In recent months, many changes have been announced that will alter cross-border eCommerce in the European Union between 2021 and 2022.
These changes are linked to a changed regulatory framework, to Brexit – which will be felt more strongly this year – but also to new technologies and an evolution in the online shopping habits of consumers across Europe.To accompany companies through the changes they will have to make in managing their online sales in EU markets, and help them succeed, we have compiled the most relevant articles for the year 2021.
1. Whitepaper: What you need to know if you have cross-border eCommerce in the EU
In the old continent, 2020 was a sort of Year 0 for online sales and experts estimate that by 2022 online sales will be worth around €245 billion. In order to make the most of this enormous opportunity and successfully sell online across national borders, there are a few fundamentals to consider. Central to this is logistics, in relation to which a choice should be made between a decentralised logistics network and a central warehouse, and then assessing the mode and timing of shipments and returns, together with the importance of tracking; it will be necessary to provide for multiple payment methods, some of which should be local, just as customer care should be multilingual and multi-channel. Finally, there have been some important changes in recent years that we can’t ignore: Covid has revolutionised the relationship between traditional and online retailers – establishing an omnichannel strategy – and Brexit has changed the rules and taxation for exports to the UK.
Download the whitepaper Guide to Cross Border Ecommerce in the European Union to find out more.
2. 5 payment methods every eShop should have
The increased volume of online purchases in recent times has led to a gradual move away from cash payments, once chosen by many for eCommerce via cash-on-delivery, with a gradual increase in the use of e-money. In the last two years, the use of cash has been increasingly reduced and we have seen the emergence of innovative digital payment methods thanks to the development of new technologies. Among the most popular to be introduced alongside the traditional credit card are those that allow for interest-free deferred or installment payments – such as Scalapay or Klarna – or that simplify and speed up the process – such as Satispay, Sofort and Amazon Pay. Security in the transaction, simplicity, speed of the procedure, and transparency in the cost of items leading to the final amount are the watchwords of today’s e-payments.
Read the article 5 Cool Payment Methods every eShop should have.
3. Amazon vs eShop: how to win the battle against the eCommerce Goliath
When we talk about online shopping, Amazon and its global dominance immediately comes to mind. Does this mean that one’s own eShop can do nothing and must necessarily go through the marketplace? Absolutely not. In Europe, the market is extremely heterogeneous, starting with language and currency – offering a standardised shopping experience is therefore not the best solution. It is better to offer personalised and simple shopping experiences for the user, with clear and transparent communication, including all important information, without forgetting the importance of loyalty programs and attention to shipping, which must be fast and cheap (even better if free). A chapter apart, returns, on which the real success of an eCommerce is played out.
Read the full article Amazon vs eShop: How to win the battle against the eCommerce Goliath?
4. VAT revolution: what has changed
On 1 July 2021, the new EU VAT regulation came into force, extending the MOSS (Mini-One-Stop-Shop) scheme to all B2C sales. This is a significant change that promises to simplify the complexity of eCommerce. The new threshold is €10,000 per year. This means that within this amount, it is possible to continue to operate with a national VAT number, while above this limit, sellers will have to apply local VAT rules and rates or adapt to the OSS. What changes for resellers? For those with a sales volume of up to €10,000, nothing, as well as for large companies that already have warehouses in the various countries in which they operate. So, it will mainly be companies with average sales volumes that will have to choose whether to open a VAT number in the countries where they sell or to join the OSS. As of 1 July, another scheme has also been introduced, the IOSS (Import One Stop Shop), which covers all imported goods with a value of less than €150.
Read more in VAT Revolution, not all that glitters is gold.
5. New VAT regulation in Europe, the word from the expert
The new regulatory framework is designed to simplify the tax landscape, but what are the operational implications of this revolution? This interview with Veronica Comito, legal advisor to Go Global Ecommerce, answers these and other questions on the practical applications of the new regulation. But what are the advantages and disadvantages? “The pro is undoubtedly represented by the simplification of procedures,” says Comito, “for some companies that exceed the threshold of €10,000 in turnover for transnational B2C transactions and that will be able to avoid opening a VAT number in the European countries of destination of the goods. There could be a disadvantage for tax-advantaged or flat-rate schemes which, if they register with the OSS, will have to pay VAT according to the rules of the country of destination. As far as import transactions from non-EU countries using the IOSS system are concerned, the simplification of the B2B sales transaction between supplier and marketplace may be positive, while the latter will start to bear all the various VAT obligations, albeit in a simplified manner.”
Download the full report Changing VAT regulations in Europe, word from the expert.
