Selling to the EU from the UK: Which Market to Enter First

Selling to Europe is not one decision. It is a set of decisions about demand, pricing, fulfilment, language, tax, product rules and channel choice.

The European Union is a Single Market, with rules that can reduce duplication across Member States. Great Britain sits outside the EU customs and VAT framework, and Northern Ireland has its own goods arrangements. At the same time, national requirements still matter within the EU, particularly for language, producer responsibility, customer information and local delivery expectations. [1] [2] [3]

That is why a large headline market figure is a poor way to choose a first launch. The more useful question is: which market can you serve with a credible offer now, while leaving a workable route to the next one?

Scale With's planning view: Select a first market by balancing category demand, delivered contribution margin, fulfilment and returns, language and service capability, channel fit, and the compliance work required for the product and sales route. Do not use a single, unadjusted "European market size" total as the deciding number.

Europe's overall growth trajectory is real - by any measure, the region's ecommerce market keeps expanding, and B2B and multi-marketplace selling are both growing faster than the market overall - but growth at the regional level does not tell you which country to launch in first. That is a separate, operational question, and it is the one this article answers.

Why headline market figures do not make a ready-made European total

Published e-commerce figures measure different things. Germany's €83.1 billion 2025 figure is a survey-based measure of B2C online goods turnover, including VAT. France reports €196.4 billion for products and services combined, of which products accounted for €76.1 billion. Spain's CNMC series covers a much broader set of e-commerce transactions and activities, including services and cross-border activity. Italy's latest published headline is a 2026 forecast. The Netherlands measure is consumer online spending and includes purchases from foreign webshops. [4] [5] [6] [7] [8]

Those figures are useful market indicators. They are not a directly comparable total. To build a combined estimate, a researcher would first need to align the period, geographic scope, B2C and B2B boundary, goods and services coverage, VAT basis, treatment of cross-border purchases and currency conversion method. This article does not attempt that exercise.

Great Britain

• Published indicator used here: ONS internet retail sales by sector
• Scope point: A Great Britain retail series, not a UK-wide e-commerce total. [3]

Germany

• Published indicator used here: €83.1 billion B2C e-commerce goods turnover in 2025, up 3.2%
• Scope point: Includes VAT and is based on a 40,000-person consumer survey. [4]

France

• Published indicator used here: €76.1 billion in online product sales in 2025, within €196.4 billion across products and services
• Scope point: The product figure is more relevant to consumer-product brands, but remains a distinct series. [5]

Spain

• Published indicator used here: €114.8 billion of CNMC-measured e-commerce turnover in 2025, up 20.6%
• Scope point: Broad payment-data measure covering multiple sectors and cross-border activity. [6]

Italy

• Published indicator used here: €42.6 billion forecast for B2C online product purchases in 2026, up 6%
• Scope point: Forecast, rather than a closed-year observed measure. [7]

Poland

• Published indicator used here: Strategy&/PwC estimate of e-commerce sales at current prices including VAT
• Scope point: Definition and category coverage differ from other national series. [9]

Netherlands

• Published indicator used here: €35.7 billion Dutch consumer online spending in 2025
• Scope point: Includes products, services and €4.5 billion spent at foreign webshops. [8]

A practical way to shortlist the first market

There is no universal order that suits every brand. Great Britain, Germany and France are sensible markets to assess early for many established consumer-product businesses because each offers meaningful online demand and established digital channels. Spain, Italy, Poland and the Netherlands may be better first choices where the brand's category, economics or operating model fit them more strongly.

This is an indicative planning framework, not a market ranking. It should be tested against the product and the actual sales route before stock or marketing spend is committed.

Great Britain

• Evidence to consider: ONS publishes a dedicated retail internet-sales series for England, Scotland and Wales. The underlying data should not be treated as a UK-wide e-commerce total. [3]
• What to test before choosing it: Whether the English-language advantage outweighs the need for a separate Great Britain import, VAT and product-compliance route. Scope Northern Ireland separately.

Germany

• Evidence to consider: bevh estimates €83.1 billion of B2C online goods turnover in 2025. Online marketplaces accounted for 56% of that goods turnover in its survey. [4]
• What to test before choosing it: Category demand, marketplace economics, product documentation, packaging obligations and import structure.

France

• Evidence to consider: Fevad estimates €76.1 billion of online product sales in 2025. In its iCE100 panel, electronics and appliances, sport, and furniture and decoration were among the faster-growing product sectors. [5]
• What to test before choosing it: French product, offer, safety and warranty information, French producer-responsibility streams, delivery economics and relevant channel fit. [16] [17]

Spain

• Evidence to consider: CNMC measured €114.8 billion of e-commerce turnover in 2025. ONTSI reports that 67.0% of Spanish online purchasers used marketplaces and 83.6% had bought through a smartphone in 2024. [6] [10]
• What to test before choosing it: Whether a mobile-ready journey and marketplace route work for the category, together with delivered price, returns and Spanish consumer-information requirements.

Italy

• Evidence to consider: Netcomm-Politecnico forecasts €42.6 billion of B2C online product purchases in 2026. Beauty and Pharma is forecast to grow 8%, above the goods-market forecast, while consumer electronics is forecast to grow broadly in line with it. [7]
• What to test before choosing it: The platform mix, compliant Italian-language product information, landed cost and returns economics.

Poland

• Evidence to consider: In Gemius/IAB's 2025 survey, 82% of respondents used a smartphone for online shopping and 41% reported purchases from foreign websites. Parcel lockers were the most frequently selected delivery method. [11]
• What to test before choosing it: Mobile conversion, delivered price, the channel mix including Allegro and specialist retailers, and locker delivery options.

Netherlands

• Evidence to consider: Eurostat reports that 94% of Dutch internet users bought online in 2024. Thuiswinkel reports €4.5 billion of online spend and 44.8 million purchases at foreign webshops in 2025. [8] [12]
• What to test before choosing it: Whether a time-limited, category-specific test has viable Dutch-language content, delivery and returns, contribution margin and compliance coverage.

Scale With's planning view

A smaller market can be the better first launch when the brand has clearer category demand, stronger delivered margin and a better service model there. Conversely, a large market is a costly place to learn basic lessons about pricing, returns or compliance.

The Netherlands can be a useful bounded test for a brand whose delivery, returns and Dutch-language proposition are already viable. Spain can be a sensible test where the customer journey performs well on mobile and a marketplace route works commercially. Poland deserves careful consideration where mobile buying, delivered price and parcel-locker delivery are central to the category. These are hypotheses to validate with the brand's data, not guarantees of performance. [8] [10] [11] [12]

You can sign up for our free UK Market Entry Guide here.

Category signals should guide questions, not settle the decision

National category data can help frame research, but it should not substitute for a product-level demand and margin test. The same category can have a different price point, return pattern, regulatory exposure and dominant sales channel in each country.

For example, bevh reports that food, pet supplies and household goods and appliances grew faster than German online goods turnover in 2025, while commercial re-commerce grew 21.8%. Fevad's iCE100 panel reported stronger 2025 growth in electronics and appliances, sport, and furniture and decoration. Thuiswinkel reported particularly strong Dutch product-spending growth in toys, Home and Living, and household electronics. [4] [5] [8]

Use such signals to create a short list of questions:

1. Is there evidence that the category is bought online in the target market?
2. Is the delivered price competitive after marketplace fees, duty, VAT, fulfilment and expected returns?
3. Does the product suit the country's preferred discovery, payment and delivery patterns?
4. Are the language, safety, labelling and producer-responsibility requirements understood before inventory is shipped?

Choose channels market by market

There is no useful single count of European marketplaces. The answer changes depending on whether the definition includes general marketplaces, retailer-operated marketplaces, classified sites, resale platforms and social-commerce services.

The channel decision should instead be made against four questions: where does the category customer shop, what does the platform cost, what service level does it require, and what information or compliance evidence must the seller provide?

Amazon can simplify account administration through a regional Europe selling account, but an offer listed in one European store is not automatically cross-listed to the others. Amazon itself advises sellers to review tax, product-compliance, safety and listing requirements for each country in which they sell. [13]

We manage brands across more than one marketplace at a time, and the platforms that matter change by country. Beyond Amazon UK, Germany and Australia, we have run multi-marketplace catalogues on France's FNAC, Rue de Commerce and CDiscount - three platforms with separate catalogue requirements, fulfilment expectations and customer service standards. A brand that lists on all three without platform-specific content typically underperforms on all three, and the same principle carries over wherever the shortlist includes a country-specific platform alongside Amazon - eBay and Otto in Germany, bol in the Netherlands, Allegro in Poland, El Corte Inglés in Spain. Each is its own operating requirement, not a checkbox on an otherwise identical listing.

For VAT purposes, an electronic interface can be treated as the deemed supplier in defined transactions. That rule does not itself allocate product-safety, product-information, producer-responsibility or consumer-contract duties. Those depend on the role played by the manufacturer, importer, seller, EU-based economic operator and marketplace in the specific transaction. [14] [15]

Treat compliance as a route-and-product design exercise

Compliance work should begin before the first purchase order or marketplace listing. The aim is not to memorise a fixed checklist. It is to map the requirements that apply to the product, the country, the stock location and the sales route.

1. Separate Great Britain, Northern Ireland and EU routes

Great Britain is outside the EU VAT and customs framework. Northern Ireland needs separate analysis because EU VAT rules continue to apply there in respect of goods under the Windsor Framework. Product rules also differ by destination. Great Britain continues to recognise CE marking for many regulated product areas, while Northern Ireland follows the relevant CE or CE-plus-UKNI route. [2] [3] [23]

2. Map VAT and customs before setting the retail price

For direct B2C sales of non-excise goods into Great Britain, where goods are outside the UK at the point of sale and the imported consignment's intrinsic value is £135 or less, the seller generally charges and accounts for UK VAT at sale. The limit is for the total consignment, not each individual item. Marketplace-facilitated sales and Northern Ireland have different rules. [18]

For eligible B2C distance sales of non-excise goods dispatched from outside the EU in consignments with an intrinsic value of no more than €150, the Import One Stop Shop, or IOSS, can simplify VAT collection and reporting. It is optional. A non-EU business will normally need an EU intermediary to use it. IOSS does not remove the need to agree customs-declaration roles, tariff classification and the applicable duty treatment for the import route. [14]

From 01/07/2026 to 01/07/2028, Council Regulation (EU) 2026/382 applies a temporary €3 customs duty per customs item to specified eligible consignments with a total intrinsic value of no more than €150. It applies where the import is exempt from VAT under the IOSS provision or where goods are in a qualifying postal consignment. A customs item is not necessarily one physical unit, and other low-value imports are subject to normal customs-tariff treatment where applicable. Model this by SKU, origin, declaration route and sales lane rather than adding €3 mechanically to every item. [19]

3. Check product safety and conformity by product category

For a product within the scope of the EU General Product Safety Regulation, there must be an economic operator established in the EU who is responsible for the product. For online offers, the required information includes manufacturer contact details, product identification and any applicable warnings. Where the manufacturer is outside the EU, the offer must also show the responsible EU economic operator's name and postal and electronic address. [15]

CE marking is not a general consumer-product badge. It is required only for products covered by EU harmonised legislation that specifically requires it. Where it applies, the manufacturer must complete the relevant conformity assessment, technical documentation and EU declaration of conformity. Products outside those regimes may still be subject to general product-safety and sector-specific rules. [20]

4. Map producer responsibility by country, product and role

Packaging, electrical and electronic equipment, and batteries are separate producer-responsibility streams. Their application depends on the product, packaging, market and the party that is treated as producer or importer.

In Germany, a business that is a packaging producer under the Packaging and Packaging Waste Regulation must register with LUCID. Electrical and electronic equipment producers must register with Stiftung EAR before selling in Germany, and foreign producers have an authorised-representative route. [21] [22]

France has its own system. A producer subject to an extended producer responsibility stream receives an ADEME unique identifier, or IDU, for each relevant stream, including product packaging where in scope. This is not interchangeable with a German LUCID registration. [17]

5. Treat marketplace checks as an additional control, not as proof of compliance

Marketplaces may request identifiers, declarations or product-information fields under their own policies. These requirements can change by country, product category and fulfilment method. Platform approval does not confirm that the wider VAT, customs, product-safety, language or producer-responsibility position is correct. [13]

A simple launch scorecard

Before selecting a first country, score each shortlisted route on a five-point scale. Use evidence that is specific to the product and sales model, not a generic country ranking.

Category demand

• Question to answer: Is there local evidence of interest at the intended price point?
• Evidence needed before launch: Search demand, marketplace data, competitor pricing and a small paid test where lawful and practical.

Delivered contribution margin

• Question to answer: Does the sale remain profitable after tax, duty, fees, fulfilment, returns and customer service?
• Evidence needed before launch: Landed-cost model by SKU and route, including the return path.

Fulfilment and returns

• Question to answer: Can the delivery promise and returns process be met reliably?
• Evidence needed before launch: Carrier service levels, delivery options, local returns cost and damage/return assumptions.

Language and customer information

• Question to answer: Can legally required and commercially adequate product information be supplied?
• Evidence needed before launch: Product copy, instructions, warnings, warranty and distance-sale information reviewed for the target market.

Channel fit

• Question to answer: Does the chosen direct or marketplace route reach the intended customer at an acceptable cost?
• Evidence needed before launch: Platform terms, category eligibility, commission, advertising costs and seller requirements.

Compliance route

• Question to answer: Which VAT, customs, product-safety and producer-responsibility rules apply?
• Evidence needed before launch: Product and route-specific legal, tax and customs assessment before stock moves.

Test design

• Question to answer: What decision will the first 60 to 90 days answer?
• Evidence needed before launch: A written success threshold for demand, margin, delivery performance, returns and compliance completion.

A scorecard will not remove judgement. It will show whether a market is ready for a controlled test, needs more preparation, or should wait until the operating model is stronger.

Frequently Asked Questions

Which European market should a US or Australian brand enter first?

There is no universal answer. Great Britain, Germany and France are reasonable markets to assess early for many established consumer-product brands, but the first launch should depend on the product category, landed margin, fulfilment model, language capability, channel fit and product-specific compliance work. Spain, Italy, Poland or the Netherlands can be the better first market when those factors are more favourable there.

Is the UK still worth entering if the main goal is the EU?

Great Britain can be worth entering on its own commercial merits, but it is not a legal shortcut into the EU. A Great Britain launch does not create EU VAT, customs or product-compliance coverage. It may provide useful commercial learning, but the EU route still needs its own design. Northern Ireland should be considered separately because EU VAT rules continue to apply to goods there. [2] [3]

You can sign up for our free UK Market Entry Guide here.

How big is the UK and EU e-commerce market combined?

There is no directly comparable combined total from the national series used in this article. A combined estimate is possible only when the researcher harmonises the source scope, period, VAT basis and currency method. The country figures above are better used as market-specific indicators than as components of a ready-made European total.

What compliance is needed before selling in the EU as a non-EU brand?

Start with the product and route. Determine the VAT treatment for the stock and sales flow, including whether OSS or IOSS is available. Identify any national producer-responsibility requirements for the product and packaging. Check the applicable product-safety, language and customer-information rules, including whether an EU-established economic operator is required. Use CE marking only where the relevant EU product legislation requires it. [14] [15] [17] [20]

Do you need a separate Amazon account for every European country?

No. Amazon offers a regional Europe selling account, but listings may still need to be created or cross-listed for the stores selected. The account does not determine the legal position. Assess VAT by stock and transaction route, producer responsibility under the relevant national scheme, and product rules under EU harmonised legislation and national language or information requirements. [13] [14] [20]

The practical conclusion

Start with the market that your business can serve properly, rather than the market with the largest unadjusted headline figure. A credible first launch has a clear customer proposition, a tested delivered margin, a workable returns path, appropriate language and product information, a viable channel plan, and a mapped compliance route.

If you are comparing potential UK and EU launches, get in touch. We can help assess the commercial and operating questions that need to be settled before stock and marketing spend are committed.

This article provides general commercial information as at August/2026. It is not legal, tax or customs advice. Obtain advice for the product, origin, stock location and sales route concerned.

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References

1. European Commission - The Single Market
2. European Commission - Relations with the United Kingdom
3. GOV.UK - Trading and moving goods in and out of Northern Ireland
4. bevh - Growth in e-commerce, a bright spot in the German economy
5. Fevad - 2025 e-commerce results in France
6. CNMC - E-commerce turnover in Spain in 2025
7. Netcomm / Politecnico di Milano - Italian B2C e-commerce forecast for 2026
8. Thuiswinkel - Dutch online purchases and spending in 2025
9. Strategy& / PwC - E-commerce in Poland
10. ONTSI - Online purchases in Spain, 2025 edition
11. Gemius / IAB - E-commerce in Poland 2025
12. Eurostat - Online shopping in the EU keeps growing
13. Amazon - Expand to Europe
14. European Commission - VAT One Stop Shop and Import One Stop Shop
15. EUR-Lex - Regulation (EU) 2023/988 on general product safety
16. DGCCRF - Use of the French language
17. ADEME - Unique Identifier for French extended producer responsibility streams
18. GOV.UK - VAT and overseas goods sold directly to customers in the UK
19. EUR-Lex - Council Regulation (EU) 2026/382 on the temporary customs-duty regime for low-value imports
20. Your Europe - CE marking
21. Central Agency Packaging Register - Registration obligations
22. Stiftung EAR - Obligations of producers of electrical and electronic equipment
23. GOV.UK - Placing UKCA or CE marked products on the market in Great Britain