Why Having an EORI is Important

Posted by Ivy on December 27th, 2019

Many E-Commerce merchants see selling in Europe as a vital step to their business. Being one of the largest markets in the world, a business-owner’s European expansion is without a doubt a no-fail strategy that’s proven to lead their business to success and further growth. However, selling in Europe requires a lot of paperwork.

While companies like Sterlinx offers services to cater to E-Commerce sellers in Asia -- China, especially -- registering for an EORI is a prerequisite that a business must adhere to.

An EORI, or Economic Operators Registration or Identification is a system that’s established to aid in the safety and security of both traders and consumers. It was introduced by Regulation No. 2913/92 and was later amended by Regulation (EC) No. 648/2005 of the European Parliament and of the Council.

But why must a merchant or trader have to register for an EORI and how can it benefit them? Read on to find out.

1. It makes your shipping process more efficient

Succinctly, an EORI is required for you to be able to freely move your goods in and out of Europe -- including the United Kingdom. While it is indeed possible to not register for an EORI, you subject your business to shipping delays, storage costs, and additional fees; the cost of all of those still depend and vary on what the HM Revenue and Customs (HMRC) impose.

Being EORI-registered, on the other hand, guarantees a smooth and efficient trading operations that can benefit you and your consumers. Both GB and EU EORI number can be registered under your business for the customs to easily identify your goods so you can ship and deliver your products to your customers at a faster pace.

2. Your business is more trustworthy.

In all likelihood, your need for an EORI registration was heavily influenced by the number of times you’ve traded your goods in the UK and EU. Along with company formation -- that Sterlinx provides to their clients -- having an EORI number makes your business more reliable and trustworthy as it’s a proof that your business is constantly shipping goods in the UK and EU without issues.

Whether it’s B2C or B2B, shipping your products and getting them to arrive to your customers on time ensures that your consumers will leave a positive feedback and review on the E-Commerce platforms that you advertise and list your products on.

3. Your brand is exposed to more consumers.

Selling in the EU or the UK can be achieved much easier when you’re EORI-registered. Once you’re registered on both territories, you can freely sell in any country there. This is beneficial to those who wish to penetrate the European market without having to spend a lot of money on marketing, advertising, or brand awareness in general.

Registering for an EORI number not only makes trading more efficient and your business more trustworthy, its effortless shipping also means that your goods can be sold anywhere in Europe or the United Kingdom – helping you penetrate the market with ease.

While EORI-registration is considered to be an easy process, certain requirements and documents must be prepared and submitted to the authorities. Before applying for an EORI, make sure that you’re already VAT-registered, you have a National Insurance Number, and that you can provide a Unique Taxpayer Reference, or UTR.

If you wish to know more about EORI registration and all the other requirements you need to submit, sign up with Sterlinx to have them assist you on your European expansion.