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For smaller brands, entering Germany often sounds like a nationwide campaign with a nationwide budget. That’s not always necessary. You can launch in one region first, prove that your offer works there, and expand step by step. For Dutch brands, the region just across the border is often the most logical place to start.
Germany is an attractive online market. Online retail grew 3.9% in 2025 to €92.3 billion net, and now makes up 13.5% of total retail¹. That national figure hides big regional differences, though.
According to NIQ, average purchasing power in Germany is €31,193 per person in 2026, and only four of the 16 federal states are above average². The differences can be striking even between neighbouring cities. Düsseldorf averages €35,715 per inhabitant, while Duisburg, a few kilometers away, averages €25,235².
Purchasing power isn't the same as spending in your category, but it shows why a national average is a poor basis for deciding where to invest your budget first.
Practitioners make the same point. Market-entry agency Expansion.eco describes Germany as heterogeneous, with economies and traditions varying strongly from one federal state to the next, and recommends launching from the right strategic location³.
Just across the Dutch border is a market the size of a country. North Rhine-Westphalia alone has around 18 million inhabitants, and Lower Saxony another 8 million, both with purchasing power close to the German average². Cities like Münster, Düsseldorf, Cologne and Osnabrück are geographically within easy reach. Düsseldorf and Cologne are both above the national average².
For a Dutch brand, that brings practical advantages:
It also builds on a strong existing trade relationship since Germany remains the most important export destination for Dutch goods⁴.
Proximity doesn't guarantee demand, so check product fit, competitors, and media costs before you commit. As a starting point, though, the border region gives you scale without the cost of reaching the whole country.
Start without a German company. Many businesses can test demand cross-border from their existing company, although German and EU tax, product, consumer, and customs obligations still apply⁶.
Localize what customers will see. That means German product pages, familiar payment methods, clear delivery promises and an easy returns process. Translation alone isn't enough.
Target your ads regionally. Google Ads can target countries, areas within a country, or a radius around a location⁵, and Meta lets you target by country, region or city⁷. Keep in mind that very small areas may only show ads intermittently or not at all⁵. Choose a region large enough to deliver volume, such as a few cities or a whole state.
Be available nationally, advertise regionally. More than half of German online sales (56.7%) run through marketplaces¹. Listing there gives you nationwide visibility while your paid budget stays focused on your test region.
Set success metrics before launch. Track conversion, acquisition cost, margin after shipping and returns, and repeat purchases. That way you're deciding on evidence, not on a handful of early orders.
Expand once the regional test shows recurring results: customers convert at workable costs, delivery meets the promise, and returns don't erase your margin. Then add regions step by step, for example from the Münsterland and Rhineland to the Ruhr area, then to Lower Saxony, and then beyond. Each step tests whether your results hold in a new setting.
If your offer only works with nationwide availability from day one, you can still be available nationwide and phase your marketing investment.
A successful German pilot doesn't validate Austria or Switzerland. Treat each as its own market decision.
So you can see that you don't need a nationwide budget to enter Germany. Pick the region you can serve best, often the one right across the border, prove your model there, and let the results decide your next step.
Want to know more or need help? Let’s talk!
Sources
¹ HDE Online-Monitor 2026 (einzelhandel.de/online-monitor)
² NIQ, Kaufkraft Deutschland 2026 (nielseniq.com)
³ Expansion. eco, 3 steps to enter the German market (2020)
⁴ CBS, Nederland Handelsland 2025 (longreads.cbs.nl)
⁵ Google Ads Help, How do I set up location targeting
⁶ Trademark Buy Sale, Germany Market Entry Strategy (2026)
⁷ Meta Business Help Center, About location targeting
