Online store expansion to the Netherlands
Third richest market in Europe
The Netherlands is a small country in terms of area and population. However, from the point of view of European e‑commerce, it is one of the most important. Almost the entire population of 17 million people has access to the internet, with Dutch online business ranking third after the United Kingdom and Germany. The Netherlands represents an attractive opportunity to expand for any online store.
WHY EXPAND INTO THE NETHERLANDS?
The purchasing power of Dutch online customers is high, with almost 90% of the population using online shopping. The Netherlands’ gross domestic product is one of the highest in the world. In addition, the distribution of income among the population is relatively even, so the majority of the Dutch population has a lot of disposable income.
The average amount spent on online purchases per consumer is also growing significantly year‑on‑year. While in 2016 this was EUR 1,200, in 2020, this amount already exceeded EUR 2,400.
Other benefits include English. You can speak English with the majority of the population. English is also commonly used for writing contracts with suppliers and partners. It is therefore not necessary to translate everything into Dutch.
Last but not least, geographical distance is an advantage. It is a short distance from the countries of Central and Western Europe to the Netherlands, with the cost of transporting goods reflecting this. Short distances are also an advantage within the Netherlands. Large cities such as Amsterdam, Utrecht, The Hague and Rotterdam are an hour’s drive away and are home to almost half the country’s population.
WHAT SHOULD YOU TAKE INTO CONSIDERATION WHEN EXPANDING INTO THE NETHERLANDS?
The main barrier to entry into the Dutch e‑commerce market for foreign online shops is, above all else, the high level of competition, the consolidated online market and the well‑established sellers who have a lot of trustworthy references and loyal customers. Amazon launched in the Netherlands late, so its position is not so strong. The largest seller is the online store BOL.com, a subsidiary of Ahold Delhaize, with sales of almost EUR 3 billion. The BOL.com platform also acts as a marketplace for other online stores. Another opportunity for online shops that decide to expand into the Netherlands.
Even in the Netherlands, it is necessary to translate and localize your online shop into Dutch. A keyword analysis in Dutch will form an essential part of this process. It is important to make sure your website is SEO optimized from the very beginning so that it appears in organic search results. Customer support should also be provided by a native speaker on a Dutch telephone number.
Should you require more in‑depth information on what to look out for when expanding your online store into the Netherlands, we can conduct foreign market research as part of our service.
SERVICES FOR YOUR EXPANSION TO THE NETHERLANDS
The Netherlands represents a developed market with very high purchasing power and the potential for further growth in the future. The Dutch shop online almost constantly. If you have excellent customer service, positive references, and can process orders and deliver goods quickly, you have a great chance of succeeding in the Netherlands.
At NK Expand, we can help you with everything you need for your expansion into the Netherlands. For example, we recently helped PetExpert, which specializes in pet insurance, to successfully expand into the Dutch market. Contact us and let our specialists help you expand your online shop into the Netherlands too.