Selling successfully to Europe online 3/3 : Organising a European third-party logistics
Expanding your e-commerce business into Europe presents significant opportunities, but it also comes with logistical challenges. One of the most crucial steps for international sellers is organising a European third-party logistics (3PL) and order fulfilment centre. By partnering with an experienced 3PL provider, businesses can streamline operations, reduce shipping costs, and improve delivery times for European customers.
In a recent Exportia LAB session, we explored how to effectively set up an e-fulfilment centre in Europe with insights from Ramon Camp, CEO of HC Group. This was the third episode of our series, Selling Successfully in Europe with E-Commerce, where we provide essential knowledge for exporters looking to scale their business in the European market.
Why Choose a European Third-Party Logistics (3PL) Provider?
Having a local fulfilment centre in Europe is a game-changer for international businesses. Instead of shipping each order individually from outside Europe, a 3PL provider stores inventory within Europe, processes orders, and ships them to customers efficiently.
Benefits of Using a European 3PL
- Faster Delivery – European customers expect quick shipping; a local warehouse ensures timely fulfilment.
- Reduced Shipping Costs – Avoid expensive international shipping fees by stocking products in a European fulfilment centre.
- Simplified Returns Management – Handling returns within Europe enhances customer satisfaction and builds brand trust.
- Improved Compliance with EU Regulations – A local logistics partner helps navigate customs clearance, VAT requirements, and packaging regulations.
- Scalability – A 3PL provider supports business growth, allowing you to expand into new European markets efficiently.
Steps to Set Up a European 3PL and Order Fulfilment Centre
For businesses planning to sell in Europe, selecting the right logistics provider and setting up a fulfilment strategy is crucial. Here’s how to get started:
1. Develop a Business Plan with Sales Projections
Before engaging with a third-party logistics provider, businesses must assess their market entry strategy. This includes:
- Identifying target European markets for expansion.
- Estimating initial order volume and stock requirements.
- Selecting appropriate sales channels (own webshop, Amazon, marketplaces, etc.).
2. Choose the Right European Fulfilment Centre Location
Location matters when selecting a 3PL partner. The Netherlands is a preferred hub due to its central location, world-class logistics infrastructure, and easy access to major European markets such as Germany, France, Belgium, and Scandinavia.
3. Determine Initial Stock Levels
Shipping small quantities internationally is expensive and inefficient. A 3PL provider helps businesses determine the optimal stock level for their fulfilment centre, ensuring smooth order processing while avoiding unnecessary storage costs.
4. Integrate with European Logistics Networks
To ensure seamless order processing, integration with local carriers and shipping providers is essential. A good 3PL provider partners with major European logistics services, offering cost-effective last-mile delivery solutions.
5. Optimise Packaging and Sustainability
Sustainability is a key concern for European consumers and distributors. Choosing eco-friendly packaging and sustainable logistics solutions enhances brand reputation and meets European environmental regulations. HC Group’s green fulfilment services, for example, help businesses lower their carbon footprint by using sustainable materials and reporting CO2 emissions.
6. Ensure Localised Customer Support
European customers prefer to communicate in their local language. A 3PL provider can support businesses by offering multi-language customer service, including handling returns and managing customer inquiries in French, German, Dutch, and other key languages.
How Long Does It Take to Set Up a European 3PL?
The onboarding process depends on the size and complexity of the business. For small businesses, it can take just a few weeks to get started, while larger companies with complex logistics needs may require several months for integration.
Final Thoughts: Why European E-Commerce Sellers Need a 3PL
Expanding into Europe with e-commerce requires efficient logistics and fulfilment solutions. By partnering with a European 3PL provider, businesses can reduce shipping costs, improve delivery times, and enhance the overall customer experience.
As European e-commerce continues to grow, now is the perfect time for exporters to leverage third-party logistics services to scale their operations. Whether you are an Australian, US, or Asian company, setting up a fulfilment centre in Europe is a strategic move that will give you a competitive edge in the market.
For more insights on e-commerce success in Europe, visit Exportia.