Amazon Pan-EU FBA Program - Ultimate Guide
Are you an Amazon seller looking to expand your reach across the European marketplace? Look no further than the Amazon Pan-European FBA program. This service allows sellers to easily store and ship their products across Amazon's European fulfillment centers, simplifying the selling process in multiple EU countries. It enables sellers to access millions of new customers, streamline their logistical operations, and save on fulfillment costs. In this post, we'll explore everything you need to know about the Amazon Pan-EU program and how it can help take your business to the next level.
What Is Amazon Pan-European Program?
Through this program, sellers can store their products in multiple Amazon fulfillment centers across Europe, which allows them to fulfill orders from customers in different countries more efficiently and at lower costs. Amazon automatically distributes the seller's inventory across the fulfillment centers based on customer demand, reducing the time and fees associated with shipping products to different countries.
Additionally, the program offers various benefits to sellers, including access to Amazon's customer service in local languages, Prime eligibility, and increased visibility for their products across Europe.
To participate in the Amazon Pan-European Program, sellers must meet specific eligibility criteria, including having a professional selling account on Amazon, being registered for VAT in all countries where they have inventory, and meeting Amazon's performance standards.
Related: Amazon EFN vs Pan-EU Program
What are Amazon marketplaces in Europe?
Currently, Amazon has 8 EU marketplaces:
- Amazon Germany (amazon.de);
- Amazon France (amazon.fr);
- Amazon Italy (amazon.it);
- Amazon Spain (amazon.es);
- Amazon Netherlands (amazon.nl);
- Amazon Sweden (amazon.se);
- Amazon Poland (amazon.pl).
Note: These marketplaces cover 27 European countries. You can also store inventory in the Czech Republic and Slovakia. After Brexit, the UK is no longer a part of the Pan-EU FBA program.
How to get started with Pan-European FBA?
Step 7. Ship your products to the Amazon European fulfillment centers you choose. Amazon will position them across their European fulfillment centers to get them as close to customers as possible.
Pros and Cons of Amazon Pan-EU
Amazon’s Pan-EU is excellent for scaling your business but has some downsides. Here are some of the pros and cons of using this program.
By participating in the Pan-European program, sellers can offer their products to customers across Europe and take advantage of Amazon's vast customer base.
With inventory stored in multiple fulfillment centers, customers can receive their orders faster, increasing customer satisfaction and repeat business.
The Pan-European program can help sellers reduce their fulfillment costs by optimizing their inventory across multiple fulfillment centers and reducing the need for cross-border shipments.
With Pan-EU, sellers must be VAT-registered in all counties where they store their inventory. All VAT-registered sellers must file a VAT return for each relevant period. Sellers need to comply with tax requirements in each country, which can be complex and time-consuming.
Selling across multiple countries can be challenging due to language barriers, differing customer preferences, and cultural norms.
What Are Amazon Pan-EU Fees?
Amazon charges a flat fee per unit based on the product's dimensions and weight (unit weight or dimensional weight). Envelopes and special oversize products will be charged based on the actual unit weight, while small and standard parcels, small oversize, standard oversize, and large oversize products will be charged based on the greater of the unit weight or the dimensional weight. To calculate the dimensional weight in kilograms, you can use the following formula: (length x width x height) divided by 5000.
Amazon applies storage fees to all items stored in their fulfillment centers. These fees are based on the fulfillment center's location, calendar month, and the daily average volume of inventory. Storage fees are charged per cubic meter or cubic foot per month.
Optional Service Fees
Optional services refer to additional services offered by Amazon. They are charged per unit.
- Bubble wrap;
- Opaque bagging.
Amazon charges sellers removal fees for removing their items from FBA inventory. To steer clear of long-term storage fees, it's advisable to opt for a removal order. Suppose you need to remove inventory from your Pan-European FBA, and the removal is ordered to an address in the same country as your home marketplace. In that case, Amazon will charge you local removal fees based on your home marketplace. It doesn't matter where the inventory is located at the time of the removal order.
How to deal with Amazon Pan-EU VAT?
If you have registered for Amazon's Pan-European program, you will need to comply with the Value Added Tax regulations of each country where you store the inventory. When you enroll in the program, you will need to fulfill additional VAT obligations in various jurisdictions. It may also lead to other reporting requirements, such as Intrastat (data collection system for statistics on international trade between the EU Member States). You will be responsible for collecting and paying the taxes and filing all necessary returns and VAT invoices.
Compliance with VAT regulations is vital to avoid penalties and legal issues. You can successfully manage Amazon Pan-EU VAT by following the steps below and staying up-to-date with the latest VAT regulations.
Dealing with Amazon Pan-EU VAT step by step
Step 1. Register for VAT: You must register for VAT in all countries where you store the inventory. You can do this online through the tax authority website of each country or a VAT registration service.
Step 2. Collect and report VAT: Once registered for VAT in each country, you must collect and report the VAT on your sales.
Step 3. Submit VAT returns: You will need to submit VAT returns to the tax authorities of each country on a regular basis, monthly or quarterly. That will involve reporting the amount of VAT you have collected and paid and any VAT you are owed.
Step 4. Keep accurate records: It is essential to keep accurate records of your sales and VAT transactions for each country. That will make it easier to file your VAT returns and respond to any inquiries from the tax authorities.
Step 5. Consider using a VAT compliance service: If you find managing VAT compliance for multiple countries challenging, consider using a VAT compliance service. That can help simplify the process and ensure you are fully compliant with the regulations of each country.
Tip. If you are considering using sales tax software, we recommend Hellotax. Hellotax is a tax compliance service with personal customer support founded by Amazon sellers. It offers an extensive service package at the best price. Hellotax is an excellent solution for sellers operating in Europe. The company provides a user-friendly interface and self-learning AI-powered tax letter inbox feature supporting your tax tasks.
Is Pan-European FBA Worth It?
Whether Amazon Pan-European FBA is worth it depends on several factors, including your business goals, the types of products you sell, and your budget. For large-scale sellers who move at least 1,500 units per month, Amazon Pan-European FBA is the optimal solution.
By selecting Pan-European FBA, you can boost your turnover, sales, and profits to their fullest potential. Amazon Pan-European FBA can be worth it for businesses looking to expand their reach and simplify logistics. Still, it's essential to carefully weigh the pros and cons and calculate the costs before making a decision.
What is Pan-European FBA?
Pan-European FBA is a program offered by Amazon that enables sellers to store their inventory in multiple Amazon fulfillment centers located across Europe. By participating in this program, sellers can reach customers in European marketplaces more efficiently and benefit from Amazon's logistics network for faster and more cost-effective order fulfillment.
Is Amazon FBA possible in Europe?
Yes, Amazon FBA is available in Europe. Sellers can utilize Amazon's FBA program to store their inventory in fulfillment centers across different European countries, enabling them to reach customers in multiple European marketplaces easily and efficiently.
How can I enroll in Pan EU?
To enroll in Amazon Pan EU, you need to meet certain eligibility criteria, such as having an active Professional selling plan and a registered VAT number in at least one European Union country. You can enroll in Pan EU through your Amazon Seller Central account by following the enrollment process provided by Amazon.
What is the difference between Pan EU and EFN?
The main difference between Pan EU and EFN lies in the inventory placement strategy. With Pan EU, sellers can distribute their inventory across multiple European countries' fulfillment centers. EFN allows sellers to store inventory in one country and fulfill orders from there to customers across Europe.
Which country is the best for Amazon FBA?
The best country for Amazon FBA depends on various factors, including your target market, product category, and business goals. However, popular choices for Amazon FBA include the United States, the United Kingdom, Germany, and Japan, as these countries have large customer bases and robust e-commerce markets.
Can I do Amazon FBA anywhere?
Amazon has separate marketplaces and FBA programs in various regions, allowing sellers from different countries to participate in the program and fulfill orders using Amazon's logistics network. However, it's important to review the specific requirements and policies for each marketplace to ensure eligibility and compliance.
The Amazon Pan-European program is an efficient service offered by Amazon that allows sellers to store their inventory in multiple Amazon fulfillment centers across Europe. This service can achieve speedy delivery across Europe and expand your sales footprint. With the potential for greater demand, it's worth considering selling your products across the entire continent.
Amazon Pan-EU is an excellent tool for growing sales.
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