ABOUT YOU- The Most Inspiring Online Fashion Shop in Europe

Are you a US fashion brand looking to grow internationally? This is your lucky day.

Stay and learn more about the fastest growing fashion marketplace in Europe; AboutYou.

AboutYou was founded in Hamburg, Germany, in 2014. It is a member of the Otto Group a global retail and services group with a clear focus on innovation and digital transformation. AboutYou as a fashion technology company with a solid and savvy team, the aim is to digitalize the classic shopping stroll by creating an inspiring, personalized and unique shopping experience on the smartphone.

The vision was to create the first online destination where brands could showcase their products inspiringly, so that consumers could find and be inspired by relevant products that fit their style, regardless of the screen size, in addition to offering the most personalized fashion online shop.

AboutYou has achieved this goal of transforming how people buy fashion online, and has built a multi-award-winning app. Customers can find thousands of inspirational and versatile designs from over 3,500 brands on its website and the app.

Imagine having the opportunity to sell your designs not only in Germany, but also in other 25 European countries?

As the biggest market in the EU, Germany offers consumers keen to shop online and from foreign brands due to benefits like a wider range of products available, convenience, and better service. Also, marketplaces and smartphones are the most popular ways to shop online. Germany is a great market to start your expansion journey into Europe. Learn more about it in our blog “Germany – The Biggest Online Market in Europe”

With AboutYou, all this becomes possible, as it is active in Germany and other 25 European markets. With 45 million unique active users per month, more than 26 million app installs and more than 1,000 influencer collaborations, your brand will have all the exposure and tools to succeed in Europe.

AboutYou is the ideal marketplace for US fashion brands. Its target market is the young generation willing to be part of not only its current success of it, but also of what the future might bring. This fashion marketplace stays current with the trends, needs and wants of consumers, and works further into the future.

Everything this marketplace does, they do it with passion, innovation and excellence, always thinking ahead and with an open mind to learn and improve for their customers. It is the same effort they put into brands so that they can succeed and work towards the same goal that focuses on their customers, who are supported in expressing themselves through unique fashion. The AboutYou team is also consistent with personalization, inspiration and mobile shopping.

With the experts in fashion e-commerce, you can be sure that your brand and collection designs are in great hands. As already mentioned, your brand will also have the highest market exposure. AboutYou works with many of the most successful European influencers and models awarded each year in the ABOUTYOU AWARDS EUROPE, which means your brand has the exposure needed to shine.

And what would an innovative brand be without being environmentally and socially responsible?

AboutYou strongly supports sustainability, and some of the actions that have taken are:

One of the first companies to receive verification for the Sustainable Apparel Coalition’s Brand and Retail Module
The use of eco-friendly boxes and poly mailers 80% recycling material and fewer prints.
Increase transparency through new shop features, which label sustainable products and show all criteria and certificates
Increase the number of sustainable brands and products in their portfolio
Continuation of the AboutYou Vintage Wardrobe – A space where festival and event visitors can rent secondhand clothing for free and learn more about used garments and the concept of circularity

If you are a US fashion brand committed to sustainability and want to make changes to impact the environment positively, you are definitely in the right place! As AboutYou is a marketplace acting in the present for a better future and constantly looking for improvements. They want more sustainable fashion brands to be part of their sustainable project and serve the high demand that these fashion products currently have, as Europeans have become more environmentally aware. They are supporting and loving brands that are transparent about their actions and bring a positive impact to the table.

You can learn more about sustainable fashion in Europe and the German online fashion market in our previous blogs “Sustainable Fashion Industry in Europe”

This is the best time for your brand to expand its international footprint in the European market.

How can you be part of AboutYou?

All you need to do is contact us now. BorderGuru, as a member of the Otto Group, has the Marketplace Partners Solution, which allows US fashion brands to be part of AboutYou and other exclusive marketplaces to expand into the European market. We provide brands with tools to expand into these marketplaces efficiently, allowing them to succeed.

Our solution provides businesses with localized services, tax and legal compliance, customer service, warehousing, and logistics that eliminate all complexities of international growth.

Don’t wait anymore and grow your brand successfully in the European market!

Homeware and Furniture Market in Europe

We have seen how sales of e-commerce have increased in recent years, especially during and after the pandemic. Growth between 2019 and 2021 was significant. It went from $3.3 trillion to $4.9 trillion, and is expected to rise to $7.3 trillion in 2025. This shows that e-commerce is here to stay and is changing not only the way we do business, but also the purchasing behavior of consumers.

If we look at the top online selling categories worldwide in 2022, furniture is third with a forecast sales of $492.6 billion, as seen in the graph below. This is important, as furniture and homeware have been an offline market for many years. Until recently, consumers have been open to the possibility of purchasing these products online. This is because companies in this segment use new technologies to improve the experience of consumers and try to adapt it to the experience of buying in person.

According to Technavio, by 2025, the homeware & furniture category will grow by $52.95 billion and progress at a CAGR of 9%. Since this market in the online world is still new and unexplored, there is an amazing opportunity for brands to monetize this channel.

Where are the opportunities for US homeware & furniture brands to grow internationally?

Let’s begin by mentioning the key consumers of online homeware and furniture products, starting with the US and followed by the UK, China, Germany, Canada and Japan. Europe will, however, have a higher importance in the growth of this segment. From 2020 to 2025, this market will account for 42% of global sales growth.

As shown in the graph below, Europe’s online homeware and furniture segment has grown by an average of $3,634.6 million each year from 2020 to 2022. It is expected to grow at an average rate of $2,584.825 million annually from 2023 to 2025. It seems a little less than in the previous period, but that’s because the boom was during the pandemic when people were confined to stay indoors. However, this also helped to develop the online sales of this segment.

Within the European Union, Germany is one of the largest e-commerce markets. According to Statista, Germany was second in e-commerce revenue in 2021 with $105 billion, as France was above $120 billion. Of the total e-commerce sales in Germany, $15 billion came from homeware and furniture, which accounts for 14%. Like global e-commerce sales, the homeware and furniture segment is not the largest, so the market is not saturated. New brands have more opportunities to penetrate the German online market and be part of this growth.

Main drivers for the increase in online home appliances and furniture in Germany

In Germany, consumers used to buy from offline stores due to the touch-and-feel experience, but this has changed and homeware online sales have grown due to technological advances and the use of mobile phones.

Online homeware and furniture retailers such as Otto and Ikea have implemented the following to be more attractive to consumers and reduce the reluctance to buy online.

3D product visualizations
Augmented reality apps
Omnichannel shopping (combine stationary showrooms & online distribution channels)

These implementations have helped customers to have a better experience when shopping online for furniture and homeware. As a result, this segment has gained traction in Germany.

How is it best for US homeware and furniture brands to expand into Germany?

As previously mentioned, Germany’s homeware and online furniture market has only been significantly growing recently and is not yet saturated. This has become the best channel for new brands to capitalize on in the German market.

The ways for US online homeware and furniture brands to expand into Germany are to have their online store or join a local champion marketplace. The first option is pricey, logistically and operationally too complex, especially for SMEs that may need more extensive infrastructure to handle all international orders.

The second option, selling their products in a marketplace, is more viable, as it already has the infrastructure and resources needed to sell products in Germany. There is also awareness and respect of local customers; it is less complicated and less money is required to invest.

Here we present the best online stores for homeware and furniture:

The top three are Otto, Amazon and Wayfair, focusing only on marketplaces. Otto is Germany’s leading online marketplace in this category, with net sales of 1.5 billion euros, and is also among the top players in growth.

Otto marketplace is part of the OTTO Group, founded in 1949. Now with over 3,400 sale partners in the fashion, lifestyle, homeware & furniture industry and more than 11 billion euros in sales, it’s the biggest marketplace in Germany.

Given Otto’s presence and market penetration in Germany, it can allow US homeware and furniture brands to enter the German market, which is the largest within the EU, and be part of its success. Otto has a strong presence and the infrastructure and resources to support brands entering and growing in the German market. Otto is the best choice for logistics, marketing, and customer service.

How can your brand be part of the Otto marketplace?

We know that expanding into a new country can come with several complexities, even if it is selling in a marketplace. Here is where we can provide help to your businesses.

The most suitable way for your brand to sell in this exclusive marketplace is to be part of our Marketplace Partners Solution. We provide brands with tools to expand efficiently into this marketplace, allowing them to succeed. Our solution provides businesses with localized services, such as tax and legal compliance, customer service, warehousing, logistics, and more. We eliminate all the complexities associated with international growth.

Let us help your brand expand successfully into Europe. Contact us now and open the door to endless opportunities!

Top Countries for US Fashion Brands to Expand Internationally

Our previous blog, “Cross-Border eCommerce – The Key to International Growth,” mentions that e-commerce is continuously growing. According to Statista, online sales in 2021 were $4.9 trillion and are expected to rise to $7.3 trillion.

The cross-border e-commerce market value in 2019 was about $579 billion and is expected to reach $2.25 trillion by 2026. Cross-border e-commerce involves buying and selling products in online stores across international borders.

The following map shows the countries with the most significant percentage of shoppers buying from international online stores.

As we can see in the image, these are some countries where US fashion brands can expand internationally. Taking this premise into account, the five most important countries with the highest percentage of cross-border shoppers are; Brazil at 86%, Australia at 85%, Canada at 83%, France at 79% and Germany at 74%.

In 2020, the countries that purchased the most from US brands through e-commerce were: Canada at 51%, Mexico at 50%, South Korea at 47% and India at 28%.

The main reasons for consumers to purchase through cross-border e-commerce are:

Lower prices
Brands not available in their home countries
Unique and more expansive product options

Where does Fashion stand in the e-commerce market?

The global Fashion C-commerce Market was valued at nearly 700 billion US dollars in 2021. In 2022, it is expected to be one of the three most important categories of global e-commerce sales, with a revenue forecast of $1 trillion. This category has grown continuously and become more popular in online sales. Global fashion e-commerce is expected to reach more than $1.2 trillion by 2025.

The International Post Corporation’s online survey, conducted in 2021 in 40 countries with 33,179 participants, found that the top categories in cross-border e-commerce were clothing, footwear and apparel, with 34% of respondents.

As can be seen, fashion products have a high demand worldwide, leaving plenty of room for brands interested in fulfilling the needs and wishes of consumers in other countries to do so successfully.

Which countries have a higher potential for US fashion brands to expand?

At this point, you might ask yourself what the best countries for your US fashion brand are to expand and increase your international sales. Here you will find a list of the countries with the highest online fashion sales.

Looking at the graph below at the revenue of fashion retail e-commerce by country, we can get an idea of the top 10 countries where the fashion category in e-commerce has a higher penetration and thus higher revenue.

1. China

Internet penetration in 2020: 70%
E-commerce sales in 2021: $2.78 trillion
Fashion e-commerce sales forecast 2022: $312.2 billion
Percentage of cross-border shoppers: 65%

2. The UK

Internet penetration in 2020: 95%
E-commerce sales in 2021: $1.69 billion
Fashion e-commerce sales forecast 2022: $60.56 billion
Percentage of cross-border shoppers: 66%

3. Japan

Internet penetration in 2020: 90%
E-commerce sales in 2021: $144 billion
Fashion e-commerce sales forecast 2022: $54.39 billion
Percentage of cross-border shoppers: 36%

4. Germany

Internet penetration in 2020: 90%
E-commerce sales in 2021: $101.5 billion
Fashion e-commerce sales forecast 2022: $38.47 billion
Percentage of cross-border shoppers: 74%

5. South Korea

Internet penetration in 2020: 97%
E-commerce sales in 2021: $120.56 billion
Fashion e-commerce sales forecast 2022: 37.18 billion
Percentage of cross-border shoppers: 41%

6. France

Internet penetration in 2020: 85%
E-commerce sales in 2021: $80 billion
Fashion e-commerce sales forecast 2022: 32.96 billion
Percentage of cross-border shoppers: 79%

7. India

Internet penetration in 2020: 43%
E-commerce sales in 2021: $67.5 billion
Fashion e-commerce sales forecast 2022: 19.69 billion
Percentage of cross-border shoppers: 56%

8. Italy

Internet penetration in 2020: 70%
E-commerce sales in 2021: $26 billion
Fashion e-commerce sales forecast 2022: $19.43 billion
Percentage of cross-border shoppers: 67%

9. Canada

Internet penetration in 2020: 97%
E-commerce sales in 2021: $44 billion
Fashion e-commerce sales forecast 2022: $16.53 billion
Percentage of cross-border shoppers: 83%

10. Australia

Internet penetration in 2020: 90%
E-commerce sales in 2021: $31 billion
Fashion e-commerce sales forecast 2022: $11.12 billion
Percentage of cross-border shoppers: 83%

These countries could be an excellent choice for US fashion brands to expand their international footprint. As shown, they not only have the highest percentage of consumers willing to buy from foreign brands through e-commerce but also the highest fashion e-commerce sales. These offer US brands high opportunities to penetrate the international market successfully.

What do you need to consider before expanding into a new country?

Marketing elements

Identify your ideal international customer: Your brand needs to create a target persona that means your ideal international customer. In this way, you can find the most effective way to present and sell your products and have a higher chance of success in the market or markets you want to expand.

Connect with influencers: This marketing tactic has become popular in recent years, allowing brands to become more natural and build trust. It is also a way to connect deeper with consumers. Finding influencers with followers like your ideal customer could give you a higher chance of starting on the right foot and attracting their attention.

Engage with your Audience: Research popular social media networks within your target audience and try different engagement activities to find out what gives you positive results—for example, answering messages on time, giveaways and polls. This will help you to increase brand awareness, trust and sales.

Retarget visitors: It is a good marketing practice to have campaigns to retarget visitors who have left products on the shopping cart or have products on their favorite list. For example, show ads or send e-mails with discounts on the products they were interested in. Retargeting helps increase turnover and generate a great return on investment (ROI).

Logistics and payment

Payment options: Be aware of your target market’s most common payment options. For example, paying with Apple Pay, Google Wallet, or bank transfer is very common in Europe. Therefore, it is a matter of finding out what your visitors use for online payments and offering them.

Customer service: Customer satisfaction is the key to happiness, loyalty and returning customers. Barriers to language, culture and time zones can be challenging to provide an excellent buying experience. However, allocating staff to support clients in other countries helps businesses avoid misunderstandings and be more efficient.

Delivery experience:

Shipping cost: One of the concerns of shoppers buying from international brands is the high shipping costs. So, what you can do as a brand is finding the most cost-effective solution to offer your customers. This will help your customers continue their checkout and improve their shopping and shipping experience. With BorderGuru, you can offer the most competitive shipping costs and a smooth checkout experience.

Delivery time: This is also a concern and the best thing to do is to be transparent with your customers about delivery times and situations where deliveries can be delayed. Next, you need a solution that provides your customers with reliable shipping updates until they receive their package. BorderGuru offers end-to-end track and trace that allows your customers to feel safe, as they will know every shipment stage until it gets delivered.

Return policy: Research and understand the return rate and legislation of the country or countries the business is selling to. Make sure to have a straightforward process and policies to handle returns and communicate them to customers.

Customs, Taxes and duties: It is vital for companies to have information on customs, taxes, and duties and check how they will be handled and communicated to customers. For example, it might be easier and more transparent for customers to see a price with tax and pay duties upfront along with shipping. This way, customers do not have to worry about further costs once their package arrives, as it will be customs cleared.

If your brand is ready to take the next step towards international expansion, consider us your global partner. BorderGuru will provide full support by offering you and your customers the best shipping experience, from competitive shipping costs to calculating taxes and duties at checkout to custom-made orders so that your customers do not have to worry about surprises at delivery.

With BorderGuru, you have the opportunity to ship to up to 200 countries without any hurdles.

Sustainable Fashion Industry in Europe

In recent years, sustainable fashion has become an important topic for brands, the government, and society. The fashion industry dramatically impacts the environment, with its carbon footprint accounting for more than 10% of global greenhouse gas emissions. As climate change issues become more visible, current and new, brands in this sector are encouraged to be more transparent with their fabrics, production, disposal, and working conditions.

Regarding global revenue, Eco-fashion is now a $6.35 billion industry while growing from $1 billion ten years ago. It is also expected to increase to $8.25 billion in 2023. As for the number of sustainable clothing items in 2018 grew by 508%, from 58,144 SKUs in 2016 to 353,817 SKUs in 2018. The world’s leading markets, measured by sold SKUs, are the US, Germany, the UK, France, China, and Italy.

This growth has to do with younger generations being more aware of fashion brands’ environment and social impact. According to a survey conducted in the UK and Germany by Mckinsey & Company, during the COVID-19 pandemic, consumers began to change their consumption behavior. The main findings were that 57% of 2,000 respondents had made significant lifestyle changes to reduce their environmental impact, and 60% had recycled and purchased products in environmentally friendly packaging. Other vital measures included buying more durable items, keeping items that already have for longer, and repairing items to prolong use.

As can be seen, there is already a demand for sustainable fashion products, and companies have a job to do in this regard. However, to continue to raise awareness of sustainable practices and take action on this issue, we must first understand what sustainable fashion is, its issues, and its importance.

Several definitions cover the same elements. Here we present the following three:

According to the Journal of Fashion Marketing and Management, Sustainable fashion consists of local sourcing and production, transparency across the supply chain, traceability of work processes and raw materials, environmentally friendly raw materials, safe working conditions, and fair wages.

Sustainability in the context of fashion refers to the environmental impact of the production (production, processing, and production of raw materials), the wear and care of (use), and the disposal of clothing (end of use).

According to several fashion experts, the most accepted definition: Sustainable fashion is an all-encompassing term that includes products, processes, activities, and actors (government, brands, consumers) aiming to achieve a carbon-neutral fashion industry based on equality, social justice, animal welfare, and ecological integrity.

It is also important to recognize and be aware of the main issues that impact our planet. Bearing in mind that we all play a role, companies and consumers.

Water consumption and contamination: high levels used in the production of clothing and when washing our clothes
Energy emissions: high use of energy in the production of synthetic fabrics and the washing, drying, and ironing of our clothes
Chemical usage: contaminating when using fertilizers and pesticides in the production of raw materials like cotton
Waste creation: High levels of textiles incinerated or sent to landfill

Why is it important?

Now that we have set the definition and know the impact of fashion on our planet, we need to understand the importance of sustainable fashion and why we need it.

Besides environmental issues, as mentioned in the previous definitions, sustainability also has to do with ethical working conditions, such as child labor, fair wages, and safe working space.

Here we present the top 5 reasons that tackle environmental and working conditions.

Creates Less Waste: By creating long-lasting products, it reduces the amount of waste. This can also be done by recycling and donating clothes.
Ensure Fair Wages & Proper Working Conditions: By prioritizing fair wages and safe working conditions for all employees rather than prioritizing volume of production and spending.
Reduces CO2 & Other Greenhouse Gases Emission: By using biodegradable materials from natural or recycled fabrics, reducing carbon footprint and the amount of energy used and other resources.
Saves Water: By setting policies to have a budget on the use of water for production and prioritizing the use of textiles that require little to no water during the production phase, such as linen, hemp, and organic cotton.
Saves Animal Lives: Using leather and fur alternatives to save animals from exploitation and preserve the ecosystem’s balance.

Elements to consider as a sustainable fashion brand

Quality functionality: Fabrics in sustainable clothing should ensure comfort, softness, and non-irritability. They must be durable, easy to clean and take care of.

Material: The most critical factor is that materials must be produced using non-chemical treatments. Materials can range from organic to sustainable cellulose.

Design: Concerning design, it is essential to attract consumers to sustainable clothing. Designers and developers can control over 80% of the environmental impact of a product. Some examples of alternative design techniques that can facilitate recycling and have a lower negative impact on the environment are:

Waterless dying techniques
Digital fabric printing
Use pure fibers
use natural dyes

Labeling: In general, the label should cover the following topics:

General care and warnings
Washing
Drying
Ironing
professional textile care or dry-cleaning

Sustainable fashion brands need to consider the instructions they describe on these topics, as they should encourage consumers to follow them to reduce the negative impact they could have on the planet.

Packaging: Packaging is not only about considering the impact on the planet but also about being cost-effective to be sustainable for the earth and businesses. Using less packaging and/or biodegradable packing materials, as well as recycling old materials, are actions that should be taken to contribute to sustainability.

Now, where are the most significant opportunities for US Sustainable fashion brands?

According to research by us.npeal.com, after reviewing 64 countries to find out where the most green-savvy shoppers live. It has been revealed that the US is the top country for sustainable shopping. North America is second in terms of monthly searchers by continent.

Number of sustainable fashion searches per continent

Apart from Europe being the number 1, ten of the top 20 countries worldwide are in Europe. The UK, Ireland, Germany, the Netherlands, Italy, and France are in the Top 5.

Top Ten European Countries for Sustainable Shopping

In Europe, environmental concerns and commitment to more sustainable lifestyles are more widespread among consumers, retailers, businesses, government, and non-governmental organizations. As a result, Europe is one of the most exciting markets in the world for sustainable apparel. In most EU countries, consumers, as mentioned above, are interested in sustainable fashion brands and expect companies to be responsible for social and environmental issues. The most trending topics around sustainable apparel include consumer education, fashion sharing, vegan clothing, transparency, standardization, and natural dyes.

Germany is one of the markets with immense potential for sustainable US brands. This market is not only more conscious of sustainable products, but also 90% of the clothes Germans buy are from non-EU countries, and the US is a significant trade partner. In terms of sustainable fashion, spending on fair-trade textiles increased by 66% (129 million euros) in 2017 over 2016.

Which measures has the EU taken to promote sustainable fashion?

In recent years, the EU has imposed more policies on several industries to reduce its negative impact on the planet. Some measures the EU has taken include cutting back on the production and use of plastic products, increasing the production of electric cars, finding new ways to produce energy, and reducing the use of energy and water. Now is the time to develop new policies to promote sustainability within the fashion industry.

Recently, the EU has unveiled a proposal to increase sustainability and reduce the consumption of fast-fashion products. This decision was made because clothing accounts for 81% of EU textile consumption, and fast-fashion products have built a culture of “take, make, break and throw away,” contributing to unsustainable practices and taking its toll on the environment.

Under the new rules proposed by the European Union, products must be longer-lasting and easier to repair. Products sold in the EU would be developed on a sustainability scale, demonstrating their environmental impact, durability, and ease of repair. This initiative aims to boost the market for sustainable textiles and prevent companies from misleading consumers with false environmental claims or greenwashing.

Under this strategy, manufacturers must ensure their clothes are environmentally friendly and hard-wearing. To contribute to this initiative, consumers will also receive more helpful information on how to reuse, repair, and recycle their clothes.

Government support for continued growing demand and increased growth give US sustainable fashion brands a higher chance of entering the EU and having a fair chance of success within this industry. This is a good time for US sustainable brands to become part of this growing sector, as it is new and still underdeveloped, so there is room for learning and improvements to penetrate the EU market.

What best way to expand into Europe as a US sustainable fashion brand?

There are 27 countries within the EU, and it can be complex to simultaneously serve many countries with diverse cultures and languages. Germany is, therefore, the best market for US sustainable fashion brands to enter the European market. As already mentioned, the market is already interested in environmentally friendly products and recycling and is one of the largest markets in the EU.

Fashion is the number one category sold online in Germany. Therefore, the best way to enter the EU market and start selling is through the most popular German fashion marketplaces. Three of the best marketplaces in the fashion segment in Germany’s top 10 are Otto, Zalando and Aboutyou.

These fashion marketplaces are not only the best in this segment but also the best for sustainable fashion brands. They are interested and committed to contributing to sustainability and taking measures to be part of the solution in reducing the fashion industry’s impact on the planet.

OTTO

The Otto Group is Germany’s biggest fashion and lifestyle marketplace, with more than €11 billion in online sales and over 3,400 brands.

Otto is committed to sustainability and has taken measures to reduce its impact on the planet. Some measures include searching for alternative packaging, such as 100% recyclable polybags, recycling bags, and recycled cardboard. There is also an initiative to encourage consumers to donate by offering free shipping from the consumer’s address to Hermes Parcel Shop and a voting system where consumers can choose their preferred charity institution.

They also have a code of ethics that brands should follow, which 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.

About You

Founded in 2014, it is Europe’s fastest-growing fashion e-tailer and part of the OTTO Group. It is considered a unicorn with more than US$1 billion. Since 2020, About You has expanded to 23 countries in the EU with over 2,000 brands, including exclusive collaboration collections with designers.

AboutYou strongly supports sustainability, and some actions it has taken are:

The use of eco-friendly boxes and poly mailers 80% recycling material and fewer prints.
Increase transparency through new shop features, which label sustainable products and show all criteria and certificates
Increase the number of sustainable brands and products in their portfolio
Strengthen their sustainability criteria for used materials, processing methods and working conditions
Integration & launch of the product category “Second Love” for quality checked second-hand items in the About You Shop that can be purchased with their known customer benefits, such as free shipping and returns
Continuation of the ABOUT YOU Vintage Wardrobe – A space where festival and event visitors can rent second-hand clothing for free and learn more about used garments and the concept of circularity

Zalando

Established in 2008, Zalando is the most prominent fashion e-commerce marketplace in Europe. It’s available in 23 countries and sells over 4,500 different brands, with net sales of €8 billion. Zalando is a unique marketplace with a betting process, providing exclusivity and visibility to its brands.

Zalando has been taking several measures to be part of the solution towards sustainability in terms of the planet, product and people; some of these are:

Source 100% renewable electricity and reduced emissions from our operations
Eliminate by 2023 single-used plastic
Launched the sustainable flag in their Fashion Store to help customers find more sustainable items and tripled their more sustainable fashion assortment
Their private label Zign has been fully dedicated to sustainability since the summer of 2020.
They launched their first Circularity strategy in 2021.
Make it easier for customers to reuse and resell their clothes.

How can US sustainable fashion brands be part of these Marketplaces?

Our Marketplace Partners solution allows US fashion businesses to be part of these exclusive marketplaces. We provide brands with tools to expand into these marketplaces efficiently, allowing them to succeed. Our solution provides businesses with localized services, such as tax and legal compliance, customer service, warehousing, logistics, and more. BorderGuru eliminates all complexities that come with international growth.

Don’t wait anymore. Contact us now and learn how your brand can succeed in the European Market!

Why Are HS Codes So Important for Cross-Border Trade?

International shipping can be an excellent opportunity for brands to increase their sales. As cross-border e-commerce continues to grow worldwide, it becomes easier to reach customers worldwide. Your online store must be ready to meet the demand you have.

So, what about all the requirements and documents you need to import your products into other countries? Preparing your products for shipping across borders can seem daunting and overwhelming. If you already offer international shipping, you must have come across the term “HS code” and how important it is to be compliant to avoid penalties and delays in delivering your products to your customers. If you don’t know about it… don’t worry, after reading this blog, you will learn and understand it.

HS codes are a fundamental part of international shipping. These codes classify your products and make it easier to fill out any needed international documents. It is important to be aware of the requirements to comply with customs and tax authorities to find a solution that can save you from problems that can cost you money and dissatisfied customers.

For this reason, we will explain what HS codes are, how customs use them, their relevance to your Shopify store, and how we can help your business remove all the complexity of international growth.

What is an HS Code?

Harmonized System (HS) code is a standardized numerical method to classify goods being traded internationally. They are commonly used across the world by customs authorities to identify products when assessing duties and taxes, and to record imported products.

Each HS code is composed of six digits. The first two digits are chapters, the following two digit headings, and the last two sub-headings. There are 21 sections, 99 chapters, 1,244 headings, and 5,224 sub-headings.

Summary: key features of HS codes:

Six-digit code to classify the goods
Defined rules that classify the goods
Act as a uniform standard for the classification of goods worldwide
Covers 98% of goods in international trade and over 5000 commodities

How do Customs use HS Codes?

Imagine everyday countries receive a large amount of goods from other parts of the world, and categories vary, as well as name, appearance and size of each product. So, it would take a long time for customs authorities to identify each product manually. Therefore, HS codes are used to identify imported goods more accurately and faster and charge the right amount of taxes and duties.

It is vital for merchants to classify the imported goods and include this information correctly in the documents presented to customs. If not done correctly, you run the risk of customs opening your parcels and checking the content inside. If the HS codes declared do not match the product, your business might encounter the following issues:

Considered non-compliant
Extra charges to be paid
Fines and charges as penalties
Product rejections
Delivery delays
Unsatisfied customers
Lower profit margins in case of paying a higher amount of tax or customer returns

For these reasons and more, you need a partner and solution to help you with compliance. BorderGuru helps you avoid these risks by accurately mapping and automatically classifying all your products and assigning an HS code. We will be the importer of record and handle customs on your behalf. Once your products are shipped, we will ensure that they navigate customs safely and are seamlessly delivered to your end customers.

Why are HS Codes relevant for your Shopify Store, and how can BorderGuru help your business comply with customs?

As already explained, HS codes are required to ship any product internationally. This can be complex for brands, as not only do products have to be accurately classified to be assigned an HS code, but also the information must be included in most international export documentation, like commercial invoices or certificates of origin.

Failure to correctly assign HS codes or include all necessary information in customs documents can lead to delays, additional significant costs, and unsatisfied customers.

It is important to consider all import requirements to offer international shipping in your Shopify store. Without HS codes and export documents, you will not be able to comply with customs, or deliver parcels to your international customers.

BorderGuru can handle everything for you to correctly comply with all requirements, so that your business doesn’t encounter any issue when its parcels go through customs, and they can be easily dispatched and delivered to your customers around the world.

We can also calculate and guarantee all landed costs at checkout to give you and your customers the best possible shipping experience.

Click here to learn more about how BorderGuru can manage the entire process, from start to finish, to expand your business globally without complexities.

How Delivered Duty Paid (DDP) Can Benefit Your Online Business

As cross-border e-commerce sales continue to grow, US brands have great potential to reach customers worldwide. However, some aspects that brands must consider to handle international shipping in the best way to avoid headaches for the business and consumers. These include shipping costs, tax and Duty fees, and delivery times. If these aspects are not handled properly, the customer experience may suffer, and the brand may have consequences, such as higher shopping cart abandonment rates, higher shipping costs and lower conversion rates.

Offering a DDP shipping solution addresses the top consumer concerns. However, for brands, it can be overwhelming, as every country has import taxes, duties fees, and requirements. Therefore, it is essential to have a solution that provides the best user experience, cost-effective operation and practicality for the business to expand internationally successfully.

For this reason, we will explain what DDP is, how your company can benefit from it, and how we can help your business offer and handle DDP so your business can provide the best shipping experience for your customers.

What is DDP?

Delivered Duty Paid (DDP) shipping is when a merchant takes responsibility for all landed costs (taxes & duties) and charges them to the end customer without paying additional fees or dealing with customs delays.

This means that the merchant is responsible for the entire shipping process, from delivery of the package to payment of taxes and fees to the delivery to the end customer at the final destination. This helps build trust and improve the customer experience, as they have paid for everything up front; there will be no surprise fees when it arrives at the final destination.

What is the difference between DDP and DDU?

DDU is when the merchant is responsible for the entire shipping process, from sending to ensuring that the goods arrive safely at a destination. However, once the package is in the final country destination, the buyer is responsible for paying all the necessary import fees.

The difference between DDP and DDU is that in DDU, the customer may have to pay import taxes without knowing the exact amount until the package arrives. As fees often come as a surprise, it creates a poor customer experience and can lead customers not to accept the goods, financially impacting the merchant.

What are the benefits of offering DDP?

The benefits of offering DDP are the following:

Be transparent with taxes and duties fees
Custom clear orders
Avoid delivery delays
Avoid extra costs
Build trust
Enhance customer service
Lower cart abandonment
Increase website conversion rates

How can BorderGuru help your business handle and offer DDP on your Shopify store?

Offering a DDP solution benefits both the brand and the end customer. Brands need to research tax and duty fees and import laws per country and calculate each product that will sell cross-border. If done on your own, this can become very overwhelming and might discourage you as a brand top opening your cross-border channel.

With BorderGuru, you have a strategic partner that can help your Shopify store offer DDP and handle all import requirements for each country. Our solution takes everything from product mapping to tax filling. You don’t have to worry about import requirements, as we’ll have everything ready for you to ship your products as if it were local shipping.

Our cross-border solution is a free plug-and-play app that can is integrated into your Shopify store within 10 minutes. It automatically and accurately calculates taxes and duties at checkout and offers your customers competitive shipping rates.

BorderGuru is, as can be seen, a one-shop-stop solution for international shipping. It allows you to reach your customers regardless of location, as you can choose up to 200 countries to ship to.

Our solution helps your brand to provide the best possible customer shop experience to increase trust, loyalty and sales.

Germany – The Biggest Online Market in Europe

Country Report – GERMANY

Population & language

Germany’s population is 84.3 million. It is the most populated nation in the EU. The median age is 47.8, and the official language is German. The country is the biggest economy in the European Union, and the currency is the Euro.

Economy

The German economy is the fourth-largest in the world in terms of PPP and Europe’s largest economy. Its GDP accounted for one quarter (24.2%) of the European Union’s GDP in 2020. Its current GDP per capita is $50,900 and purchasing power parity (PPP) is $4. 23 trillion.

Trading Partners

Germany is the United States` largest European trading partner and the sixth-largest market for US exports. As for imports to Germany, the US was third place in 2021 after China and the Netherlands, accounting for goods worth €72.1 billion. Imports from the US rose by 13.6%. In December 2021, the surplus was €6.8 billion.

Digital overview

The most common domain used in Germany is .de. The total internet users are 78.81 million, accounting for 89.81% of the population.

The most used device is a smartphone; 81% of Germans owned a smartphone. An interesting fact is that mobile no longer means on the go. 69% of all advertising is displayed via Wi-Fi, and only 23% via a cellular network. This report shows that Germans prefer to look at their phones in the commodity of their homes rather than using a tablet or computer to shop.

In terms of media usage time, people in Germany spend the most time on the internet than on any other medium.

Common Payment methods

The most common payment methods used for shopping online in Germany are PayPal, credit card, direct debit, e-wallet, and instant transfer. Having these payment options in your online store ensures a cart abandonment rate of 3%. It is important to consider these options because Germans trust them and are loyal to what works for them, which means that if you don’t offer them, the chances of leaving uncompleted transactions will be higher.

E-commerce Outlook

E-commerce has been on the rise worldwide, and Germany is no different. In 2020, online sales grew 14.6% compared to 2019, about 83.3 billion euros. The most significant increase was in 2021, which grew 19% over last year, worth 99.1 billion euros. If we account for digital services, the total worth of e-commerce reached 107.1 billion euros.

In Germany, e-commerce has become the “New Normal,” It was strongly noticeable during the pandemic. Now, post-pandemic, it is still going and getting stronger as it shows that its benefits, a wider variety of products, and better service are what consumers need and want. Currently, the thinking of trading without e-commerce is unimaginable for both consumers and retailers.

According to a study by RetailX, 85% of Germans shopped online in 2020. Consumers in this country are keener on shopping online rather than offline. The most popular product categories are apparel, consumer media, and electronics.

As can be seen, there is a great opportunity for US online stores to sell to Germany as e-commerce continues to rise. Germany has an excellent trade partnership with the US, and there is a demand for US products.

Fashion E-commerce industry

Fashion is a profitable industry in e-commerce with steady growth. Global sales in 2021 amounted to 759 billion US dollars and are expected to grow by 78 billion US dollars in 2022. As shown in the graph below, this segment continues to rise. The most popular sub-categories are apparel, footwear, and accessories.

Source: Statista, commonthreadco.com

The fashion segment is no different in Germany; it is one of the most popular segments in e-commerce. Revenue is expected to reach 38,467 million US dollars in 2022, with an annual growth rate of 11.66% from 2022 to 2025. User penetration will be 58.4% in 2022 and is expected to reach 67.9% by 2025. In 2021, the fashion segment accounted for 24% of the German e-commerce market, with a turnover of $26 billion. In 2021, the largest sub-categories were apparel, which accounts for 66% of sales. Then is footwear with 22%, and the remaining 12% is bags and accessories.

Concerning imported apparel, Germany was the number one import market in the EU in 2020, along with France, Spain, Italy, the Netherlands, and Poland, with a total import value of 30.2 billion euros, of which 14.3 billion euros came from other EU countries and 15.9 billion euros from non-EU countries.

The information presented here suggests that US brands have room and an excellent opportunity to sell their products online and have a piece of the pie.

The largest Online Fashion Marketplaces

The top marketplaces that offer US brands the opportunity to succeed in the German market are Zalando, Otto, Amazon, Bonprix, and AboutYou. It is worth looking into these marketplaces to see which one or which ones are suitable for your product in terms of the target market, traffic volume, and competition.

Otto, Zalando and About You are the most suitable for US fashion brands to expand to Germany. The three offer US brands a great opportunity to expand into this country successfully. Once companies have acquired brand awareness and sustainable sales, the chances of success in other marketplaces are higher.

At BorderGuru, we are part of the Otto Group and offer our Marketplace Partners solution. This solution allows US fashion brands the opportunity to expand into Germany and 26 other countries in Europe by participating in marketplaces such as Otto, Zalando, About You, and many more. This solution offers content localization, tax and legal compliance, logistics and customer service, and much more to facilitate the international expansion process.

Learn how your brand can benefit from our solution by Booking a Demo and start achieving your international goals.

Top 10 Tips to Successfully Sell through Cross-border

As mentioned in our blog “Cross-Border eCommerce – The key to international growth,” e-commerce has been growing continuously. Sales have increased by US$1.57 trillion from 2019 to 2021, and this positive trend is expected to continue in the following years.

As the lines between geographic borders in e-commerce get blurred, it gets easier for customers to purchase products from across the world, increasing the possibilities for US brands to broaden their international footprint.

Considering the positive growth trend that cross-border e-Commerce has, we created a list of Top 10 tips to sell cross-border successfully.

1. Market research

Before deciding on selling internationally, it is essential to research your potential customers to provide the best possible experience with your brand, products and website.

These are three things to consider:

- Products: Research and look into the products your potential clients are most interested in, and also check if you need to make any changes to appeal more to their taste and cultural customs.
- Culture: Research the country your potential clients are from regarding their culture to avoid misunderstandings regarding your product or brand name, colors used, and communication style.
- Language: Although many international customers are bilingual and fluent in English, localizing your shop in terms of language, pricing, etc., can significantly benefit your business and differentiate you from your competitors. It also helps offer localized customer service, when possible, for a better customer experience.

2. Brand awareness & trust

Building brand awareness and trust is the key for your potential international customers to get to know your brand and your products.

Here are some actions you can take to build awareness and trust:

- Create organic content using SEO and posting on social media
- Post reviews and testimonials
- Create videos of your product: how to use it, tips, features, and how your customers use it
- Paid ads on Google and social media to specifically target your intended market

3. Pricing

It is crucial to search the price of similar products from your competitors, from the country or countries to which you want to sell your products, and also to be aware of the additional costs that need to be added to the final price. This way, you can ensure that it is profitable to sell in the intended country/countries and if your prices are competitive.

4. Payment options

Offering only the forms of payment popular in your local market is not enough to appeal to your international visitors. Our advice is to research the most commonly used payment methods by your target visitors or in the countries you are selling to. For example, in Europe, paying with Apple Pay, Google Wallet, PayPal, or bank transfer is very common. It is, therefore, a matter of finding out what your visitors use for online payments and offering them to increase your chances of succeeding.

5. Multi-currency account

A multi-currency solution and offering the option to pay in local currency on your website can save you headaches and provide a better user experience. Being transparent with your customers regarding prices could help your business in the long run; customers appreciate localization even if exchange rates are not in your hands.

6. Packaging

Another aspect to consider is the type of packaging that you will use to avoid higher shipping costs and be more cost-efficient and sustainable. For example, you can recycle old boxes, paper bags, or paper sheets as a protective material for packages and use mailer envelopes or poly bags for small non-fragile items like clothing.

7. Shipping

Shipping costs and delivery times are crucial for the success of your online business. Finding a shipping service suitable for your company that can offer you competitive prices and excellent quality service can be your competitive advantage.

Also, displaying clear and concise information will help you be transparent with your customers, build trust and avoid unsatisfied customers, misunderstandings about shipping fees and delivery times, and not miss repurchases.

Video - Hermes Parcels fleet rebrand delivered on time | Aura

8. Returns

Regarding returns, it is important to learn and understand the return rate and legislation of the country or countries your business is selling to. Make sure to have a transparent process and policies to handle returns and communicate them clearly to customers.

9. Insurance

Insurance is an aspect that is not necessarily needed. It depends on the value of the products you sell. It is crucial to consider evaluating if shipping insurance is necessary based on the product’s value and the loss/damage rate your business has experienced. If the rate of loss/damage is too low and the product’s value is not significantly high, then it is not worth spending on insurance.

Some cross-border solutions like BorderGuru have less than a 1% loss/damage rate, making it possible for businesses to add that percentage to their loss/damage concept in their budget and save by not paying extra fees on insurance.

10. Taxes & duties

Tax laws vary among countries. You should be aware of them, but trying to manage international taxation on your own is not recommended. Cross-border solutions such as BorderGuru can file taxes, making it easy for your business. It also provides your customers with accurate information about taxes and duties to be paid at checkout and customs-cleared orders, so they do not have to worry about additional fees at the delivery time. This will give your business and customers a better shipping experience.

Selling international comes with some hurdles, but you don’t have to do it alone. BorderGuru, as a cross-border solution, can facilitate international shipping for your business and your customers.

Our solution offers competitive shipping costs and calculates taxes, duties, delivery times, and guaranteed customs-cleared orders at checkout.

Canada: Cross-Border Selling Opportunity for US Brands

Canada is widely known as a significant trade partner for the United States. Canada’s imports were more prominent than exports in 2020, $510.29 billion compared to $477.31 billion. The US represented 57% of total imports, while China was 11% and Mexico was 5%.

As for cross-border online sales, as seen in the graph below, the US has the largest share, as consumers buy most products from this country, second China and thirdly the UK.

As can be seen, US brands have a big opportunity to enter and penetrate the Canadian market.

For this reason, we are discussing further market & economy overview, Digital overview, e-commerce outlook, and how BorderGuru can help your brand expand into a country full of opportunities to increase your international sales.

Population & Economy overview

Canada has a population of 38.23 million. The most populous provinces are Ontario, Quebec, and British Columbia. The median age is 41.8 years, and the largest age group in percentage is people between 25 and 54 years (39.81%), as can be seen in the image below:

The official languages are English and French, and the currency is the Canadian dollar. The exchange rate is approx. 1 USD = 1.28 CAD. In terms of Economy, Canada is among the top ten largest economies in the world. In 2020, it was 9th place with a GDP per capita of $43,295 and a Purchasing Power Parity (PPP) of $1.74 trillion.

International trade is an essential component of Canada’s Economy. Exports and imports account for about one-third of GDP.

Digital Overview

Canada is considered one of the largest online markets in America, with 36.39 million users in January 2022. It also has a high percentage of Internet users, as seen in the image below, meaning that almost 100% of the population has access to the Internet. It is also worth noting that a high percentage of the population uses a mobile device to access the Internet.

Regarding social media, a large percentage of the population is a member of a social media platform (87.1%). In January 2022, the number of users was 33.30 million. The most popular social media platforms are YouTube (33.30m), Facebook (20.90m), LinkedIn (19m) and Instagram (17.40m). It is important to be aware of the social media users for marketing your products, where you can get the most traction and have higher opportunities to increase sales.

According to Statista, in 2021, the most popular online activities conducted by Internet users in Canada were email 85%, online banking 67%, social media 58%, access news headlines 53% and online shopping 48%. Shopping is one of the five most important activities as e-commerce sales grew considerably; As we will see next, “E-commerce Outlook.”

E-commerce outlook

Global e-commerce sales have grown significantly since 2019 and even more during the COVID-19 pandemic. In Canada, it happened the same way; and during the pandemic, online sales increased as online shopping became the new normal for all generations. Now that restrictions have been lifted and shops are open, purchasing behavior has changed slightly for older generations. Still, for Millennials and Generation Z, online shopping will continue to increase.

In 2021, Canada was the tenth largest e-commerce market with a revenue of $35 billion, ahead of Australia and Indonesia. In the same year, there were 27 million e-commerce users in Canada, representing 72.5% of the total population, and is expected to grow by 77.6% in 2025.

Cross-border purchases are also still popular with Canadian consumers, as they believe there is a better selection of products and lower prices when buying from other countries. As it has already been shown, the US is a significant player in the Canadian market, and consumers expect to continue to do most of their online shopping from US brands.

As for the product categories, the top 5 are clothing (50%), shoes (32%), entertainment (30%), consumer electronics (30%) and cosmetics & body care (26%).

This graph shows that US brands in the sectors of fashion and lifestyles have an excellent opportunity to continue to capitalize and that new players can start to capitalize on this ever-growing e-commerce market.

For US brands to succeed in Canada as a cross-border e-commerce merchant, it is crucial to consider consumers’ expectations, needs and wishes to offer them the best possible online experience and to be able to attract and convert them into loyal customers.

Top 5 aspects to consider that strongly influence Canadian consumers’ online purchasing decisions

1- Word of mouth, social media influencers, video content, and online customer reviews strongly influence Gen Z and Millennial consumers’ purchasing decisions.

2- Make the returns policy friendly: 63% of shoppers have abandoned their carts because of an unclear or complicated returns policy.

3- Prioritize delivery: 58% of consumers are influenced by delivery speed, and 46% are motivated to buy from brands that deliver on the expected date.

4- Customer experience: 46% of consumers are influenced by loyalty or reward programs. It is also essential to consider promotional content.

5- Consider the environment: 37% of consumers prefer brands that are aware of their carbon footprint and are committed to reducing it.

With BorderGuru, you can expand your brand to Canada and other 200 countries without any hurdles and offer your customers the best online shopping and shipping experience. We calculate all taxes and duties in real-time and handle them for you. We provide your customers with custom-clear orders and competitive shipping prices. They will never have to deal with additional surprise fees at the delivery time.

London, England â€“ February 23, 2019: Customs, VAT Exports, Commercial Exports and Border Control at Terminal 5 at London Heathrow Airport, England, United Kingdom, Europe

IOSS and UK VAT Compliance for US Shopify Stores

As a Shopify store owner in the US, you are undoubtedly interested in selling your goods to the EU and UK markets. Since e-commerce sales in these markets have grown massively and will continue for years to come, the opportunity for US brands to make a profit is significant. This is also why your company should be informed and aware of IOSS and UK VAT and have a solution to handle compliance for your company correctly.

What are the current European Union import regulations?

Current EU import regulations are different from those before July 2021. Now US sellers must collect VAT on all goods they sell to the EU customers; the difference was that before, goods valued at 22 euros or less were Import VAT exempted. Therefore, you now need to determine the VAT rates of specific goods for all the EU countries you deliver to.

Additionally, you must declare in-customs all goods entering the EU regardless of their value. This means that when you sell to a customer located in any of the 27 EU members, the parcel must come with a customs declaration form.

What is IOSS and how can BorderGuru help me with cross-border selling to the EU?

The Import One-Stop-Shop (IOSS) is an electronic portal that eases the process of complying with VAT e-commerce obligations on imported goods valued < 150 EUR. With IOSS, you do not have to register in each EU country where you sell your products. Instead, you only pay the country of registration and then the authorities are in charge of distributing the taxes to the local tax authorities in which the customer is located; this makes the collection, declaration and payment of the VAT for US sellers easier.

Even though IOSS intends to make this process easier for non-EU brands, they still need to deal with VAT registration, finding a local fiscal representative, collecting taxes from customers, recording and filing, etc.

With BorderGuru, compliance with EU tax authorities becomes a simple task for your business. BorderGuru imports into the EU, which helps your company eliminate the complexity of selling and sending to the EU. Here are some benefits of using BorderGuru:

We represent you before EU tax authorities
We provide you with an IOSS number
We provide HS codes
We calculate taxes and duties to be paid at the checkout by your customers
We file your business` taxes on your behalf and keep a record
We offer custom cleared orders
We guarantee the accuracy of our calculation at checkout

What about UK VAT and how can BorderGuru support you?

Since the UK separated from the EU, it has import tax regulations. HM Revenue & Customs (HMRC) is responsible for tax collection and regulation. If the products you sell to UK customers cost more than135 GBP, you must register your business and pay taxes to HMRC.

BorderGuru helps you make this process easy for your business, so you do not have to worry about dealing with it on your own and instead focus on selling and connecting with more UK customers.

We provide you with the same benefits as with the EU, such as UK VAT number, we calculate, file and record taxes and duties, and provide your customers with custom cleared orders. We guarantee the accuracy of our calculation at checkout.

BorderGuru offers a complete cross-border solution that helps you with IOSS and UK VAT compliance and allows you to ship to 200 countries at a competitive price, calculating tax and duties at checkout and providing customs cleared orders. Additionally, it is effortless to integrate into your Shopify online store.

If you want to bring your cross-border sales to the next level, get in touch with us!

BorderGuru - One-Stop-Shop International

All posts by : martin