In today’s digital marketplace, eCommerce businesses are increasingly turning their attention to Germany as a lucrative market. However, since Brexit, reservation from UK brands has become prevalent when considering Germany as a destination to ship to. 2018 to 2023 saw a 71% drop in order volumes of consignments shipped from the UK to the EU, suggesting UK businesses are simply retracting business efforts in the region or choosing to trade domestically within the country itself. With 81 million people and a thriving economy, Germany is a great opportunity for eCommerce brands to expand their reach, grow their customer base and maximise their sales. With that in mind, Brexit red tape should not dim the efforts of UK eCommerce businesses wanting to trade in the region. With centres in Leipzig and Bocholt, fulfilmentcrowd can help scale eCommerce businesses and access the German market, making the process as simple as possible.
Here are some advantages of shipping to Germany1. Growing Consumer Demand
Germany has seen a steady increase in online consumption over recent years and continues to be one of the largest eCommerce markets in the world, with the industry expected to reach a value of over €140 billion by 2027. To capitalise on the growing consumer demand, building brand credibility quickly and providing a best-in-class service proposition helps supercharge profitable growth by driving positive brand perception, conversation amongst the target market, and consequently referrals, unlocking the door to new customers in the most cost-effective and sustainable way.
Having an agile partner that can support rapid project implementation, service unprecedented high volumes of orders within SLA, and at pace using a bespoke and customisable fine-mile solution to drive this positive brand credibility is the key to unlocking and maintaining incremental sales. Penetrating new markets tends to be on strategy roadmaps to support growth plans with increased revenue, therefore getting to new markets as quickly and efficiently as possible can mean increased profits, sooner rather than later.
Gone are the days when 6-month+ project lead times and substantial upfront capital are required to roll out growth plans. Here at fulfilmentcrowd we offer rapid deployment of custom solutions, supported by the fulfilmentcrowd platform. Our proprietary software combines your typical outsourced tech stack of WMS, OMS, carrier management, returns management, and inventory management for total control and transparency, also integrating with your ERP systems via API. Protect cash flow by monitoring and transferring stock across locations and benefit from automated distributed order management ensuring consignments are always picked and shipped from the best stock holding location based on delivery address ensuring fast and cost-effective final mile delivery and delighted customers, always.
2. Well-developed eCommerce sector
With a well-developed eCommerce sector, many brands are taking advantage of the opportunities Germany provides for online sales, strategically curating a bespoke, multi-channel approach. Connecting to the right sales channels and reaching the appropriate consumers is essential for brand authenticity and for nothing more other than to reach the right target customers, in the right place. The fulfilmentcrowd platform offers the option to connect to a plethora of channels, with unlimited connectivity, to best suit any business strategy. Instantly integrate new channels efficiently through the fulfilmentcrowd platform whenever a new opportunity arises, diversifying reach.
3. Various options when choosing the right route to market:
When shipping products to Germany, there are various steps businesses can take to capitalise on consumer demand:
Continue to shop-cross border: When working within the IOSS Scheme, fulfilmentcrowd has carriers in place that can ship most products to the value of €150. Options with DPD are also available to deliver goods to most countries without the need for registration under the IOSS scheme, or if goods exceed the €150 limit.
However, it is important to check commodity codes, as some carriers will not ship certain products such as food within the EU. Working with an extensive network of carrier partners, we can provide bespoke services - our fulfilment experts can advise on the best final mile solution for any proposition.
Becoming a VAT-registered business in Germany: If shipping to Germany is a serious and long-term business approach, this option would be viable. It would allow high order volumes to be shipped directly from Germany, ensuring it reaches the customer quickly. With 40% of German consumers claiming fast delivery is important when shopping online, this option can ensure the end customer is satisfied with how fast they receive their orders*. fulfilmentcrowd works with an ecosystem of trusted partners, such as Avalara, who support businesses in the process of becoming VAT registered in another country.
Use a third party such as Amazon FBA: Amazon FBA can be used to ship proportions of existing inventory into Amazon DCs, using their established channel to sell products and have them fulfil orders. This is the perfect opportunity to test demand with minimal risk or upfront capital investment and to gain brand traction in a new territory. This can be achieved by becoming a VAT-registered business, with the ability to choose a multi-channel approach to gain traction.
fulfilmentcrowd integrates with Amazon FBA, which enables orders to be shipped from multiple sales channels D2C, B2B, and wholesale across multiple markets that can be managed in our app.
4. Advanced and secure shipping
Germany has an advanced and secure shipping and logistics infrastructure which makes it easy and reliable for eCommerce businesses to ship their products to customers. Shipping is relatively straightforward and can be done with a variety of carriers, from major international carriers like DHL, FedEx, and UPS to smaller regional carriers, there is no shortage of options for businesses to choose from. In addition to this, the opportunity to become a VAT-registered company and be able to ship your products directly from Germany will make the shipping process easier for your business, ensuring customers receive the best experience.
5. Low-Cost Shipping
Germany has an extensive and well-developed logistics network that makes shipping goods to and from the country easy and affordable. This can help businesses to keep their costs down and increase their profit margins. With existing relationships with carriers, fulfilmentcrowd can help businesses be introduced to the right carriers that work best for them at the best rates.
*Data from Internet Retailing, Germany 2022: E-commerce Country Report Report at Country Reports - Internet Retailing
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