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As an e-commerce business, chances are that you’ll be serving the European market, either as your primary or secondary target. According to worldometer, that’s around 740 million people who are likely to be your potential customers. The benefits and opportunities are undeniably glaring.
However, access to such a large and lucrative market comes with a complex web of regulations and compliance obligations. These rules are designed to protect both you, the provider, and your customers. But overlooking them or treating them as afterthoughts can lead to hefty fines, legal setbacks, or even market exclusion.
To help you stay ahead, our experts share actionable insights on how to adhere to each European e-commerce compliance measure in 2025 confidently.
UK’s online marketplace landscape overviewProactively align with the General Product Safety Regulation (GPSR)
In 2024, the Suffolk Trading Standards Imports Team at the port of Felixstowe in London refused entry to 349,000 products. According to their report, 90% of these imported products failed safety checks.
Kathryn MacDonell, CEO at Trilby Misso Lawyers, says, “Failing a safety check often results in product recalls, which not only cost you extra money but also damage your reputation. In some cases, your e-commerce business might even be fined for non-compliance. Regardless of the outcome, it’s definitely not good news.”
If you want to avoid these, you’ll need to align with the General Product Safety Regulation.
- Ensure products are safe by design and supported with risk analyses and technical documentation.
- Provide clear safety instructions, traceability info, and contact details on packaging.
- Immediately report dangerous products and accidents via the Safety Business Gateway.
- Verify product safety before placing items on the market.
- Refuse unsafe products and notify authorities if concerns arise.
- Keep records and cooperate with authorities.
- Display clear product details, safety info, and manufacturer contacts upfront.
- Inform consumers during recalls.
Just so you know, a product labeled dangerous in one EU member state is considered dangerous across the entire EU market. This can lead to an EU-wide ban and reputational damage. Therefore, ensure that you set up a robust internal review process that fully aligns with the GPSR standards before offering any product via your e-commerce site to the market.
Prepare for the European Accessibility Act
Peter Čuček, Owner at Tuuli, says, “Among your target audience, there are a good number of consumers with one or two disabilities. This disability often creates a barrier to accessibility, making it nearly impossible for them to enjoy an equal or even better shopping experience like any other consumer.”
“For instance, a visually-impaired shopper might find it difficult to interpret product images without descriptive alt text, even if they’re using a screen reader. Inability to understand their intended purchase makes it difficult for them to make informed decisions, leading to frustration, abandoned carts, or even complaints”, he continues.
And that’s why following the European Accessibility Act (EAA) to avoid such situations is essential for every e-commerce business.
The EAA encourages doing the following:
- Provide descriptive messages explaining errors during form filling or on checkout pages. This means displaying a “Please enter a valid card number” rather than saying “error.”
- Make your e-commerce website navigable, enabling users to add items to a basket, proceed to checkout, or complete a form, with a keyboard, to improve the shopping experience for consumers with motor impairments.
- Add alt-texts to product images so that visually-impaired shoppers can understand your product’s concept. Alt texts also help with Image SEO.
- Implement a clear contrast between elements on your e-commerce website. This is particularly vital for visually impaired consumers and the elderly.
- Provide clear and accurate labels for forms in order to provide context for screen readers.
- Avoid flashing content that can trigger photo-seizures.
To enhance your e-commerce site's accessibility beyond the EEA, consider adding a prominent search bar to help users quickly locate products. Include sorting and filtering features that are fully operable via keyboard and compatible with screen readers. Use clear and descriptive labels for all buttons and form fields. Make sure that interactive components, such as sliders, pop-ups, and other dynamic elements are fully accessible to users relying on assistive technologies.
Be aware that penalties for non-compliance can be significant and vary across EU member states. In some countries, fines can reach substantial amounts or even include imprisonment in serious cases. The exact consequences depend on national regulations and enforcement practices, and in certain jurisdictions, they may be particularly strict.
Implement Value-Added Tax (VAT) rules in every transaction
Value-added tax (VAT), also known as consumption tax, involves charging a particular fee percentage as stated by your operating market’s directive on each product you sell. Who pays for it? Of course, your consumers. It’s calculated into every total checkout price and remitted to the government.
The EU VAT laws mandate you, as an e-commerce business, to:
- Register for VAT (possibly using systems like OSS or IOSS) if you sell goods or digital services to consumers in EU countries.
- Apply the VAT rate of the customer’s country, not yours.
- Remit the tax to EU tax authorities, not just your own country’s.
If your annual cross-border EU sales stay below €10,000, you can use your home country's VAT rules. Above that, OSS registration is required.
Otherwise, non-compliance can result in legal actions under the European court, lump fines, platforms like Amazon can suspend your seller account, customs can seize your goods if it lacks proper VAT documentation, and you might have to absorb VAT costs in some cases.
Gary Hemming, Owner & Finance Director at ABC Finance, says, “For transparency, ensure you clearly display your VAT rates and policies during checkout. Your shoppers should understand why they are being charged extra, rather than seeing a random fee appear on their receipt. You should also maintain transaction logs, invoices, and VAT filings in case of periodic audits.”
Strengthen your cybersecurity posture for NIS2
E-commerce businesses are at a higher risk of security breaches and cyberattacks. This is not surprising, given that you process thousands or even millions of card payments each month. Access to your customers’ card details is thus a top priority for hackers, and it can land you in serious legal entanglements with hefty financial costs. That’s why implementing the NIS2 is non-negotiable.
The Network and Information Systems 2 (NIS2) emphasizes safe cybersecurity practices, which require that you:
- Conduct regular risk assessments to identify vulnerabilities in your e-commerce system.
- Implement strong access controls, encryption, and multi-factor authentication.
- Establish an incident response plan for cyberattacks or data breaches.
- Ensure supply chain partners also meet cybersecurity standards.
- Train staff regularly on phishing, social engineering, and secure data handling.
- Report serious incidents to the relevant authorities within 24 hours.
- Review and update your cybersecurity framework at least annually to ensure it remains effective.
“Since your database is a potential target for attack, you can implement role-based access control, encrypt data both at rest and in transit, and keep systems regularly updated. Additionally, establish robust backup and recovery plans, utilize anomaly detection tools, and segment sensitive data effectively. The latter minimizes data loss in the event of a breach”, John Grant, Founder & CEO at Premier Bidets, adds.
You should also monitor activity in real-time to quickly detect suspicious behavior. For instance, a sudden surge in order value compared to previous purchase history could be a pointer to a hijacked e-commerce account.
Non-compliance can result in fines as much as € 10 million or 1.4% to 2% of your annual turnover. E-commerce businesses with a yearly revenue of less than € 10 million and fewer than 50 employees may be exempt. However, don’t forget that there are still legal implications and potential consumer settlements resulting from a breach.
Comply with the Digital Services Act (DSA)
The Digital Service Act incorporates some of the key points of the 2002 e-commerce directive in order to protect consumers and enhance their shopping experience. For full compliance, you need to:
Some of these advantages are:
- Collect and confirm the identity and contact details of all sellers on your platform (KYBC - Know Your Business Customer).
- Remove any illegal listings or harmful content promptly to avoid liability once notified.
- Clearly explain your content moderation policies, how recommendations work, and when listings are removed or restricted.
- Offer simple and accessible ways for users to appeal decisions, report issues, or request corrections.
- Show your business name, contact info, registration number, and VAT details (if applicable) clearly on your site
- Send promotional emails only with prior consent, unless it’s for similar products to existing customers.
- Explain product details, pricing, and return policies in simple terms, with a clear confirmation step before purchase.
The first four summarized points focus on online marketplaces, which fall under the online platform category, whereas the last three include all e-commerce businesses.
E-commerce businesses, including yours, need consumers’ data to function accurately. Take advertisement as an example, without knowing what products users view, click, or abandon in their carts, you can’t run effective retargeting campaigns or personalized promotions. Data collection is, therefore, a necessity. However, you’re subject to GDPR if you operate in the EU market.
The General Data Protection Regulation (GDPR) aims to protect your consumers’ data from misuse, breach, or inappropriate handling through the following key points:
- Consent: You must get clear, informed consent before collecting personal data.
- Transparency: Tell users what data you collect, why, and how it’s used.
- Data rights: Users have the right to access, correct, delete, or move their data (portability).
- Security: You must protect personal data from breaches or misuse.
- Breach notification: Report serious data breaches to authorities within 72 hours.
- Accountability: Maintain accurate records and be prepared to prove compliance if requested.
The backbone of implementing GDPR is creating a privacy policy and consent page on your e-commerce website. Your privacy policy should mention the partners you share consumers’ data with. For instance, if you’re using a reputable sustainable partner like byrd, you have to mention us on your privacy page as a data-sharing partner.
Ensure these pages are visible at every action point, including your checkout page and payment portal. There should also be a privacy notice pop-up or section during stages that require data filling in, for example, when filling out a form.
Wrapping Up
Implementation of European regulations should not be an afterthought for your e-commerce business. Instead, draw them into your future-proof compliance strategy right from the start. This helps you avoid legal implications from non-compliance or breach, financial setbacks, and reputational damage.
Align your e-commerce practice with the General Product Safety Regulation, proactively implement the European Accessibility Act, and transparently introduce VAT rules across all levels of transactions. Additionally, enhance your cybersecurity practices with NIS2 and comply with the EU Digital Services Act.
Lastly, give your customers control over how you use their data by adhering to the GDPR protocol and publishing an easily accessible privacy policy page.
Additionally, byrd’s European fulfillment network facilitates and accelerates cross-border e-commerce and provides a fast, resilient, and sustainable order fulfillment solution for growing companies, established retailers, and enterprises.
Just integrate your shop system in a matter of minutes and you are ready to go.
So, if you are looking for an alternative to marketplaces or you want to pursue a multi-channel strategy in the UK and Europe, byrd might be just the right partner for you.