Today’s e-commerce doesn’t stop at the border. Whether you’re a European brand reaching customers in the U.S. through Shopify or an American seller expanding into the EU via Amazon or Etsy, international sales present huge opportunities. At the same time, they bring legal challenges that shouldn’t be overlooked.
At Urban Thier & Federer, P.A., we regularly advise international clients who are expanding their online business across borders. With offices in the U.S. and Europe and a multilingual team of legal professionals, we help companies manage cross-border compliance, tax issues, consumer protection laws, and more.
Here is a breakdown of the key legal areas every international seller should keep in mind:
Why Cross-Border E-Commerce Is Booming
Global online retail sales are expected to reach over $6.3 trillion by 2025, with a significant share involving international transactions. Platforms like Shopify, Amazon, eBay, and Zalando make it easier than ever for small and mid-sized businesses (SMEs) to tap into global markets.
However, selling internationally means complying with not only your home country’s laws, but also those of your customer’s country. Ignoring this can lead to fines, seized goods, or even the suspension of your seller account.
Tariffs, VAT, and Import Duties
Shipping products internationally means navigating customs rules, taxes, and sometimes trade restrictions.
If you’re shipping from Europe to the U.S.:
U.S. customs allows duty-free imports for shipments under $800. However, sellers still need to provide accurate declarations, including harmonized tariff codes, product values, and country of origin.
If you’re shipping from the U.S. to Europe:
Since July 2021, all goods shipped to EU consumers are subject to VAT, even those under €22. Sellers must register for the Import One-Stop Shop (IOSS) if they wish to collect VAT at the point of sale and avoid delays or double taxation.
Consumer Protection: More than Just Return Policies
The EU and U.S. have very different consumer protection laws, and both apply when selling across borders.
EU rules are strict and include:
- A 14-day right of withdrawal
- Clear pricing and delivery information
- Mandatory warranties and return options
U.S. laws vary by state but often include rules on advertising, refunds, and product liability. The Federal Trade Commission (FTC) also enforces broad consumer protections that may apply to international sellers.
Failing to comply with these standards, even unintentionally, can lead to penalties or enforcement actions by national consumer protection agencies.
Tax Obligations & Sales Nexus
Taxation is one of the most complex aspects of international e-commerce.
U.S. Sellers in the EU
Sellers may be required to register for VAT in each EU country they sell to—unless they use the IOSS, which simplifies reporting for B2C shipments under €150.
EU Sellers in the U.S.
Even if you don’t have a physical presence in the U.S., you could be required to collect state sales tax if you exceed a certain number of sales or revenue in a given state (called an economic nexus). Many European sellers unknowingly trigger sales tax obligations in states like California, Texas, or New York.
A qualified legal team can help you assess your exposure and register where necessary.
Data Privacy Compliance
If you’re collecting customer data, such as names, emails, or shipping addresses, you need to understand privacy regulations.
For EU customers:
The General Data Protection Regulation (GDPR) applies, even if you’re based outside the EU. You may need to:
- Appoint a local representative
- Clearly explain how you use data
- Provide options for users to access or delete their information
In the U.S.:
Laws like California’s CCPA and newer rules in Virginia and Colorado are reshaping how companies handle personal data. These laws can also apply to non-U.S. businesses.
Website Terms & Conditions
International e-commerce sellers must ensure their Terms & Conditions are legally enforceable across jurisdictions. A robust T&C agreement should address:
- Jurisdiction and governing law
- Return and refund policy
- Delivery timelines
- Limitation of liability
- Dispute resolution (including arbitration clauses)
These documents aren’t just legal boilerplate—they can protect your business in case of disputes or chargebacks.
Shipping & Logistics Risks
Delayed, damaged, or lost packages are common in cross-border sales. If your shipping partner is at fault, are you still liable to the customer? Usually, yes.
A few tips:
- Partner with experienced cross-border carriers (like DHL or UPS)
- Consider shipping insurance
- Communicate clearly with customers about delivery times and customs delays
Intellectual Property Concerns
When you go global, more people see your products and brand, which increases the risk of misuse.
To protect your intellectual property:
- Register trademarks in key markets, such as the U.S. and EU
- Monitor online platforms for counterfeit listings
- Use enforcement tools like Amazon Brand Registry
If you discover misuse of your brand, an attorney can help you take action through takedown notices or litigation.
Helping a German Retailer Expand to the U.S.
Urban Thier & Federer can help Germany-based companies entering the U.S. market via Shopify and Etsy by:
- Structure a U.S. entity for easier tax compliance
- Draft Terms & Conditions compliant with U.S. consumer law
- Register a U.S. trademark
- Navigate U.S. sales tax thresholds in key states
Plan Ahead, Protect Your Business
International e-commerce offers huge potential. However, the legal landscape is complex. From taxes and data privacy to consumer rights and shipping risks, there are many areas where mistakes can be costly.
At Urban Thier & Federer, P.A., we help businesses establish strong legal foundations for international growth. Whether you’re selling into the U.S., the EU, or other regions, our multilingual legal team is here to support you.