cross-border

How can sellers fulfill customer orders efficiently while keeping shipping costs low and delivery speeds competitive? What role do fulfillment centers, distributed networks, and automation technologies play in optimizing the process? This guide explores the advantages and challenges of different fulfillment models, helping businesses navigate the complexities of international logistics and make informed decisions.

What is fulfillment in e-commerce?

Fulfillment refers to the entire process of storing, managing, packing, and delivering customer orders from an ecommerce business to the buyer. A well-optimized fulfillment process ensures that customers receive their products quickly, minimizing transit times and enhancing the customer experience.

To streamline international orders, many retailers turn to third-party fulfillment centers, which handle order picking, packaging, shipping, and returns on behalf of the seller. These fulfillment houses are designed to reduce costs, improve inventory management, and enable businesses to seamlessly handle high order volumes across different countries.

Advantages of using a fulfillment center for international orders

For ecommerce sellers expanding globally, working with a third-party fulfillment provider offers multiple benefits:

• Faster deliveries – by using in-country fulfillment centers, businesses can significantly reduce transit times for customers quickly.
• Lower shipping costs – local fulfillment centers help businesses avoid shipping tariffs and customs delays.
• Scalability – businesses can handle customer demand fluctuations without worrying about unsold inventory or storage fees.
• Improved order tracking – a distributed network of warehouses allows for better order monitoring, ensuring that customers receive their orders on time.

Choosing a reliable logistics partner that offers fast and affordable fulfillment is crucial for retailers looking to enter new markets while maintaining cost efficiency and service quality.

What is dropshipping in e-commerce?

Dropshipping is a fulfillment model where a retailer sells products without keeping moved inventory in stock. Instead, when a customer places an order, the supplier or manufacturer ships the product directly to the end consumer.

Why is dropshipping a popular option for international expansion?

Many businesses prefer dropshipping because it eliminates the need for warehouse space and excess inventory management, making it a low-risk, low-investment strategy for testing new markets. Some key benefits include:

• Minimal upfront costs – no need to rent warehouse space or invest in storage facilities.
• No risk of unsold stock – products are only shipped once a customer places an order, reducing waste and overhead costs.
• Flexibility in product offerings – sellers can list existing products from suppliers in other countries without committing to large inventories.

However, dropshipping also has its downsides. Longer transit times, higher shipping fees, and limited quality control can impact customer satisfaction. Retailers must carefully select dropshipping partners that can ensure a smooth fulfillment process, follow address requirements, and manage shipping restricted items effectively.

Private warehousing: when does it make sense?

For some ecommerce businesses, operating their own fulfillment center is the best way to maintain full control over inventory, shipping, and customer experience. While renting or building warehouse space abroad can be costly, in certain cases, shipping products directly from Poland is a viable solution.

Private warehousing is most effective when:

• The retailer offers customized, high-value, or premium products, where customers are willing to wait longer for deliveries.
• The business needs greater control over inventory levels and fulfillment operations to meet specific address requirements or manage restricted items.
• Shipping from Poland remains cost-effective compared to operating an international fulfillment center.

Optimizing logistics for cross-corder e-commerce – key challenges and solutions

Expanding into cross-border e-commerce comes with unique logistical challenges, from customs regulations to shipping costs and order fulfillment efficiency. To succeed in international markets, businesses need optimized logistics strategies that ensure fast, cost-effective, and reliable deliveries. Below, we explore key challenges and solutions to streamline global fulfillment operations.

The impact of customs regulations on cross-border fulfillment

One of the most critical challenges in international e-commerce is navigating customs regulations. Each country has specific import/export laws, taxes, and shipping tariffs, which can affect the overall fulfillment process and customer experience.

• Customs Duties & Tariffs – some countries impose high import duties, making certain markets less profitable. Retailers must consider whether they or the customer will cover the costs.
• Restricted Items & Compliance – some products, like electronics, cosmetics, or food, may be subject to strict regulations or prohibitions in certain regions.
• Documentation Requirements – ensuring all shipping documents, invoices, and declarations are correctly completed is crucial to avoid delays at customs checkpoints.

Example: The EU’s Import One Stop Shop (IOSS) system simplifies VAT collection for non-EU sellers shipping to Europe, allowing for faster and more efficient cross-border deliveries.

Reducing shipping costs in cross-border e-commerce

Keeping shipping costs under control is crucial for maintaining competitive pricing and increasing sell-through rates.

Key strategies for lowering shipping costs:

• Using regional fulfillment centers – Storing inventory in a fulfillment center closer to customers reduces international shipping tariffs and speeds up transit times.
• Choosing the right carrier – Not all shipping companies offer the same rates or delivery times. AI-powered logistics tools can select the most cost-effective shipping option per order.
• Bulk shipping discounts – Some third-party fulfillment providers offer discounted rates when businesses ship large volumes.
• Optimizing packaging – Reducing package dimensions and weight can help lower shipping fees and make order fulfillment more efficient.

Example: Amazon’s Multi-Channel Fulfillment (MCF) service allows businesses to store products in Amazon warehouses while fulfilling orders across various marketplaces.

The role of returns management in cross-border e-commerce

A well-structured returns policy is critical for customer satisfaction and brand reputation. Studies show that 92% of online shoppers are more likely to buy from a retailer with a hassle-free return policy.

Challenges of international returns:

• High return shipping costs – Sending products back across different countries can be expensive.
• Customs complications – Some countries charge import duties on returned items.
• Unsold inventory issues – Returned products that cannot be resold immediately create storage fees and inventory waste.

Solutions for an efficient returns process:

• Partnering with local fulfillment centers to handle returns more efficiently.
• Offering in-country drop-off points for faster processing.
• Providing clear return guidelines on address requirements, packaging, and time limits.

Example: Zalando offers free returns in multiple European countries, helping improve customer confidence and repeat purchase rates.

How Alsendo supports cross-border e-commerce

Expanding into cross-border e-commerce requires strategic planning to ensure a smooth fulfillment process and cost-effective shipping.

How Alsendo helps businesses scale internationally?

• Global shipping network – enabling retailers to fulfill customer orders efficiently in over 150 countries.
• Flexible delivery options – ensuring fast and affordable fulfillment while optimizing shipping costs.
• Seamless return management – improving customer satisfaction with simplified returns solutions.
• Advanced automation tools – enhancing order tracking, route optimization, and logistics efficiency.

As a technology platform for managing shipments and deliveries, Alsendo providing e-commerce businesses with advanced tools to optimize logistics, streamline shipping operations, and enhance the customer experience.

With Alsendo’s businesses can seamlessly compare shipping options, reduce transit times, and lower delivery costs, all while maintaining full control over their logistics processes. Whether expanding into new markets, optimizing order fulfillment workflows, or managing international returns, Alsendo’s technology-driven solutions enable retailers to automate key shipping tasks, improve last-mile delivery performance, and ensure a smooth fulfillment process across multiple regions.

By leveraging Alsendo’s integrations with leading carriers, e-commerce platforms, and fulfillment networks, businesses can simplify international logistics, provide a world-class fulfillment experience, and scale their operations with confidence—without the complexities of managing shipping logistics manually.

1. https://gs1pl.org/app/uploads/2024/01/raport_crossborder.pdf
2. https://www.ue.katowice.pl/fileadmin/user_upload/wydawnictwo/SE_Artyku%C5%82y_321_340/SE_321/06.pdf
3. https://www.rajapack.pl/blog-pl/jakie-sa-wyzwania-logistyczne-w-e-commerce-transgranicznym-i-jak-je-pokonac
   
   

1. Understanding local market dynamics

A critical aspect of cross-border expansion is understanding local consumer behavior, business regulations, and economic conditions. Even within the EU, differences in customer needs, spending habits, and cultural preferences influence market success. Failing to align with local expectations can lead to difficulties in brand positioning, marketing effectiveness, and sales performance.

For instance, while Poland and Slovakia share a similar economic environment, cross-border customers in these markets may have different delivery preferences, payment options, and brand expectations. Successfully entering a new market requires a deep focus on market research, customer opinions, and competitive positioning.

How to gain market insights?

• Businesses can access valuable market knowledge through:
• Local customer surveys – Gathering opinions to understand consumer expectations.
• Industry reports & trade data – Researching trends from international suppliers and market analysts.
• Competitor analysis – Studying how established cross-border businesses position themselves.
• Government and trade organizations – Consulting sources like Trade.gov.pl to understand regulations and business security measures.

Example: companies expanding into Central Europe can rely on Alsendo’s technology solutions to ship smoothly, ensuring seamless cross-border fulfillment while keeping delivery operations secure and transparent.

2. Developing a market-specific strategy

A cross-border expansion strategy must be tailored to the specific country, considering local business culture, legal requirements, and consumer expectations. A strategy that works well in one market may be ineffective in another due to differences in competition, capital requirements, and customer behavior.

Key considerations when expanding abroad:

• Market accessibility – how easy is it to enter the market and proceed with business registration?
• Customer decision-making factors – what influences buyers in this region?
• Marketing channels – what platforms are best for advertising and customer engagement?
• Regulatory compliance – are there restricted product categories or legal barriers that may impact sales?

Example: businesses entering Germany may need to focus on sustainable practices, as cross-border customers in this market prioritize eco-friendly products and ethical sourcing. In contrast, markets like the Czech Republic are often price-sensitive, requiring a cost-effective pricing model to attract buyers.

3. Adapting the product offering to local demand

When expanding internationally, businesses must ensure their product or service aligns with local customer needs. Cross-border customers may have different expectations regarding pricing, quality, and product functionality.

How to adapt your offer for new markets?

• Analyze local purchasing power – some countries hold premium products in high regard, while others prefer cost-effective alternatives.
• Study competitor offerings – what are other businesses providing, and how can your company create a unique value proposition?
• Assess market demand trends – ensure your products align with consumer expectations in that specific market.
• Adjust branding and messaging – tailor marketing efforts based on cultural preferences and customer feedback.

Example: in high-income countries like Switzerland, businesses can invest in premium branding, while in price-sensitive regions, companies may need to offer discounts and cost-saving options to hold a competitive edge.

4. Building strong local partnerships

Expanding into new markets without trusted business connections can present logistical, regulatory, and operational challenges. International suppliers, distributors, and marketing agencies are crucial in helping companies proceed with expansion more efficiently.

Why Local Partnerships Matter:

• Legal advisors – ensuring compliance with international business regulations.
• Marketing agencies – adapting campaigns for local customer engagement.
• Cross-border logistics partners – optimizing shipping, customs clearance, and delivery efficiency.

5. Optimizing cross-border logistics and delivery operations

One of the biggest challenges in international expansion is logistics management. Cross-border shipping costs, regulations, and operational security all affect a company’s ability to deliver products efficiently.

Key Considerations for International Logistics:

• Shipping cost optimization – Working with trusted logistics providers to minimize cross-border shipping expenses.
• Order tracking & customer transparency – Providing customers with real-time updates to improve satisfaction.
• Delivery speed & reliability – Ensuring timely shipments to maintain customer trust.

Example: Alsendo’s Innoship software helps businesses automate shipping processes, reducing manual work while ensuring delivery efficiency across borders.

How to succeed in cross-border expansion?

Successfully expanding into international markets requires a combination of strategic planning, market intelligence, and strong logistics solutions. Companies that invest in research, establish business connections, and optimize cross-border operations can build a scalable model for sustainable growth.

By leveraging Alsendo’s platform, automated fulfillment solutions, and multi-carrier integrations, businesses can:

• Reduce cross-border shipping costs and delivery times.
• Ensure seamless logistics and transparent customer service.
• Expand efficiently into multiple countries without operational bottlenecks.

With the right strategy, resources, and partners, businesses can successfully create a competitive presence in new markets while maximizing profitability and efficiency.

Polish Online Retailers and EU Regulations

Polish online retailers looking to sell within the European Union benefit from simplified processes in some areas. E-commerce regulations are largely based on EU legislation, making them consistent and universally applicable across the EU.

Key European E-commerce Regulations

The following are some of the main rules governing the e-commerce market in the EU:

• 14-day complaint resolution – Online retailers in the EU are required to process complaints within 14 days.
• Price disclosure – According to the Omnibus Directive, sellers must display the lowest price an item was offered at in the past 30 days.
• Warranty – Buyers have up to two years to prove that a product does not conform to the contract.
• Disclosure obligations – Sellers must inform customers if they are a business, if they use paid advertising, and provide their business address.
• 14-day withdrawal period – Customers have the right to withdraw from a purchase within 14 days, without needing to provide a reason.
• Returns and complaints policies – Every online retailer must have clear terms for handling returns and complaints. To streamline these processes, Innoship offers an automated delivery and returns system that supports efficient management.
• Personal data protection – GDPR regulations apply throughout the EU.

Selling Beyond the European Union

Retailers looking to expand outside the EU face more challenges. Local e-commerce regulations may vary significantly from EU laws, and shipments are often subject to VAT and customs duties, which are usually the buyer’s responsibility. For these reasons, it is generally advisable to focus cross-border e-commerce efforts within the EU first.

Loyal customers buy up to 90% more often and spend 67% more. It is important to remember that without high levels of customer retention, it is difficult to be successful in cross-border e-commerce. How do you achieve this?

Customer acquisition in cross-border commerce

Acquiring customers abroad can sometimes be more difficult than in your home market due to differences in consumer habits and needs. Here are the key steps to attracting shoppers:

• Analysis of the local market – The ideal solution is to conduct your own market research. If your budget does not allow for this, use existing sources such as reports on foreign markets published on www.trade.gov.pl. Research carried out by local institutions can also provide valuable information.
• Optimisation of the shop’s website – In many markets, customers are much more likely to trust websites that have a local domain name. Other ‘must haves’ include content in the local language, as well as local currency and payment methods.
• SEO – It is virtually impossible to promote a shop in a given market without SEO activity. Alternative solutions could include working with influencers, using recommendations or affiliate marketing strategies.
• Competitive advantage – Cross-border e-commerce is almost only viable if the shop stands out from its competitors, either in terms of affordability or the superiority of certain products over local goods. This makes consumers more willing to accept inconveniences, such as longer delivery times.

Retaining customers in a new market

Another challenge for the retailer is to retain the customers that have already been acquired – they are the group that guarantees a steady profit. Retention rate is the difference between the number of customers at the end of a given period and the number of customers acquired, divided by the number of customers at the beginning of the period, for example a year. It is expressed as a percentage and the average retention rate in retail is 63%. What you can do to improve your retention rate:

• Customer service in the local language – this enhances the experience and also improves customer loyalty.
• Loyalty programmes and promotions – these are universal mechanisms that can be used effectively in any market.
• Gathering and using customer feedback – this helps to build a positive experience and can be useful in marketing and sales strategies.
• Efficient logistics – long delivery times can deter customers from making repeat purchases. Therefore, it makes sense to ensure safe and timely delivery with the services offered by the Apaczka platform – an experienced partner in shipping processes.
• Ongoing communication with customers – through all possible channels, using personalised offers but also content marketing.

Cross-border commerce is a great solution for retailers looking to expand into new markets, but it can only be successful if the retailer invests in attracting consumers and building loyalty.