By Eric Huang    Photo：CANVA

With Trump’s “Tariff 2.0” policy creating major disruptions in the U.S. market, many global trade operators have begun shifting their attention toward the European Union. To better meet the demands of the EU market, the strategic placement of overseas fulfillment centers across Europe has become a key factor in enhancing supply chain efficiency and customer satisfaction. As logistics players strive to shorten delivery times, reduce operational costs, and boost responsiveness, the geographical location of these warehouses is now more crucial than ever.

While the Netherlands has long been a favorite choice for establishing fulfillment centers (as discussed in this article https://www.tgl-group.net/en/news-detail845_28.htm ), Belgium and countries in Eastern Europe are increasingly viewed as two contrasting options: one is a mature Western European hub with advanced infrastructure, and the other offers low operational costs and high growth potential as an emerging region. This article explores the advantages and trade-offs between these two strategic choices.

Before diving into the comparison, it’s important to clarify the role of overseas fulfillment centers within global supply chains. These facilities—typically located near target markets—handle storage, order processing, packaging, shipping, and return management. Their main goal is to reduce delivery times, lower cross-border shipping costs, and improve overall customer experience. For companies entering Europe from Asia or North America, selecting the right warehouse location can directly influence market success and profit margins.

Belgium has long held a reputation as one of Europe’s logistics powerhouses. Centrally located and bordering major consumer markets such as Germany, France, the Netherlands, and the UK, Belgium offers unrivaled market access. The Port of Antwerp, one of the largest in Europe, serves as a major entry point for global trade. On top of this, Belgium’s highly integrated multimodal transport network—covering road, rail, and inland waterways—makes it especially appealing for companies requiring intermodal support.

The country also boasts a multilingual logistics workforce, proficient in English, French, Dutch, and German, allowing seamless cross-border business operations. However, these advantages come at a price. Labor costs in Belgium are among the highest in the EU, with hourly wages exceeding €40. Stringent labor regulations and active trade unions further reduce staffing flexibility. Warehouse rental costs are also relatively high—especially in areas around Brussels and Antwerp—ranging from €60 to €85 per square meter annually. Additionally, administrative procedures, particularly for non-EU investors, can be complex and time-consuming.

According to Belgian customs regulations, seaborne cargo can remain in authorized customs zones for up to 45 days, while goods arriving via other transport modes have a 20-day limit before needing to declare a customs-approved status (such as import or transit procedures). Once goods are cleared, VAT becomes applicable. However, if the goods are immediately sold to another EU country, import VAT can be waived. Furthermore, both domestic and foreign companies can apply for the ET14.000 license, allowing deferred VAT payment—a system similar to the Dutch VAT deferment policy (explained here https://www.tgl-group.net/en/news-detail569_71.htm ). Non-EU businesses must appoint a local fiscal representative to take advantage of this benefit.

On the other hand, Eastern European countries such as Poland, Czech Republic, Slovakia, Hungary, and Romania are drawing attention for their low operational costs and fast-growing e-commerce ecosystems. Labor costs are significantly lower than in Western Europe, with average hourly wages ranging from €8 to €18. Warehouse rents are also 30% to 50% cheaper than in Belgium, making them an attractive option for businesses facing tight margins.

These countries are all EU members, meaning they benefit from the customs and VAT harmonization of the single market. Companies setting up warehouses here can still enjoy streamlined cross-border movements and access to VAT deferment systems.

What’s more, many Eastern European governments actively encourage foreign investment through generous incentives such as tax holidays, employment subsidies, and special economic zones. For example, Poland offers corporate income tax exemptions of up to ten years in its special economic zones. Similar programs exist in Hungary and Romania, making these regions highly appealing for long-term expansion strategies.

However, Eastern Europe is not without its challenges. Deliveries to Western European markets such as Germany, France, or the Netherlands can take 1–3 extra days compared to Belgian dispatches—posing a potential issue for time-sensitive products or flash sales. While infrastructure is improving rapidly, some rural or border areas still suffer from underdeveloped road and rail networks, creating occasional logistics bottlenecks. Additionally, the local workforce, while improving in quality and language skills, still trails behind Belgium in multilingual capabilities.

Political stability is another factor. Although most Eastern European countries are democratic, some face rising populist or Eurosceptic sentiments, potentially leading to policy uncertainty. Their proximity to non-EU countries such as Ukraine and Belarus also introduces regional security risks that businesses must factor into long-term planning.

In summary, Belgium is the preferred choice for businesses prioritizing immediate access to Western European markets, operational stability, regulatory clarity, and multilingual capacity—particularly for premium, high-value goods or time-sensitive industries. Conversely, cost-sensitive companies or those seeking scalable warehousing networks may find Eastern Europe’s flexibility and growth prospects more advantageous.

In fact, many global companies are adopting a dual-warehouse strategy: establishing a primary hub in Belgium or the Netherlands to handle high-frequency deliveries in Western Europe, and a secondary warehouse in Poland, Hungary, or the Czech Republic to manage bulk storage, low-turnover items, and Eastern European distribution. This hybrid model allows businesses to balance cost control with service speed.

Ultimately, whether a company chooses Belgium or Eastern Europe for its fulfillment operations depends on its product profile, market positioning, capital strength, and long-term strategic vision. In today’s era of global supply chain uncertainty, the ability to leverage geographic advantages and navigate policy landscapes flexibly is what will separate the winners from the rest in the European logistics game.

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