Why Expanding Across Europe Will Become More Complex in 2026

2024: A brand launches in Europe.
Germany first, then France, then Italy.

The plan sounds simple:
Translate the shop, scale campaigns, capture revenue.

The first few weeks go well.
Traffic increases, ads perform.

Then something happens that many brands underestimate:

Three months later, the project is being questioned internally.

Not because demand is missing.
But because the setup is no longer scaling with the growth.

The numbers behind it: Europe is growing, but becoming more complex

• European cross-border e-commerce is expected to exceed €237 billion by 2026
• Around 70% of cross-border purchases already happen via marketplaces
• Cross-border shipping costs can be up to 5x higher than domestic shipping

This means:

The growth potential is there.
But making that growth profitable is becoming more difficult.

What changed in 2026

In the past, expansion was mainly a marketing topic.

Today, it is the result of four interconnected layers:

And this is exactly where the biggest challenges emerge.

1. The first challenge: Europe is not one unified market

Many brands begin with a centralized setup.

One shop.
One warehouse.
One campaign logic.

In reality, markets behave very differently:

• German customers expect invoice payments
• France has different payment preferences
• iDEAL dominates in the Netherlands

What happens?

Conversion rates vary massively across markets.

What brands should learn from this:

Expansion is no longer about increasing reach.
It is about creating local relevance.

Our recommendation:

• Prioritize local payment methods
• Define delivery promises market by market
• Adapt customer service linguistically and culturally

2. The second challenge: Regulation is becoming operationally relevant

Many teams underestimate how quickly the framework conditions are changing:

• New EU regulations are increasing product safety requirements
• Customs and import processes are becoming stricter
• Tax and reporting obligations are growing

In the past, this was mainly a setup issue.

Today, it directly impacts speed and costs.

A common scenario:

A product may legally be sold
but cannot be shipped without operational adjustments.

Our recommendation:

• Always combine expansion planning with compliance and tax setup
• Standardize processes instead of creating individual solutions
• Involve partners and systems early on

3. The biggest lever: Logistics determines conversion

Many brands invest in marketing first.

And realize too late:

The delivery experience influences the purchase decision.

Typical effects include:

• High shipping costs increase checkout abandonment
• Long delivery times reduce repeat purchases
• Complex return processes destroy margins

Especially critical:

Cross-border shipping is often significantly slower and more expensive than expected.

Our recommendation:

• Evaluate local or regional fulfillment structures
• Design return processes proactively instead of reacting later
• Treat delivery as part of the customer experience

4. External pressure is increasing

Platforms and global players are setting new standards:

• Extremely fast international expansion
• Aggressive pricing models
• High product availability

Customers no longer compare only within Europe.

At the same time, political pressure on these business models is increasing
(for example discussions around import regulations and fair competition).

Our recommendation:

• Differentiate through experience rather than price
• Focus on reliability and brand trust
• Use operational excellence as a competitive advantage

5. Growth alone is no longer enough – profitability becomes critical

Many expansion projects fail not because of revenue, but because of profitability.

Typical issues include:

• Rising customer acquisition costs
• High return rates
• Inefficient logistics structures

The result:

More revenue, but lower margins.

Our recommendation:

• Prioritize markets selectively
• Understand unit economics country by country
• Build a strong data foundation for decision-making

6. The real bottleneck: Lack of integration

What many brands realize too late:

The biggest challenge is not the market itself
but the system behind it.

Many setups consist of:

• Shop Systems
• ERP
• Fulfillment
• Payment Providers
• Customer Service Tools

But they are not truly connected.

International growth makes this fragmentation visible very quickly.

Our recommendation:

• Integrate systems instead of operating them separately
• Make data centrally accessible
• Build scalable operational processes

A perspective from practice

What successful brands are doing differently today

They do not start expansion with the question:

“Which market should we enter?”

Instead, they ask:

• What does our setup look like across multiple markets?
• How flexible is our logistics structure?
• How quickly can we adapt locally?

The difference is not strategy alone.
It is execution.

Conclusion

Europe remains one of the most exciting growth markets in e-commerce.

But:

Expanding internationally in 2026 is no longer a simple scaling step.

It is an operational system.

Successful brands today:

• think locally
• plan in an integrated way
• and build flexible structures