Many UK founders now wonder where to set up their EU Ecommerce Business. We’ve ranked countries based on how easy it is to start, how much customers trust them, and how well they handle deliveries across borders.
This guide is for UK sellers looking to expand in Europe. We use Cross-Border Commerce Europe (CBCommerce) results to compare countries. Then, we check these against UNCTAD’s B2C E-commerce Index to understand what the numbers mean.
So, what makes the best EU country for e-commerce? We consider market share, cross-border visitors, and consumer confidence. We also look at digital security and postal reliability. Plus, we think about how easy it is to operate, get paid, and handle returns without hassle.
Why the EU is still one of the best regions to launch an online shop
For UK founders, Europe is a great place to start an online shop. It has a big market, good delivery networks, and people are used to buying online. This makes it easier to grow beyond just one market.
Single Market advantages for market access and scaling
The EU Single Market makes it easy to sell across borders. With just one setup, we can reach many countries. This is a big advantage compared to other places.
Getting into the EU market is straightforward. It helps us launch in different countries easily. We can share logistics and sell the same products everywhere we go.
- Broader audience reach without rebuilding the shop for every country
- More predictable routes to fulfilment and returns across the bloc
- Clearer signals on where cross-border visitor ratios and demand are strongest
Digitalisation and regulatory standardisation making expansion easier
Speed is key when money is tight. Digital rules in Europe make things faster. This lets us focus on selling more.
Some countries are super fast. Estonia lets you start a company online in under 24 hours. Denmark is even quicker, with just one day. This makes it easier to test markets and grow fast.
Cross-border shopping habits driving demand beyond domestic markets
Online shopping across borders works best when people trust it. Trust is growing, and so is the number of online shoppers. This is good news for us.
In many European countries, over 80% of internet users shop online. This means there’s a steady stream of customers ready to buy. We can plan our campaigns based on what people already do, not try to change their habits.
How Cross-Border Commerce Europe ranks the top countries for e-commerce
When we look at the best places for an online shop in the EU, we need more than just GDP. The Cross-Border Commerce Europe ranking gives us a clear view of real-life cross-border trade. It shows us where online sales are strong and where it’s easy to sell across borders.
The CBCommerce methodology is like a scorecard, not a magic ball. It shows where people already buy online and where it’s easy to set up for more sales. It works well with UNCTAD’s signals to make better decisions on demand and operations.
Four parameters used in the CBCommerce ranking
The ranking uses four signals that are easy to understand. Each one looks at a different part of the sales process, from first visit to final sale.
- Online cross-border sales, which shows how well international checkouts work
- EU e-commerce market share, showing how much online spending is in each country
- Consumer confidence e-commerce, which is linked to trust, payment comfort, and buying again
- Cross-border visitor ratio, showing how many visitors come from abroad
Consumer opinion vs business approach: what the methodology captures
Many growth plans fail because they focus too much on logistics or branding. The CBCommerce methodology balances consumer confidence with sales and reach. This balance helps when deciding on stock, language, and returns.
It also matches up with UNCTAD’s readiness, like secure servers and internet access. Together, they help us see if we can meet shopper needs and deliver well.
Why cross-border visitors and market share matter for online growth
The cross-border visitor ratio is like an early sign of growth. If many visitors are from abroad, localising and improving delivery can boost sales. This is why we look at it with EU e-commerce market share, which shows the size of the online market to compete in.
So, the Cross-Border Commerce Europe ranking is like a map of where demand is ready for international sales. It helps us decide if we should translate, offer EU fulfilment, or expand to marketplaces, without relying on just one metric.
Top countries for e-Commerce in Europe in 2022: the latest CBCommerce country ranking
We use the 2022 CBCommerce country ranking to compare markets. It shows us where cross-border demand and trust are high. This is key when we’re looking to enter new EU markets.
Full 2022 ranked list including Luxembourg, Ireland, Austria, Sweden and Germany
Here is the full list, in order. It gives us a clear view of the top countries for cross-border e-commerce. Luxembourg, Ireland, Austria, Sweden, and Germany are near the top.
- Luxembourg
- Ireland
- Austria
- Sweden
- Norway
- Switzerland
- Germany
- Denmark
- Portugal
- Belgium
- Italy
- Finland
- Spain
- France
- United Kingdom
- The Netherlands
Key movers: Sweden, Norway, Portugal, Finland and Germany improving positions
Several markets moved up in the 2022 CBCommerce country ranking. Sweden, Norway, Portugal, Finland, and Germany saw improvements. This affects how we plan market entry and delivery promises.
These changes often lead to smoother customer journeys and stronger sales. For founders, it makes choosing where to expand easier.
Key fallers: Denmark, Belgium, Italy, Spain, France and the UK dropping
Denmark, Belgium, Italy, Spain, France, and the UK fell in the ranking. For UK teams, the ranking is still useful. It helps when comparing EU reach to operating from home.
The Netherlands stayed 16th, the same as the last two years. This stability is important when comparing cross-border performance with daily operations.
What changed from 2020 to 2022 in Europe’s cross-border e-commerce landscape
The e-commerce ranking from 2020 to 2022 shows a focus on real trading issues. Year-to-year changes often highlight trust at checkout, delivery speed, and handling returns. Customs and VAT also play a big role.
For UK founders, this matters a lot. Rules, fees, and customer expectations can change quickly. This affects how well they do in cross-border sales.
2020 list highlights, including the UK’s stronger position pre-2021
In 2020, the UK ranked 4th in CBCommerce’s list, behind Luxembourg, Ireland, and Austria. This showed that UK sellers were still doing well in Europe. They had strong demand and buyer confidence.
- Luxembourg
- Ireland
- Austria
- United Kingdom
- Denmark
- Switzerland
- Belgium
- Norway
- Sweden
- Germany
- Spain
- Italy
- France
- Finland
- Portugal
- The Netherlands
2021 reshuffle and early signs of post-Brexit friction in cross-border trade
By 2021, the UK’s ranking dropped sharply. This was the start of seeing the effects of Brexit on trade. Taxes went up, shipping costs rose, and border admin got more complicated.
CBCommerce said the UK fell from 4th to 14th in 2021. This was due to more friction in selling to the EU. It caused doubts about costs and longer delivery times. Also, cross-border sales in the UK fell by 12%, to around €29 billion. This changed how brands planned their stock, prices, and delivery.
- Luxembourg
- Ireland
- Austria
- Denmark
- Belgium
- Switzerland
- Sweden
- Norway
- Germany
- Italy
- Spain
- France
- Portugal
- United Kingdom
- Finland
- The Netherlands
2022 stability at the top: Luxembourg, Ireland and Austria retaining leading spots
In 2022, Luxembourg, Ireland, and Austria kept their top spots. This showed they were consistent, not just lucky. For UK operators, this meant focusing on what these markets do well. They excel in smooth delivery, clear consumer rights, and predictable processes.
Against the backdrop of Brexit, the difference was clear in daily work. It made UK EU selling friction and cross-border turnover in 2021 important to consider. Small costs and delays can add up, affecting the whole order cycle.
Luxembourg: the top-ranked country for cross-border e-commerce performance
Luxembourg shines in the CBCommerce ranking, offering insights for founders selling across borders. Its market already acts internationally, making planning and testing new EU routes less daunting.
For UK teams considering a European base, Luxembourg is a standout. It offers a place where shoppers have fewer doubts and orders face less hassle.
Why Luxembourg leads on cross-border market share, visitors and consumer confidence
Luxembourg is a clear leader in cross-border market share and visitor numbers. These patterns show people are accustomed to buying from abroad, speeding up trust-building.
Consumer confidence in online shopping in Luxembourg is high. Shoppers are more likely to complete purchases and return, aiding in steady growth and repeat business.
Internet access as an enabler, including near-universal coverage reported
Luxembourg boasts 99% internet access, ensuring seamless browsing, payments, and post-purchase services. This connectivity is crucial for smooth online transactions.
CBCommerce highlights that 8% of people shop online frequently. This habit boosts basket size, delivery expectations, and the frequency of online purchases.
What Luxembourg’s performance suggests for logistics, trust and regional reach
Luxembourg’s appeal lies in its suitability for EU fulfilment bases. It offers central reach, predictable flows, and a market where trust is established.
Stronger visitor volumes suggest lower barriers for cross-border sales and retargeting.
Higher confidence leads to smoother checkouts, clearer returns, and fewer support queries.
Reliable access and frequent online shopping enhance delivery and service consistency.
Luxembourg’s cross-border e-commerce performance merits a detailed examination of logistics, customer care, and localisation. With high consumer confidence and internet access, setting up an EU fulfilment base in Luxembourg is a viable option to consider.
Ireland: a high-performing hub for cross-border online selling
Ireland has been a top performer in CBCommerce’s country ranking for three years. It ranked 2nd in 2020, 2021, and 2022. This shows Ireland is a reliable place for cross-border e-commerce.
Its success comes from several areas. These include cross-border sales, market share, and consumer confidence. Ireland’s consistent performance makes it a trusted hub for e-commerce.
Irish shoppers are used to online shopping. They prefer card payments and clear delivery updates. This makes buying online smoother and more reliable.
For UK businesses, Ireland is a great base in the EU. It has strong internet access and reliable postal services. These are key for smooth operations.
Payments and fraud controls: secure servers and clear authentication flows can protect revenue without harming the user journey.
Fulfilment planning: postal reliability and predictable last-mile performance support accurate delivery promises and smoother returns.
Customer trust: consistent consumer confidence can lower the effort needed to win first-time cross-border buyers.
Austria and Sweden: strong consumer confidence and cross-border readiness
Austria and Sweden are top performers in the CBCommerce rankings. They show UK sellers how ready Europe is for cross-border shopping. This includes trust in shoppers and the ease of buying from abroad.
Austria’s consistent high ranking across multiple years
Austria’s e-commerce ranking is a tale of stability. It ranked 3rd in 2020, 2021, and 2022. This shows steady performance in four key areas.
This consistency is great for founders. It means less uncertainty in planning for fulfilment, payments, and returns. It also points to steady demand and fewer surprises as you grow in EU markets.
Sweden’s improved standing in 2022 and what that signals for demand
Sweden jumped to 4th in 2022, up from 7th in 2021. This shows a big leap in e-commerce growth. It suggests Sweden is becoming more appealing to cross-border shoppers.
This trend is good news for UK sellers. It helps decide where to launch new products first. It also supports planning for customer service as orders increase.
How consumer confidence influences conversion and repeat purchasing
CBCommerce sees consumer confidence as key. It’s clear why in everyday trading. Confidence affects whether buyers complete their orders, trust delivery, and come back for more.
Higher trust means fewer abandoned baskets at payment and address steps.
Clear policies and reliable delivery support repeat purchases across borders.
Good reassurance lowers the risk of buying from another country.
The rankings for Austria and Sweden show a common theme. It’s all about consumer confidence in online shopping. This confidence is crucial for brands looking to expand beyond their home market.
Germany: Europe’s standout for online marketplaces and webshops
For UK founders planning to enter the EU, Germany is a key choice. It supports both selling on marketplaces and directly to customers. The country’s online marketplaces and trusted retail network are well-known to shoppers.
This mix is crucial for testing demand quickly and managing risks. It also supports local language services, clear delivery options, and familiar payment methods.
CBCommerce’s finding that Germany provides the best online marketplaces and webshops
CBCommerce notes Germany’s top online marketplaces alongside specialist retail sites. For many brands, German webshops offer a reliable second channel, not just a backup.
Practically, product discovery is easier, category pages are well-developed, and buyer expectations are clear. Reviews and returns policies also reassure first-time shoppers.
Germany’s improved position in 2022 compared with 2021
In the Germany e-commerce ranking 2022, Germany jumped to 7th from 9th in 2021. This move shows stronger cross-border traction, including better reach beyond the domestic market.
This change can shape UK operators’ planning around stock, fulfilment, and customer support. It also influences where to focus early localisation efforts.
Why marketplace depth can reduce the cost of acquiring cross-border customers
Deep marketplaces can lower acquisition costs by pooling demand. Search, filters, and recommendation tools reduce the need to build every visit from scratch. Trust signals also shorten the path to checkout.
Aggregated demand helps new listings gain visibility faster than standalone sites.
Standard buyer protection and review systems can reduce hesitation.
International discovery tools support German webshops cross-border from day one.
Germany’s ecosystem includes well-known brands like Zalando, Lidl, and Adidas for cross-border sales. For many UK brands, this setup influences how to balance marketplace presence with their own shopfront.
The Netherlands and Nordic/Baltic leaders: digital administration and speed to launch
For UK founders, speed is not just a bonus; it’s a shield. Quick registration lets you sign contracts, open accounts, and start making payments fast.
Digital administration across Europe is a big advantage for SMEs. With fewer steps and clearer checks, you spend less time waiting and more time selling.
Estonia: company creation 100% online in under 24 hours
Estonia is perfect for setting up companies online, with minimal paperwork. Estonia company formation 24 hours is famous for its fast workflow. It moves quickly from identity checks to registration.
This speed is crucial for securing a lease, confirming a partner, or invoicing your first client. In the best cases, setting up and funding a business can take under 10 days.
Denmark: one-day company creation with fully online procedures
Denmark also uses digital procedures to reduce hassle and form filling. Denmark company registration one day shows a system that is structured and predictable.
This predictability is great for those watching their cash flow closely. It cuts the time between planning and trading, while keeping things organised from the start.
The Netherlands: company creation typically in 3–5 days and strong international business culture
The Netherlands has a strong international business culture and a practical approach to setting up. Netherlands company formation 3-5 days is common when everything is ready and decisions are made early.
Many founders pick it for its day-to-day ease. It offers clear processes, a wide services market, and teams familiar with international trade. It’s a reliable choice for those wanting speed and long-term ease.
Fast incorporation helps you sign contracts sooner and reduce early exposure.
Digital workflows can lower admin load and keep records consistent.
Quicker set-up can support funding timelines and supplier onboarding.
UNCTAD B2C E-commerce Index: what “readiness” means for online trading
When we compare EU bases for selling abroad, a shared yardstick is helpful. The UNCTAD B2C E-commerce Index sees e-commerce readiness as real capability, not just talk. In the B2C E-commerce Index 2019, UNCTAD ranked 152 countries. It linked readiness to how easily people can shop, pay, and get parcels.
What UNCTAD measures: secure servers, postal reliability, internet use and financial access
UNCTAD examines the basics that shape trading conditions. The UNCTAD B2C E-commerce Index focuses on aspects that affect customer experience. This includes everything from the first click to the final delivery.
- Access to secure internet servers
- Postal reliability and wider delivery infrastructure
- Share of the population using the internet
- Access to an account at a financial institution or a mobile-money-service provider, which supports financial inclusion online shopping
UNCTAD also looks at the market context. Online shopping hit US$3.9 trillion globally in 2017, a 22% rise from the year before. In some European countries, over 80% of internet users shop online. This shows strong demand.
Why postal reliability and infrastructure affect delivery promise and returns
For UK founders selling abroad, postal reliability is key. It helps us promise delivery times and plan stock better. This reduces support tickets and makes planning easier.
Returns are also crucial. A reliable system makes returns smooth. This keeps customers confident if they need to return an item.
Why secure internet servers support checkout trust and reduce basket abandonment
Secure internet servers are crucial for safe payments and customer data protection. When buyers see a secure checkout, they are more likely to complete their purchase. This reduces basket abandonment.
E-commerce readiness is not just about demand. It’s also about the systems that support payment. This includes financial inclusion online shopping, making transactions smoother and reducing failures.
Infrastructure and delivery performance: choosing an EU base for fulfilment
When we help UK founders plan EU operations, we focus on what customers feel first: delivery. The right EU fulfilment location ensures predictable lead times and fewer complaints. It keeps the e-commerce logistics strategy grounded in reality, not just paperwork.
Postal reliability as a key readiness factor in UNCTAD’s index
UNCTAD highlights delivery networks as a key readiness factor. This matches what we see in live trading. Strong postal reliability in Europe means fewer “where is my parcel?” tickets and less time chasing carriers.
For many brands, small differences in scanning, handovers, and last-mile coverage make a big difference. We treat these signals as operational inputs, alongside warehouse capacity and carrier options.
Balancing delivery speed, cost, and returns across cross-border destinations
Speed is important, but it’s just one part of the cost-to-serve equation. A good e-commerce logistics strategy considers shipping zones, cut-off times, and service types. From a single EU fulfilment location, we also map how delivery promises change by destination, not just by distance.
Returns are part of the same promise. Clear labels, local drop-off points, and fast refunds can reduce friction. Returns management EU needs to be designed into the fulfilment model, not added later.
Reducing customer friction: damage, delays, and complex return processes
Cross-border shoppers notice delays, damage, and hard-to-follow returns quickly. Each can trigger chargebacks, negative reviews, or lost repeat orders, even with excellent products. This is why cross-border delivery performance is linked to packaging standards, carrier handling, and realistic delivery windows.
Damage control: right-size packaging, strong void fill, and clear handling labels to reduce breakage in transit.
Delay control: tracked services, sensible cut-offs, and proactive updates when handovers slip.
Returns control: simple steps, local options where possible, and consistent returns management EU rules across markets.
When these basics are set, postal reliability Europe becomes more than a score. It becomes a lever for smoother operations. This is the practical link between an EU fulfilment location and a resilient e-commerce logistics strategy for UK-led growth.
Marketplaces to watch: where EU cross-border turnover is concentrated
We start by looking at where demand is high. The top cross-border marketplaces in Europe are huge. They set the standard for delivery, returns, and building trust across borders for UK teams.
CBCommerce reports the European cross-border retail market will hit €237bn in 2024, a 32% jump. It’s expected to reach €275.6bn in 2025. The growth in goods turnover to €741bn in 2024, up 13%, shows why choosing the right channels is crucial.
The rise of SHEIN and Temu has upped the competition. CBCommerce says European cross-border trade GMV fell by 18% to €50bn. This change impacts our strategies on margins, pricing, and spending.
The CBCommerce Top 500 B2C Cross-Border Retail Europe shows the top 10 marketplaces remained the same from 2024 to 2025. They account for 19% of sales, making them key for partnerships.
These names are the benchmark for many, including IKEA’s €5.2bn in cross-border turnover:
- IKEA
- Zalando
- H&M
- Lego
- Zara
- Jysk
- Lidl
- Decathlon
- Adidas
- Notino
Germany is a powerhouse in marketplaces, with Zalando leading the way. Lidl and Adidas also perform well. This is important when deciding where to localise content and stock.
CBCommerce highlights Lidl’s online marketplace covers various categories. Adidas sells 20% of its products online in 67 countries. It’s Europe’s largest sportswear maker, second only to Nike globally.
For UK teams, this mix of generalists and category leaders is key. Zalando, H&M, Lego, Zara, Jysk, and Notino are in buying journeys where shoppers expect cross-border delivery and clear returns.
What sells best cross-border: categories that travel well in Europe
CBCommerce insights and a Statista survey (2024) show a pattern. Many top-selling items in Europe are everyday things. They are easy to compare, simple to ship, and quick to trust.
Leading categories cited: clothing, footwear, sports accessories, and consumer electronics
Clothing and footwear are big because sizing guides and reviews are common. Sports accessories also do well, being light and easy to understand.
Consumer electronics are in demand too. Shoppers can quickly compare features and model numbers. Items like headphones and smartwatches are often seen as safe to buy abroad.
Repeat-friendly buys: staples such as trainers, basics, and seasonal sports kit
Spec-led buys: electronics where shoppers rely on exact model codes and compatibility
Giftable items: accessories that are low-fuss to wrap, ship, and return
Why price differences and local availability gaps drive cross-border demand
Price and availability are key. A good cross-border pricing strategy recognises price differences. The same item can cost a lot more in one place than another.
Availability is also crucial. If something is hard to find in one country but easy in another, people will buy it online. This way, they get what they need sooner.
How neutral domains (.com, .shop) can make cross-border purchases feel domestic
Trust starts before you buy. A neutral domain, like .com, feels familiar to UK shoppers. It doesn’t scream “foreign” like some other domains do.
This makes cross-border shopping feel more like buying at home. When delivery terms, returns, and taxes are clear, it feels like a local purchase, even if it’s not.
Compliance risks for cross-border sellers: grey markets and brand protection
As cross-border sales grow, so do grey market risks in e-commerce. Grey markets involve genuine goods sold outside authorised channels. This can make it hard for UK sellers to follow pricing, warranties, and territory rules.
These problems often start with a leak. Stock is diverted by a supplier, then picked up by a third party. Another common issue is when a merchant lists products on a marketplace without the brand’s approval. This leads to unauthorised distribution EU across borders.
The harm is quick and significant. Your products can end up competing against themselves, affecting prices and frustrating authorised partners. Over time, this can weaken brand protection online marketplaces. Shoppers see mixed pricing and unclear seller identities, which can confuse them.
Cross-border demand can make these problems worse. An authorised seller in one country might ship into another where prices are higher. This goes against agreements, making counterfeit monitoring crucial. Grey-market streams can mix with fakes, returns fraud, and altered packaging.
To manage these risks, many brands partner with globaleyez. They have nearly 20 years of experience in identifying and removing grey-market activity. Their approach combines reach and evidence, backed by a marketplace monitoring service that covers 150+ online marketplaces worldwide.
- Test purchases, physical and digital, online and offline in 50+ countries
- Partner compliance checks using manual review and software research
- Evidence-led enforcement to remove infringing and grey-market listings
For UK founders selling across the EU, the goal is simple. Keep distribution clean, margins stable, and partner relationships intact. With clear monitoring and timely action, unauthorised distribution EU becomes easier to spot before it spreads.
EU Ecommerce Business setup support for UK founders: next steps with Start Company Formations
UK founders often ask us about setting up in the EU for growth. Our EU Ecommerce Business setup process turns this into a clear plan. We look at sales, market share, and consumer confidence to match your product and sales strategy.
UNCTAD readiness is also key for daily trading. Secure servers and reliable postal services are crucial for smooth checkout and delivery. This makes cross-border e-commerce practical, not just theory. It helps manage the challenges of moving orders across borders.
For setting up in the EU, we focus on speed and efficiency. Estonia can set up a company in under 24 hours, Denmark in one day, and The Netherlands in 3–5 days. Our support ensures your business setup, VAT, and customer service match your sales approach.
If you plan to travel, relocate, or expand your team, we help with Immigration advisers. For regulated activities, we guide you through Gaming Licences and FX & Crypto Licensing. Call 0204 504 1544 to discuss your plans with Start Company Formations. We’ll create a plan that fits your goals, timeline, and risk level.
