Why US brands should expand to the EU: 3 benefits of working with an EU fulfiller

As the world becomes increasingly interconnected, many brands are looking to expand their customer base globally. If you're a US brand looking to grow and maximize profits, then expanding into the European market can be an excellent opportunity. With a population of over 742 million, the European Union (EU) represents a significant consumer market for US brands, and it can provide immense growth opportunities.

In this blog post you will find some key reasons why US brands should expand to the EU. Plus, you will find out the benefits of working with an EU-based 3PL partner.

Large consumer base that is easily accessible

As previously mentioned, the EU represents a vast market with a population of over 742 million people. The EU is the third richest economy by GDP after the USA and China, and it is growing at a steady rate. Expanding to the EU can open up new opportunities for US brands, as they can tap into a diverse customer base with different needs, preferences, and buying behaviors.

Despite the diversity of countries, cultures, and languages, access to this population is also made easier thanks to the EU’s free trade agreements and customs union. This means that there are no customs duties paid on goods transported between EU countries.

A mature market of online shoppers

Purchasing power is high in Europe. The continent’s total GDP currently stands at €21,346 billion and this is projected to continue rising. The market is particularly interesting for e-commerce brands as the continent’s internet usage is at 91% on average, and in markets such as the Nordics, this number increases to 97%. 

Plus, of those internet users, an average of ​​75% are already actively online shopping, with that number increasing to over 90% in the Netherlands, Denmark, and Sweden.

US e-commerce brands can take advantage of this population that has already integrated online shopping into their day-to-day life.

Competitive advantage and diversification

Expanding to the EU can provide your brand with a competitive advantage. By diversifying your customer base and tapping into new markets, you can reduce your reliance on the US market, which can be affected by economic fluctuations, political uncertainty, or other factors.

Additionally, expanding to the EU can help your brand stand out from competitors that have not yet entered the market. While the EU e-commerce market is competitive, it may be less crowded than the US market, providing opportunities for US brands to stand out and gain market share.

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UK expansion is tempting, but don’t miss out on opportunity in the EU

Some US-based brands take their expansion to the UK first before expanding to Europe. This can make sense as the UK has a similar culture and the same language as the US. However, when it comes time to expand further, sending directly from the UK into Europe is not a scalable solution.

With Brexit tariffs affecting trade between the UK and the EU, it can be far more costly and take longer to ship to your customers in the EU.

Find out more about why you should base your fulfillment in the EU rather than the UK here.

Easy operational expansion with sophisticated logistics infrastructure

The EU is home to a sophisticated logistics network, and free trade agreements in the Schengen zone mean getting goods from A to B is much simpler than across other country borders.

Working with an EU-based fulfillment partner makes scaling across Europe even smoother. The best 3PL companies have multiple fulfillment centers based in key markets across the continent meaning you can easily distribute your inventory in or within quick shipping distance of your chosen markets. 

In addition, if you work with a 3PL company like Hive, their freight team can take over forwarding between your supplier and each fulfillment center, meaning you don't need to worry about complex freight negotiation. This frees up your time meaning you can focus on marketing your products to your new European customer base.

Here are 3 further benefits of working with an EU-based fulfillment partner:

1. Local expertise

An EU-based fulfillment partner can provide your brand with local expertise and knowledge of the market. They can help you navigate the complex regulations and compliance requirements, understand consumer preferences, and tailor your products and services to meet local needs. They will have good knowledge of delivery carriers, strategic partners, packaging suppliers, and more.

For example, find out here how Hive uses in-depth knowledge of delivery carriers to get brands up to 36% cheaper delivery compared to standard carrier customer rates.

2. Cost-effective

Working with an EU-based fulfillment partner is a cost-effective way to expand your brand. Rather than investing in expensive infrastructure and logistics networks yourself, you can partner with an established provider who already has the resources in place. This can help you reduce your overhead costs and free up your time to focus on growing your business.

Plus, distributing your inventory across Europe means you get access to more affordable and quicker shipping across the whole market. 

Check out here for example, how Holy managed to cut delivery costs by 25.5% and ship to France in just 2 days.

3. Scalable solutions

An EU-based fulfillment partner can help your brand scale quickly and efficiently. As your business grows, they can provide you with more comprehensive services, such as pan-EU fulfillment with distributed inventory, without the need for you to invest in additional resources.

Expanding to the EU gives US brands access to a mature market with plenty of opportunity

In conclusion, expanding to the EU can provide US brands with significant growth opportunities. With a large consumer base, increased revenue potential, competitive advantage, and access to talent and resources, it's a market that should not be overlooked. Working with an EU-based fulfillment partner can make expansion simple, cost-effective, and scalable.

Hive is an ideal partner for US brands looking to expand their business in Europe as it provides everything you need for European expansion in one place. Our pan-EU fulfillment network allows you access to 2-day shipping across Europe. Plus, US brands needn’t worry about the language complexities across the EU, as Hive has English speaking team members in all our active markets.

Interested in taking your brand to the next level? Find out more today.