E-COMMERCE  /  SME

By Kawal Preet | First published: October 25, 2021    Updated: August 20, 2026

Cross-border e-commerce is giving APAC businesses more ways to reach customers across Europe. Successful expansion depends on smart planning, flexible logistics, and a clear understanding of new markets.

• 85% of APAC SMEs plan to enter or expand further into Europe within the next two years, with 68% citing strong consumer demand as a key reason for entering new markets.
• Free trade agreements can support preferential trade with Europe and help SMEs simplify sourcing and production across Asia.
• To ensure success, businesses need to align delivery speed with customer expectations, prepare for peak shopping events, and keep pace with evolving import requirements across Europe.

For Asia’s online sellers, Europe has become a popular growth destination rather than a distant goal. FedEx’s 2025 Asia-Europe Trade Report found that 85% of SMEs in Asia Pacific (APAC) plan to enter or expand further into Europe within the next two years.

Consumer demand is a major driver of this cross-border expansion, with 68% of APAC SMEs citing it as a key reason for entering new markets. In fact, about 76% of APAC SMEs reported higher export volumes to Europe over the past year. Trade agreements, stronger connectivity, and international e-commerce are helping APAC’s small businesses reach farther.

But cross-border e-commerce between Asia and Europe is also becoming more operationally demanding, with changing regulations, overlapping peak seasons, and additional costs squeezing margins. Capturing growth opportunities today requires a more strategic playbook, starting with these five considerations.

1. Use trade agreements as a supply chain tool

Several Asian economies are already important trade partners of the European Union (EU), the largest trade bloc in the world nestled within the continent of Europe. The EU has free trade agreements (FTAs) with Singapore, Vietnam, South Korea, and Japan, and has just finalized negotiations for a bilateral Comprehensive Economic Partnership Agreement (CEPA) with Indonesia.

To take advantage of these trade agreements as an Asian business, start by identifying where your product is made, confirming its HS code, and checking the relevant rules of origin. Preferential tariffs only apply when the required conditions are met.

The Regional Comprehensive Economic Partnership (RCEP) trade agreement also adds another layer to strengthen market linkages. While the RCEP does not provide preferential access to the European market, its common rules of origin and trade facilitation measures can simplify sourcing and production across its 15 member countries.

For a brand manufacturing in one Asian market and sourcing components from another, the RCEP helps create a more efficient regional base before goods are exported to Europe.

2. Treat peak season as a portfolio, not a single event

Peak season used to mean preparing for one massive year-end rush. Today, cross-border e-commerce creates several waves of demand throughout the year across different markets.

For most SMEs – 91% in APAC and 86% in Europe – major e-commerce events such as Double 11 and Black Friday are key to hitting their holiday sales goals. On average, APAC SMEs trading internationally expect 36.2% of their holiday sales to come from online customers in Europe.

To make the most of these opportunities, think beyond a single promotional plan. Research which campaign dates matter most in different markets, and analyze your historical sales and shipment data to forecast inventory needs more accurately. Work with your logistics provider to understand shipping cutoffs and explore backup plans to keep goods moving.

Beyond selling more goods during peak season, the goal is to protect your customer experience when volumes rise.

3. Design shipping around margins and customer expectations

Shipping costs remain a key hurdle to SME growth. In fact, 57% of APAC SMEs cite logistics costs as the top challenge preventing them from exporting to Europe.

The answer isn’t always the lowest-cost shipping service, but rather, the ability to match shipping speed to fulfillment needs. For example, a premium product or time-sensitive gift may require premium express delivery, while a lower-value purchase with a flexible delivery window may suit a standard, day-definite service. Reserve faster shipping for urgent or higher-value orders, and opt for more affordable services when customers can wait.

Connectivity helps unlock this level of flexibility. For example, FedEx has enhanced its Asia-Europe trade connectivity with five weekly flights from Guangzhou and Shanghai to Paris. We now operate 26 weekly flights connecting APAC shipments to Europe, with express shipments reaching major European destinations in as little as 48 hours. Our additional outbound flight from Northern Vietnam has also shortened transit times to major Asian and European markets by one day.

These service enhancements give APAC SMEs more options for aligning delivery speed with customer expectations during both normal and peak periods.

4. Integrate compliance into your operations

Customs regulations in Europe continue to evolve. One major change took effect in July 2026, when the EU introduced a customs duty of EUR 3 on low-value parcels imported from outside the EU. This impacts a wide range of e-commerce products worth up to EUR 150, from apparel and toys to consumer electronics.

The seller or importer is responsible for declaring and paying this duty as part of the customs process. This can quickly alter landed cost calculations and impact your bottom line, making it crucial to build duties, taxes, and clearance requirements into your pricing and shipping decisions rather than treating them as an afterthought.

As you continue to trade in Europe, product regulations will matter too. For example, the EU’s General Product Safety Regulation (GPSR) applies to a broad range of consumer products sold online. Since requirements vary by product, sellers need to ensure compliance across different categories, with emphasis on product safety, traceability, and labeling.

Before shipping your goods to Europe, ensure you have all the essential information in place: HS codes, certificates of origin, declared value, VAT treatment, and more. Clear descriptions and consistent documentation can support smoother customs clearance.

5. Build flexibility into your Europe expansion strategy

While Europe offers immense growth potential, its scale also brings greater complexity. You’re operating in a trade environment where regulations, customer demand, and supply chain conditions can shift quickly. In fact, 86% of APAC SMEs say recent regulatory shifts and global market volatility have affected their ability to do business in Europe.

Building flexibility into your strategy can help you overcome these hurdles. Start small by testing one to two markets first before expanding across the continent. To effectively localize your operations, hire local experts who are familiar with the regional laws and languages. Keep your promotional plans adaptable, and review your delivery performance and landed costs regularly.

While the EU operates as a single market within the continent, remember that each European country still has its own unique tax rules, customs processes, and consumer habits. Taking a market-specific approach to planning can give your business the agility to respond quickly when conditions change.

One trade lane, many opportunities

More than a simple trade lane between two regions, Asia-Europe trade is a network of markets, regulations, shopping moments, and supply chains – with cross-border e-commerce bringing them closer together.

For APAC businesses, the strongest opportunity lies in combining these pieces. Use trade agreements where they apply, and plan your peak periods by market. Instead of competing on cost, align your delivery speed with margins and customer expectations. Keep your compliance current, and build enough flexibility to adjust when conditions change.

Do these well, and cross-border e-commerce becomes a practical way to build a broader and more resilient customer base across European markets.