Choosing the right EU warehouse location is one of the most consequential logistics decisions a UK eCommerce brand can make. Get it right, and you reduce costs, improve delivery times, and give your EU customers an experience that competes on equal terms with local sellers. Get it wrong, and you trade one set of post-Brexit headaches for another.
Three countries dominate the conversation for UK brands looking to store EU inventory: the Netherlands, Germany, and Poland. Each has a credible case. Each has meaningful trade-offs. This guide covers what actually separates them, so you can make the decision based on your customer base, your margins, and your growth plans, not just conventional wisdom.
Green Fulfilment operates its EU fulfilment centre in Venlo, Netherlands, and that first-hand operational experience informs several of the comparisons below.
Why the EU Warehouse Decision Matters More Now
Before January 2021, most UK brands had no pressing reason to hold EU inventory. Goods moved freely between the UK and EU member states, customs-free, with no additional documentation per shipment.
Brexit changed that. Goods shipped from the UK into the EU are now treated as international imports: customs declarations, potential duties, longer transit times, and the risk of unexpected charges landing with the customer at the doorstep.
The commercial impact has been significant:
- UK retail exports to the EU have fallen by £5.9bn since Brexit, with clothing and footwear exports dropping by more than 60% between 2019 and 2023 (Source: Retail Economics / Tradebyte, 2024)
- EU consumers shopping online expect delivery within two to three days as standard; UK-origin cross-border shipping rarely achieves this
- Individual UK-to-EU shipments generate higher carbon emissions than consolidated bulk transport to an EU hub, followed by shorter last-mile delivery
A further regulatory shift adds urgency. From 1 July 2026, the EU is removing its €150 customs duty exemption on low-value imports. Under the interim arrangement, a flat €3 duty will apply per item category for small parcels entering the EU. The full permanent system, operating through the EU Customs Data Hub, is expected to be in place by 2028. Brands that continue fulfilling EU orders from a UK warehouse will face additional duty costs and compliance complexity from mid-2026 onwards. Holding stock inside the EU removes that exposure entirely.
For brands serious about EU growth, the question is no longer whether to store inventory in the EU. It is where.
The Netherlands: The Established Choice for Western European Reach
The Netherlands has been the default EU entry point for UK brands for good reason. Its logistics infrastructure is genuinely strong, and the case for it goes beyond familiarity.
What makes it work:
- Rotterdam is Europe’s largest seaport, handling 13.4 million TEU in 2023, with strong rail and road connections across the continent
- Amsterdam Schiphol is one of Europe’s busiest air freight hubs, important for time-sensitive and high-value goods
- Venlo, specifically, sits at the junction of the Netherlands, Germany, and Belgium, with direct motorway access to major European markets and within 24-hour delivery reach of approximately 170 million European consumers
- Dutch logistics hubs offer next-day delivery to Germany, Belgium, and Luxembourg, with most of France and Scandinavia reachable within two to three days
- English is widely spoken in Dutch business and logistics environments, reducing friction for UK brands onboarding with a new 3PL
- The Netherlands is a common base for EU VAT registration under the OSS (One Stop Shop) scheme, which allows brands to manage EU-wide sales tax from a single registration point
For UK DTC brands whose EU customers are concentrated in Western Europe, this geography is close to ideal. Green Fulfilment’s Venlo facility, for example, uses DPD to deliver across the Benelux region six days a week, with no additional surcharge.
The Netherlands also scores well on sustainability infrastructure. More than 15 Dutch cities have active zero-emission delivery zones, and the carrier ecosystem for green last-mile options is well developed. For B Corp-certified brands or those with verified carbon reduction targets, this matters as part of the location decision.
Trade-offs to consider:
- Warehouse rental and labour costs sit at the higher end in Western Europe; prime logistics locations have seen costs rise steadily in recent years
- For brands whose EU customer base is heavily concentrated in Central and Eastern Europe, the Netherlands adds transit time compared to a Polish base
Germany: The Central Option for German-Market Brands
Germany is Europe’s largest eCommerce market. For brands where the German consumer is the primary EU target, locating fulfilment there makes obvious geographic sense.
What makes it work:
- DHL, DPD, and GLS all have strong domestic carrier networks based in Germany, with competitive last-mile rates for German delivery
- Central European positioning gives reasonable access to France, Austria, Switzerland, and the Czech Republic
- Major logistics corridors around Frankfurt, Cologne, and the Rhine-Ruhr region offer good infrastructure and transport connectivity
Trade-offs to consider:
- German VAT and regulatory compliance is notably demanding. German consumer protection law covers returns policy, product labelling, distance selling rules, and packaging regulations (Verpackungsgesetz) in considerable detail, and requirements are stricter than most other EU markets. Specialist compliance support is not optional here; it needs to be built into the 3PL relationship from the start.
- Warehouse and labour costs in key German logistics hubs are broadly comparable with the Netherlands, so the cost advantage over a Benelux base is limited
- Access to Scandinavian, Iberian, and Eastern European markets requires longer transit times than from a more centrally positioned Benelux hub
Germany makes most sense as a primary EU warehouse location when the clear majority of EU orders are going to German customers. For brands with a broader Western European spread, a Benelux hub typically delivers better overall coverage at comparable cost.
Poland: The Emerging Alternative for Cost-Focused or Eastern EU Growth
Poland has attracted real attention from UK brands post-Brexit, partly because several established 3PLs have moved operations there. The cost case is genuine. So are the limitations.
What makes it work:
- Warehouse and labour costs in Poland run approximately 20 to 40% lower than the Netherlands or Germany when rent, labour, and overheads are combined (Source: ILG, 2026)
- Western Poland sits close to the German border and brands can access German carrier networks for onward distribution into Western Europe
- Poland has one of Europe’s fastest-growing domestic eCommerce markets, with a population of over 37 million and strong digital retail uptake
- For brands targeting Central and Eastern European markets: Czech Republic, Slovakia, Hungary, Romania; Poland offers near-domestic reach and short transit times
Trade-offs to consider:
- Delivery to the markets most UK brands prioritise in the EU, including France, Belgium, the Netherlands, and Scandinavia, takes meaningfully longer from Poland than from a Venlo or Frankfurt-area base
- VAT registration in Poland takes approximately three months, a lead time that needs to factor into operational planning well in advance of any go-live date
- English-language infrastructure in logistics and business services, while improving, is less established than in the Netherlands or Germany
- For brands whose EU growth is concentrated in Western Europe, lower warehouse costs may not offset the delivery time disadvantage on the routes that matter most
Netherlands vs Germany vs Poland: A Direct Comparison
| Factor | Netherlands (e.g. Venlo) | Germany | Poland |
| Warehouse costs | Moderate to high | High | Lower |
| Labour costs | Moderate to high | High | Lower |
| Delivery to Western EU | Excellent | Very good | Good |
| Delivery to Eastern EU | Good | Good | Excellent |
| Proximity to UK | Excellent | Good | Further |
| VAT/compliance complexity | Moderate | High | Moderate (3-month registration lead time) |
| English-language infrastructure | Excellent | Good | Moderate |
| Sustainability infrastructure | Strong | Variable | Variable |
| Best suited for | Western EU-focused DTC brands | German-market-heavy brands | Eastern EU focus or cost-priority operations |
What Should Drive Your Decision
No single country is the right answer for every brand. The decision comes down to a clear-eyed assessment of five factors:
1. Where your EU customers actually are. Map your order data before choosing a location. A brand with 70% of EU orders going to Germany has genuinely different needs from one whose orders spread across France, Belgium, and Scandinavia.
2. Your target delivery windows. EU consumers expect two to three days as standard. If your customer base is primarily in Western Europe, a Polish base adds transit days on your most important routes.
3. Your margin structure. The 20 to 40% cost advantage in Poland is real. For high-volume operations with tighter margins, that difference compounds over time. For lower-volume, higher-value DTC brands, the delivery time trade-off may cost more in conversion and repeat purchase rates than it saves in warehouse fees.
4. Your EU growth markets. If Central and Eastern Europe is a near-term priority, Poland’s proximity to those markets is a stronger argument. If the focus is on France, Germany, Belgium, and the Netherlands, a Venlo-area hub covers all of those efficiently from a single location.
5. Your sustainability commitments. This factor rarely appears in location comparisons, but it should. Individual UK-to-EU shipments generate higher per-order emissions than consolidated EU fulfilment with shorter last-mile routes. The Netherlands scores well on green logistics infrastructure and carrier options. For B Corp-certified brands or those with documented carbon targets, the environmental credentials of both the location and the 3PL operating there are part of the decision.
For UK businesses with a Western European customer base and sustainability requirements, the Netherlands, and Venlo in particular, delivers on both counts. For brands prioritising cost above coverage, or building specifically towards Central and Eastern European markets, Poland is worth serious consideration. For brands where Germany is the single dominant market, German-based fulfilment may suit, provided the compliance complexity is planned for from day one.
EU Fulfilment from Venlo with Green Fulfilment
Green Fulfilment’s Venlo facility operates on the same B Corp-certified standards as its UK network, integrates with the Go Green platform, and covers Benelux delivery six days a week through DPD. As a single 3PL partner across both UK and EU fulfilment, there is no need to manage separate relationships, integrations, or reporting on either side of the Channel.
If you are evaluating EU warehouse location for the first time, or reassessing your current setup ahead of the de minimis changes coming in July 2026, get in touch to discuss your requirements.
Frequently Asked Questions
Do I need to register for VAT in the EU if I store stock there?
Yes. Holding stock inside the EU requires VAT registration in the country where your goods are stored. The EU’s OSS scheme simplifies reporting for cross-border sales above the relevant threshold, but you will still need a local VAT number for the country of fulfilment. A good 3PL partner should connect you with specialist VAT support as part of onboarding.
Does my EU warehouse location affect delivery speed to UK customers?
No. If you are fulfilling EU orders from an EU warehouse, those orders go to EU customers. Your UK customers continue to be dispatched from your UK facility. The EU location choice affects delivery speed to European customers only.
What is the EU de minimis change and why does it matter?
From 1 July 2026, the EU is removing its €150 customs duty exemption for low-value imports. Under the interim arrangement, a flat €3 duty will apply per item category for small parcels entering the EU. A full permanent system through the EU Customs Data Hub is expected by 2028. For UK brands fulfilling EU orders from a UK warehouse, this adds cost and compliance complexity to every low-value shipment. Holding stock inside the EU removes this exposure entirely, as orders fulfilled within the EU single market are not subject to import duties.
Why is Venlo considered a strong EU location?
Venlo sits at the junction of the Netherlands, Germany, and Belgium, with direct motorway access to major European markets. A fulfilment centre based there can reach Germany, Belgium, and Luxembourg next day, with most of France and Scandinavia within two to three days. For UK brands whose EU customers are primarily in Western Europe, the geographic coverage is difficult to match from further east.
Can I use a single EU warehouse to fulfil orders across all EU member states?
Yes. With OSS VAT registration, a single EU location can service the entire EU single market. Delivery times and costs vary by destination, but a well-placed hub such as Venlo covers most of Western Europe within one to three days, making it a practical starting point for brands entering EU fulfilment for the first time.
