From the United States to Europe: The High - stakes Transition of Cross - border Sellers | Global Expansion Insights
Author | Yang Zi, Li Xiaotian
Source | Xiaguang She
Tariffs take center stage in 2025.
On January 20th, US President Donald Trump began his second term. In less than three months since then, this president with a business background has been constantly wielding the tariff stick, pushing global free trade to its most precarious moment in a century. Since February 4th, 10%, 10%, 34%, 50%... Tariffs, counter - tariffs, more tariffs, and more counter - tariffs. Netizens have playfully dubbed the series of presidential executive orders issued from the White House as a game of "poker". Beneath the dramatic surface, all major powers, including but not limited to China, are in Washington's crosshairs, and the chessboard of world trade has to be re - arranged. This is a restructuring of the post - war trade system, and we may also be standing at the critical point of a complete overhaul of the global monetary and credit system.
In a market environment lacking in credibility, market sentiment prevails. Global trade practitioners need more rational decision - making to reduce unknown risk factors. Putting eggs in multiple baskets and making more market layouts are more effective survival methods in the face of fragmented and periodic changes in major - power relations.
Against this backdrop, as the world's third - largest economy and an important part of the chessboard, the economic and trade relations between Europe and China are sprouting new shoots.
On April 9th, EU member states voted to pass the first round of counter - tariff measures against the US, announcing a 25% tariff on a series of US goods, directly targeting the "unilateralist actions" of US steel and aluminum tariffs. On the 10th, the European Commission announced that it had reached an important consensus with China. The two sides agreed to set a minimum price for Chinese electric vehicles exported to Europe to replace the electric vehicle tariffs that the EU began to impose last October. On the 13th, the UK government announced重磅消息 (a significant piece of news) locally, stating that it would suspend the global tariffs on 89 products. This policy took effect from the date of announcement and will last until July 2027...
The sales volume of cross - border e - commerce is the most intuitive manifestation of the suddenly closer economic and trade relations between China and Europe. In the just - concluded March New Trade Festival on Alibaba.com, European orders soared. Year - on - year, the top five countries with the fastest - growing order numbers are all from Europe, with France leading the way, showing a growth rate of up to 125%.
Both policy directions and business decisions point to Europe. In this article, we attempt to provide some reference directions for merchants who want to "escape from the US" by analyzing the current situation of the European market, the difficulties and opportunities in European e - commerce, and the methodologies of European e - commerce.
Paris, France
Europe: The First Stop for Merchants Escaping from North America
Tariffs are not the end but a means.
Compared with seven years ago, Trump is taking more radical steps in his second term. Behind the radicalism lies panic and heavy pressure. As of now, the US government debt has exceeded $3.6 trillion. Raising tariffs and forcing countries to negotiate to solve the ever - growing US debt problem is considered one of the driving forces behind the tariff war.
Simultaneously, the problem of the hollowing - out of the US manufacturing industry looms large over the US trade deficit. Therefore, the second purpose of high tariffs is also clear: to encourage enterprises exporting to the US to invest and set up factories in the US.
The bullet that missed Trump before his election adds a touch of divine perspective to this story. This 78 - year - old man is the "chosen one": he not only has to solve the money problem but also restructure global trade rules.
However, a grain of sand in the era is a mountain on each individual. Statistically, in the first quarter, China's exports to the US still achieved positive growth. Exports reached 6.13 trillion yuan, a 6.9% increase. In the face of the approaching storm, more merchants chose to take the lead. Enduring with resilience and maintaining performance was the portrayal of most cross - border practitioners in Q1.
After the Tomb - Sweeping Festival, greater tariff pressure hit. Xiaguang She wrote in "The 104% Tariff Storm Is Coming: The Survival Game of Overseas Entrepreneurs" that after the tariff policy ("reciprocal tariffs") was introduced, some large B - customers in the US began to reduce their order quantities. Shipping companies also reduced their shipping capacities accordingly, and the selling price could no longer be raised to the level that consumers could bear. Some foreign - trade factories began to shut down.
Aya, who does the shoe and clothing business in North America, turned her attention to Europe. On April 10th, she attended the Global E - commerce Brand Summit jointly hosted by Rakuten Japan and Rakuten France, hoping to find some opportunities. Aya said that before the tariff changes, many large sellers had already laid out their businesses in both Europe and the US, especially in English - speaking regions in Europe. "There are many similarities in language and products."
In addition, Amazon is the e - commerce platform with the largest market share in the EU. According to comprehensive data from Statista, the IMF, the ECDB, and Marketplace Pulse, Amazon has an absolute advantage in Germany, the UK, France, etc. Among them, its market shares in Germany, the UK, France, and Spain are 50%, 30%, 37%, and 25% respectively. For more North American cross - border practitioners, Amazon occupies about 40% of the US e - commerce market, which is a relatively familiar platform. According to Amazon's official statement, after registering on the US site, the same company information can be used to register an account (unified account) on the European site and open multiple country sites in Europe.
Coincidentally, according to the recent questionnaire survey data of 3,772 cross - border sellers by Hugo Cross - border, in the face of the uncertainties in the US market, cross - border sellers are actively seeking new market expansion opportunities. Among them, the European market has become one of the most concerned expansion markets for sellers. 61% of sellers plan to seek new growth areas in the European market.
In fact, before the tariff changes, European orders had already shown a sharp upward trend. Data from Alibaba.com, an international trade platform, shows that during the March promotion season, the order flow from Europe increased significantly. Both the order volume and the number of paying sellers increased by more than 45% year - on - year. The growth rates of the top five countries, France, Italy, Spain, the UK, and Germany, reached 125%, 60%, 54%, 48%, and 38% respectively. The main sales categories were consumer electronics, shoes and clothing accessories, home and garden, and beauty products. This trend outpaced the 30% growth in the US market.
Berlin, Germany
In 2024, the overall GDP of the EU was approximately $1.94 trillion, second only to the US and China. The average per - capita GDP was 38,500 euros, equivalent to about 308,000 yuan. Overall, Ava, a European energy - storage merchant, believes that "compared with the US, Europe has a 'gentle' development pace. It's peaceful, but the overall scale is large and the maturity is high." Therefore, at the beginning of the tariff changes, the European market will inevitably become the first stop for North American merchants.
European consumers have also shown enthusiasm for online shopping. According to the latest report released by the technology and market research firm Forrester, in the next five years, the five major European countries, France, Germany, Italy, Spain, and the UK, will enter the "golden age" of high - speed e - commerce growth. E - commerce retail sales will grow at an annual rate of 7.8%, expected to increase from 389 billion euros to 565 billion euros.
Chinese emerging e - commerce platforms are accelerating their layout in Europe. For example, TikTok Shop opened three major sites in Germany, Italy, and France on March 31st. Coupled with the previously opened UK, Spain, and Ireland sites, its European territory has successfully expanded to six core markets.
SHEIN's semi - managed model covers core European markets including Germany, France, Italy, Spain, and the UK. In addition, SHEIN has set up its EMEA (Europe, Middle East, and Africa) regional headquarters in Ireland, mainly for regional logistics and strategic layout.
Temu emphasizes its "local - to - local" business model. It has laid out warehouses across Europe and signed a memorandum with DHL to support its local operations in Europe.
The European consumption structure, mainly featuring high - end manufacturing, cultural and creative industries, and green technology, is highly compatible with China's needs for "manufacturing upgrade + consumption upgrade". Aya said that in terms of the maturity of the European consumer market, the logistics and payment links in the entire foreign - trade chain are relatively complete. The main difficulties in the market lie in the large number of small languages and the high degree of fragmentation.
However, technological changes are expected to solve this obstacle. The overseas marketing director of an AI hardware company told Xiaguang She that generative AI is very helpful in optimizing small - language translation and communication. For example, in French - speaking regions, through AI customer service, French - to - French communication can be achieved, greatly improving the efficiency of customer reception and order - making.
Seeking progress while maintaining stability is the main theme of change in the face of risks. The European market is also rejuvenating in the process of moving towards Chinese merchants.
Spain & Poland: The Edge Break - through Strategy in the European Market
Different from the US, which has unified federal laws and business regulations, Europe consists of 45 countries. There are huge differences between Eastern Europe, Southern Europe, Western Europe, and Northern Europe. The consumption habits and marketing environments of different countries also vary greatly.
Although Europe has a regional integration organization, the "European Union", as the global strategist Parag Khanna said in his book "Connectography": "The EU is an enlarged Germany: a loose alliance with different power centers. Europe can recombine into a super - large multi - national society because it has basically been fragmented to the extreme. These independent European countries have no choice but to coexist peacefully with their neighbors."
Not only is the market fragmented, but the European e - commerce platforms are also diverse and have rich ecosystems. International e - commerce giants like Amazon dominate the market but are far from monopolizing it. At the same time, each country has its own e - commerce platforms deeply rooted in the local market. Many e - commerce platforms focus on vertical categories, and each platform has its own loyal customer groups.
The fragmented e - commerce market and ecosystem require sellers to adapt to local conditions and break through each market one by one. Therefore, choosing the most potential market to enter is undoubtedly crucial.
Regarding this, Song Xin, the founder of Xinfu Think Tank and a former EU policy advisor, analyzed to Xiaguang She: "This year, the Spanish e - commerce market will be particularly hot. First of all, the penetration rate of e - commerce in Spain is very high. Local consumers generally have no sense of saving money and have a strong desire to consume. In addition, the biggest advantage of the Spanish market is that brands can use it as a base to radiate across Latin America. In the Spanish - speaking world, Spain is a brand high - ground. Brands that gain a foothold in Spain can easily expand to countries like Mexico and Argentina."
According to Statista data, in 2024, the revenue of the Spanish e - commerce market reached $35.5 billion, and the penetration rate of e - commerce users was 42.7%. More than 60% (64.8%) of Spanish consumers shop online every month, and consumers aged 34 - 44 are the main force in online shopping in Spain. Nearly 70% (69.7%) of them shop online at least once a month.
A commercial street in Spain
When talking about the reasons for the developed e - commerce in Spain, Song Xin added that Spain, which connects Europe and Africa, the Atlantic Ocean and the Mediterranean Sea, together with Italy and Greece, is the main gateway for immigrants to enter Europe. Despite the challenges, Spain remains largely open to receiving immigrants.
According to the Spanish Ministry of the Interior, as of mid - November 2024, about 54,000 immigrants arrived in Spain by sea or land. The exact number of foreigners illegally residing in Spain is unknown. Many immigrants make a living in Spain's underground economy, working as fruit pickers, caregivers, delivery drivers, or in other low - paying jobs. "This growing population needs high - quality and inexpensive goods, and online shopping is definitely more cost - effective than offline shopping."
Sun Xinyue, a geopolitical and overseas - market researcher, also mentioned that in Europe, the population is flowing back from emerging markets to developed countries. Although the Moors left Spain more than 600 years ago, new North African immigrants have given rise to new "Arab streets" and "Arab tea houses" in the local area. According to the Spanish Islamic Commission, there are currently 2.5 million Muslims in Spain, accounting for about 5.32% of Spain's 47 million population. In the past 30 years, the number of Muslim converts has increased by about 10 times. These will also bring new variables to the economy and society.
In addition to Spain, Poland, located in Eastern Europe with a population of more than 37 million, is also worthy of attention from Chinese sellers. "Polish young people are very open - minded and have a high acceptance of new brands. Entering the European market through Spain and Poland can be called the 'edge break - through strategy in the European market'. Conquering core markets like France and Germany requires a lot of time and money, but the edge markets can be broken through individually. Moreover, after the overall soft landing of the European economy, the GDP growth rates of these two countries are the most significant. While the consumption ability of the Western European middle class has become more cautious and their purchasing power has declined, the number and consumption ability of the Central and Eastern European middle class have continued to grow." Song Xin analyzed to Xiaguang She.
The research data on European consumer confidence by McKinsey also confirms this: among the five countries of France, Germany, Italy, Spain, and the UK, French consumers have the highest level of pessimism (32%), while Spanish consumers have the highest optimism rate (32%).
The largest e - commerce market in Europe is the UK, which left the EU in January 2020. In 2024, the total value of the UK's e - commerce market reached $160 billion, ranking third in the world, second only to China ($1,931.6765 billion) and the US ($1,036.4817 billion).
"In fact, the UK has only one consumption center, which is London. London is like New York in Europe. It is very diverse and easily accepts new things. The reason why e - commerce in the UK has developed well is that the country's national strength has declined, and the purchasing power of the middle class has dropped significantly. The percentage of the middle class in the total population has decreased from 65% to about 52%. Moreover, brands that sell well in the UK can easily sell well in Commonwealth countries and some former African colonies." Song Xin told Xiaguang She. Similarly, doing e - commerce in Germany can cover the local market and extend to Austria and Switzerland; doing e - commerce in France can radiate to French - speaking African countries.
London, UK
For Chinese sellers, the current consumption trends in Europe are as important as the market situation and deserve close attention.
Regarding this, many e - commerce entrepreneurs and analysts shared that there are currently three obvious consumption trends in Europe.
First of all, European consumers' awareness of environmental protection is deeply rooted, and the second - hand trading market featuring the circular economy is booming.
"The second - hand goods market in Europe is very vast. It is very normal for French consumers to buy some second - hand goods as Christmas gifts for their families or to resell the gifts they don't like online. This is a cultural difference compared with China." Qin Yaozhen, the investment promotion director of Rakuten France, told Xiaguang She.
According to the research of Xinfu Think Tank, currently, 77% of French people sell items online, and nearly half of the French have developed the habit of buying second - hand or refurbished products. 44% of Generation Z choose to resell the products they have bought on online platforms, and 40% of them said they would increase their purchases of second - hand products. In the UK, more than 30% of consumers shop second - hand every month. 58% of Generation Z and 50% of Millennial consumers buy second - hand goods weekly or monthly, mainly because of the low cost and high cost - effectiveness. 27% of consumers consider environmental protection factors.
Secondly, the preference of Europeans for low - priced products due to consumption downgrade is becoming more and more obvious. According to the research report of McKinsey, when surveyed about multiple economic, political, and social issues, European consumers listed rising prices and inflation as their most concerned issues.
The research of Xinfu Think Tank shows that due to the decrease in disposable income, the European middle class has replaced daily necessities with cheaper alternatives from discount stores and e - commerce platforms, while reducing their additional expenditures. However, their demand for experiential consumption has increased, and the rigid demand for consumer electronics has become increasingly obvious. With the increase in consumers' entertainment needs, the enhanced attention to health in the post - pandemic era, and the continuous demand for working from home, the European consumer - electronics market has further recovered since 2024.
Thirdly, social media is reshaping the consumption habits of the younger generation.
"From understanding, screening, purchasing to showing off, social media has changed the traditional purchasing habits and brand - recognition process of young consumers. They attach great importance to the interaction with brands and the social - media display effect after purchase." Song Xin analyzed.
Is it really that easy to sell to Europe?
However, switching from selling in the US to selling in Europe is by no means as simple as just changing the market with a single click.
Li Luwei, a Chinese entrepreneur who runs the furniture brand Avril Paris in France through an independent - website model, shared with Xiaguang She that the total e - commerce scale of more than 40 European countries combined is not as large as that of the US alone (in 2024, the total e - commerce revenue in Europe reached about $659.1 billion, while the overall scale of the US e - commerce market reached $10.364817 trillion). Therefore, sellers who are used to mass - producing and selling the same product in large quantities will definitely face difficulties in adapting to the European market.
"The consumption - market characteristics, operation methods, and compliance policies of each country are different, which will pose more obstacles." This also means that the business model of homogeneous product - listing and low - price competition is not a long - term business strategy in the European market. "You can't use the dumping and mass - listing method in the European market. Each country requires meticulous operation, which is a huge challenge for operators." Li Luwei said.
Regarding this, A Chao, a cross - border seller doing business in Europe, told Xiaguang She that the European e - commerce market is extremely complex in terms of compliance. "Newcomers can start with the UK, and experienced sellers can try Germany. But no matter which market you choose, you need to spend tens of thousands of yuan on various taxes and certifications at the beginning. You can't save this money, otherwise, your store and listings may be taken down and frozen at any time."
Meanwhile, after the Trump administration announced that it would increase the "reciprocal tariffs" on China to 145%, the EU is also extremely vigilant against the dumping of Chinese goods.
According to a report in the Financial Times on April 14th, many business people, including the CEO of the European electronics retailer Currys, said that after the Trump administration imposed punitive tariffs on China, the small - commodity products that Chinese factories originally planned to export to the US are likely to be increasingly dumped in Europe. Retailers "are very worried about the risk that some low - quality goods will be diverted from the US to Europe due to the tariffs."
Previously, European Commission President Ursula von der Leyen also clearly stated that the EU "will not tolerate" the diversion of Chinese goods affected by US tariffs to Europe and added that if the monitoring mechanism detects an increase in Chinese imports, the EU will "take safeguard measures". In fact, in February this year, the EU launched an investigation into SHEIN and Temu on the grounds of "promoting unfair contract terms, misleading price cuts, and unfair business practices".
Regarding this, Song Xin believes: "This crisis is also a major test for Chinese cross - border sellers and platforms. It proves that sellers who rely on the low - price and high - volume strategy, especially those who rely solely on the US market, will face strong uncertainties."
"It is difficult for mass - listing sellers to balance quality control, logistics timeliness, and the implementation of environmental protection concepts. This path is actually difficult to sustain. We hope that mass - listing sellers can communicate more with the account managers of the platforms to see if there are any products among the numerous product categories in the European market that can be transformed from mass - listing to high - quality products." Qin Yaozhen, the investment promotion director of Rakuten France, said.
Qin Yaozhen also shared that in fact, Chinese goods have strong competitiveness in Europe. "First of all, we have the supply - chain advantage. In the context of the global economic downturn, European consumers are currently more sensitive to prices. However, Chinese merchants have the most efficient supply - chain system in the world, which can provide products at more competitive prices while ensuring quality, meeting the demand of European consumers for high - cost - effective products. In addition, Chinese sellers are very quick in grasping emerging consumption trends and responding to market changes. European consumers have a very high demand for personalized and customized products. Chinese sellers are now providing customized services in home decor, fashion, accessories, stationery, etc., which can meet the demand of European consumers for uniqueness."
The recently popular "best - friend machine" on TikTok has proven the product - innovation ability of Chinese sellers. This product has become popular in Europe recently, amazing many people. On Chinese social media, the "best - friend machine" has been popular for a long time. Li Luwei also mentioned that in Europe, e - commerce practitioners have a relatively positive attitude towards TikTok. "Practitioners believe that content - based e - commerce is the general trend and needs to be studied."
The recently popular "best - friend machine" on TikTok
When giving advice to Chinese sellers, many e - commerce entrepreneurs emphasized that brand building is imperative. Meanwhile, environmental protection is a deeply rooted consumption concept among European consumers. ESG has become a crucial evaluation factor for brands, and this value proposition needs to run through the entire life cycle of the brand value chain.
Li Luwei took the brand Freitag, which is very popular in the European market, as an example to illustrate the emphasis of European consumers on environmental protection. This brand was founded in Zurich in 1993 and is made from recycled industrial materials such as used truck tarpaulins, seat belts, and airbags. The circular - economy model it pioneered is very appealing to the younger generation in Europe, thus triggering a popular trend. Although the unit price of Freitag products is not cheap in the economically - downtrodden Europe, many consumers are still willing to pay for the brand's concept.
In addition, in - depth localization cannot be ignored. For example, in addition to having an independent website, Li Luwei's furniture brand has also entered dozens of local European e - commerce platforms and European chain warehouse - style supermarkets such as Metro. "It is recommended that sellers cooperate deeply with local e - commerce platforms and operate as a local European brand." Li Luwei said.
On February 4th, 2025, the EU launched a new customs - supervision rule in the e - commerce field. This measure focuses on two key changes: canceling the tax - exemption policy for goods under 150 euros and imposing a handling fee on all packages.
Regarding this, Zhang Zhouping, a well - known cross - border e - commerce expert and the chief researcher of Bense Think Tank, believes: "This EU policy will have a certain impact on Chinese cross - border e - commerce platforms. The increased cost of sellers on the platforms will directly affect their operating profits. This may lead sellers to choose local European e - commerce platforms for operation to reduce the impact of the policy."
It can be seen that brand building and localization are the only ways to operate in the European market. Regarding this, Qin Yaozhen, the investment promotion director of Rakuten France, believes that in recent years, Chinese goods in the European market are gradually getting rid of the stereotype of "low - quality and low - price" and are rapidly upgrading towards "Made in China with Intelligence" and "Created in China".
"Since 2020, 3C electronics brands represented by Huawei, Xiaomi, Honor, and DJI have taken the lead in opening up the European market with technological innovation and high cost - effectiveness. Around 2022, smart - home appliance brands represented by Roborock and Dreame reached their peaks, significantly improving the living standards of European consumers, and their sales even exceeded those of European and American brands. In 2024 and 2025, every time we conduct market analysis, we find that more and more Chinese brands are emerging in various categories, such as projectors and camera accessories."
In today's ever - changing geopolitical situation, can Chinese sellers and Chinese brands make further breakthroughs in the European market? Let's wait and see.
This article is from the WeChat official account "Hangzhou Qiantang Enterprise Overseas Service Base". The author is Yang Zi and Li Xiaotian. It is published with authorization from Qiantang.
