SPOTLIGHT ON… Paweł Zakielarz: CEO of Global24 and Shopreturns

The UK Market for EU Sellers: When Returns Become the Real Cross-Border Challenge 

CBM: From your perspective, how difficult is it today for EU sellers to start selling to the UK? 

Paweł Zakielarz:  Interestingly, the entry barrier itself is no longer the biggest challenge. Recently, during a panel at the eBay Warsaw Summit, one of the sellers dealing in car parts summarized it very well: 

“Shipping to the UK is actually quite straightforward today. You just need the right logistics partner and a properly structured process. The real challenge is returns — but there are solutions for that as well.” 

I agree with that statement. Today, marketplaces have made entering the UK market significantly easier. When selling through platforms like eBay or Amazon and staying below the £135 threshold, the marketplace usually collects and remits UK VAT on behalf of the seller. That removes a large part of the administrative complexity and allows sellers to start cross-border sales relatively quickly. 

CBM: And what changes when a seller operates their own online store or sells above the £135 threshold?

Paweł Zakielarz: This is where the complexity increases. When selling through your own website below £135, the seller must register for UK VAT and charge UK VAT directly at checkout. 

Once the shipment value exceeds £135, the rules change again. Full customs procedures apply and import VAT — and sometimes duties — must be settled when the goods enter the UK. 

At that point, the delivery model becomes critical. In the DDP model (Delivered Duty Paid), the seller pays VAT and duties before delivery, ensuring the customer receives the product without additional charges. 

In the DDU model (Delivered Duty Unpaid), those charges may appear at the customer's door. While this may seem administratively simpler for the seller, it often results in delivery refusals, customer complaints, and higher return rates. 

CBM: Many sellers are still confused about VAT and duties when selling to the UK. Where does the “double charge” issue actually come from?

Paweł Zakielarz: It usually comes down to a mismatch between VAT setup and the delivery model. The customer pays VAT at checkout, but the shipment is handled in a way that triggers import VAT at the border. Then the courier asks for another payment on delivery.

From the customer’s perspective, it’s a double charge. The result is refused deliveries, complaints and lost trust. This isn’t a legal issue, but an operational one. A correct VAT setup, a consistent delivery model typically DDP and the right logistics partner eliminate the problem.

“Shipping to the UK is actually quite straightforward today. You just need the right logistics partner and a properly structured process. The real challenge is returns — but there are solutions for that as well.” 

Paweł Zakielarz CEO of Global24 and Shopreturns

CBM: Looking at your data, which categories are most sensitive to these challenges? 

Paweł Zakielarz: Based on data from 2025, collected from our partner stores using our cross-border shipping and returns services, we see an interesting structure. Home & Interior accounts for around 24% of shipments, while Fashion represents roughly 11%. However, fashion is by far the most operationally sensitive category. 

While the UK market often sees return rates of around 30–40% in apparel — sometimes even higher on large fashion marketplaces — our DDP model keeps fashion returns below 37%. 

Why? Because we are able to recreate a “local” customer experience, especially in how returns are handled. 

Editor: You mentioned creating a “local” customer experience. How important is a local return address in cross-border sales today?

Paweł Zakielarz: Increasingly important. In practice, many marketplaces are pushing sellers toward a strongly pro-consumer return model. Platforms optimize the buyer experience, which means returns should be as simple and local as possible. 

You can see this clearly in marketplace rules. Under Amazon FBM, sellers must respond to return requests within 3 business days. If they fail to do so, Amazon may automatically refund the customer — sometimes even allowing the buyer to keep the product in the case of low-value items. 

On Zalando, the operational requirements are even stricter. Sellers must maintain 95% on-time delivery, 95% timely return processing, and 98% valid tracking rates. If returns are slow or poorly managed, it directly affects seller performance and visibility on the platform. 

Meeting these expectations is very difficult without a local return address. If products first need to travel back across borders before inspection, the process becomes slower and more expensive. 

That is why local return infrastructure has effectively become a standard in mature e-commerce markets. 

A practical tip we often recommend is performing a local quality check within 24–48 hours. One of our clients selling on Zalando chose this model specifically to regain control over the return process. Without local inspection, the platform could effectively decide what happens with the returned item. 

By verifying the product locally, the seller can decide whether to restock, downgrade, recycle or dispose of it — which significantly improves cost control. 

"A practical tip we often recommend is performing a local quality check within 24–48 hours."

Paweł Zakielarz CEO of Global24 and Shopreturns

Editor: What about low-value items? Sometimes shipping a return back seems irrational. 

Paweł Zakielarz: This is an economic decision, not a procedural one. If the cost of the UK return label, international transport, and customs handling approaches the product's value, a physical return is irrational. 

Sometimes, a returnless refund or local disposal/recycling in the UK is the cheapest solution. It avoids the costs of re-import and re-entry into the EU. 

It’s about “controlled loss management.” You have to calculate the math for every product category; there is no one-size-fits-all policy. 

Editor: Looking ahead, what major changes do you expect in the area of returns in European e-commerce? 

Paweł Zakielarz: Most likely, the next big shift will be regulatory, because we are already expecting a new EU rule to come into force on June 19, 2026.

Online sellers will be required to provide a simple electronic withdrawal function on their website — essentially a clearly visible online option allowing consumers to cancel an order or withdraw from a contract in a single step. 

In practice, this removes the last friction in the cancellation process. Returns will become easier to initiate, which means volumes will likely increase. 

For sellers, that means faster return triggers and stronger pressure on cash flow. Once the withdrawal is submitted, refund timelines start running. Without automated return handling and clear profitability thresholds, this regulation could significantly increase operational pressure in cross-border e-commerce. 

"It’s about “controlled loss management.” You have to calculate the math for every product category; there is no one-size-fits-all policy." 

Paweł Zakielarz CEO of Global24 and Shopreturns

Editor: To wrap up, what separates the winners in the EU–UK corridor? 

Paweł Zakielarz: The UK market does not forgive mistakes. The sellers who succeed are those who choose the right delivery model, implement local return infrastructure and treat returns as part of unit economics — not just customer service. 

Our role at Global24 and Shopreturns is to absorb the complexity of cross-border logistics so merchants can focus on sales while maintaining control over their margins.  As we often say internally: Returns suck. We fix it.

"As we often say internally: Returns suck. We fix it"

Paweł Zakielarz CEO of Global24 and Shopreturns