How China-Based E-Commerce Merchants are Successfully Penetrating the EU Market

Posted by Ivy on December 27th, 2019

China has been dominating the E-Commerce industry in the past few years. According to Research and Markets, “Varying sources cited in the report project continued double-digit year to year growth in online sales in China through 2023. Contributing to this growth are the trends of social media shopping and mobile commerce; another trend is cross-border shopping as online shoppers in China are increasingly shopping outside of their borders, and China is a popular destination for web shoppers around the world.”

The success that China-based businesses experience -- by selling in their home country -- is without a doubt feasible to most of them. However, the competition that they face on a daily basis has forced many of them to focus on marketing their products overseas instead. One territory that they aim to expand to is Europe due to the large E-Commerce market there. Certain countries in Europe, however, stand out amongst the rest – like the United Kingdom, for instance. Many Chinese entrepreneurs choose to start their European expansion in the UK because it’s the biggest European E-Commerce market – but not many are able to successfully do so.

Many Chinese entrepreneurs fail at their European expansion due to their lack of awareness on the UK and EU laws that they’re required to follow; knowing little to no knowledge of their legal obligations as a merchant and overall taxpayer is also proven to risk their business due to the detrimental mishaps that they face. But companies like Sterlinx provides services to cater to China-based E-Commerce businesses. Over the last few years, many entrepreneurs experienced a steady growth and a rapid improvement in their retail sales because of Sterlinx. According to Ariful Islam, Sterlinx’s co-founder and CEO, the most strategic and effective way of successfully penetrating the European market is to have a business registered in the UK.

Sterlinx offers a company formation service to aid in China-based business-owners’ expansion in Europe. Once their business is registered in the UK -- and a Britain-based office or business address is provided to them -- selling their goods almost anywhere in Europe becomes easier; registering for VAT, however, is still required so they can freely import their items without risking their business. Those who aren’t fully aware of the laws, rules, and regulations that they must comply with when cross-border selling in Europe are given the opportunity to consult Sterlinx’s lawyers – another service that they offer to their clients.

Islam, along with the rest of Sterlinx’s executives, the reputation of their clients’ business is their top priority. “We go far and beyond to ensure that our clients’ business is in safe hands. We let them know what their company is up against -- if there’s any. We also inform them of their legal obligations as a merchant selling overseas. It’s important for them to understand everything that EU requires them to understand and follow.” said Islam. Their team of legal experts are always available for their clients to consult. Their legal team can also prepare the necessary documents for their clients to aid them in their expansion.

Most government agencies and tax authorities in Europe require importers to provide an accurate description of their goods. Be it the value, size, or type of product, a detailed description should be provided to them so they can determine the VAT fees that their company must pay. Though unintentional, the language barrier and unfamiliarity with the EU law often leaves China-based merchants at risk for paying a hefty fine for providing misinformation to the authorities. Sterlinx prevents that by having their lawyers available and ready to resolve any issues that their clients may face.

www.sterlinx.com