Why Indian brands are not listed on European portals?
Why Indian brands are not listed on European portals?
Most of the EU portals demand local existence. VAT is mandatory (which is not a hassle-free process and is difficult to get).
The local legislation demands all necessary information about the vendor. The other key reason is adherence to consumer laws which are very stringent in Europe. Now with new rules and policies for refund, VAT and tax returns, it is very tedious and expensive to enter into Europe.
High-cost warehousing in Europe is one other reason that Asian & Indian organizations are not opting to sell in Europe. Though Amazon provides warehousing facilities, it costs a bomb. In case of low sales and high returns, vendors start losing patience, as it can turn out to be above and beyond the means of most businessmen striving to keep the business afloat.
Vendors from India partnering with leading platforms like Amazon Europe face significant challenges, particularly regarding high warehousing costs. Another major issue is the unfavorable return policy, where returned goods are either kept by the platform or destroyed, leading to substantial losses for vendors. Moreover, vendors often have no recourse to appeal or obtain information on why a parcel was confiscated. with high warehousing cost, in conjunction with that, the other very unfavorable policy is that in case of returning the goods the same are either retained by or destroyed resulting in huge losses for vendors. The vendor does not even have the liberty to appeal or access information as to why the parcel was confiscated.
Delivery time and freight costs also deter potential buyers, as shipping from India is not only expensive (with single packages costing a lot) but also time-consuming.
Other key obstacles in the European market include customer behavior and the need for local language support. Additionally, the different promotional and advertising tools available on European platforms pose further challenges for Indian suppliers looking to enter the market.
Marketplaces like Zalando or Otto are invitation-based or highly curated — they won’t list just any brand.
Amazon Europe is more open, but algorithmically favors brands with local fulfillment (FBA), reviews, and fast delivery, putting Indian sellers at a disadvantage.
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