Switzerland is a lucrative but also challenging market for international online retailers. The high purchasing power, a growing e-commerce sector and a dedicated clientele offer considerable opportunities. However, customs clearance processes, tax regulations and country-specific customer preferences pose challenges. Those who master these successfully and offer an excellent delivery and returns experience can not only effectively expand into Switzerland, but also build long-term customer loyalty.
Although Switzerland is not part of the EU, it remains an attractive growth market for international online retailers. The Swiss e-commerce market reached a record volume of 15.8 billion Swiss francs in 2024, which also benefits cross-border trade. EU –Online retailers planning market expansion should therefore keep an eye on the Alpine country. What makes the Swiss market particularly attractive? Despite the customs border, the Swiss market has proven to be particularly attractive for many online –retailers proved to be lucrative. This is mainly due to the significantly higher purchasing power compared to other European countries, which ranks second in Europe. The purchasing power of the Swiss is around three times higher than the European average.
A strong growth market
Online shopping is very popular in Switzerland. According to current figures from Carpathia around 83 percent of the country’s nine million inhabitants shop online. This high e-shopper rate is also reflected in the sales figures: according to the Swiss Retail Association, the e-commerce market volume in Switzerland reached 15.8 billion Swiss francs in 20245 .
Popularity of cross-border shopping
The Swiss are real cross-border champions. In 2024, foreign online sales amounted to 2.8 billion Swiss francs, which corresponds to over 17% of total online sales. Compared to the previous year, the cross-border share grew by 18%. Stores such as Bergfreunde, Babymarkt and FRAAS show that it is not absolutely necessary to have a warehouse in Switzerland to be successful. Fashion giant Zalando is even one of the top-selling online retailers in Switzerland. According to a recent survey by Swiss Post and the Zurich School of Economics and Law, Germany is the most popular destination for cross-border shopping. 68 percent of respondents stated that they had shopped online there in the past year.
Low VAT rates
Another significant advantage for foreign online retailers is Switzerland’s low VAT rate of just 8.1 percent, compared to 19 percent in Germany, 20 percent in Austria and 21 percent in Spain. This significant difference enables foreign retailers to achieve more attractive profit margins.
Lucrative, but complex
EU online retailers who want to expand into non-EU countries such as Switzerland face several challenges. Unlike internal EU trade, customs borders must be crossed. To ensure seamless deliveries, it is crucial to know the relevant regulations to avoid unexpected costs and delays. The most important aspects include customs and VAT processing as well as correct invoicing.
In addition to the administrative effort, it is essential to understand the habits and expectations of Swiss consumers. This includes product quality and post-purchase services, such as fast delivery times, shipping options, payment methods and local handling of returns.
If a foreign retailer is able to deliver parcels to Switzerland in the same way as local retailers, its chances of success increase. Customer-friendly delivery and return processes create trust, which can lead to higher sales.
Reading tip: We show you how customs clearance works best.
Excellence after the purchase for more success
The post-purchase experience refers to the customer journey and additional post-order services, including shipping, delivery, tracking, returns processing and refunds.
Online stores that deliver top performance beyond the purchase not only stand out more effectively from the competition, but also strengthen customer trust. Satisfied customers are more likely to make repeat purchases and generally spend more than new customers.
In collaboration with the University of Applied Sciences Northwestern Switzerland, MS Direct has developed practical recommendations and benchmarks for online stores operating in Switzerland. The study shows how online retailers can optimize the post-purchase experience and increase customer satisfaction in the long term.
Recommendations for the checkout
- Cost transparencyTransparent pricing is essential. Shipping costs, return costs, VAT and import duties should be displayed clearly and comprehensibly at the latest during the checkout process, but ideally on the product page.
- Delivery optionsIt is advisable to offer express deliveries and, if possible, Saturday deliveries for an additional charge. Standard deliveries from the EU to Switzerland usually take an average of five days.
- Multi-carrier capabilityBy choosing local parcel delivery services such as Swiss Post, Planzer or DPD, retailers can better meet the needs of their customers.
- Payment methodsThe most popular payment methods in Switzerland, including Twint, PostFinance as well as debit and credit cards, should be offered
Recommendations for delivery
- Delivery timeDeliveries should reach Swiss customers within five working days. It is important to keep the delivery promise.
- Customs formalitiesStrict compliance with customs and VAT regulations minimizes the risk of delivery delays and prevents unexpected costs for customers.
- Shipment trackingReliable shipment tracking, which shows the order status and the expected delivery date, creates transparency and builds trust.
Recommendations for returns
- Return deadlinesA generous return period of at least 30 days is recommended. Particularly customer-friendly Swiss stores even offer a 90-day return period.
- Local processingLocal processing : Providing a local return address saves customers a lot of time and effort in customs declaration and allows retailers to check goods faster, resulting in shorter response times to potential problems.
- RefundsCustomers should receive their refund within one week. By working with a local returns agent
Successful expansion into Switzerland with MS Direct
Online retailers who decide to expand into Switzerland can look forward to a customer base with strong purchasing power. Performance. While shipping to Switzerland involves longer delivery times and crossing a customs border, one factor remains critical to success: the customer experience. MS Direct supports online retailers with seamless shipping to Switzerland, taking care of everything from master data management and tax representation to customs clearance, transportation, integration into the local transport network and returns processing. This saves retailers costs and enables them to offer their customers a seamless shopping experience.
With an API connection to MS Direct, online stores can use the proprietary cross-border platform. On request, MS Direct prepares product data for export and translates customs tariff codes using an AI-based tariff translator. The process works as follows:
- Orders are automatically imported into the cross-border tool.
- A forwarding agent collects the shipments from the warehouse and consolidates several orders where possible in order to save costs.
- The parcels are registered for export customs clearance during loading.
- The consignments are transported across the border to a parcel hub, where MS Direct ensures proper import clearance and documentation.
- The parcels are handed over directly to a last-mile carrier at the hub, minimizing delays and enabling fast delivery to the customer.
A shopping experience like in Switzerland
If an online store uses a Swiss domain and the prices are quoted in Swiss francs includingincludingAs MS Direct displays the local VAT rates, many customers do not realize that their order comes from abroad. MS Direct ensures that this remains the case even after the purchase. The experts at MS Direct help with customs and VAT formalities, offer support with transportation planning on request and act as a central point of contact for everyone. Orders are delivered to customers’ homes across borders within a few days, just as if they had been placed with a Swiss retailer.
Optimal selection of transport companies
Deliveries can be imported into Switzerland on any working day and handed over directly to a last-mile carrier at a parcel center. MS Direct works with a large number of local parcel service providers so that last-mile delivery can be tailored to the customer’s needs – whether express, bulk or particularly sustainable. Orders from an EU warehouse reach Swiss customers within 24 to 48 hours.
Seamless local returns and fast refunds
With local MS Direct return centers in Muttenz and St. Gallen, a customer-friendly returns process is guaranteed. The returns reach the processing center within a few days by domestic mail. There, the items can be registered using a simple scanning process or processed within 24 hours using a comprehensive preparation process. This offers both retailers and customers a quick remedy. The returns are then consolidated, cleared through customs and returned to the warehouse, where they are ready to be shipped or resold through other channels.
Reading tip: We show you how good returns management works.
Conclusion
Switzerland is a particularly attractive market for online retailers from the EU. High purchasing power, market growth and low VAT rates promise lucrative profits. However, overcoming the customs border and the associated administrative tasks can quickly become a major challenge for unprepared retailers. sschallenge. This is where MS Direct comes into play. With its services, the company ensures smooth cross-border delivery and transportation. Returns processesthat not only save time and effort, but also costs.