UK brands shipping to EU customers face hidden costs, customs delays and tighter rules from 2026. Here is how to choose the right fulfilment setup, says Cain Fleming, Green Fulfilment.
UK retail exports to the EU have fallen by £5.9 billion since Brexit, with clothing and footwear exports down more than 60% between 2019 and 2023. For many brands, the mechanics of cross-border shipping have become a genuine barrier to EU growth: customs paperwork, slower delivery times, and unexpected charges landing with customers at the point of delivery.
Brands that have restructured their EU fulfilment are competing on far more level terms with local sellers. Those still shipping every order from a UK warehouse are carrying a cost and speed disadvantage that is increasingly hard to close.
Shipping from the UK to EU customers no longer works the way it did
Before 2021, sending goods to a customer in France or Germany was treated much like a domestic shipment. That is no longer the case. Every consignment now requires a customs declaration, and import duties and VAT apply depending on the goods, their origin, and their value.
The practical consequences are significant:
- EU consumers expect delivery within two to three days as standard. Cross-border shipping from the UK rarely achieves this consistently.
- Customers can receive unexpected duty charges at the door, which damages the brand experience and drives up return rates.
- Customs delays at borders add unpredictability to fulfilment timelines that are difficult to manage at scale.
There is also a regulatory change on the horizon that raises the stakes further. From 1 July 2026, the EU is removing its €150 customs duty exemption on low-value imports. A flat €3 duty per item category will apply to small parcels entering the EU from outside, with the full EU Customs Data Hub expected to be operational by 2028. Brands still fulfilling EU orders from a UK warehouse will face additional duty costs and compliance complexity from mid-2026 onwards.
Compliance essentials and what you need before EU stock moves
Holding inventory inside the EU avoids the cross-border friction for outbound orders, but it requires some upfront setup. The steps are manageable, and most are one-time rather than ongoing.
Before stock lands in an EU warehouse, UK brands typically need the following in place:
- An EU EORI number: required for all customs declarations within the EU. You can apply through the customs authority of any EU member state. Allow enough lead time before stock is due to move, as processing can take several days.
- EU VAT registration: required in any country where you hold stock. This applies to third-party fulfilment warehouses as well as your own facilities.
- IOSS registration: the Import One-Stop Shop simplifies VAT collection on goods valued under €150 sold directly to EU consumers. Marketplace-level IOSS may already cover brands selling through platforms such as TikTok Shop or Amazon, but DTC sellers need their own registration.
- An Importer of Record: a legal entity, or a named representative, must act as the importer in the EU. For most brands, this is handled through their 3PL or a specialist compliance partner.
- Product compliance checks: goods must meet EU labelling and safety standards before they can be imported. For most consumer product categories, this is a one-time onboarding step.
A 3PL partner with established EU operations will typically guide you through each of these requirements. Brands should not be navigating this independently.
Choosing the right EU warehouse location
Three countries come up most often when UK brands are selecting an EU fulfilment base: the Netherlands, Germany, and Poland. Each has a credible case, and the right answer depends on your customer geography, delivery expectations, and margin structure.
Netherlands (Venlo and the Rotterdam corridor): The Netherlands sits within 24-hour delivery reach of a large share of the EU population, with strong transport infrastructure via road, rail, and Rotterdam port. It is a common base for OSS VAT registration, which allows brands to manage EU-wide sales tax from a single registration point. The Netherlands also has a well-developed sustainability infrastructure, with zero-emission delivery zones active across more than 15 cities, which matters for brands with verified carbon reduction commitments. Warehouse and labour costs are at the higher end in Western Europe.
Germany: The largest eCommerce market in Europe, making it a logical base for brands with significant German customer concentration. The regulatory environment is more complex than the Netherlands, and VAT compliance requires careful management.
Poland: Lower operating costs make Poland attractive on paper, but delivery times to Western Europe are longer. It tends to suit brands where cost efficiency is the primary driver, rather than speed to France, Benelux, or Spain.
Green Fulfilment, a B Corp-certified UK 3PL, operates its EU fulfilment centre in Venlo in the Netherlands, using DPD to deliver across the Benelux region six days a week.
What to ask a 3PL before committing to EU stock
Choosing a fulfilment partner for EU operations is a different decision to choosing one for the UK. The compliance layer adds complexity, and not all 3PLs are equally equipped to handle it.
Before committing, it is worth asking:
- Do they have EU VAT and customs expertise in place, or will you need to manage compliance separately through your own advisors?
- What carriers do they use, and what are realistic transit times to your key EU markets?
- Can they handle returns from EU customers into an EU facility, or will returns route back to the UK?
- Do they offer real-time inventory visibility across both UK and EU stock in a single platform?
- Do they have experience with brands in your product category?
The answers will quickly separate partners who genuinely understand EU fulfilment from those who have bolted a European address onto a UK-centric operation.
Getting the structure right from the start
Brands that approach EU fulfilment as a structural decision rather than a shipping workaround tend to see better results. The compliance, location, and partner choices made at the outset have a significant bearing on costs, delivery performance, and the customer experience on the other side.
Once EU order volumes reach a consistent level, the case for holding stock in-region becomes clear on cost, speed, and customer experience. The setup steps are manageable. The higher cost tends to come from delaying the decision. Green Fulfilment works with UK brands at this stage, helping them build an EU fulfilment structure that supports growth without adding unnecessary complexity.
