure for brands to adopt sustainable practices, such as using eco-friendly packaging or offering carbon-neutral shipping options, as more shoppers look to minimize their environmental impact.
Meeting these expectations is crucial for businesses aiming to build loyalty and stay competitive.
In Europe, markets showed signs of slowing down in 2023, particularly in Western Europe. According to research, growth rates for domestic eCommerce were modest compared to previous years.
On the flipside, cross-border eCommerce in Europe grew significantly in 2024, with annual growth rates of 15%-30% depending on the region. It accounted for approximately 20% of all eCommerce transactions in Europe. What's more, The CEE region emerged as a key driver of cross-border commerce, growing by 12% in 2024 alone and reaching €24 billion in cross-border transactions.
Improved international eCommerce logistics and digital payment systems fueled this growth.
All in all, though, eCommerce is fine.
More than fine, actually. According to some sources, global eCommerce sales are projected to reach $8.3 trillion in 2025, representing a 55.3% growth since 2021. This highlights the continued expansion of online shopping worldwide, driven by increased internet access and mobile commerce adoption.
Cross-border selling comes with undeniable advantages for online shop owners who want to expand beyond their domestic markets. The following are some of the top benefits of global or European selling:
Expanding your market by selling globally or within Europe provides access to a much larger customer base compared to staying within domestic borders. With millions of potential customers in different countries, businesses can significantly increase their revenue opportunities.
By tapping into these international markets, online shop owners can diversify their income streams, reducing reliance on one single market and thereby minimizing risks associated with economic fluctuations or seasonal demand. Additionally, reaching a broader audience helps establish your brand as an international player, boosting credibility and opening doors for partnerships and collaborations in various regions.
Furthermore, selling to global or European markets allows businesses to take advantage of localized demand for specific products or services. Certain regions or countries may have a high demand for items that are considered niche in your home market, presenting an opportunity to attract a loyal customer base.
One of the key advantages of cross-border selling is the potential for significant revenue growth by tapping into diverse markets with varying consumer behaviors and preferences. Expanding internationally allows businesses to extend the lifecycle of their products, especially when demand may be saturated in their domestic market but remains strong abroad.
Additionally, it offers the flexibility to leverage seasonal trends in different regions, ensuring a steady flow of sales year-round. By understanding local market dynamics and tailoring marketing campaigns to resonate with international customers, online retailers can position themselves as trusted global brands and create a competitive edge in the digital marketplace.
A strong, well-recognized brand can be the determining factor in a customer's decision to choose one retailer over another. Building brand power goes beyond offering quality products; it involves forging an emotional connection with the target audience.
In a cross-border context, expanding beyond the local market can build a stronger brand presence and increase customer loyalty. By establishing a global brand, online retailers can tap into the growing trend of globalization and connect with customers worldwide.
As data shows, cross-border eCommerce will continue to expand in Europe (and beyond). If you want to put your brand out there and stay ahead of the competition, starting to sell internationally is a must. By entering new markets, your business can gain a competitive advantage over local competitors and potentially increase your revenue streams.
Additionally, selling internationally allows you to diversify your customer base, reducing the risks associated with relying on one single market. This can help mitigate any potential losses from economic downturns or fluctuations in consumer trends.
The EU isn't running short on successful cross-border eCommerce businesses. The following are just a couple of examples:
Zalando is a German-based fashion marketplace dominating the European market. It operates in 17 countries, including Germany, Poland, France, Spain, and Italy. With over 121 million monthly visitors and a projected gross merchandise value (GMV) of €30 billion by 2025, Zalando has become the go-to platform for fashion and accessories in Europe. Its success stems from offering localized services, such as language support and tailored product offerings.
Allegro is Poland's largest online marketplace and a leader in Eastern Europe, with a presence in six countries and shipping to 24 others. It attracts 289 million monthly visitors globally, with about 10% making purchases. Allegro's dominance in Poland and expansion into neighboring markets like Slovakia and Hungary highlight its strong cross-border strategy.
Bol.com is the leading online marketplace in the Netherlands, also serving Belgium. It attracts 86.2 million visitors per month and has successfully resisted competition from global giants like Amazon in the Benelux region. Bol.com's localized approach and deep understanding of regional consumer preferences have helped it thrive in cross-border e-commerce.
Running a cross-border eComm business comes with its own set of challenges. The good (and the bad) news is most of them are, in fact, supercharged "normal" challenges you'd encounter at home. We say "supercharged" because cross-border commerce can amplify them—but it still doesn't mean they're insurmountable problems.
Here are some of the cross-border challenges you might encounter:
Managing fulfillment, logistics, and delivery in cross-border eCommerce can be a complex process, but leveraging international eCommerce logistics solutions can simplify operations.
Delays are common, as goods may be held up at customs or slowed down by inefficiencies in international transportation networks. Additionally, ensuring cost-effectiveness while maintaining fast delivery times demands careful planning and partnerships with reliable global logistics providers.
Want to know what a good eCommerce delivery platform like Postis can do for your delivery operations?
Read our case study about this, here.
Navigating legislation and regulations in cross-border eCommerce requires businesses to stay informed about the legal requirements of each target market, including import duties, taxes, and product restrictions.
Non-compliance can result in hefty fines, confiscation of goods, or even bans from certain markets, which can severely impact operations. Therefore, companies must invest in local expertise or legal support to ensure adherence to diverse regulatory frameworks and avoid costly disruptions.
Effective communication is critical in cross-border eCommerce, but language barriers can hinder smooth interactions with customers, partners, and regulators. Without proper localization, businesses risk misinterpreting cultural nuances and failing to convey their brand's message to diverse audiences.
Investing in multilingual support and region-specific content is essential to build trust, enhance customer experience, and remain competitive in global markets. With human aid, AI or machine learning-assisted translation services can make this challenge easier to handle, providing cross-border shops with the linguistic platform to scale.
For cross-border businesses, the challenge lies in accurately capturing cultural subtleties while maintaining a consistent brand voice across various regions. Without proper localization, messages can unintentionally offend or confuse customers, leading to a loss of trust and engagement.
This makes it crucial for companies to adapt their content to each target market, leveraging localized strategies that resonate with diverse audiences and drive meaningful connections.
One of the biggest hurdles in cross-border business is ensuring that currency conversion is seamless and transparent for customers in different regions. Discrepancies in exchange rates or unclear pricing can lead to frustration, damaging the customer experience and hindering trust. To address this, businesses must implement reliable currency conversion systems and clearly communicate pricing to maintain consistency and fairness across all markets.
Understanding and navigating tax regulations is a significant challenge for businesses operating across borders. Different countries have varying tax laws, duties, and compliance requirements, which can confuse customers and lead to unexpected costs. Businesses must ensure transparency about taxes and clearly outline any additional expenses to avoid alienating customers and to foster trust in international transactions.
It is worth noting that the European Union makes it easier for companies operating in multiple EU member states with a value-added tax (VAT) system that standardizes taxation. However, businesses must still be aware of individual country regulations and manage taxes accordingly.
That being said, communicating about expenses to customers is crucial for maintaining positive relationships and avoiding disputes. Businesses should provide transparent pricing information, including any additional costs such as customs duties or import taxes, before finalizing transactions with international customers. This not only helps customers make informed decisions but also builds trust and credibility for the business.
Let's say you've already decided to invest in cross-border expansion for your eCommerce business.
How do you choose which countries to sell in?
Although there is no set recipe, looking at the following metrics will help you understand where your next business destination may be:
Gross Domestic Product (GDP) is a critical metric to consider when determining which countries to target for international expansion. GDP measures the total economic output of a country, reflecting the overall health and size of its economy.
A higher GDP often indicates a wealthier population with greater purchasing power, providing more opportunities for your products or services to thrive. By targeting countries with strong and growing GDP figures, you can tap into markets with potentially higher demand and better economic stability, increasing the likelihood of success for your business endeavors.
To use GDP as a decision-making tool, start by researching the GDP of potential markets using trusted sources such as the World Bank or International Monetary Fund. Prioritize countries with not only high GDP but also consistent growth trends over recent years, as this can signal rising consumer spending and market potential.
Additionally, consider how your products align with the specific needs and preferences of consumers in those high-GDP regions. Combined with other market factors like competition and logistics, GDP analysis helps create a comprehensive strategy to identify and prioritize international markets for your eCommerce expansion.
Consumer spending serves as a critical indicator of the economic vitality and purchasing power of a country’s population. High consumer spending typically reflects a strong demand for goods and services, which is essential for eCommerce success.
By analyzing consumer spending data in potential markets, businesses can determine whether residents in those regions are likely to allocate a portion of their income to the products or services being offered. This data can provide deeper insight into the affordability, buying behaviors, and overall economic engagement of a country's population, allowing for more targeted and effective market entry strategies.
When deciding which countries to start selling in, businesses should assess consumer spending trends alongside other factors like GDP, competition, and local preferences. For example, countries with high consumer spending levels and a growing middle class are often prime candidates for eCommerce.
Prioritizing regions with upward trends in discretionary spending—money available after essential expenses—can ensure a greater likelihood of success. By combining consumer spending analysis with market research, you can identify not just where demand exists but also where there is significant potential for growth, paving the way for a strategically sound international expansion.
If you decide to sell your products in multiple countries, you have two options:
A localized business or website is one that has been tailored to meet the specific needs, preferences, and cultural expectations of a particular region or audience. This process involves translating language, adjusting pricing, complying with regional laws, and aligning branding with local culture to ensure relevance. Localization builds trust, boosts engagement, and makes products more appealing in target markets.
Here are two examples of localized businesses in the European space include:
Alternatively, some companies may choose to enter a new region through regional marketplaces, rather than creating their own localized website. This allows them to tap into an already established customer base and take advantage of the marketplace's infrastructure and support.
Regional marketplaces offer a variety of benefits such as:
Examples of regional marketplaces in Europe include:
As mentioned before, there's no magic spell you can use to expand your business. But if we had to narrow the process of cross-border expansion down to a few solid best practices, they'd be:
Thoroughly researching your target market is crucial for successful cross-border expansion. This involves understanding local consumer behavior, preferences, and cultural nuances, as well as analyzing competitors and regulatory requirements. Gathering this information enables your business to tailor your products, marketing strategies, and operations to better align with the needs and expectations of the new market.
Selecting the right products for a new market is essential for success in cross-border expansion. Focus on offerings that align with local consumer demand and cultural preferences while also considering any regulatory or compliance requirements.
Conducting thorough market analysis helps identify products with the greatest potential and ensures your business can effectively meet the needs of the target audience.
Accurately calculating your margins is crucial to ensure profitability in a new market. Consider factors such as production costs, shipping expenses, tariffs, taxes, and potential currency exchange fluctuations. This analysis helps determine the optimal pricing strategy while maintaining competitiveness and achieving sustainable growth.
Your pricing strategy should balance affordability for customers with profitability for your business. Evaluate competitor prices, customer purchasing power, and perceived value of your product to set a price point that aligns with market expectations while ensuring a healthy profit margin.
Efficient shipping is critical for a successful international business. Consider factors such as reliable carriers, shipping costs, delivery times, and customs regulations to ensure timely and cost-effective delivery of products to your customers. A well-organized shipping strategy not only enhances customer satisfaction but also helps build trust and loyalty in global markets.
Services like Postis can help you not only expand your eCommerce past the borders of your country, but also provide you with the data you need to optimize inventories and gain full clarity over last-mile delivery. All of this helps you create a flawless customer experience (at home, and abroad).
Optimizing your store for international success involves tailoring your website for global audiences, ensuring it is user-friendly, and offering multiple language and currency options. Additionally, providing clear product descriptions, competitive pricing, and a seamless checkout process builds trust and enhances the shopping experience for customers worldwide.
A flexible supply chain is essential for adapting to the dynamic demands of international markets. It allows businesses to respond quickly to changes in customer preferences, manage inventory effectively, and minimize disruptions. By diversifying suppliers, leveraging localized warehouses, and embracing technology, companies can ensure a more resilient and efficient global operation.
There's nothing more damaging to a company's reputation than hidden fees, unexpected taxes, or vague policies. To establish trust with customers and partners, it's crucial to maintain transparent pricing and clearly communicate all terms and conditions. This also applies to compliance with international trade laws and regulations – any violations can result in heavy penalties or even legal consequences.
Ensuring compliance and security is vital for protecting your business from potential risks and maintaining the trust of stakeholders. This involves adhering to all relevant regulations, implementing robust data protection measures, and regularly auditing internal processes to prevent breaches or violations. Prioritising these areas not only safeguards your operations but also reinforces your reputation as a reliable and responsible organisation.
Partnering with local experts provides invaluable insights into regional regulations and cultural nuances, ensuring your business remains compliant and well-adapted to local contexts. Their expertise can help you navigate complex requirements, reduce risks, and build strong relationships within the community.
From translation and localisation pros to influencers, local experts will help you put a foot in the door of new markets and establish your brand as a trusted player in the region. They can also help you tailor your products or services to meet local preferences, which is crucial for success in international business.
Want to learn more about going cross-border with your eComm store?
Read our eBook, Optimizing eCommerce in Poland: Last Mile Insights to Propel Business Growth
So, Do You Need a Cross-Border eCommerce Platform?
The answer is "yes". But you don't have to take our word for granted.
Cross-border eCommerce is not easy, but a cross-border delivery platform and working with the right last-mile delivery service providers can help you overcome challenges more efficiently
Here are some of the specific ways it can do that:
This feature allows you to work with multiple carriers and leverage local partnerships to ensure efficient and reliable shipping. This approach improves delivery speed and reduces costs, which is essential for cross-border success.
This cross-border eCommerce platform helps you provide accurate pricing and delivery time estimates tailored to different regions. This builds trust with international customers and enhances their shopping experience. Providing localized payment options can further improve convenience and customer satisfaction.
Cross-border eCommerce platforms provide you (and your customers) with real-time updates on shipments, ensuring customers and businesses can track packages at every stage. This transparency increases customer satisfaction and minimizes delivery-related concerns.
This type of feature helps you streamline the process of managing returns across borders, making it easy for customers and businesses to handle product exchanges or refunds. A smooth return policy boosts customer loyalty in international markets.
A centralized control tower monitors all shipping operations, ensuring seamless coordination across borders. This helps businesses maintain efficiency and resolve issues quickly when entering new markets.
You don't have to expand your business internationally.
But it can provide many benefits and opportunities for growth. With the right tools and strategies in place, you can successfully navigate the challenges of international shipping and make the most out of this global market.
It's a new dawn for eCommerce, and those who are prepared will reap the rewards. So go ahead and take that leap into international markets, because the world is waiting for your business!
Cross-border eCommerce platforms are online marketplaces that enable businesses to sell products and services to customers in other countries. Examples include Amazon, eBay, Alibaba, Etsy, and Shopify. These platforms handle international transactions, logistics, and sometimes even currency conversion to streamline global trade.
To start cross-border eCommerce, follow these steps:
Amazon cross-border eCommerce refers to using Amazon's platform to sell products to customers in other countries. Programs like Amazon Global Selling help sellers list products on international Amazon marketplaces, manage logistics through Fulfillment by Amazon (FBA), and provide access to tools for currency conversion and compliance with local laws.
The main risks of cross-border eCommerce include:
