Amazon sellers strive to offer customers a personalized and convenient shopping experience on the platform. This is crucial for their success. To ensure a seamless shopping experience, it’s essential to choose the most suitable fulfillment methods.
If you generate a good number of sales, such as more than 1500 units per month, and want to take your online business throughout Europe, Using Pan-European FBA as a fulfillment method can enhance the shopping experience for your European customers.
The program enables you to sell across Europe by helping you place inventory closer to your European customers and by fulfilling and delivering orders at lower costs and in less time.
In this guide, we will discuss Amazon PAN European FBA in detail and will give you an overview if it is suitable for you or not
A quick look into the article:
- What is Amazon PAN European FBA?
- Available Countries for PAN European FBA
- Fulfillment Options for Amazon’s European Networks
- Why will You Choose PAN European FBA?
- Difference Between EFN and PAN-EU FBA?
- Eligibility of PAN-European FBA
- Cost of Amazon PAN-EU FBA
- Advantages of PAN European FBA
- Disadvantages of PAN European FBA
What is Amazon PAN European FBA?
Amazon PAN European FBA (Fulfillment by Amazon) is a program offered by Amazon that allows sellers to store their inventory in multiple European fulfillment centers. With PAN European FBA, sellers can distribute their products across several European countries more efficiently, allowing for faster and more cost-effective delivery to customers.
Pan-EU fulfillment is an Amazon program you can enroll your products into if you’re selling FBA products across Amazon European marketplaces. Amazon will distribute and store your products in fulfillment centers across Europe in specific countries you select for storage.
This means when your FBA product is sold in one of these other European Marketplaces, you will only pay the local fulfillment fee instead of the more expensive cross-border fee for each order shipped.
It also makes you Prime-eligible and more visible to more shoppers in Europe.
Available Countries for PAN European FBA
The Amazon PAN-EU fulfillment centers are currently located in the following countries.
- United Kingdom (UK)
- Czech Republic
These countries are part of the Amazon European Fulfillment Network, allowing sellers to store inventory in multiple fulfillment centers across Europe. By using PAN European FBA, sellers can reach customers in these countries more efficiently and take advantage of Amazon’s logistics network for faster and more cost-effective order fulfillment.
Fulfillment Options for Amazon’s European Networks
When selling within the European marketplaces, you have 3 different fulfillment options.
- European Fulfillment Network (EFN)
- Pan-European FBA
- Multi-Country Inventory (MCI)
Why will You Choose PAN European FBA?
There are several reasons why you might choose PAN European FBA as your preferred fulfillment method:
Effortless Inventory Management: PAN European FBA simplifies inventory management by allowing sellers to consolidate their inventory across multiple European countries. This centralized approach enables efficient tracking, replenishment, and distribution of stock, ensuring products are readily available to meet customer demand.
Lower FBA Fees: Utilizing PAN European FBA can lead to potential cost savings for sellers. By storing inventory in Amazon’s fulfillment centers across Europe, sellers can benefit from lower fulfillment fees compared to shipping products individually to different countries.
Access to European Customers: PAN European FBA provides sellers with access to a wide customer base across Europe. By utilizing Amazon’s extensive logistics network, sellers can efficiently reach customers in multiple countries. This expanded market reach, opens up new growth opportunities and the chance to tap into diverse customer demographics.
Fast and Reliable Deliveries: With inventory strategically placed across Europe, PAN European FBA enables fast and reliable deliveries to customers. This reduces shipping times and improves the overall customer experience.
Local Customer Service: PAN European FBA leverages Amazon’s established customer service infrastructure to provide local support to customers. Sellers can benefit from Amazon’s expertise in handling customer inquiries, returns, and other service-related issues. Local customer service enhances the overall shopping experience, instills confidence in customers, and fosters trust in the seller’s brand.
The Difference Between EFN and PAN-EU FBA?
The key difference between Amazon EFN (European Fulfillment Network) and PAN-EU FBA (Pan-European Fulfillment by Amazon) lies in handling inventory and fulfillment.
Inventory Placement: With Amazon EFN, sellers can store their inventory in a single European country of their choice, typically their home marketplace. The inventory is then made available for sale across all eligible European marketplaces.
In contrast, PAN-EU FBA requires sellers to send their inventory to multiple Amazon fulfillment centers across Europe, and Amazon automatically distributes the inventory to the most suitable fulfillment center based on demand and customer location.
Fulfillment and Shipping: Under Amazon EFN, when an order is placed in a European marketplace, Amazon fulfills the order from the seller’s chosen fulfillment center. This means that the order may need to be shipped across borders, potentially resulting in longer delivery times and higher shipping costs.
On the other hand, with PAN-EU FBA, Amazon handles the fulfillment and shipping logistics. When an order is received, Amazon selects the inventory from the most appropriate fulfillment center within the European network, ensuring faster and more cost-effective delivery to the customer.
Cost Structure: Both Amazon EFN and PAN-EU FBA involve fees and expenses. However, the cost structure differs between the two programs. With EFN, sellers typically pay lower fulfillment fees but may incur higher shipping costs due to cross-border shipping.
PAN-EU FBA, on the other hand, involves higher fulfillment fees but provides the advantage of having inventory stored strategically in multiple countries, potentially reducing shipping costs and delivery times.
Prime Eligibility: Another notable difference is Prime eligibility. With PAN-EU FBA, sellers have the opportunity to make their products eligible for Amazon Prime in participating European marketplaces. This can significantly enhance product visibility and attract Prime members who enjoy fast and free shipping.
Amazon EFN does not offer automatic Prime eligibility.
Eligibility of PAN-European FBA
- You must have a European unified account. With a European unified account, you can create and manage offers on all Amazon European stores
- You also need to ensure that your account is in good standing and that you are not blocked in any of the countries where listings are required for PAN European
- You need to choose which and how many ASINs you want to enroll in PAN European
- For an ASIN to be enrolled in PAN European, you need to create an active FBA offer in all the marketplaces listed as required on the PAN-European FBA
- Manage your inventory page in your Amazon account. In most cases, these marketplaces are Germany, France, Italy, and Spain
- You need to send your inventory to an Amazon fulfillment center in one of the following countries- Germany, France, Italy, Spain, or Poland
Cost of Amazon PAN-EU FBA
Before starting the PAN-EU FBA, you need to take into account the cost, because it’s a bit complex. Standard Selling on Amazon fees applies for each marketplace on which an ASIN is listed. According to Amazon, the following fees apply to Pan-European FBA stock-
Fulfillment Fees: For ASINs enrolled in Pan-European FBA, you will pay only the Fulfilment
Fee for the marketplace in which the order is placed, no matter where the stock is stored in
the Amazon European Fulfilment Network.
Storage Fees: Pan-European FBA ASINs will incur monthly storage fees and may incur
Long-Term Storage Fees if units remain in stock for 12 months or more.
Removal Fees: For removals (return of stock to you) from your Pan-European FBA stock
ordered to an address in the country of your home marketplace, we will charge local
removal fees applicable to your home marketplace, regardless of where the stock is located
at the time of the removal order.
As Pan-European FBA allows you to store goods in various fulfillment centers in Europe, and as the product is therefore always near the customer, you only pay the local fulfillment fee.
But Once you have joined the Pan-European FBA program, you will have specific tax return requirements for each country. Some countries require monthly VAT returns, and some require returns every quarter.
Unless you are an expert, you’ll need a specialist acting on your behalf. The following fees apply to Pan-European FBA stock.
- Note: The local fee does not apply to oversize products
Advantages of PAN European FBA
The PAN European FBA program offers several advantages for sellers who want to expand their business in the European market. Here are some key benefits:
Expanded Market Reach: By utilizing PAN European FBA, you can increase your FBA sales by up to 30 percent by selling and storing your products all across the European Union. Also, you can easily reach customers across multiple European countries.
Flexibility: You have the flexibility to choose in which countries you place your stock, the more countries enabled the greater the advantages
Prime Eligibility: Sellers can make their products eligible for Amazon Prime. So, as a seller, you can reach millions of customers internationally by selling with the prime badge in countries you selected for inventory placement. It also significantly increases product visibility and encourages more customers.
Cross-Border Sales Made Easy: You can save on your fulfillment costs by up to 53 percent since you stop paying cross-border fees in countries you have enabled inventory placement and will be charged local fulfillment fees instead. It simplifies the process by handling customs clearance and managing tax collection on behalf of the sellers, making cross-border sales more seamless.
Simplified Logistics: Amazon takes care of the storage, packaging, and shipping processes that relieve sellers of the burden of managing their own warehouses and fulfillment operations.
All you have to do is, send your inventory to a fulfillment center of your choice in Germany France Italy Spain, or Poland, then an Amazon algorithm will determine how much inventory to distribute to each country that you enabled for storage based on the customer demand. Amazon will also fully take care of the inventory redistribution across the countries
Reduce Fulfillment Fees: You can even reduce your fulfillment fees on low-cost products since FBA small and light products are now also eligible for PAN EU. You can save up to 0.26 Euros on every FBA unit fulfilled from Germany by storing your products in the Czech Republic, Germany, and Poland
Cost-Effective Inventory Management: It reduces the need for maintaining separate warehouses in each country, leading to cost savings in terms of storage and logistics.
Domestic FBA Fulfillment Fees: You can enjoy the domestic FBA fulfillment fees for orders in Belgium, the Netherlands, and Sweden by activating your FBA listings in those countries and storing your products in Germany or in France for Belgian orders.
Disadvantages of PAN European FBA
While Amazon PAN European FBA offers numerous benefits, there are also some potential disadvantages to consider:
Increased Costs: Utilizing PAN European FBA involves fees and expenses. Sellers are responsible for storage fees, fulfillment fees, and other associated costs. It’s essential to carefully evaluate these expenses and ensure they align with the profitability of the products being sold.
Inventory Management Challenges: Managing inventory across multiple European countries can be complex. Sellers need to accurately forecast demand, monitor stock levels, and ensure proper inventory allocation to different fulfillment centers. This requires effective inventory management practices and systems.
Market Saturation: With the popularity of PAN European FBA, there is increased competition among sellers. The program attracts numerous merchants aiming to expand their presence in the European market, which can lead to market saturation in certain product categories. Sellers must differentiate their products and implement effective marketing strategies to stand out.
Product Restrictions and Compliance: Certain products may be subject to restrictions or regulations in specific European countries. Sellers need to ensure compliance with local laws, safety standards, and product regulations to avoid potential complications or restrictions on their inventory.
Potential Language and Cultural Barriers: Expanding into multiple European countries means dealing with diverse languages, cultures, and customer expectations. Sellers must be prepared to adapt their marketing materials, customer service, and product descriptions to cater to different markets effectively.
Amazon PAN European FBA offers a powerful solution for sellers looking to expand their reach in the European market. It provides a seamless and convenient fulfillment option that can enhance the shopping experience for customers.
By utilizing PAN European FBA, sellers gain access to multiple European countries, benefiting from faster delivery times and Prime eligibility. Compared to EFN, PAN European FBA allows for strategic inventory placement in various fulfillment centers, optimizing shipping costs and reducing delivery times.
While there are associated costs with PAN European FBA, the advantages it offers in terms of market reach, customer satisfaction, and streamlined operations make it a compelling choice for many sellers.
However, it’s essential to consider the pros and cons, evaluate the cost structure, and analyze the specific needs of your business before making a decision. With careful consideration and proper implementation, PAN European FBA can be a valuable tool in growing your Amazon business in the European market.”
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