Foreign expansion – how to set up an online store in the European market?

Author

Zofia Komada-Andrukhiv

Article publication date
2025-10-17
Article update date
2026-02-13

Estimated reading time for the article

13 min

ekspansja zagraniczna

Cross-border sales are gaining importance in Europe. Consumers are increasingly willing to order from abroad, especially if it involves better pricing or a unique product. In 2025, the e-commerce market in the European Union is more integrated than ever before, and technological and logistical barriers have significantly lowered. International expansion is no longer the domain of giants – it's becoming a viable growth path for medium-sized and smaller e-commerce stores.

Target market analysis

The first step is choosing the right country. The largest market doesn't always mean the best. Consider, among other things:

  • level of competition,
  • consumer purchasing preferences,
  • popularity of product categories,
  • the level of development of e-commerce and the availability of payment methods.

For example, Germany is a stable but highly competitive market. Romania and the Czech Republic are smaller, but with rapid growth and lower entry barriers. It's also worth considering advertising costs (CPC), language, purchasing power, and local delivery preferences.

Legal and tax aspects

In the context of cross-border sales within the European Union, knowledge of applicable legal and tax regulations is not optional – it's the foundation of safe business operations. Even the best-prepared expansion can end in failure if local consumer or fiscal regulations, or formal e-commerce requirements, are ignored.

VAT OSS registration – made easier with the obligation

In the case of B2C sales to customers in other EU countries, the entrepreneur is required to settle VAT at the rates applicable in the buyer's country. However, the tedious process of registering with the tax offices of each member state has been simplified thanks to the system. VAT OSS (One Stop Shop) . It allows you to declare and pay tax due on foreign retail sales in one place – in Poland.

The use of the OSS system applies only to the sale of B2C goods and services and is applicable after exceeding the threshold €10,000 in total annual sales to other EU countries . Once registered with OSS, the seller can settle VAT on foreign sales quarterly, without the need to establish branches or register for tax purposes in the destination countries.

Local consumer laws – differences that matter

Each European Union member state has its own consumer rights laws, and while these are partially unified by EU directives, regional differences can have a significant impact on e-commerce practices. In particular, it's important to note:

  • Period of withdrawal from the contract (return of goods): The minimum period is 14 days, but in many countries (e.g. Germany or the Netherlands) the standard is 30 days , and consumers expect such a period even if the law does not require it.
  • Return costs: In some countries, free returns are a common expectation – failing to do so can negatively impact conversions and brand reputation.

Information obligations – transparency is an obligation, not a choice

Online stores operating in the European market must be equipped with precisely formulated legal documents that comply with local requirements. In particular, these include:

  • Terms & Conditions,
  • Privacy and cookies policy (GDPR compliant),
  • Delivery and returns terms,
  • Seller contact and identification details.

In many countries, failure to provide this information can result in automatic fines or complaints to local consumer protection authorities. For example, France mandates the inclusion of response time information, while Germany is particularly strict about the lack of transparency regarding final prices (they must include all costs, including shipping and taxes).

Certification, safety and product markings

Introducing products to the European market requires meeting certain norms and standards. Depending on the industry, this may include:

  • CE certificate – mandatory for many product categories (electronics, toys, medical products),
  • REACH – for chemical and cosmetic products,
  • WEEE / RoHS – for electronic devices and household appliances,
  • Linguistic marking – instructions and labels must be available in the language of the country to which the goods are being shipped.

Failure to meet these requirements may result in customs detention of the shipment, fines, or even a ban on further sale of the product in a given market.

Other important legal aspects

  • Geo-blocking Regulation: EU regulations prohibit discriminating against customers from other member states by blocking access to a store or discrepant pricing. This means that online stores should be accessible to all EU citizens, with similar, if not identical, prices.
  • ePrivacy and marketing consents: In addition to GDPR, regulations regarding marketing consent also apply. In Germany and France, separate checkboxes are required for each type of communication (email, text message, telephone), with clear information about who the data controller will be.

Translation and store localization

The difference between translation and localization is fundamental. Simply translating texts isn't enough—you need to ensure:

  • local idioms and sales phrases,
  • price conversion in local currencies,
  • date, time, address formats,
  • compatibility with users' browsers and language settings.

Localization directly impacts conversions. Even a seemingly minor change like rounding prices to ".99" instead of ".00" can increase sales.

Logistics and fulfillment

Logistics is one of the key aspects of expansion. You have two options:

  • Cross-border shipping from Poland – cheaper to start with, but with a longer delivery time.
  • Local warehouses – faster, more competitive, but require greater investment.

Consider fulfillment with local partners (e.g., byrd, OEX, Omnipack) or using Amazon FBA. Also consider:

  • customs costs outside the EU (e.g. Switzerland, Norway),
  • returns process – whether centralized or local,
  • labeling and shipping document requirements.

Expansion-friendly e-commerce platforms

Not every platform is suitable for rapid expansion. The most common are:

  • Shopify – intuitive, multilingual, supports multiple currencies and time zones, has good integration with local operators and payments.

Shopify is a platform that has gained popularity thanks to its incredibly clean interface and ease of implementation, even without extensive technical knowledge. Its key advantage is native support for multiple currencies and time zones, allowing you to seamlessly manage a store targeting customers from different countries.

Shopify Poland It offers extensive multilingual functionality, including dedicated applications and tools for translating store content. Another significant advantage is its numerous integrations with local logistics operators, payment systems (e.g., PayU, Klarna, Przelewy24), and marketing tools popular in individual countries.

Additionally, Shopify Plus – version for large enterprises – extends the possibilities of multi-channel management and process automation, which is particularly important when expanding into markets with high operational requirements.

  • WooCommerce – great flexibility and adaptability, but requires technical support.
  • PrestaShop – popular in continental Europe, many ready-made modules for local markets.

An alternative might be to start expansion by marketplaces such as: Amazon, Allegro.cz, Kaufland.de, eMAG, Bol.com – they allow you to test the market without large investments in your own store.

International payments

Customers from other countries expect familiar payment methods. In addition to traditional cards and Apple Pay, the following are popular:

  • Germany – Klarna, Sofort, bank transfers,
  • Netherlands – iDEAL,
  • France – Carte Bancaire,
  • Eastern Europe – cash payment on delivery.

It is worth choosing payment gateways that support multiple currencies (e.g. Stripe, Adyen, Mollie), which enable dynamic currency conversion in the shopping cart (DCC – Dynamic Currency Conversion).

Marketing and customer acquisition

The biggest challenge in a new country is acquiring initial traffic. Effective channels include:

  • Google Ads with local copywriting and keywords ,
  • Meta Ads campaigns geographically targeted,
  • local influencer marketing ,
  • marketplace ads (e.g. Amazon Sponsored Products).

They also work well price comparison websites (e.g. Idealo, Heureka, Compari), local affiliate networks and loyalty programs integrated with the market.

Customer Service and Returns

Customers expect service in their native language. It's worth hiring a native speaker or using a professional BPO with a local team.

Things to pay attention to:

  • e-mail and live chat support in local language,
  • ticket system divided into languages ​​and countries,
  • a clear returns policy – ​​preferably in a pre-paid format or through local return points.

Returns are one of the most common reasons for negative reviews – managing them properly has a direct impact on a brand's reputation.

Measuring effectiveness and scaling

Once sales have launched, it's important to monitor performance indicators. Key KPIs include:

  • customer acquisition cost (CAC),
  • basket value (AOV),
  • conversion from paid traffic,
  • return on campaign (ROAS),
  • cart abandonment rate.

Analytical tools (GA4, Hotjar, Clarity) and CRM and remarketing automation (e.g. Klaviyo, Omnisend) allow you not only to analyze but also to scale sales.

After achieving stable results in one market, it is worth considering expansion to other countries – using the infrastructure already built.

A checklist for international expansion for a Polish e-commerce store

1. Market analysis and planning

  • Identify target European countries for expansion
  • Conduct competition and local demand research
  • Assess the cultural and linguistic specificity of your clients
  • Determine your entry model (your own store, marketplace, hybrid)

2. Preparation of the product offer

  • Check product compliance with local regulations (certificates, standards)
  • Adapt the assortment to local preferences and needs
  • Prepare localized descriptions, photos, and marketing materials

3. E-commerce platform and technology

  • Choose a platform that supports multilingual and multicurrency
  • Configure your store location (language, currency, taxes)
  • Integrate with local payment and delivery providers
  • Test your purchasing process and customer service in new languages

4. Legal and tax aspects

  • Register for VAT OSS (One Stop Shop)
  • Please check your local regulations regarding returns and complaints.
  • Prepare regulations, privacy policies, and GDPR consents in accordance with local law
  • Consult a tax and legal advisor in the target countries

5. Logistics and fulfillment

  • Choose logistics operators with geographical coverage and an offer tailored to the market
  • Provide delivery options tailored to customer expectations (e.g., parcel lockers, same-day delivery)
  • Set up a local returns and exchanges process
  • Consider local warehousing or fulfillment from Poland – cost and delivery time analysis

6. Marketing and Communication

  • Create a marketing strategy that includes local channels (e.g. social media, Google Ads, influencers)
  • Adapt your communication to your customers' cultural and linguistic specificities
  • Provide customer support in local languages ​​(live chat, hotline, email)
  • Monitor and analyze campaign effectiveness in individual markets

7. Customer Service and Relationship Management

  • Organize multilingual after-sales support
  • Prepare complaint and return procedures in accordance with local law
  • Provide a fast and transparent customer communication system
  • Monitor and respond to feedback on local channels

8. Monitoring and optimization

  • Establish KPIs for each market (sales, conversion, shipping costs)
  • Regularly analyze sales data and customer behavior
  • Optimize your offerings, processes, and marketing campaigns based on results
  • Implement new technologies and improvements that increase competitiveness

Summary

International expansion is a demanding yet extremely profitable step in e-commerce development. The key to success lies not only in product and price, but also in fully adapting the store to the realities of the local market – in terms of legal, linguistic, logistical, and marketing aspects. With the right technological tools and a conscious strategic approach, even a medium-sized e-store can successfully enter the European market.

About the author

Zofia Komada-Andrukhiv

Co-owner of Noto Agency, she specializes in finding optimal paths to implementing Shopify and Shopify Plus stores, recommending specific solutions and highlighting the differences, advantages, and disadvantages of each option. She has been with Shopify for over six years.

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