Cross-Border E-Commerce in Europe: 3 Proven Fulfillment Strategies to Boost Profitability

This article summarizes key insights from a recent Expert Session with Petra Dobrocka, co-founder and CCO of the international e-commerce fulfillment provider byrd. The session explored practical logistics strategies for European merchants expanding cross-border with a clear focus on cutting costs, optimizing logistics, and staying profitable.

As Petra put it:

"There’s no one-size-fits-all model. It’s about understanding your product mix, your volume, and your goals – and building the leanest setup possible."

Why Cross-Border E-Commerce Is Key for Growth

Selling internationally is one of the fastest ways to scale your online business in Europe. But cross-border e-commerce can erode margins fast if not planned well. Key challenges include:

• Customers expect fast & cheap delivery (3 days average in the EU but heavily dependent on country).
  
  
• Cross-border shipping costs are usually 2–3× higher than domestic rates.
  
  
• Regulations & taxes differ by country and can slow down expansion.

If you don’t optimize your logistics, you’ll struggle to compete with local merchants offering faster and cheaper delivery.

3 Cross-Border Fulfillment Strategies for E-Commerce Success

Classic Cross-Border Shipping – Best for Market Testing

Ship directly from your domestic warehouse to customers abroad via carriers like DHL, GLS, or DPD.

Advantages:

• Lowest setup effort – no extra warehouses or VAT registrations
• One central inventory – easy stock management
• Ideal for small, lightweight products with many SKUs

Disadvantages:

• Higher shipping costs (2–3× local rates heavily depending on shipping volume & destination)
• Slower delivery (1–4 days longer than domestic, depending on destination)

When to use it:

• Testing new markets
• Low order volume in target countries
• Products with high SKU complexity

Petra’s tip: 

"If your product is lightweight and postal-friendly, use formats like DHL’s Warenpost. That’s a very reasonable price range, and we see it very often in this classic cross-border setup."

Direct Injection – Cost-Effective for Growing Volumes

Bundle orders and transport them in bulk to the destination country, where a local carrier delivers the parcels.

Advantages:

• Cheaper shipping than classic cross-border
• Better delivery performance with established and popular local carriers
• Still, only one central warehouseis  needed

Disadvantages:

• Requires at least a few hundred orders per month
• More setup effort (contracts with carriers or specialized providers)

Example: A healthcare brand shipping 300 orders/month to Switzerland cut shipping costs from €12–15 to €9–13 per parcel meaning 30% savings in terms of shipping costs.

Petra's Take:

"The break-even point comes faster than you’d think. With the right volume and partner, direct injection becomes a highly efficient mid-stage solution."

Cross-Border Fulfillment – The Fastest & Most Competitive Option

Store inventory in local warehouses and fulfill orders domestically.

Advantages:

• Lowest shipping costs (domestic rates)
• Fastest delivery (usually 1–2 days)
• Better tracking, fewer customs issues, and less friction for end customers

Disadvantages:

• More complex setup: VAT registration, warehousing contracts, inventory allocation
• Higher inventory costs due to stock being split across multiple countries

Example: A UK DIY brand moved stock to Germany, reducing shipping costs from €14–18 to €3–4 per parcel and saving €5,000/month.

Which Strategy Is Right for You?

Expert Tip: Treat these as stages rather than fixed choices. Start with cross-border shipping, switch to direct injection as volumes grow, and move to local fulfillment once sales justify the investment. At the same time be aware that what is the best fit for you, heavily depends on your product portfolio, your customer mix and many more factors.

"You don’t have to decide upfront – these aren’t mutually exclusive. Start with option 1 to test a market. If the feedback is good, scale up and optimize further."

Key Takeaways

Start simple, scale later: Test markets with cross-border shipping before investing in local warehouses.

Calculate the full cost: Consider VAT, customs, and inventory management – not just shipping rates.

Focus on customer experience: Fast, reliable delivery drives repeat purchases and long-term success.

Most importantly, find the right setup for your needs.

As Petra put it:

"I wouldn’t say there’s one setup that’s perfect for everyone – it really depends on the number of SKUs, shipping countries, product weight and volume. In the end, it's always one of these three options or a combination."

This recap comes from a live Expert Session hosted by Xentral’s Moritz Lukas and byrd’s Petra Dobrocka.