At many industry conferences, one question still tends to dominate: should Asian brands enter the European market? Conversations at eTail Asia in Singapore, however, show that for many companies in the region, that stage is already long behind them. The decision has been made: Europe is the next step in their global expansion.
In practice, this means Asian e-commerce companies are no longer looking for inspiration or broad strategic guidance. More and more of them already have legal entities registered in the European Union and want to move on to specifics. The questions that come up most often are no longer about marketing, but about operations: VAT, product compliance, the fulfillment model, delivery times, and returns management.
This shifts the perspective of the entire expansion discussion. Today, the biggest challenge in entering the European market is not winning customers. It is building an operational model that enables scaling sales and maintaining profitability across multiple countries simultaneously.
Europe as a natural direction for global expansion
Conversations with companies at eTail Asia made it clear that for many Asian brands, Europe is no longer seen as an “optional destination,” but rather as one of the key markets in their global sales strategy. This is especially true for companies from Singapore, where the domestic market is relatively small, making international expansion more of a necessity than simply a growth strategy.
For many years, the United States was the first natural destination for Asian e-commerce brands. Today, however, more and more companies are signaling that the U.S. market is becoming more difficult and more competitive, prompting them to diversify their sales footprint. As a result, Europe is increasingly emerging as the next strategic step: a large, mature market with strong purchasing power and well-developed e-commerce infrastructure.
As Arkadiusz Filipowski, CEO of Fulfilio, notes:
“During our conversations in Singapore, it was very clear that for many companies in the region, the decision to enter Europe had already been made. They are not asking whether it is worth it. They are asking how to organize VAT, logistics, and fulfillment so they can realistically scale sales across several markets at once.”
Importantly, the ambitions of many companies in the region are distinctly global. In conversations with Asian entrepreneurs and managers, it became clear that Europe is often not treated as a standalone expansion project, but as one of several markets being developed in parallel. As a result, the key question is no longer “Should we enter Europe?” but rather, “How do we organize sales and logistics to scale across multiple markets at the same time?”
Europe is not a single market — and Asian businesses already know it
In conversations with Asian business leaders, one point came through very clearly: Europe does not operate as one unified sales ecosystem. Yet for many Asian companies, the European Union may initially look like the U.S. market — a large, integrated economic area with more than 400 million consumers. In practice, however, selling in Europe means entering dozens of markets operating in parallel, each with different regulations, consumer expectations, and logistics standards.
Owners of Asian e-commerce businesses understand that these differences extend beyond laws and taxes to include shopping behavior and delivery expectations. Many companies that initially plan to enter the entire European market at once quickly conclude that a more realistic strategy is to start with one or two markets and then scale further over time.
As Rafał Kuczmarski, Sales Director, who took part in discussions with companies during the event, observes:
“For many companies in Asia, Europe is still perceived as a single market. It is only during conversations that they realize the differences between countries are much greater than they originally assumed — both in terms of regulations and customer expectations, as well as delivery standards.”
This is exactly where a well-designed logistics model becomes critical. The right fulfillment hub can make it possible to serve multiple countries simultaneously while maintaining competitive delivery times and control over operating costs.
Compliance and regulation — the biggest surprise for Asian companies
So is there anything that surprises Asian entrepreneurs? One of the topics that came up most often in conversations was the regulatory complexity of the European market. In countries such as Singapore, some regulatory processes are much simpler, and public-sector support for entering new markets is very well organized. In Europe, however, businesses quickly discover that selling products requires meeting a broad range of formal requirements.
These include product certification, labeling, packaging regulations, and Extended Producer Responsibility (EPR) systems. In many cases, companies only become aware of these requirements when preparing to launch sales, which significantly lengthens the market entry process.
As Arkadiusz Filipowski emphasizes:
“In Europe, it is not enough to have a good product and effective marketing. First, you need to make sure the product can legally be sold in a given market. Compliance often turns out to be the biggest operational challenge for companies entering the European Union.”
A lack of proper preparation in this area can have very concrete consequences — from sales being blocked on marketplaces to the need to withdraw a product from the market.
Rafał Kuczmarski, who spoke with companies during the event, points to the same issue:
“Many companies are surprised by the scale of regulation in Europe. Questions come up around packaging, labeling, certifications, and producer responsibility. In Asia, some of these requirements simply do not exist, which is why companies are often not prepared for them.”
That is why more and more companies planning to expand into Europe are treating compliance and regulatory preparation as one of the first phases of the project, even before launching sales or marketing activities.
Why many companies underestimate the cost of selling in Europe
Another equally important topic in conversations with Asian companies is the real operating cost of selling in Europe. At a strategic level, the market looks highly attractive: more than 400 million consumers, strong purchasing power, and a developed e-commerce infrastructure. In practice, however, many companies discover that the economics of selling in Europe are more complex than they assumed during the planning stage.
The most commonly underestimated components include:
• import VAT and customs handling,
• administrative costs related to compliance,
• obligations arising from EPR systems and packaging regulations,
• local costs of returns handling and customer service.
As Arkadiusz Filipowski notes:
“Europe can look very attractive in a revenue forecast, but once you begin factoring in all operational costs — VAT, compliance, logistics, or returns handling — it becomes clear that the business model requires a much more precise design.”
In many cases, companies focus on two core elements: product cost and marketing. In Europe, however, the entire operational layer is equally important, encompassing logistics, regulations, and customer service across multiple markets simultaneously.
That is why more and more companies planning expansion into Europe are starting with a detailed design of their operating model — one that will allow them to maintain profitability as their scale grows.
Fulfillment as the foundation for scaling sales in Europe
Conversations with Asian companies show that logistics is becoming a key element of any strategy for entering the European market. In cross-border sales, fulfillment decisions directly impact not only operating costs but also customer experience and the pace at which sales can scale.
For many brands, the biggest challenge is finding a model that can simultaneously ensure competitive delivery times, efficient returns handling, and control over logistics costs. In practice, that means answering several critical questions: should products be shipped directly from Asia, or should a local warehouse be established in Europe? How should returns be handled? And how should logistics be managed across multiple countries simultaneously?
As Arkadiusz Filipowski emphasizes:
“At some point, every expansion conversation comes down to logistics. You can have a great product and effective marketing, but if the fulfillment model does not provide the right delivery times and efficient returns handling, scaling sales in Europe becomes very difficult.”
For this reason, more and more companies are considering building a central logistics hub in Europe that can support several markets simultaneously. Such a model allows for shorter delivery times, better operational control, and optimization of transportation costs.
Rafał Kuczmarski also highlights the importance of this approach:
“In many conversations, the question arises: how do you manage logistics across multiple countries at once? In practice, many companies choose a single fulfillment hub in Europe from which they can efficiently support sales in several markets.”
That is why, for companies planning expansion, it is becoming increasingly important not just to find a logistics provider, but to design a fulfillment model that can scale alongside sales growth.
Returns — an underestimated part of the European sales model
One topic that comes up relatively rarely at the start of expansion discussions but quickly becomes critical is returns management. In many European countries, the ability to return a product easily and quickly is standard in e-commerce, and consumers view it as a natural part of the shopping experience.
For Asian companies, this means designing a complete reverse logistics process that includes not just receiving the parcel but also inspecting it, deciding what happens to the product next, issuing a refund, or sending a replacement item. In practice, this is an operational process that requires infrastructure, procedures, and system integrations.
As Arkadiusz Filipowski points out:
“Returns are one of the elements companies often overlook during the expansion planning stage. In Europe, however, they are an integral part of the sales model. If the returns process does not work efficiently, it quickly starts to affect both customer experience and operational costs.”
That is why more and more companies planning to enter the European market are treating returns handling as part of their logistics strategy, rather than merely a customer service function.
A well-designed returns process not only helps reduce operating costs, but also builds customer trust and increases conversion — especially in the D2C model.
AI in e-commerce — high expectations, growing realism
During panels and discussions at eTail Asia, AI and automation in e-commerce were also major themes. Artificial intelligence is now appearing in nearly every area — from marketing and personalization to customer service and logistics optimization.
At the same time, discussions increasingly reflect a more realistic view of AI’s capabilities. Many companies recognize that artificial intelligence performs very well when analyzing historical data and optimizing existing processes, but is far less effective when it comes to predicting entirely new market scenarios.
As Arkadiusz Filipowski notes:
“AI is a very important tool in e-commerce today, but it does not replace strategy or operational experience. Many companies are beginning to realize that while artificial intelligence can analyze the past very effectively, it is not always able to predict the future of the market.”
At the same time, more attention is being paid to the real costs of AI implementation, which in many projects turn out to be higher than originally expected. Challenges are also emerging around the quality of generated outputs and the risk of misinterpreting data and regulations.
Rafał Kuczmarski also points to this issue:
“AI came up a lot in the panels, but questions about its limitations came up just as often. Companies are beginning to realize that implementing AI is not just about technology — it is also a process that requires good data, time, and proper integration with operations.”
That is why more and more companies today see AI as a tool that supports e-commerce growth, rather than a solution that will automatically solve every challenge related to expansion or business scaling.
Poland as a logistics gateway to Europe
Another recurring theme in many conversations was the location of logistics operations in Europe. In practice, more and more companies are choosing a central warehouse model in Europe that allows them to distribute orders to different countries from one location. Key factors here include access to transportation infrastructure, a developed courier network, and the ability to serve multiple markets quickly and efficiently.
As Arkadiusz Filipowski emphasizes:
“When selling in Europe, a central logistics hub is often the best solution. If it is well located and has strong courier connections, it can efficiently support multiple markets at the same time.”
In this context, Poland is increasingly being considered as an operating location. Thanks to its central position in Europe and well-developed logistics infrastructure, it can serve as a distribution hub for many European markets.
Rafał Kuczmarski also highlights this point:
“For many Asian companies, it is surprising that one warehouse in Europe can support sales across multiple countries. The key, however, is designing the logistics model properly and choosing a location that provides the right transportation access.”
That is why, for companies planning expansion, it is becoming increasingly important not only to find a logistics operator, but also to choose a location that will allow them to serve all of Europe effectively from a single hub.
Europe as one stage of global expansion
One of the more interesting observations from conversations at eTail Asia was the way many Asian companies approach international expansion itself. Unlike many European businesses, which often expand gradually — country by country — many Asian companies think in much more global terms from a very early stage.
Within this mindset, Europe is rarely treated as the only expansion destination. More often, it is one of several markets being developed in parallel — alongside the United States, the Middle East, or Australia. For many companies, this means building operating models designed from the outset to function across multiple regions simultaneously.
As Arkadiusz Filipowski observes:
“In conversations with Asian companies, a very global approach to business growth comes up frequently. Europe is one of their important markets, but rarely the only one. That is why from the very beginning they look for operating models that allow them to scale sales across multiple markets in parallel.”
This approach also changes how companies think about logistics and operational partnerships. They are not looking solely for local solutions for one country, but for partners who can help them build scalable sales infrastructure across the entire region.
Rafał Kuczmarski also points to this aspect:
“Many Asian entrepreneurs think about expansion from a very broad perspective. Europe is part of a larger global growth plan, which is why from the start they ask about solutions that will allow them to serve multiple markets at once.”
That is exactly why, in the context of expanding into Europe, operational and logistics partnerships are becoming increasingly important — partnerships that allow companies to build sales scale in new markets faster.
What should Asian brands prepare before entering Europe?
The conclusions from conversations at eTail Asia show that companies planning to expand into Europe are most successful when they treat market entry as a project that requires careful operational preparation, rather than simply a sales initiative.
In practice, this means planning several key areas in advance: product regulatory compliance, the logistics model, returns handling, and the structure of operating costs. Only after these elements are properly organized does it become possible to scale sales across a larger number of European markets.
As Arkadiusz Filipowski emphasizes:
“Companies that prepare their operational foundations before they start selling are able to grow their business in Europe much faster. Otherwise, many problems only appear once sales begin to increase.”
That is why more and more companies are beginning their expansion preparations with a detailed review of several fundamental issues.
The most common questions include:
• does the product meet European compliance and certification requirements?
• what will the fulfillment model and customer delivery time look like?
• how will returns be handled?
• what are the full costs of VAT, duties, and regulatory obligations?
• which products should be stocked locally in Europe?
“Companies that handle entry into Europe most effectively are the ones that analyze the entire operating model from the very beginning — from regulation to logistics. Thanks to that, they can scale sales faster and avoid many costly corrections at later stages,” comments Rafał Kuczmarski.
A well-designed operating model makes Europe stop being a difficult market to enter and start becoming a real opportunity to scale sales on a large scale.
Europe remains a major opportunity — provided the preparation is right
Despite all the challenges that come up in discussions about regulation, logistics, or operating costs, one thing is certain: Europe remains one of the most attractive e-commerce markets in the world. A large consumer base, strong purchasing power, and a developed online sales infrastructure make it a natural next step in global expansion for many Asian brands.
The key difference, however, is that success in the European market rarely comes from a good product or effective marketing alone. In practice, the success of expansion is increasingly determined by the quality of operational preparation — from regulatory compliance and the logistics model to returns handling and customer experience.
As Arkadiusz Filipowski concludes:
“Europe is a tremendous opportunity for many Asian brands, but at the same time it is a market that requires very strong operational preparation. Companies that understand this complexity and design their operations accordingly can build sales scale very quickly.”
That is why more and more companies planning to expand into Europe are beginning to treat logistics, fulfillment, and compliance not as back-end operational support, but as a strategic element in building competitive advantage in a new market.
