E-commerce in Germany: what should you think about?

E-commerce in Germany can offer great opportunities for your webshop. Not only once you’ve outgrown the Dutch market, but also to reach new possibilities and markets. There are a number of points to take into account when you want to take this step. Did you know Germany is about nine and a half times bigger and has around five times as many inhabitants as the Netherlands? In addition, our eastern neighbours are among the biggest online shoppers in Europe. That makes Germany a large sales market, and literally right next door. But what specifically do you need to take into account when you want to get started in Germany? In this blog post, we highlight a few essential points.

Registering a German domain name

When you want to launch a German version of your webshop, you’ll most likely want a .de domain name. Keep in mind that this isn’t as simple as registering a .nl domain extension. For a .de registration, a person or business needs to be based in Germany. Isn’t this the case for you? Then an authorised signatory needs to be appointed who is based in Germany. At Webba, we can register .de domains for all our customers via Openprovider’s trustee service. More information about registering .de domains can be found at openprovider.eu.

A business-like design for your webshop

German websites generally have a more formal and business-like appearance than Dutch websites. This has everything to do with German business culture, which is focused on professionalism, reliability and punctuality.

Where in the Netherlands you might try to create a unique website in a somewhat playful way, this is less appreciated in Germany. Here, people prefer a tightly structured and orderly presentation of information. The language on German websites is also often formal and business-like in tone. Although there’s of course always room for creativity and individuality, a more conservative approach is appreciated in Germany.

Payment options in Germany

Unlike in the Netherlands, where iDEAL is a widely used and popular payment method, the situation in Germany is a bit different. German consumers often use other payment options, which can be set up perfectly well via Mollie, such as:

– Paypal
– Pay later
– Credit card

If you’re seriously considering entering the German market and offering your products or services to German consumers, it can definitely pay off to open a German bank account. By offering a local German account number, you create a sense of trust and reliability with your German customers. They’ll feel more comfortable transferring payments directly to a German bank account number, rather than to a foreign account number.

Union scheme: reporting and paying VAT

When products are delivered outside the Netherlands, you owe VAT to the relevant country. You can arrange this by registering with the Dutch tax authorities. If you have a foreign branch, different rules apply and you need to register with the tax authorities of the relevant country.

Owner and address on the website

In Germany, it’s important to place information about the owner on your website. German visitors want to know who they’re doing business with and where this person is based. So, alongside the necessary information about you as the owner, also state the address of your business. When Germans do business with a Dutch party, a Dutch address should appear on the website. This inspires trust.

Legal assistance and terms and conditions

When your website is going to deliver abroad, it’s a good idea to have legal assistance cover that provides coverage in the relevant country. It’s also mandatory to have terms and conditions on the website. We also recommend having your SEO fully in order. In Germany, people still google a lot when they’re looking for a particular product. That’s why being easily findable is of great importance.

Translating

Make sure you have a proper translation on your website. Avoid programs like Google Translate and ChatGPT. The translations need to be accurate and technically correct, otherwise a genuine German will already have dropped off at the first bit of text. So opt for a good translation, including of the product names.

Take the time for good preparation

As you can see, there are various points to take into account when it comes to e-commerce in Germany. From the language to payment options and even other legal requirements. Try to map out the differences properly and prepare thoroughly before taking the step. Do you still have questions? Feel free to get in touch with us. We’re ready to help you.