Why Online Marketplaces must Automate with Eurora.
By Alexander Maasik
One of the main reasons for selling goods in online marketplaces is the opportunity to reach new customers.
After all, the main benefit of having an online marketplace to show your goods is the ability to reach more customers in different cities and countries. More customers mean more sales. It means higher revenue and higher profits. The success of eCommerce over the recent years is a clear sign that this model works. Yet taking part in cross border trade comes with its own challenges.
New regulations for Online Marketplaces selling to the EU.
Starting this summer, eCommerce sellers who want to sell goods to the European Union (EU) are faced with new regulations.
Not only do these regulations make it mandatory to declare all goods entering the EU, but marketplaces must now also display accurate VAT rates for the destination country in their shopping carts, collect VAT and pay it to the EU.
This means that a marketplace must be aware of the different tax and customs regulations of all the countries it is shipping to. And these rules can always change. Unless you have a dedicated legal department that keeps tabs on these issues, it can be a strong barrier when selling to other countries.
For instance, if you have a shop in the United Kingdom that sells goods to Germany and France, you must (starting from July 1st) collect VAT on German sales based on German VAT rates and French sales based on French VAT rates.
You must also be aware of all the specific rules on which goods can be exported into a specific country. For instance, if you’re selling knives, you should know, the length of a blade that is allowed into a country is different for Germany or Estonia.
Luckily, you can use an eCommerce platform like Eurora that already has all the knowledge you need.
Eurora saves you time and resources.
Implementing Eurora in your shopping cart allows you to use our Duty and Tax calculator.
This calculator can automatically display and collect VAT depending on which country the goods are sent.
That way, your marketplace can sell and ship to most countries in the world. Giving you access to as big a client base as possible. When you don’t need to worry about legal and customs procedures, you can focus your energy on things that help your business grow.
Eurora will also check customers and goods based on ban lists and restricted item databases. This makes sure you do not sell goods to people who are not allowed to have them nor send goods to countries the goods are not allowed to enter.
All this put together means that with no effort on your part, your customers will have a much more transparent and open shopping process. This will increase their satisfaction and help to make sure that they will order more goods from you in the future.
Selling to the EU.
From July 1st, 2021 sellers who are located outside the EU will need to either set up a company in the EU or find a fiscal representative there. Eurora offers a Fiscal Representation service for non-EU sellers and Marketplaces to collect VAT and pay it to the revenue administration via Import One Stop Shop (IOSS).
Using IOSS allows one to go through consolidated customs clearance in one EU Member State. It enables quicker customs procedures and is more convenient for the consignee.
These regulations also have an effect on EU merchants whose yearly revenue from cross-border sales is more than ten thousand euros. The new VAT rules apply to them as well and they must start declaring their revenue through the OSS system.
Luckily, Eurora™’s platform can easily generate the necessary input for VAT declarations from sales data and act as a tax representative for any company selling goods to the EU. This is a much cheaper and easier option than registering a company in the EU.
Every online store wants more customers. And often the main blockage in your way is the legal hazards of entering a new market. Whether it is in the EU, USA, or UK. With Eurora, all those markets, and all those customers will be available to you. So reach out now, to get started.