France is one of the largest markets in Europe and offers huge opportunities for Dutch entrepreneurs looking to expand their business. The e-commerce sector in particular is growing rapidly and, with the right approach, a webshop in France can be very successful. Starting a webshop in a new country comes with some challenges and legal obligations. In this blog, we look at the main points of focus for Dutch entrepreneurs who want to set up a webshop in France.
1. Understand the market and target group
Before launching a webshop in France, it is essential to research the market. French consumers have unique buying habits and preferences. For instance, they value brands that are socially responsible and support the local economy. Preferences for payment methods also differ; where iDEAL is popular in the Netherlands, French people prefer payment cards (Visa, Mastercard, American Express etc.), and PayPal.
In addition, French people are very fond of good customer service and clear communication, which means that your website and customer service should be available in fluent French. It is smart to invest in local market specialists or translators to strike the right tone.
2. Legal structure of your webshop
If you are starting a webshop in France, you need to choose the right legal structure for your business. There are several options, such as setting up a Société à Responsabilité Limitée (SARL), which is similar to a Dutch BV, or a Société par Actions Simplifiée (SAS), which is more flexible in terms of shareholder structure.
It is also important to note that, depending on the turnover, you will have to comply with local tax laws such as VAT registration in France. French VAT, or Taxe sur la Valeur Ajoutée (TVA), is currently 20%. Once you go above a certain threshold (above that of micro-entreprise), you are obliged to charge and remit VAT in France.
3. Local laws and regulations for webshops
Besides tax obligations, there are specific regulations that apply to webshops in France. These include consumer law and mandatory information in the general terms and conditions of sale. French consumers enjoy strong protection, such as the right to cancel purchases within 14 days, without giving reasons. If you sell in France, you must comply with these rules and adjust your return policy accordingly.
Furthermore, France is particularly strict when it comes to data security. The Commission Nationale de l’Informatique et des Libertés (CNIL) is responsible for enforcing privacy laws. This means you need to ensure compliance with GDPR legislation and clearly inform customers about the use of their personal data.
4. Logistics & delivery
Logistics play a crucial role in the success of your French webshop. French consumers are used to fast delivery, so it is important to make good arrangements with logistics partners who can handle deliveries within France quickly and reliably. You might consider setting up a local warehouse or working with a fulfilment partner that stores your stock and processes orders.
In addition, French customers often expect returns to be free of charge. Consider the cost of return logistics and make sure you have a smooth and efficient returns process in place.
5. Payment systems and security
As mentioned earlier, the popular payment methods in France differ from those in the Netherlands. Make sure your shop is compatible with French payment cards and popular e-wallets. In addition, trust in online payments is very important to French consumers, so you should ensure secure payment options such as SSL certificates and fraud prevention.
6. Marketing and cultural differences
Successfully marketing your online shop in France requires more than just a translation of your Dutch campaigns. The French are very fond of locally relevant marketing. Collaborating with French influencers, using local social media platforms and investing in French-language SEO can help you bring your shop to the attention of the French public.
Also consider cultural differences in the way you communicate. Whereas the Dutch tend to be straightforward, the French appreciate a more formal and polite approach in communication and marketing.
Tips for doing business in France:
- Make sure you have strong local market knowledge – Understand the preferences and buying habits of French consumers and adapt your webshop accordingly.
- Choose the right legal structure – Consider whether a SARL or SAS is the best fit for your business model.
- Comply with local consumer and privacy laws – Make sure you comply with French consumer rights and GDPR legislation.
- Adapt your logistics to the French market – Work with reliable local logistics partners for fast delivery and an efficient returns process.
- Optimise your payment methods for France – Offer payment options popular among French consumers.
- Launch targeted marketing campaigns – Take into account the culture and communication preferences of French people in your marketing strategy.
A successful webshop in France starts with good preparation and a clear understanding of the French market and legislation. With the right approach, you can make the most of the huge opportunities in this market.