Amazon European Marketplaces: What You Need to Know

Are you a US seller selling on Amazon and interested in expanding to the United Kingdom (UK) or European Union (EU)? Continue reading this article because it will give you a short introduction and overview of benefits, requirements, and things you need to consider. 

What is the EU, and what are the benefits for FBA Sellers in the EU?

The European Union is a political and economic union of 27 member states from Europe, with a combined population of around 447 million. The EU member states enjoy free trade across borders, which offers many advantages for sellers.

In this article, we will focus on the two most interesting Amazon Selling Programs for the EU. 

The European Fulfillment Network (EFN) selling program stores a seller’s inventory in one marketplace, which can be any Amazon EU marketplace. Sellers can then list all their products in one or all of the European marketplaces. In cases where the products are listed in multiple marketplaces, once the customer purchases the product it will be shipped from the Fulfillment Center (FC) to whichever EU country the customer is from. Amazon will ship the product across EU borders if needed, which is a great advantage. As a disadvantage, we should note Amazon’s inability to offer Prime shipping across the EFN. 

PAN European FBA is the second seller program. As with EFN, sellers who applied to this program can list their products across all the European marketplaces. The difference, in this case, is that not all the seller’s inventory is stored in one marketplace. Amazon will distribute products to other European Fulfillment Centers in other countries. The main benefit of this program is Amazon’s ability to offer Prime shipping. 

The United Kingdom and Brexit

The United Kingdom left the European Union on February 1, 2020.  Following the withdrawal, known as Brexit, Amazon UK is no longer part of any of the programs mentioned above. The UK no longer enjoys free trade across borders, as the Amazon UK marketplace is now outside of the EU.

But for US sellers, the UK is another English-speaking marketplace, and it’s one of the most popular in Europe, with a population of 67.22 million. That gives US sellers a good reason to think about expanding into the United Kingdom. To do this, inventory must be sent to Amazon UK Fulfillment Centers, as the EU programs mentioned above will not work. 

How to begin expansion into European marketplaces 

To start with, sellers must open a new seller account in the UK or EU marketplace. The email address used must be different from the email address for Amazon US. The bank account and credit card used must also have international connections – the majority of larger US banks will be fine. If your items are expensive, sellers should consider insuring them because shipping abroad is costly, and it’s not easy to track the package once past the US border. Using FBA is a strong recommendation. FBM is not an option for expansion, even if it were possible, due to many potential issues or customer complaints regarding delivery that cannot be managed in the right way. 

Next, sellers must consider inventory limits. For new products, that will usually be just 200 units. 

On Amazon, the cost of selling will depend on the selling plan, product category, fulfillment strategy, and other variables. The options are flexible, so sellers can find the combination that works best for their goals.

It is also important to understand the Value Added Tax (VAT) systems in the UK or the EU, which are entirely different from VAT in the US, so it is highly recommended to consult with tax advisors before expansion. However, Amazon offers Amazon VAT Services and manages sellers’ European VAT registration and filing obligations via a third-party tax service provider once everything is set up, but this service doesn’t support registration and filing obligations in the US. 

Finally, before starting the process of expansion, make sure to check all the category restrictions and make sure that your product is eligible for selling in European marketplaces. Also, we recommend using freight forwarders and 3PL partners in this case. 

Key Takeaways: 

• The EU marketplaces offer two selling programs: European Fulfillment Network (EFN) and Pan European FBA. 
• After Brexit, Amazon UK is no longer part of the EU and EFN and Pan European FBA. It is a separate European marketplace. 
• You can have one seller account for all European marketplaces, but for selling in the UK and the EU, you need to send inventory to FCs in both marketplaces. The same applies to VAT. 
• An additional seller account registration and VAT registration are needed to start selling on Amazon European marketplaces.
• Make sure to consult with tax advisors about the different VAT systems. 
• We recommend using freight forwarders and 3PL partners for your orders outside of the United States. 

What can we do for you? 

While the goal is to run a successful Amazon business, the larger your inventory gets, the harder it becomes to monitor and deal with issues that may arise with keeping your account healthy and growing. At BellaVix, we are dedicated to helping you monitor your account, solving any possible problems regarding your account on your behalf, and ensuring your business grows in sales and ranking with our services. We have the experience and knowledge to take your account to the next level.

If you have additional questions or want us to help you on your Amazon journey, don’t hesitate to contact the BellaVix Team. 

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