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How to Reduce EU Shipping Costs - Fulfilling from France

September 24, 2021
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Ed Miles
UK Leaving EU Container

Do you have customers in the EU or are you looking to expand into the EU market? Shipping to customers in the EU from an EU based warehouse can save you a lot of hassle as well as reduced shipping costs and faster delivery times. This all leads to a better customer experience that drives conversions and increases customer loyalty.


As a UK based e-commerce seller getting set-up with a warehouse in the EU can appear confusing. However, Bezos.ai make it easy by helping you to split your stock between our UK and EU warehouses. Then all of your fulfilment is handled seamlessly from one account integrated with your sales channels.


Shipping from the EU means no more orders delayed at customs, and having your products located physically closer to your customers ensures they can be delivered not only faster but at a lower cost.


If that all sounds great but you're still thinking what does that actually mean in practice, read on!


Shipping a 1kg package to Italy


As an example we will look at shipping a 1kg order to a customer in Italy using an express delivery service.


Shipping from the UK using the DHL Worldwide Express service:

  • Speed: 3-4 Days
  • Cost: £21.35 (Including additional customs handling fees)
  • Paperwork: Commercial invoice


Whereas shipping from our warehouse in France using their Express Delivery service:

  • Speed: 1 Day
  • Cost: €11.05 (£9.43)
  • Paperwork: Customer Address!


As you can see that is a huge difference and could allow you to maximise your sales to the EU market by offering competitive shipping options that drive sales.


Does an EU based fulfilment solution work for you?


Using an EU warehouse doesn’t suit all sellers but here is a checklist of cases where it could benefit your ecommerce business:

  • Consistent or high volume of EU orders
  • Low value goods or low margin goods (Need low postage fees)
  • Products that benefit from ‘Rules of Origin’ (Easier to handle paperwork for this on a bulk shipment to the warehouse)
  • You have sales with a basket value over €150 on marketplaces (The marketplace won’t handle the VAT)
  • Competitive EU delivery speed and costs


Choosing a Location


Why did we choose to locate our first EU warehouse in France? France is not only the second largest ecommerce market in the EU but also directly borders the other key regions.


The Fulfilment Centre



Our warehouse is located just outside Paris and offers an extremely high pick accuracy which is achieved through guided product location system and barcode verification.


Additionally, the use of ‘chaotic storage’ inventory management maximises the efficient use of space and significantly reduces the chance of errors.


The tech doesn't stop there! An automated carrier selection system ensures the best delivery company is chosen so that your orders are always delivered on time whether that's next day, 3 day or 5 day.


Summary

Both expensive and slow delivery are in the top three reasons for cart abandonment, so to stay competitive in the EU market, increase repeat customers, and reduce your cart abandonment rate it’s worth exploring whether an EU warehouse is the right solution for you.


Get in touch today and we will help you find the right solution.


Find your EU fulfilment solution