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The spotlight is now on this European marketplace, following amazon.ie’s recent launch, and AVASK also now managing VAT compliance for Ireland.
Ireland presents a compelling opportunity for e-commerce sellers looking to expand their market reach. With one of Europe’s highest shares of online shoppers, the Irish market is a great example of a thriving market with growing digital engagement, offering ample sales and customer acquisition opportunities.
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ToggleWhy expand to Ireland?
Ranking 42nd in the world for e-commerce, Ireland boasts:
- strong household internet access (94%)
- high smartphone usage (90%)
- an e-commerce market projected to reach US$6.20 billion in revenue by 2025 , putting it ahead of the UAE
- an expected annual growth rate of 8.79%, resulting in a projected market volume of US$8.68bn by 2029
This growth indicates a promising and expanding market—and that’s within a wider European market that just keeps growing. Ireland’s stable economy supports sustainable business growth, and its favourable business environment also makes it an attractive destination for e-commerce investment.
What are the challenges to look out for when expanding to Ireland?
VAT complexity
UK sellers must navigate new VAT rules, including registering for VAT in Ireland and collecting VAT at the point of sale. This adds complexity and administrative burden, which again can be mitigated with AVASK’s help.
Getting localisation right
As with every market, it’s essential to offer localised customer service that addresses the specific needs and concerns of Irish customers, and enhances their customer experience – which helps boost your brand and stand out. Tailoring marketing campaigns to the Irish market, considering local history, preferences and cultural nuances, can improve engagement. Make sure your return policies are flexible and clear, that they reassure customers about the ease of returning products if needed, and emphasise smooth delivery and transparent pricing.
Shipping and delivery
Post-Brexit, goods moving between the UK and Ireland are subject to customs checks and tariffs, leading to increased costs and longer delivery times for UK sellers. For all sellers, ensuring efficient delivery, especially in rural areas, can be challenging. You can mitigate this with efficient customs and shipping management. Adhering to evolving regulations, especially post-Brexit, can be complex for e-commerce businesses, so compliance with UK and EU regulations is essential to avoid legal complications.
Read more about how AVASK can help you ship and store across the customs border.
How has Brexit affected Ireland?
With the new borders in place, supply chains were disrupted, which affected sales and spending. Businesses on both sides of the customs border had to navigate the complex changes to customs and VAT compliance requirements.
This had some positive effects. Customers within the EU shifted to buying from EU-based businesses to avoid extra charges, which gave Irish e-commerce sellers a welcome bump in cross-border sales.
What are the 6 top product categories in Ireland – and why?
- Sports equipment: Ireland’s stunning landscapes and opportunities for outdoor activities drive sales of products such as outdoor gear, sports equipment, and adventure accessories.
- Electronics: With its high internet and smartphone penetration, Ireland has a tech-savvy population that frequently purchases electronic mobile devices, home appliances, and gadgets online.
- Clothing: The country’s unpredictable weather and rich heritage in textiles — such as wool and tweed — mean that warm and versatile clothing, such as waterproof jackets and comfortable layers, is essential.
- Home and garden: The country’s lush climate for gardening inspires many to invest in their outdoor spaces, so household cleaning products, DIY, furniture, and gardening supplies are in high demand.
- Beauty and personal care: High-quality skincare and hair care that offer protection against the elements are particularly popular. The emphasis on natural and organic products aligns with Ireland’s appreciation for its natural beauty.
- Books and toys: Ireland’s strong literary tradition and love for storytelling contribute to the high demand for books. Toys encouraging outdoor play, such as sports equipment and adventure gear, are also favoured.
Indeed, figures from ECDB place Hobby & Leisure as the largest market, accounting for 25.4% of Ireland’s e-commerce revenue – followed by Electronics with 21.3%, Fashion with 18.1%, Furniture & Homeware with 11.6%, DIY with 8.8%, Care Products with 8.6%, and Grocery with the remaining 6.2%.
Start your journey into Ireland today
We know that you’ll have questions. We covered some seller questions about Ireland in our January ‘E-Commerce Unlocked’ broadcast episode, and in our Q&A recap of how to start selling in Ireland.
Expanding to Ireland offers significant opportunities and rewards for e-commerce sellers, but challenges come with the territory. With AVASK’s support, you can ensure that your VAT, customs, and Extended Producer Responsibility compliance in Ireland are all completely covered. And with our Amazon offer, you can push your global expansion goals even further.
FREE VAT registration in Ireland and up to €1,600 back when you sign up for Irish VAT with AVASK*
For a limited time, Amazon is offering FREE VAT registration in Ireland* and two years’ worth of VAT filings to help you grow your business on Amazon.ie. They will reimburse up to €1,600 if you register your Irish VAT number between now and December 2025.
To make the process even smoother, upload the new Irish VAT number to your Seller Central account, and have at least one invoice as proof of business conducted in Ireland.
Don’t miss out! Book a consultation with us today to learn more.
FREE VAT registration in Ireland from Amazon offer: the small print
• Eligibility: Open to FBA sellers wanting to sell on Amazon.ie and who do not yet have Irish VAT. Once they obtain VAT, they must upload it in Seller Central and enable inventory storage in Ireland.
• How the incentive works: No sign-up required. After registering with a Tax Provider and uploading the VAT ID, sellers get a refund for VAT registration, two years of filings, and fiscal representation (if applicable).
• Reimbursement Tracking: Credited as “Miscellaneous Adjustment” in the Amazon Seller Account under Seller Central > Reports > Fulfillment by Amazon > Payments > Reimbursements.
• How long does this promotion last? It runs from Jan 2025 to Dec 2025. Amazon may terminate it at any time.
• Pan-EU & Ireland: Ireland is part of Pan-EU. If sellers disable Irish inventory storage within 12 months, Amazon may charge them up to €1,900 for tax services or deduct it from future payments.
• VAT responsibilities: Sellers are responsible for VAT compliance. Refunds cover only specified tax services, excluding additional costs (e.g., notarization, courier fees). Non-payment of the tax provider may lead to Amazon withholding the VAT benefit.
