The geopolitical landscape, with evolving tariffs and the knock-on impact for supply chains, means UK retailers are looking closer to home when it comes to increasing sales. The EU has once again become a market priority.
Andrew Scanlon from Paxon – a newly formed third-party logistics brand created by bringing together three specialist providers: Active Ants, Staci and Radial – shares top tips for UK retail businesses wanting to drive sales across Europe.
Why the EU market?
According to the Department for Business & Trade, UK exports of goods and services to the EU topped £388billion in 2025. As e-commerce continues to mature in Europe, there are plenty of cross-border trading opportunities for UK retailers, and that figure could be just the beginning.
In fact, in the ten years since 2015, the number of online shoppers in the EU increased from 62% to 78%. Growth in e-commerce has been seen across the majority of age groups, with in-demand categories including fashion, consumer electronics, beauty and wellness, and homewares.
The potential for UK retailers is huge. But the UK’s separation from the EU means things aren’t as straightforward as they once were. We’re advising clients to focus on three areas to capitalise on this growing opportunity.
1) Planning is paramount
Post-Brexit, exporting goods to the EU requires a GB Economic Operator Registration and Identification (EORI) number, as well as specific customs declarations and compliance with rules of origin.
Declarations are made to HMRC via the Customs Declaration Service (CDS). This requires a range of data, such as the description of goods and commodity codes, consignment details and references, customs procedure codes and details about logistics and transportation.
Well organised data can streamline the process and enhance compliance. Fulfilment partners can provide valuable experience and support here, acting as intermediaries and handling CDS submissions on behalf of retailers.
2) Select your supply chain strategy
While there are various supply chain strategies that retailers can take, the big question is whether they’d rather fulfil orders in the UK and ship each one directly to EU customers, or whether their business should export SKUs in bulk and fulfil orders locally on the continent.
In the main, we see UK retailers serious about EU expansion, choosing dual-entity warehousing, with bases here and in Europe. By holding stock in both locations, businesses can minimise border delays and duties, getting orders to customers faster.
Another popular option is bonded warehouses in the EU. These are used to store goods in the Union, without paying duties until products enter free circulation.
Each of these options has advantages and trade-offs and should be considered on a case-by-case basis. Variables like where customers are located, the frequency and volume of orders and the type and value of the products being exported, will all have a bearing on the effectiveness of the selected strategy.
Understanding these factors is crucial for managing costs and mitigating risks of border delays. Partnering with a logistics provider that has global reach and has taken retailers through this process can make all the difference.
3) Managing moving goalposts
Selling across the EU means navigating a complex web of varying VAT rates, tax rules and country-specific regulations. While early preparation is vital, this is not a one-and-done situation. The EU is a fast-changing market and fulfilment strategies will only work if they keep pace.
For example, there are plans to abolish the long-standing duty-free relief for parcels valued at under €150, which enter the EU from non-EU sellers. New interim measures are expected from 1 July 2026, with announcements from the European Council and the Council of the European Union indicating that a flat rate customs duty of €3 could be applied to items contained in smalls parcels valued at less than €150. The duty could be levied on each different category of item, identified by their tariff sub-headings, contained in a parcel. Previous reports suggest these measures could change again in 2028, when the EU’s customs data hub is operational.
There are also changing regulations for all packaging placed on the EU market, which applies to non-EU businesses. This will make new requirements for packaging recyclability, as well as introducing restrictions on the size of empty spaces in packaging.
UK retailers must stay on top of evolving EU regulations to avoid costly compliance failures and to ensure they keep products moving smoothly and cost-effectively to customers throughout the Union.
Click here to find out more about fulfilment strategies that can drive growth across the EU.
