Knowledge Base: E-commerce Accounting and VAT Compliance

Business in a box: How to enter Amazon and eBay platforms?

Date06 Jun 2024

In today’s article, we will examine the potential of the German, Austrian, and Czech markets in terms of logistics in e-commerce cross-border sales, as well as strategies for starting e-export on Amazon and eBay. Enjoy reading!

The potential of the European cross-border market

Cross-border trade is a noticeable e-commerce trend that is gaining strength year by year. This is happening thanks to the ongoing digitization, decreasing complexity of the trading process, especially within the European Union, and increasing availability of international logistics services. It cannot be denied that the pandemic also had a significant impact in this context. The enormous interest in online shopping led to online stores generating spectacular profits on an unprecedented scale.

However, this dynamic e-commerce development was hindered by inflation. Buyers admit that it negatively affected the frequency of their online purchases. In search of new customers, entrepreneurs began to expand their sales horizons, reaching markets located outside of Poland with their products.

Strategy for entering foreign markets

Where to start? Which markets to start selling in? And – above all – how to do it? These were the questions asked by many online store owners who previously only offered their goods to domestic buyers.

The key to success in cross-border trade is planning an expansion strategy. Accurately identifying the appropriate market for your products will increase the chances of success of your endeavors.

The following factors will be important in this case:

  • the size and dynamics of exports from Poland and the size of the e-commerce market in the selected country
  • the average buyer’s basket value
  • the most frequently chosen shopping categories
  • buyer preferences regarding payments and deliveries

When choosing a logistics partner, in addition to price and delivery time, you must also pay attention to the reputation it enjoys in the market and whether its service standard takes into account the needs of local consumers. Perhaps they are interested in delivery flexibility, for example redirecting a package to a point or changing the day of service execution?

The role of sales platforms: Amazon and eBay

Amazon and eBay are among the largest and most influential sales platforms in the world, playing a key role in global e-commerce. Using these platforms can be a business strategy for companies looking to reach a wide, international customer base. However, managing cross-border logistics on platforms such as Amazon and eBay comes with its own challenges and specific requirements.

Amazon, being one of the most popular e-commerce platforms in the world, offers sellers access to a global customer base, but at the same time imposes high delivery and customer service standards. Effective cross-border logistics on Amazon requires fast and reliable deliveries, as well as meticulous handling of returns and complaints.

eBay, although slightly less restrictive than Amazon, also sets high demands in terms of customer service and delivery time. However, eBay offers greater flexibility in terms of product availability and pricing strategy, which may be attractive to some companies.

Specifics of European e-commerce markets: Germany, Austria, and Czech Republic

The European e-commerce market has its own unique characteristics and requirements. Germany, as the largest e-commerce market in Europe, is an attractive target for many companies, but at the same time poses specific challenges. German customers are demanding in terms of delivery speed, customer service quality, and transparency of the purchasing process. Therefore, effective cross-border logistics in Germany requires flexibility, efficiency, and excellent customer service.

Austria and the Czech Republic, although smaller than Germany, are also significant e-commerce markets in Central Europe. In Austria, customers value high-quality products and fast delivery, while in the Czech Republic, there is a growing demand for products imported from abroad, especially from neighboring countries. Therefore, adapting to the specifics of these markets, including local purchasing preferences and customer expectations, is a key element of success in these regions. It is worth checking whether a potential logistics operator has knowledge and experience in serving European e-commerce markets, including Germany, Austria, and the Czech Republic, taking into account the habits and preferences of local recipients.

Cross-border logistics in e-commerce: key challenges and solutions

In today’s global world of e-commerce, cross-border logistics has become an integral part of many business strategies. Companies looking to expand their reach to international markets often face numerous logistical challenges related to international shipments. Therefore, it is important to choose the right partner who offers solutions tailored to your business model, as well as the type of recipient, effectively delivering shipments to individual recipients, using knowledge of their delivery time and location preferences, as well as logistic warehouses or shopping centers that require handling in a different standard, for example only at a certain time of day.

Optimization of shipment routes

Efficient cross-border logistics requires optimizing shipment routes to minimize delivery time and transportation costs. Logistics operators should use advanced technologies and tools for route planning, enabling customers to quickly and efficiently deliver goods to recipients in Europe. Real-time shipment tracking Customers expect increasing transparency and control over their shipments. Therefore, it is important to provide the ability to track shipments in real-time – solutions for monitoring shipments, allowing customers to track their packages from dispatch to delivery, significantly improve trust in the seller.

Returns management

Returns are an integral part of e-commerce, especially in the case of international transactions. The inability to return purchased goods or their complicated procedures can be a serious challenge for both consumers and companies. Therefore, it is important to ensure the presence of this service in the store’s offer – fast and efficient handling of returns allows companies to minimize costs and improve customer satisfaction.

Protection against damage and theft

Securing shipments against damage and theft is a key element of effective cross-border logistics. The use of rigorous security procedures and offering the option of shipment insurance helps ensure customers peace of mind and protect their valuable goods.

Cross-border logistics

In summary, cross-border logistics in e-commerce poses many challenges for companies, but also opens up huge opportunities for development in international markets. Comprehensive logistics solutions that help companies overcome these challenges and achieve success in global e-commerce are currently a sought-after service in the market, both for sellers in the local market and for companies looking to maximize their chances of success on global sales platforms such as Amazon and eBay.

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The author of the article is DHL eCommerce Polska (DHL Parcel) - the leader of the Polish market for domestic and international shipments.

DHL eCommerce Polska is part of the leading group in the postal and logistics sector - DHL Group. The company offers a wide range of courier, transportation, and logistics services.

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Customer Relations Consultant for Online Sellers