Amazon Pan-European Fulfilment (Pan- EU FBA) is a fulfilment option set by Amazon for sellers using FBA. Pan-EU allows sellers to be able to store, sell and deliver their inventory from a local fulfilment centre in multiple countries throughout the EU. This is known to be an excellent opportunity for a seller to expand and give a larger sales potential, in which to scale your business by maximising your turnover and profits.
As of November 2020, Pan-EU currently operates in the 7 countries listed below, with many more to be added to the list soon.
- Czech Republic
Tax Compliance in the EU
As you can imagine, this programme can come with a few complications, but nothing that can’t be resolved with a specialist’s help! Participating in the Pan-EU programme means that you are required to have a VAT number for each country.
Individual countries have their own laws and regulations set by the local Tax offices and Governments that must be followed. In some countries, you may be required to submit your VAT filings monthly and in others quarterly. It is beneficial for you to have a specialist Tax consultant submit these on your behalf.
Preparing all the relevant documents required and being able to obtain your VAT number in each country can be a timely process, don’t let this overwhelm you!
Amazon fees for Pan-EU
As I mentioned earlier, Pan-EU allows you to store in various fulfilment centres within Europe. This means you are liable to pay the local fulfilment fee. This fee consists of the fulfilment fee and the storage fee.
Fulfilment Fee: Based on the size and weight of the product (per unit)
Storage Fee: Depending on the storage fee of the particular country you are selling in.
Amazon Pan-European Fulfilment: Is Pan-EU good for my business?
Now that you are a Pan-EU FBA seller, you are storing in multiple countries within the EU, which makes your product available to a larger market. Your business is given higher visibility due to the Amazon Prime status you now hold, which results in a larger sales potential for your business.
Of course another quite obvious advantage – given that you are now storing your products within different countries, limits the time taken to ship orders to your customers. These are now easily dispatched from the closest fulfilment centre to your customer.
Although the Pan-EU FBA programme may seem rather complex it can also be largely profitable. It will enable you to take your business to the next level. Your customer outreach will naturally expand as you begin to sell in the EU. For more information on our PAN EU FBA services, contact Sterlinx Global and book in for a consultation with one of our specialists to get your free quotation now.