A Route Map for UK Exporters Expanding into the EU
- Norma Foster
- Dec 3, 2024
- 7 min read
Updated: Apr 2
I first met Anthony at the start of the year, during workshops I was delivering on international business development at the Welsh Government’s wonderful annual conference in Cardiff. We had a fantastic conversation about Something Different Wholesale’s (SDW) plans to expand into the EU, and I was immediately struck by the clarity and ambition of their approach. Since then, we’ve had many more insightful conversations, and it’s been a pleasure to see how their project has taken shape.
Recently, I had the chance to sit down with Anthony for a deeper discussion about their progress so far. What follows is a series of practical, critical steps they’ve taken on their expansion into the EU — steps that I believe will give you valuable food for thought on your own journey into international markets.
This route map shares SDW’s step-by-step approach to expanding into the EU. Each phase includes invaluable insights, helping UK exporters navigate complex EU market entry with tips, candid advice and practical guidance directly from Anthony.
Something Different Wholesale (SDW)
Anthony David, Commercial Director
Something Different Wholesale is a leading UK-based supplier located in Swansea, Wales supplying quality giftware and home decor. With over 3,000 products available for next day delivery and a rating of ‘Excellent’ on Trustpilot, the business prides itself on offering exceptional customer service matched with a wide selection of stock, delivering to over 25,000 retailers worldwide and catering to businesses of all sizes.
Committed to quality and innovation, over 80% of Something Different products are designed in-house to offer customers unique products at competitive prices.
SDW has embarked on an ambitious EU expansion with a strategic goal to double EU sales by 2025.
Step 1: Understanding the Market - Think Big : Start Small
Anthony emphasises the importance of a thoughtful, scaled approach to EU expansion. “Think big, start small” he says, explaining that SDW began by creating a phased pilot project approach, which I often recommend to clients. This allowed them to test the model with existing customers and learn about potential hurdles before a full-scale rollout.
“If you've got some loyal customers who will forgive the odd hiccup, you’ll learn a lot without risking your reputation”.
Key Tips:
Identify Early Adopters: Work with existing or loyal customers who understand your brand and are willing to offer feedback. These “test clients” allow you to make adjustments before going broader.
Focus on a Few Key Regions First: Choose a manageable initial set of regions to target, ideally those where you already have some demand or a good logistical setup. This lets you optimise processes before scaling up.
Adjust Based on Feedback: Actively listen to customer feedback and adjust your offerings or approach as needed, showing customers that their input matters.
Step 2: Building Partnerships with Couriers and Compliance Advisors
Logistics and compliance presented some of the greatest challenges for SDW’s expansion. Anthony highlights the critical role of finding partners who can handle EU-specific regulations, in their case UPS and Simply VAT, researching the available options in depth and choosing the partners that best fit their needs.
“We didn’t want to register a business in the EU with all the extra expenses that would bring, but we did want to act as the importer of record for our customers, taking away the pain of clearance and customs charges.”
Key Tips:
Select Couriers Based on EU Capabilities: Look for partners who understand the intricacies of EU customs, clearance, and VAT. Couriers like UPS can act as the importer of record, which simplifies customs for your customers.
Invest in Compliance Support: Partner with compliance specialists who know VAT requirements across different EU countries. Simply VAT helped SDW navigate VAT registration quickly and accurately.
Plan for Contingencies: Having a backup courier option in place, even if they aren’t initially active, reduces risk if your primary logistics partner encounters issues.
Step 3: Simplifying the VAT Process
Vat compliance can be a hurdle for UK exporters, and SDW chose to register in only two EU countries (Netherlands and Ireland) to streamline the process. They also integrated VAT compliance into their existing ERP and web systems.
“VAT was a big learning curve, and by automating it within our ERP system, we save time and reduce errors. We’ve even gone so far as to hire someone specifically to handle compliance documentation.”
Key Tips:
Choose VAT Registration Sites Carefully: Register for VAT in EU countries that allow you to handle VAT without setting up a local business, as SDW did in the Netherlands and Ireland.
Automate VAT Handling: Integrate VAT processing within your ERP system to automate VAT compliance by customer type and location, reducing errors and streamlining orders.
Consider Monthly VAT Returns: Monthly VAT returns simplify tracking and reduce the chance of backlogged issues, keeping your books tidy and up to date.
Step 4: Structured Customer Communication
Clear and targeted communication with EU customers is essential to maintaining strong relationships and ensuring a seamless buying experience. They used email campaigns, web pop-ups, and IP recognition to tailor the customer experience and more internationalisation and languages will start being introduced from 2025 in Phase 2 of this project.
“We specifically targeted our lapsed EU customers with an email campaign and got a 40% open rate – a great indicator they were still interested in what we’re doing,” Anthony shares.
Key Tips:
Inform Customers Early: Use email campaigns to explain any changes in process, such as customs fees, currency adjustments, or shipping timelines.
Localise your Website for EU Visitors: Tailor the browsing experience for EU customers by showing prices in Euros, using their local language if possible, and clarifying VAT and shipping policies.
Offer Customer Support for New Buyers: Create an FAQ or provide dedicated support for new EU customers unfamiliar with the changes. A transparent, supportive experience is key to winning them over and keeping them on board.
Step 5: Investing in Sustainable Practices
Sustainability is a priority for SDW’s EU Expansion. From removing bubble wrap to installing solar panels, they took concrete steps to reduce their environmental impact—a value that resonates strongly with EU customers. Sustainability is top of the agenda for European businesses because consumers and regulations increasingly demand it, with 81% of EU citizens considering environmental protection "very important" and more than 70% willing to pay extra for sustainable products.
“We switched to biodegradable packaging, installed 2,000 solar panels, and even removed bubble wrap completely,” says Anthony. “It’s not just about reducing our carbon footprint; it shows we’re committed to sustainability, which is critical for EU buyers.”
Key Tips:
Evaluate Packaging: Switch to biodegradable, recyclable, or reusable materials for product packaging to appeal to eco-conscious buyers.
Minimise Carbon Footprint: If possible, install renewable energy solutions, such as solar panels, at your facilities and explore options for local production or storage to reduce transportation emissions.
Design for Longevity: Offer products that serve a purpose, such as reducing waste. As Anthony explains, SDW focuses on functional items like oil burners and trinket dishes, avoiding single-use products.
Step 6: Creating a Compliant Product Range
When selling to the EU, compliance is non-negotiable. SDW restricted certain items, like natural materials and animal-based products, to ensure they were eligible for EU import.
“We have about 300 items we restrict from sale in the EU due to certification and compliance requirements, this keeps our product range ‘clean’ for the EU market.”
Key Tips:
Verify Commodity Codes: Work with your courier and compliance partners to double-check the eligibility of your product categories for EU sale.
Hire a Compliance Specialist: Designate someone to oversee compliance paperwork, certifications, and commodity code restrictions.
Adapt Inventory for EU Markets: Restrict or adapt products that may pose compliance challenges, saving time, costs, and potential issues at customs.
Step 7: Preparing your Team for EU Expansion
To ensure everyone was aligned and contributing, SDW established a “European Task Force” of leaders from each department, meeting weekly to discuss issues, share best practice and make key decisions.
“Our weekly ‘European Task Force’ meetings bring together each department’s representatives. It keeps everyone on track and informed about the project’s progress.”
Key Tips:
Create a Cross-Functional Team: Include representatives from key departments (e.g. finance, logistics, IT, marketing) to manage EU tasks collectively.
Hold Regular Update Meetings: Weekly check-ins ensure team members stay informed, aligned, and proactive with EU-related tasks.
Allocate Specific EU Responsibilities: Designate specific roles within each department to handle EU-related duties, ensuring accountability and focus.
Step 8: Leaning on Government Support
Anthony praises the support SDW received from the Welsh Government and Department for Business and Trade. “They’ve been great along the way,” he says, with advice, financial backing, and specialised resources.
“Our partnership with the Welsh Government has been invaluable. From digital marketing and research to VAT compliance, they’ve offered us the support we needed to go global.”
Key Tips:
Utilise Regional and National Support: Programs like the Welsh Government’s Accelerated Growth Programme can provide funding and consultancy to ease the challenges of international expansion.
Apply for Trade Show Funding: Many government programs offer support for overseas trade shows, helping to offset costs and expand your network.
Seek Guidance on Compliance, VAT, Legal, Regulatory and Financial issues: Use government advisors to navigate complex issues, where they also have the potential to talk to specialist advisors across the organisation and potentially located in your target country.
Step 9: Forward Planning and Risk Management
To mitigate risk, SDW developed their approach to include exploring additional courier partners and alternative compliance strategies.
“We’re looking to partner with a second courier as a backup. If UPS changes their pricing model or we face disruptions, we need a reliable alternative,” explains Anthony.
Key Tips:
Establish Backup Partnerships: A secondary logistics provider or customs broker can reduce your risk if primary partners face operational issues.
Monitor Regulatory Changes: Regularly review updates in EU legislation to stay compliant and avoid surprises and disruptions.
Invest in Flexibility: Ensure your systems, processes, and personnel are sufficiently flexible and adaptable to changing requirements. Agility, flexibility and resilience will stand you in good stead.
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