How to thrive during the 2023 economic downturn

It’s a new year full of opportunities for personal and professional growth. As we know, inflation has become a trending topic, but do not be discouraged. E-commerce will continue to grow, and so will the opportunities. As shown in the graph below, e-commerce will continue to grow to $5.42 billion in 2025.

Although 2023 does come with its own set of challenges, we must have a strategy set up with a strong partnership that understands the international market.

Here are some strategies your brand can implement to remain competitive during this challenging time.

Supply Chain

Plan to hold more inventory

The Russia-Ukraine war has caused many disruptions to the supply chain, leaving companies with difficulties meeting consumer demands.

For this reason, it is key for brands to carefully analyze the amount of inventory needed to keep their best sellers available and customers happy without overstocking. Keep in mind that consumers are more price sensitive at the moment, so having available the products they want from you will keep them from going elsewhere.

Variety of Suppliers

With how the economy impacts the price of primary resources and transporting goods, it is essential to diversify your supply chain more than ever. You can get your products from multiple suppliers, countries, or, if possible, from closer to home. This way, you can find ways to be more cost-effective. Since 2022, around 31% of Shopify merchants have started doing so.

Lower return rates

Returns are inevitable in e-commerce, and the rate depends on the market. In some countries, people are more used to returning unwanted items than others. However, there are ways to reduce the return rate, helping you grow customer satisfaction and lower expenses. This is because when you get a returned item, it costs to transport, replenish or dispose of it.

Some ideas are to be transparent about how the item looks, its size, pictures with diverse models, trustworthy customer reviews, and videos showing how the product looks or how to use it.

Customer Loyalty

Customer loyalty is the key to success beyond mere survival. Here are some ideas to keep the cash flowing while ensuring customer loyalty.

Price strategically

In the case of prices, this has increased due to inflation, leaving brands no choice but to improve their product prices. In some cases, brands can lock their prices for a certain period to get as many sales as possible, but this is not always sustainable. This is why brands must focus on investing in customer loyalty. If brands build strong customer relationships in the long run, it pays off more and is more sustainable for the business. It is cheaper to sell to a returning customer than a new one. There is also a higher possibility of a loyal customer completing a transaction 60-70% than a new customer 5- 20%.

For example, loyal customers are more willing to keep buying from you if you need to increase prices due to the current economic situation. Around 40% would do so, even if there were cheaper options. They can also help you gain new customers, as 60% are willing to recommend a brand to which they are loyal.

Upgrade online store shopping and shipping experience

As competition for consumer attention increases and becomes more challenging, finding ways to differentiate your brand, products, and online shop from competitors is essential. Here are some measures you can take to improve your online store’s shopping and shipping experience.

- User experience

Your online store should always work best and provide the best possible user experience. To improve it even more, you could display your products in a way that looks like a window shop, which inspires your users to buy from you. Also, communicate clear information about your brand and products. It is important to emphasize the value that differentiates your brand from competitors. Of course, do not forget that your website must load in less than 3 seconds on any device. Otherwise, you will miss potential customers.

- Social commerce

Now more than ever, integrating social media with your online store to provide a more cohesive online shopping experience is essential. Many consumers, especially from generation Z (1997-2012), visit social media to look for products rather than search engines. They also prefer to contact brands via social media rather than by email or phone. To capitalize on this opportunity, your brand should offer real-time chats and a shoppable button that takes you to the product on the website to complete the transaction. You can also take advantage of live shopping or shoppable videos.

- Cross-border solution

Although the economic situation is global, it affects each country differently. Therefore, to have higher chances of growing, reaching more customers worldwide is the answer. Selling internationally comes with hurdles, so working with a cross-border solution like BorderGuru will help you achieve your goals without having to deal with them on your own. Our solution will provide your customers with customs-cleared orders that will enhance their shopping and delivery experience, as they will not have to worry about unexpected fees.

Learn more about the benefits of using a cross-border solution to sell internationally in our blog.

Offer discounts to promote loyalty and spending.

As mentioned, it is cheaper to sell to current customers than new ones, and offering discounts or specials like bundles or free little gifts for a certain amount purchased is a simple way to give customers a price break and a quick business cash injection. This also helps customers feel valued and creates customer satisfaction, retention and re-purchases.

Marketing

Share user-generated content

Given that social media advertising costs are rising and customers care about genuine reviews, sharing your customers’ content about your brand or product is the best thing you can do. As a quote from the co-founder of Orbit Media Studios, “When you say it, it’s marketing. When your customer says it, it’s social proof.” So, this year, ensure you’re constantly in touch with your customers so that they can help you promote your product and brands and attract new customers. BorderGuru Marketing services can help you with all your marketing needs to improve brand awareness, positioning, customer reach and sales.

Work with creators

Younger generations love influencers, so this is still a perfect marketing strategy. Working with influencers who align with your brand values and have followers who are your target market can pay off.

Collaborate with other brands

Currently, collaborating with brands with products related to yours can help you reach a new audience. For example, if you sell women’s clothing, working with a makeup brand for consumers to complete the look can help you increase your customer-based and brand awareness. Ensure the other brand aligns with your values and a target market that resonates with your brand.

In summary, we are trying to say that there are still ways for your e-commerce brand to survive the economic crisis and achieve growth. Yes, your business must adapt to the changes. Still, if you do it strategically, it will help you get through this situation and continue to be profitable and grow even more.

Therefore, it is important to make the decision now to work with BorderGuru, a single partner, to help you achieve your international goals. Diversifying your market will allow you to gain new customers that can convert into loyal ones, increasing your sales.

BorderGuru’s cross-border solution provides you with all the tools you need to grow your business internationally and reach millions of customers in 200 countries. We have the experience and infrastructure supported by one of the best logistics companies, Hermes.

Home & Living Industry: Popular Size and Styles of Bedding in Germany

There is no doubt that the world has become more connected, and that in several countries, there are many things that are similar or relatively similar. But there are other things that are specific to a country or region. Before you sell in a new country, you must research the market and trends to maximize your success.

This blog focuses on the popular size and styles of bedding in Germany. This information can help you decide which products to offer to this market and increase your sales potential.

You can also check out our blog, “Homeware and Furniture Market in Europe,” to learn more about the industry’s potential in Germany and Europe.

Let’s start with exploring mattress sizes in Germany. In the table below, you can see the difference in numbers. This is a guide for you to have an idea. Remember, Germans use centimeters instead of inches and do not use names for bed sizes (twin, full, queen, king); bed sizes go by numbers. The most popular bed size for adults is what you could call Single or Twin XL, 90cm x 200 cm (35“ x 78“).

Reference for popular size mattresses

Box Spring Bed Platform Bed

What bedding is popular in Germany for dressing the bed and sleeping?

Germans, as in other EU countries, use Duvets instead of comforters. Comforters are not famous; they are non-existent. As a background, a Duvet has two pieces, one of which is the Duvet insert, which looks like a white blanket, and the Duvet cover, which is interchangeable and has one side open with a zipper or buttons to slide in the Duvet insert.

The most popular fillings for a Duvet insert in Germany are down and feathers. The down is used mainly for its capacity to maintain heat. Down is more expensive than feathers, and it is also finer. The higher the proportion of down in the filling, the lighter the blanket can be with equally good heat capacity.

Feathers are larger than down, higher volume, less expensive, heavier and more robust, making them a great filling, as they offer durability and support.

Regarding Duvet covers, there are different styles, colors and materials. The consensus is that Germans tend to go for solid basic color shades; white, cream, light purples, blues, pale pink, nudes and grays.

The most widely used materials are 100% cotton or linen. But depending on the person’s sleeping needs, the fabrics they would choose are different. As a home and living brand, if you are considering offering other materials to the German market, we are sure that you are aware of the benefits of each material. This should be communicated to your customers, so they can choose what works best for them.

Here are some general tips:

For people that get warm quickly: 100% cotton or linen fabrics

For people that get cold quickly: beaver, flannel, or terry cloth

Iron-free: jersey, seersucker, microfiber, glossy satin, terry cloth, or polycotton

As for sizing, the most popular are:

Standard size: 135cm x 200 cm (53” x 78”)

Comfort size (taller people): 155cm x 220cm (61” x 87”)

Couples sharing Duvet: 200cm x 200cm (78” x 78”)

How about fitting sheets?

The colors and materials mentioned above also apply to fitted sheets. The difference is the size, as it depends on the size of the bed and the style (box spring or other). Here is a guide to the most popular size you can use as a home and living e-commerce brand to decide on your product portfolio.

Now let’s talk about the most crucial sleep supporter, Pillows!

Here’s the exciting part, pillows can seem very different from those used in the US, as the most common shape is a large square. Another type of pillow is used in the form of a large rectangle. You can see the two images below for better reference.

In terms of sizing, the two main dimensions are 40 cm x 80 cm (16″ x 31″) and 80cm x 80cm (31″ x 31″). The 80×80 pillow is one of the most used in German bedrooms, but the smaller 40×80 pillow is mainly used by belly sleepers who need a small, flat pillow.

When selecting the pillowcases, they usually come in the duvet or bed linen set. As an e-commerce home and living brand, it would be a good idea to offer sets rather than single items and ensure the correct sizing. Otherwise, you could lose potential customers.

Lastly, here are some simple examples of a complete bed linen set

These images show the type of bedding Germans commonly use, and give you an idea of what you could offer them. You can also find some differences between American and German bedrooms.

Remember that the best thing for specifics is to check your target persona to appeal to them better.

How can your e-commerce Home & Living brand successfully expand into the German market?

Otto is one of Germany’s most successful online marketplaces. It is the leading marketplace in this category and is among the top players in growth. Given Otto’s presence and market penetration in Germany, it can enable foreign home and living brands to enter the German market, which is the largest within the EU, and be part of its success.

BorderGuru is part of the Otto Group, and with our Channels solution, we can help you become part of Otto’s success. We offer the tools you need to aggregate and accelerate your brand in the Otto Market.

Are you ready to enter the German market? Contact us now to learn more about how BorderGuru can help you achieve your brand’s expansion goals.

international e-commerce shopify sellers

Shopify Plans Update for Carrier API Integrations

The global e-commerce industry continues to grow, offering brands an excellent opportunity to increase customer reach without physical presence.

Platforms like Shopify exist to offer brands of all sizes the opportunity to sell online. For a cross-border solution, BorderGuru (similar to Shopify Markets) helps democratize international sales and allows companies to expand easily internationally.

If you own a Shopify store, there will be some changes in 2023. One of the most important ones for cross-border sales is that now to use carrier integration apps, you should have Shopify Standard, Advanced, or Pro plans.

This blog explains what you need to do cross-border and take your business to the next level.

Let’s start by understanding what Carrier Service API apps (Third-Party Calculated Rates) are and how they can help you sell internationally.

In Shopify, Carrier Service API apps come from third-party providers and can be integrated into brand stores to help them sell internationally. For example, some can calculate shipping, delivery time, taxes and duties, and provide other necessary tools to do cross-border, such as HS codes.

BorderGuru Cross-border is a third-party carrier app that makes seamless international shipping possible. It can be integrated into your Shopify store in 5 minutes, at no cost, transaction fees, or initial investment.

Main Features

Integrates easily with your Shopify store in 5 minutes
Gives access to reduced shipping rates (up to 70% lower than the most common carriers)
Calculates and guarantees taxes and duties at checkout for free
Handles legal and VAT for 200 countries
Provide HS codes for free
Free detailed tracking from the first to the last mile at all times.

Learn more about the top benefits of using a cross-border solution to sell internationally in our blog.

We have created a summary of Shopify plans that allow Shopify Markets + API Carrier apps like BorderGuru to sell and ship internationally.

Shopify Standard

This plan is for businesses experiencing traffic and sales growth and looking to step up and increase their customer reach. It offers all the features of the basic plan, along with lower credit card rates and transaction fees. It also gives you access to Shopify Markets and third-party calculated rates for international commerce. Starting in 2023, Shopify offers a 50% discount on the first year (paid annually).

Cost per month $79
Online credit card processing fees: 2.6% + 0.30 per transaction

Shopify Advance

Shopify Advance helps growing businesses find expansion opportunities with analytics. It offers all the features of the Basic and Shopify plan, along with lower transaction fees, 15 staff accounts, international commerce through Shopify Markets, third-party calculated rates and more. Starting in 2023 Shopify is offering a 50% discount on the first year (paid annually).

Cost per month $299
Online credit card processing fees: 2.4% + 0.30 per transaction

Shopify Plus

This plan is for high-volume merchants, who need advanced features and customization to continue growing their business. For example, businesses that make $1 million or more in sales per year can be a fit. Shopify Plus offers a very low credit card payment fee and all the features and perks of Shopify advance, plus a dedicated account manager, premium support and more.

Cost per month starts at $2,000 per month
Online credit card processing fees: 0.15% per transaction for third-party payment processors and 0% using Shopify payments

Suppose your business is getting high international traction and you have not yet done so. In that case, you should consider moving your plan to Shopify, Advance, or Plus depending on what makes sense to your business size, and start converting your international traffic into loyal customers using a third-party carrier app like BorderGuru.

Open your business the opportunity to expand and sell internationally without complexities or the need for additional resources. Having access to our app will benefit your business and your international customers. Give them the best checkout experience by being transparent about shipping, taxes and duties, and offering them customs-cleared orders. Implementing this will enhance the shopping experience, increasing trust and returning customers.

Start your international journey with us and sell in 200 countries now! Contact us now to learn more about how our app works and is set up in your Shopify store.

Shopify Markets Pro- Advantages and Disadvantages

Now more than ever, international sales have become easier and more accessible for any size of company. Many solutions are available to help enhance global sales, but deciding which is best for your business can be overwhelming. In the end, the purpose of all these solutions is to democratize international sales.

In September 2021, Shopify launched Markets, a tool that allows merchants to manage foreign domains better, as well as regional pricing, translations, and currency conversion. The objective is to improve the user experience regardless of their location. In September 2022, Shopify launched Markets Pro, the next step to improve the purchase experience by offering international shipping to several countries. But you might wonder if it suits your business or if you need those features and the costs associated with this service. Here, we present the most relevant details about Shopify Markets Pro and if this can benefit your international business so you can decide what works best for your brand expansion goals.

What is Shopify Markets Pro?

Shopify Markets Pro is a cross-border solution service that allows Shopify merchants to sell and ship internationally more efficiently, reducing the complexity of cross-border selling. This solution was designed mainly for small-medium brands that do not have the logistics infrastructure to expand internationally seamlessly, allowing them to implement an easy process to fulfill international orders to 136 countries.

Main features

Currency conversion and local payment methods
Calculation of taxes and duties at checkout and offering DDP shipping
Fulfill international orders natively in Shopify or through third-party partners
Access to discounted DHL shipping rates
Translation of websites to local language & domain management

Advantages

International customers can get a localized experience by buying in their currency and using standard payment methods. Including Shopify payment
Seamless integration. This solution is easy to install, and with a few clicks, you can get it running.
Easy access to negotiated DHL international shipping rates. If you integrate DHL Express, your user may get DHL total rates.
Management of all international stores on the same platform
Higher potential to increase sales
An easy shopping experience for you and your international users. Your customers will enjoy shopping and know how much they will pay for shipment and import fees at checkout, with no surprise fees when they receive the order.

Disadvantages

Shopify Markets Pro also involves several external services and partners to run. This makes Markets Pro complex to run in the back end and comes with a price. These are some of the fees associated with using Shopify Markets and Markets Pro:

Using the regular Shopify Markets generates these fees:

1.5% fee per order when duties and import taxes are calculated
1.5% per order when currency is converted with Shopify Payments

Using the Markets Pro DDP features generates these fees:

6.5% per transaction fee. Although there is no contract or monthly fee for using Shopify Markets Pro, merchants must pay this fee.
2.5% currency conversion fee paid (automatically added to the product price)

Does Shopify Markets Pro increase your international sales?

Selling to multiple countries and scaling is a great opportunity. Mainly, if you sell from the same store and use an all-in-one solution that localizes storefronts and calculates duties and taxes, international compliance handles all complexities and makes shipping more cost-effective. However, the most critical variable here is the shopping experience. A study by the Baymard Institute found that almost 70% of online shopping carts are abandoned, and 55% are due to high extra costs at checkout. International customers are generally charged high shipping rates, import fees, and additional cross-border fees like Shopify Markets Pro, which could increase the order cost to up to 100% of the product price.

At BorderGuru, we believe international customers should be encouraged instead of being charged for buying from a foreign brand. Based on this mission, BorderGuru provides online stores with the easiest cross-border solution that includes the main Shopify Markets Pro features without any fees for you or your customers. The BorderGuru Shopify App enables your brand to expand internationally to more than 200 countries without any hurdles, tax filing, complex processes, international shipping surprises, or any additional fees.

Here are the main features of BorderGuru:

Integrates easily with your Shopify store in 5 minutes
Gives access to reduced shipping rates (up to 70% lower than the most common carriers)
Calculates and guarantees taxes and duties at checkout for free
Handles legal and VAT for 200 countries
Provide HS codes for free
Free detailed tracking from the first to the last mile at all times.

Offer the benefits of selling easily to your international customers with customs-cleared orders and without surprise fees at delivery while making selling internationally easier for your business. Contact us now for more information about how our app works and how to set it up in your store.

Reduce Costs

By using a cross-border solution, e-commerce merchants can save money in the logistics process, from the shipping price to warehousing and lower shipping costs. On top of that, brands do not require to invest in infrastructure or any initial inventory; costs only incur when sales come in.

Borderguru is a cross-border solution that can offer your brand excellent logistics infrastructure, so you can reach your customers worldwide and offer competitive rates that will make you and your customers happy. With our solution, you do not have to pay commissions, and there is no minimum order requirement to use our service.

Increase Efficiency

A cross-border solution can help you make the process of shipping internationally smoother and less time-consuming for your business. You can put your resources to work on other areas of your business-like marketing research, sales and marketing strategies, and even product development.

For example, BorderGuru Cross-border solution simplifies the process of all international orders like any other domestic, without investing any extra resources or changes in your daily operations.

Legal Compliance

Working with a cross-border provider can make your international journey experience easier for your business by providing HS codes or if you require the UK VAT and IOSS when selling to the European region. And it takes care of tax filing, so you do not need to worry about legal compliance in 200 countries. With Borderguru, you are fully covered on this.

Improved Customer Service

A cross-border solution will help you improve your brand’s customer service by providing precise and timely tracking information on orders. With some solutions, you also can offer Delivered Duty Paid (DDP) so that your customers do not have to worry about surprise fees at the time of delivery.

BorderGuru guarantees them in addition to providing end-to-end detailed tracking information and calculating duties and taxes at checkout. So, neither you nor your customers must worry about paying more if taxes and duties rise after being paid at checkout. BorderGuru will take care of it. This will also contribute to increasing customers’ trust and loyalty.

Join us for a 15-minute demo to discuss your international goals and how we can help you achieve them with our Cross-Border Solution. BorderGuru is powered by Hermes Group, with over 40 years of experience in consumer deliveries, more than 1 billion parcels per year shipped worldwide, which allows us to provide you and your customers with the best international shopping and shipping experience.

Shipping, delivery and logistic concept. Earth and cardboard boxes on laptop keyboard. Online technology. 3d

5 Tips to Consider for a Successful Cross-Border E-commerce Strategy

As cross-border e-commerce sales continue to grow, more online brands are open to expanding into new markets. As we know, this is not easy and requires a lot of research, planning and preparation. We can also agree that international expansion is not for every company, but it can offer excellent opportunities to increase sales, brand awareness and customer reach.

If a brand is confident that international expansion is the right thing for them, we share five tips to consider to start and continue to grow and scale its business internationally.

1- Previous research: Know where your demand is and get to know your target market

When a company wants to expand internationally, it is essential to understand where the demand for the products is and consider the markets that have the potential to continue to grow. For example, you can find more information on our blog “Top Countries for US Fashion Brands to Expand Internationally” to find out where US fashion brands can grow their international footprint.

It is also essential to find the specific target market, then to research as much as possible about it, from language, age, taste, and use of social media to cultural customs, so that the company can effectively communicate the brand proposition and products. This way, it will have a higher chance to penetrate the market and eventually continue to grow successfully.

2- Use data in your favor to make informed decisions

Successful brands that continue to be competitive and grow have a system to collect data from their website and social media. For example, buying behavior, opinions, reviews, etc. These brands use this data to make informed decisions about what aspects should be improved and should invest in growing, whether in marketing campaigns, new product launches, inventory, etc.

When looking at consumer data, the main questions are: Where do the opportunities for the brand to grow to lay? And what areas of the business need to be improved?

3- Create a seamless user experience

For an e-commerce business to continue to grow, brands should prepare their website’s technical and design features. It is crucial to constantly test the website and listen to users’ opinions to make improvements that can lead to positive results. These improvements can be made in the shopping cart, product pages, or loading time. You can find more tips on our blog, “Top 5 Actions You Need to Take to Reduce Shopping Cart Abandonment.”

Regardless of what it is, the aim should be to make the shopping experience as seamless as possible to achieve high conversions. Ultimately, what consumers see and experience influences conversion.

4- Prepare your logistics process before expanding

Logistics is as essential as any other aspect of the business. One of the most important because without it, an e-commerce brand can’t deliver products sold to its customers. Logistics is also part of the shopping customer experience, so if the brand is not ready to offer the best possible experience for them, they will look elsewhere.

Finding the right cross-border shipping solution can be tricky, but once you do, it can play a significant role in your international growth journey. Offering the best possible shipping experience means being cost-effective and convenient to customers. BorderGuru is a reliable Shopify app that, as part of Hermes, a global logistics champion based in Germany, can offer competitive shipping rates and calculate tax and duties for 200 countries at checkout so your customers do not receive surprise fees at delivery.

If you work with a 3PL company, BorderGuru also covers your cross-border needs. Find out more about how our solution can be strategic for your brand in our blog “A 3PL Guide: Third-Party Logistics Companies Advantages and Disadvantages.”

5- Have in place metrics to measure performance

As already mentioned, data can benefit companies and lead to sustainable long-term growth. Therefore, having a process to measure business performance is a way to collect insightful data to decide whether something is working or needs changes and to find new opportunities. In addition to sales numbers, brands can also measure their social media pages, such as the number of followers, likes, comments, reach and clicks to visit their website.

Brands looking to grow internationally turn to Borderguru as a one-stop solution that can help their business ease international complexities and offer their customers the best shipping experience. We handle everything from product mapping, tax and duty calculation, filing, and more.

Are you ready to grow internationally? Start now by contacting us.

OTTO Marketplace- Expand Your Fashion and Lifestyle Brand to Germany

Are you ready to take your US brand to the next level? Now is the time to expand into Europe through Otto Marketplace.

Here you will learn more about the most prominent fashion and lifestyle marketplace in Germany, Otto.de, and how your brand can be part of without hassles.

As a start-up since 1949, Otto has become Germany’s most significant fashion and lifestyle market. From starting as a mail order company to being one of the leading online fashion stores in Germany, with a clear focus on innovation and digital transformation. Otto set sail for a bright future a long time ago.

Otto marketplace recent results:

Germany Online Fashion Category: In 2021, Otto was second on the list of the top online fashion stores in Germany, with sales of $1.9 billion.

Germany Online Furniture & Homeware category: Otto is Germany’s leading online marketplace, with net sales of 1.5 billion euros in 2020, and is also one of the top players in growth.

Technology and Customers: The heart of the company

We know that being an online brand, technology and customers is the most critical part of the equation to be profitable, competitive and grow. Otto understood and implemented these two components correctly to achieve massive results.

Otto believes that technology is the key to fulfilling the wishes of its customers and accompanying them into the future, making it a recipe for success.

Technology is used to being close to its customers because they want to understand their wishes and fulfill them in the best possible way.

Inspiration is an essential element for an excellent customer experience. Otto now sells more than just products; it offers lifestyles visible throughout its website, apps and social media.

It is not only essential to excel in creating a portfolio of products that customers notice and find attractive to complete a transaction instead of simply browsing, but it is also equally important to have operational excellence. Technology plays a key role, including regular optimization of their tools and software, maintaining and improving all processes necessary to run the business.

Some initiatives taken to enhance the customer shopping experience are:

Computer-generated images
Augmented reality
Digital image searches in the shop

How about the App?

The Otto app was created to put the customer at the heart of their actions, focusing on their needs to create the most pleasant online shopping experience. From the moment the user browses the app, makes a transaction, receives the package to the after-sale experience. Otto takes care of every phase of the purchasing cycle in the best possible way and creates happy, loyal customers.

Smooth & reliable customer care

The Otto customer service team is there for its customers. They can be easily reached by messenger, email, or callback service. You do not have to worry; once they reach out to the customer, they get a push message. It just can’t get any easier than this!

A lover of discounts and promotions?

Otto offers exclusive discounts and promotions in the app from different brands, fashion, living, multimedia and more. These run for a short time and exclusively in the app. Customers with activated push messages get informed, so they do not have to worry about missing any specials.

Don’t miss out on any shipment information.

With the Otto app, customers receive information about their order until it is delivered. They receive up-to-date information directly on their smartphone via push messages.

What would a successful & innovative brand be without caring about the present and future of the environment and society?

Otto’s vision is “Responsible commerce that inspires,” which is incorporated into everything they do.

This marketplace stands for the human side of e-commerce and believes this is only possible through solid and sustainable business processes that focus on the future.

Some sustainable e-commerce actions Otto has taken are:

Search for alternative packagings, such as 100% recyclable polybags, recycling bags and recycled cardboard.
Initiative to encourage consumers to donate by offering free shipping from the consumer’s address to Hermes ParcelShop and a voting system where consumers can choose their preferred charity institution.
Content on Otto.de educates consumers on how to incorporate sustainability into their daily lives.
Provides virtual dressing rooms for customers to choose their size more accurately to lower the impact that returns have on the planet.
A code of ethics that brands should follow goes along with EU regulations to encourage brands and consumers to improve sustainability. For example, sustainable raw materials like cotton and wood from certified forestry are used.

With everything Otto offers consumers, it has built a highly successful e-commerce platform for fashion and lifestyle products and a positive reputation in Europe and the rest of the world. The massive growth and results show the importance of the Otto marketplace in the e-commerce industry in Germany and Europe. Learn more about the German market in our blog “Germany – The Biggest Online Market in Europe.”

Without a doubt, it’s the way to start your brand’s expansion journey in Europe and open the door to millions of active and new customers that Otto marketplace has to offer. Europe is waiting for your unique US brand.

Now the question is… How can your brand be part of Otto Marketplace?

BorderGuru, as part of the Otto Group, offers your brand the Marketplace Partners Solution. This allows US fashion and lifestyle brands like yours to be part of Otto marketplace to expand into the German and European markets. We offer brands the tools to broaden efficiently into this marketplace and allow them to succeed.

With our solution, you will have exclusive access without needing any middleman to Otto Marketplace. Having a single partner to expand into a new country will make it smoother and easier for you.

Contact us now to begin your expansion journey! Europe is waiting for your brand.

Woman selects box in warehouse for coworker on tow tractor

Third-Party Logistics Companies (3PLs) – Advantages and Disadvantages

When you think of your business’s logistics, you might say that it is a complex process that depends on your infrastructure and can take many business resources (cost, time, labor). This is one reason why Third-Party Logistic Companies (Commonly known as 3PLs) exist. When businesses are growing and the number of orders surpasses the ability to handle it in-house, they may look for outsourced logistics.

3PLs are not a fit for all businesses, so here we show you the pros and cons to consider before deciding if it is a fit for your online store. Lastly, we talk about how we can help your business grow whether you work with a 3PL or not.

Definition of 3PL

A partner or service hired by a business to outsource its logistics. 3PLs offer e-commerce merchants full warehouse and supply chain management for inventory and order fulfillment.

In simple terms, it supports some or all aspects of a business’s shipping operations, everything that has to do with moving goods from manufacturers and distributors to the end customer.

These are more specific tasks that 3PL performs:

Scheduling and executing the receiving of inventory to the warehouse
Sorting, managing and accounting for all inventory
Maintaining inventory in proper conditions
Negotiating discounted shipping rates
Picking, packing, and shipping products, kiting and assembling products if necessary
Managing recurring subscription boxes (if applicable)

Advantages

Scalability: With the expertise and resources that 3PLs have, they can optimize the logistics needs of companies, for example, to grow in new areas with much less effort, clearing the path for enhanced business growth.

Time and cost savings: Since 3PLs focus on everything included in logistics, they have the resources and time to continuously update and improve their services, such as software and specific training for their employees. These can be cheaper than a company that manages all the costs to keep up with the latest logistics. 3PLs can also free up key employees to focus on manufacturing, strategic planning and operational processes that enable business growth.

Expansion: There are two ways of expanding, first within the country, like other states, for example, from the west coast to the east coast. This can be easier with a 3PL, as they tend to have distribution centers and warehouses closer to your end customers. And the other is to expand internationally, which can lead to many hurdles and additional costs if carried out alone. Most 3PLs have distribution centers and warehouses with accreditation to provide global services, making expansion more accessible.

Disadvantages

Loss of control: Working with 3PLs can be beneficial, as already mentioned, but at the end of the day, they are an outsider of your company, so you entrust control and responsibility to them. This is a disadvantage because your company has no last say in all matters. Sometimes it can be challenging to get the attention you seek, as your business is not the only one they work with. Decisions by 3PLs directly affect customer satisfaction, so brands need to ensure that the 3PL they choose is suitable for their business needs.

Upfront costs: Yes, using a 3PL can save you costs in the long run, but you should be aware that there are considerable costs to start. For example, if you already have an internal logistics team, making the switch leads to upfront costs for your business. Make sure these costs do not limit your business. As if it did, it might be better to wait until you are financially more stable. Another aspect to remember is that your business has little or no influence on the partnership between 3PL and a courier. If this agreement is not cost-effective, it could impact your business.

Transparency and communication: When working with a 3PL, you not only give out control of your logistics, but now you also have a middleman to deal with if you have problems and need to communicate to get the information you need. As a brand, you would have to make sure you work with a reliable company that has a simple communication process with brands. So, if any logistics problem arises, you do not have to wait for answers. Remember that poor communication can lead to obstacles to smooth supply chain operations.

Syncing up systems with a 3PL provider: It is usual for two companies to work with different designs and have their way of working. Integration can initially seem complex, but if done correctly, this is just a short-term disadvantage. Before working with a 3PL, you should consider interoperable technology and even a person from your company who knows IT well to make this process smoother.

As can be seen, working with a reliable 3PL company can bring your business benefits, which could be more time-consuming and expensive to do alone. On the other hand, there are also disadvantages when deciding if third-party logistics is suitable for your business.

Now, when it comes to the international expansion of your brand, that is where BorderGuru comes in to assist your business in achieving its goals. Since Hermes Logistics powers us, we offer a cross-border solution that eliminates the disadvantages you may face selling internationally. Even if you work with a 3PL, we can integrate into their business model and become a strategic partner to your brand.

Zalando- Europe’s Leading Marketplace for Fashion and Lifestyle Brands

What is better than your brand reaching millions of new customers through one of Europe’s leading fashion marketplaces?

Stay and learn more about Zalando Marketplace, a leading online fashion and lifestyle platform in Europe, and how your US brand can successfully expand to Europe through Zalando.

Zalando was founded in Berlin, Germany, in 2008. It started as an online shoe store and has now become a leading online platform for fashion and lifestyle products in Europe. The company has made bold moves from the start and has never given up on its goal of reimagining the fashion market for the good of all.

Their substantial expertise in fashion, technology, and convenience has enabled them to offer their customers a wide range of brands and services tailored to their needs. This is how they reimagine fashion.

Zalando’s strategy consists of three main elements: customers, brand partners, and infrastructure.

Customers: Zalando is a customer-focused company. Its platform is based on providing the best user experience by offering the maximum availability of current trendy fashion products and inspiring them with a high level of personalization, creating inclusive products suitable for every customer. They also invest heavily in suppliers, payment, and customer service to meet customer requirements.

Brand partners: As brand partners profit from Zalando’s customer base by becoming part of their platform, they provide digital and infrastructure services that make it a great business opportunity for brands to broaden their customer reach and sales growth.

Infrastructure: Zalando, as an online platform, Infrastructure is the basis for offering its service to customers and partners. They are committed to internally developed and continuously improved technological solutions and processes. Zalando’s expertise in warehousing, delivery, customer service processes, and content creation is fundamental to their business.

Due to its strategy and continuous improvements, Zalando has currently achieved these results:

These results show how successful it has been in the fashion and lifestyle industry in e-commerce in Europe. Proving to be one of the best options for brands that want to step up and reach millions of customers on this continent. Zalando delivers results, reliability, and commitment to the table

The app

Technology is the key to Zalando’s growth. Having an app that meets the needs of today’s technology-savvy consumers is essential to stay competitive.

The app was launched in Germany for the first time in 2012 and the rest of the EU countries in 2014. Since then, the app has improved and offers new features as consumer needs and trends change.

Zalando’s vision is to be the first choice for all consumers’ fashion needs. Their three premises are endless choice, seamless convenience, and tailored digital experience.

Do you want your brand to succeed in the European market? Are you interested in offering your unique products, not in one or two, but in 25 EU markets?

As can be seen, this is possible with Zalando, which has 45 million active customers in 25 European countries. For a unique user experience, it offers more than 20 local payment options, regional logistic service providers, and content and customer service in 19 languages.

Zalando offers brands endless opportunities to achieve brand awareness, customer reach, and sales growth goals. They have run more than 14,000 marketing campaigns, worked with more than 1,600 brand partners, and have a network of more than 500K influencers within Europe.

With all this, your brand will have the exposure and tools necessary to succeed in the German and European markets.

Build positive habits for a better future for fashion, the environment, and society

As a large and successful e-commerce platform, Zalando is responsible for caring about people and the environment. This means every action has positive or negative consequences, and it’s in the company’s hands to implement measures that result in a positive impact and act as a role model.

Zalando is fully committed to sustainability. Therefore, they want to nurture a better future for fashion and bring along their customers and brand partners.

In the last few years, it has taken several measures to be part of the solution towards sustainability. These are:

Source 100% renewable electricity and reduced emissions from their operations
Eliminate single-use plastic by 2023
Launched the sustainable flag in their Fashion Store to help customers find more sustainable items, and tripled their more sustainable fashion assortment
They launched their first Circularity strategy in 2021
Created a section for customers to purchase secondhand clothes
Have a team to teach their customers how to make their clothes last longer

Now that you know more about everything Zalando has built to provide brands with the resources and customers they need to succeed in the European market… Are you excited and imagining your brand being part of this booming marketplace?

Zalando is the answer if your US brand is ready to take the next step in international growth. Europe is an important market for the fashion and lifestyle e-commerce industry, as sales continue to grow, and this marketplace has successfully driven through it.

It is not impossible or difficult for your brand to start selling in Zalando. As BorderGuru, a member of the Otto Group, we have the perfect solution for your unique US fashion brand to enter the European market via Zalando with our Marketplace Partners Solution.

So, what are you waiting for? Contact us now!

How to Expand Your Brand into Europe Successfully

The best thing about owning an online store is the ability to reach a wider audience of consumers around the world. After successfully establishing your brand and products in your local market and gaining positive customer feedback, your website may also gain traction from the global market.

So now, you may think, where and how can I expand my business? Then is probably the right time to look at expanding into Europe.

As e-commerce continues to grow in Europe, with access to up to 500 million online shoppers in 27 countries, it offers US brands a massive opportunity to grow successfully in this region.

We know that international expansion comes with challenges, and Europe is no different, as each country has its language and culture, and there is legal compliance that you must follow. Fortunately, you are in the right place, and here you will learn the benefits, how to overcome these challenges, and how BorderGuru can help you successfully expand into Europe.

The main benefits of expanding into Europe

E-commerce Sales growth

The COVID-19 pandemic accelerated the growth of e-commerce worldwide and in Europe. After the pandemic, it continues to grow significantly, which means the online sales channel in this region is in its boom phase.

Statista estimates that European online sales are expected to reach $500 billion this year. As the use of mobile phones for shopping increases, new consumers are likely to come from this stream. Statista also conducted a survey showing that consumers in France, Spain, Ireland, and Germany buy more frequently via mobile devices than before the pandemic.

As shown in the graph below, four European countries are in the top 10 with the highest e-commerce sales in 2021.

This shows the importance of the European region for e-commerce businesses, and that it is the best time for your brand to consider being part of this growth.

Less-saturated markets

As mentioned above, e-commerce sales have increased in Europe recently, but the market is not yet as saturated as the US. Some countries, especially in Eastern Europe, where e-commerce has just begun to boom. This means US brands can compete and have higher chances of success.

Access to a Diverse Market

Expanding into Europe opens opportunities to sell to more than 500 million online shoppers in 27 countries. Online shopping in these markets has grown, and it is a market open to continuing shopping online and from countries outside the EU. It is a market looking for new, unique, and innovative brands. They see US brands as those that tick these boxes.

These enable US brands to successfully enter and develop their brand in Europe. Because EU countries are economically interconnected, brands can also decide where they want to expand first, depending on the demand for their products. From there, reaching more consumers in other EU countries is easy. So it is easy even if you first decide to enter one or two countries, if you later want to sell in other countries.

Single currency in EU countries

This is beneficial, as you will only deal with one currency, and the prices of your products will also be in euros. It is also easier to do a competitor’s price analysis and choose the best price for your products, as you can compare it to those in different European countries, all in Euros. In addition, it would be easier for your company to exchange Euros for USD when it receives earnings, if this is necessary.

Aspects to consider when expanding into Europe

Cultural Differences Across Europe

Before expanding into Europe, it is essential to understand that each country has its own culture and language. Once brands have an idea of the country or countries that have a demand for their products, they do their research on the local market or markets. This aspect is essential, especially when communicating your brand and products to consumers, as you want consistency in marketing, in the tailored message and positioning of your brand and products.

In this regard, it is essential to consider the following points:

Cultural customs
Local language
Local currency
Local forms of payment

With our Marketplace Partners Solution, you don’t have to worry, as we provide content localization for your product descriptions and marketing, local payment forms, and prices in local currency.

Customer service

Customer satisfaction is key to the success of your brand. The two main aspects to consider are language and time zones. For US brands, it may be challenging to have a customer service team that can speak every European language and be available in the same time zone as EU customers.

For this reason, we provide customer service in the local time zone and the language of EU consumers, so that they have the best purchasing experience with your brand.

Legal & Tax Compliance Can Be Complex

Regarding legal compliance, it can be challenging to do so alone, as there are several requirements, such as setting up a legal entity and complying with tax authorities (IOSS number and UK VAT). These can be overwhelming, time-consuming, and expensive.

But don’t let these stop you from expanding into Europe. We make European expansion easier by providing you with tax and legal compliance, so you do not have to deal with it alone.

Warehousing

Deciding the country and place to store your products securely and conveniently, and managing them alone from abroad, can be complex and expensive. We are the solution for you! By joining our Marketplace Partners Solution, you do not have to deal with warehousing as is included.

Logistics

Logistics can be a make-up or breaker for your business to succeed in the EU market. This is probably one of the most challenging elements. Good infrastructure and investment are needed, and a high revenue is required. However, we have good news for you. With our Marketplace Partners Solution, you do not have to worry about logistics, as we handle everything from fulfillment, pick packing, and shipping to even returns for your products.

Expand your US brand to Europe with BorderGuru’s Marketplace Partners Solution

We are experts in the European market and help US brands successfully expand into Europe. With our Marketplace Partners Solution, you can sell your products prominently and exclusively in European lifestyle marketplaces. We provide your business with content localization, tax and legal compliance, logistics, customer service, and more in 27 countries.

Learn more below about the most popular fashion and lifestyle marketplaces in Germany and Europe:

Founded in 1949, Otto.de is Germany’s biggest fashion and lifestyle marketplace with:

Online sales of more than €11 billion
Over 3,400 sales partners
11.5 million active customers
3.6 million new customers
70% of visits are via mobile devices
Ten orders per second

Founded in 2014, it is one of the fastest growing marketplaces in Europe, and Hamburg’s first unicorn since 2018. As one of the most significant fashion and lifestyle platforms in Europe, it has:

Active in 26 European markets
Sales over €1.17bn
Over 3,500 brands
Over 500,000 items
More than 45 million unique active users per month
More than 26 million app installs
Over 1000 influencer collaborations per month

It was established in 2008 as a pioneer in e-commerce, which has become one of the most innovative fashion platforms in Europe. It is a unique marketplace with a betting process, providing exclusivity and visibility to its brands.

As a leading European online platform for fashion has:

Presence in 23 European countries
Net sales of around €8 billion
More than 5,800 brands
49 million active customers
7 billion visits per year
More than 90% of traffic comes from mobile devices

These marketplaces will help your fashion brand reach millions of European prospects that can convert into loyal customers. They are your choice for you to tap into a market full of growth opportunities.

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