What Is Pan-EU FBA?_Amazon Amazon

Lightweight and Small products join Pan-EU FBA to help expand in Europe

August 29, 2022

Table of Contents
1/ Update!Small and Light products can also join Pan-EU!
2/ What is Pan-EU FBA?
3/ Five Key Benefits of Pan-EU to Help Expand in European Marketplaces
4/ Requirements to Start Pan-EU
5/ How do I enable Pan-EU?
· Pan-EU activation guide
· Pan-EU optimization guide
6/ Save up to 53% on fulfillment fees?Easily reduce costs and increase profits!
· Fulfillment fees
· Inventory storage fees
7/ FAQs

Amazon Fulfillment Pan-European (Pan-EU) supports placing your inventory closer to buyers, so you can easily sell products across Europe at a lower cost. Sell with Fulfillment by Amazon Pan-EU and grow sales of your Amazon-fulfilled products by up to 30%*!

*Based on a February 2020 study of 876 selling partners who use Pan-EU and have enabled warehousing in all European countries/regions, compared with similar Fulfillment by Amazon selling partners that do not use the service.

Important update!

For fast-selling, low-priced small and light products, Amazon has launched the Fulfillment by Amazon Small and Light program (Small and Light). After you join, your products will not only display the Prime badge, but also qualify for lower fulfillment fees!

And now, the Small and Light program has joined Pan-EU FBA. Once you successfully enroll in the program in each country, you can enjoy cost-saving, convenient logistics and warehousing services at the same time.

👉Click to learn about the eligibility requirements and registration process for the Small and Light program (Small and Light)

As a top performer in European fulfillment and warehousing, in addition to Small and Light joining Pan-EU FBA, Pan-EU FBA also offers many convenient, efficient services. Next, we’ll give you a detailed guide to using Pan-EU.

Pan-EU

Fulfillment by Amazon Pan-European (Pan-EU, hereinafter “Pan-EU”) is a warehousing and fulfillment solution that Amazon specially launched for sellers expanding into Europe. Sellers can flexibly set inventory storage countries (France/Italy/Spain/Germany/Poland/Czech Republic) based on their business expansion priorities. By registering VAT numbers in more countries/regions or manually enabling more storage countries, you allow Amazon to sell and store your products in more countries/regions.

Currently, Amazon offers multiple fulfillment services in the Europe Marketplace, including Pan-EU FBA, European Fulfillment Network (EFN), and Multi-Country Inventory (MCI). We recommend that you prioritize Pan-EU for greater flexibility in operations management.

Understand the three European fulfillment services at a glance

💡Note: Due to Brexit, Amazon suspended cross-border transportation between the UK and the EU at the new customs border on 12/28/2020. Sellers in EU countries/regions can continue to use Pan-EU, and can continue to use FBA and the European Fulfillment Network (EFN) in the UK.

👉Click to view a complete guide to the European Fulfillment Network (EFN) program introduction and operating steps.

With Pan-EU, sellers only need to send products to any Amazon fulfillment center within the European Union, and Amazon will intelligently allocate them to locations closer to buyers based on product sales volume, so your products can be delivered to buyers quickly, improve the buyer experience, and win more sales.

✨ Service sites continue to expand, covering more countries/regions

Using Pan-EU, sellers can enjoy lower fulfillment fees and faster delivery speeds across different marketplaces. At the same time, the Pan-EU service continues to expand and is now available in Germany, France, Italy, Spain, the Netherlands, Poland, and Sweden.

✨ Flexible storage, accelerate business growth

Sellers can choose flexibly which country/region to use for storage, and at any time set Amazon to distribute and store your products in more countries/regions to meet buyer needs more quickly.

✨ Reach a large number of European Prime members with the Amazon Prime badge

Based on the trust that buyers around the world place in the Amazon Prime badge, using the Pan-EU service to list your products in European marketplaces makes you eligible to use the Amazon Prime badge. At the same time, buyers can enjoy faster, more reliable delivery and receive more positive feedback.

✨ Save up to 53% on delivery costs

In countries/regions where Amazon is allowed to store products, you don’t need to pay cross-border fees and only pay local delivery fees, saving up to 53% on delivery fees.

👇 Examples of fees are as follows

✨ Sell Fulfillment by Amazon small and light products through Pan-EU to help grow your small and light business

Sellers of small and light products can use Pan-EU to send inventory to a European warehouse and flexibly distribute it to other European Marketplaces. In the country or region where the inventory is stored, they only need to pay the local small and light Fulfillment fees, helping reduce costs and drive sales.

Interested sellers, look here!Getting started with Pan-EU is actually very simple, and we’ve also put together the most detailed guide to enabling and optimizing Pan-EU for you.

Before starting to sell products using Pan-EU, sellers must meet the following requirements:

✔️ Account requirements: sellers must have access to a Seller Central account for EU stores (France/Germany/Italy/Spain), and the account must be in good standing. With one Amazon seller account in Europe, you can create and manage products in all Amazon European stores. Make sure to add Fulfillment by Amazon (FBA) to your Selling on Amazon account.

✔️ Regulatory requirements: each Marketplace has regulatory requirements to keep in mind when selling products to buyers. These laws and regulations vary depending on the product type and the country where you sell, and your products must comply with the laws and regulations of each EU country.

1. Parallel imports: refers to the act of a merchant, without the consent or authorization of the trademark owner, importing the product into the same market through other legal means while the trademark owner is lawfully placing the product in overseas markets. Since such unauthorized imports often run parallel to duly licensed imports, they are called parallel imports.

✔️ Storage and VAT requirements: enable inventory storage in 2 or more European Marketplaces and have at least 2 VAT numbers (inventory storage is automatically enabled for Marketplaces where the seller has already registered a VAT number).

✔️ Listing eligibility requirements: at least one ASIN must have active offers on Amazon Germany, France, Italy, and Spain, and use the same Fulfillment by Amazon barcode FNSKU.

💡Note: Whether or not you choose to enable Pan-EU in 4 countries, you still need to sync your Listing to the 4 marketplaces: Germany, France, Italy, and Spain; if you do not enable inventory storage in some of these marketplaces, the Listing will not be active there, which means buyers in those marketplaces will not be able to buy your products through Pan-EU.

✔️ ASIN requirements: be listed on the “Pan-EU FBA Inventory” page as eligible for Pan-EU FBA (shown on the page as “Eligible”); on all required Amazon Europe Marketplaces listed on the “Pan-EU FBA Inventory” page, create valid FBA offers for your Pan-EU inventory, and link each offer to the same inventory.

At the same time, all products and offers must meet the eligibility requirements described in the table below 👇

💡Note: To sell restricted products through Pan-EU, you must obtain the appropriate sales approval for all European marketplaces. Eligible ASINs must be in “registered” status in the program to activate products enrolled in Pan-EU.

Please note that enabling Pan-EU is done at the ASIN level, which means that only after you create active Fulfillment by Amazon offers for all Amazon European stores as required on the “Pan-EU FBA Inventory” page and register the ASIN in Pan-EU FBA (Pan-EU) will the product be active in Pan-EU FBA (Pan-EU).

① How to enable Pan-EU?

Step 1: after listing FBA products on the relevant European Marketplace;
Step2: enable inventory placement in at least 2 countries/regions;
Step 3: Ship the item to a local Amazon fulfillment center in Europe.

② How do I manually add countries/regions where inventory storage is enabled?

✔️ Path: Inventory > Amazon Logistics Europe Integrated Service Inventory > Management Settings (If you log in to this interface for the first time, click the orange “Start” button)

✔️ Select the storage country to enable, and after you click “Update,” the inventory country will be activated.

③ How do I create a listing?

You need to create products in the Amazon Germany, France, Italy, and Spain Marketplaces. You can use the same process as creating products in your domestic store, and all products created must have the same FNSKU.

You can use the free Build International Listings tool (BIL) to easily create and update listings from one source marketplace to one or more target marketplaces. This way, you can manage all of your products in one marketplace, saving time and effort!

🔍 Click this link to learn more
👉Or click to learn about BIL tool

You can also choose to create listings manually or by uploading product information in bulk.

If some of the seller’s ASINs have joined Pan-EU, you can go to the MYI page, also known as the Pan-EU ASIN Monitor, to understand why the remaining ASINs have not joined Pan-EU. You can then optimize and activate these ASINs to enjoy Pan-EU services.

🚩 Using the MYI page to optimize Pan-EU

① Path: Inventory > Pan-EU FBA inventory (if you’re visiting this page for the first time, click the orange “Start” button)

② Check the inventory storage settings at the top of the page. If you need to modify them, click “Manage Settings”;

③ The monitor shows the seller’s overall ASIN status for Pan-EU FBA;

④ The product list shows the details of the seller’s ASINs using Pan-EU: whether they are out of stock or have a sale start date set. If your ASIN shows a price but is not active, we recommend checking whether the ASIN is Out of Stock; if your ASIN does not show a price, we recommend checking whether there is a synced Listing.

Sellers using Pan-EU do not need to pay cross-border fees. For each order, you’ll pay the fulfillment fee based on the local logistics fee standard of the actual sales Marketplace, saving up to 53% on cross-border fulfillment fees!It mainly includes two parts: Fulfillment fees and inventory storage fees.

For ASINs registered with Pan-EU, no matter which fulfillment center in Amazon’s European marketplaces stores the inventory, you only need to pay the Fulfillment fees for the Marketplace where the order was placed. For fees, see the table below:

① Storage fee

Amazon will charge a monthly storage fee for Pan-EU ASINs.

💡 Note
· The long-term storage fee is in addition to the regular inventory storage fee; if the seller requests to remove or dispose of the item before Amazon's monthly inventory assessment date, Amazon will not charge the long-term storage fee.
· As of April 1, 2020, Amazon European marketplaces no longer charge the minimum Long-term Storage Fees of €0.10 per item for non-media products that have been stored in inventory for more than 365 days. The long-term storage fee per cubic foot will remain the same, and Amazon will still charge a minimum long-term storage fee (€0.10 per item) for media products that have been in inventory for more than 365 days.

② Removal fees

For removal orders that are returned from the Pan-EU inventory pool to an address in the country/region of your main marketplace (orders that return inventory to you), Amazon will charge a removal fee. Removal orders will be charged based on the size and weight of the item being removed. Products fulfilled through Pan-EU will be charged local fees if the return destination is Germany/France/Italy/Spain.

③ Other fees (taxes)

Storing products at overseas sites other than the country/region where your main site is located imposes additional VAT registration and reporting obligations; in addition, you are also required to comply with internal statistics and other reporting requirements. You are responsible for all taxes and fees, and for filing related tax refund claims when necessary.

💡 Note
Amazon may share information about your transactions and products with others when required to comply with necessary obligations under applicable laws and regulations, such as when receiving legal requests from government agencies and regulatory authorities that have jurisdiction over Amazon.
🔍 See the details of the fees for joining Pan-EU through the link below
· https://sellercentral-europe.amazon.com/gc/fulfilment-by-amazon/pan-european-fba/cost-saving-tool
· https://sellercentral-europe.amazon.com/gc/fulfilment-by-amazon/pan-european-fba/cost-saving-tool?ref_=CST20WE

❓Q1: Do I need to register for EPR (Packaging Act) to join Pan-EU?

To sell in Germany, sellers must register and upload a compliant EPR (Packaging Law) number; to sell in France, sellers can either register for EPR and upload it themselves, or sell in France directly through Amazon’s EPR withholding and remittance service without registering themselves.

❓Q2: When using the European Fulfillment Network (EFN) to ship between the UK and the EU (Germany/France/Italy/Spain), do I need to register for Value Added Tax in the destination country?

For deliveries between the UK and the EU, VAT registration in the destination country is generally not required.
✔️ For business-to-buyer (B2C) sales of up to €150/£135, the buyer must pay VAT at checkout, so Amazon must account for VAT.
✔️ For such sales over €150/£135 and for all business-to-business (B2B) sales, the buyer is the importer of record with customs and must pay any import VAT and customs duties. Amazon will charge the buyer these import fees at checkout based on an estimated amount so that it can remit these amounts on the buyer’s behalf.

👇 Click the link below to open it and learn more
· VAT on e-Commerce in the EU
· UK VAT on e-Commerce
💡 Note: VAT information is for general reference only and is not tax advice. Please consult your tax advisor for further information.

❓Q3: How do I use the cost-saving tool?

Once the seller allows Amazon to distribute and store your inventory in two or more countries, you can add the missing products and enable additional inventory placement countries to save even more on shipping costs.

Step 1: Click this link to go to the cost-saving tool;

Step2: At the top of the page, find an overview of potential cost savings;

Step 3: Maximize cost savings by adding more products or enabling other placement countries/regions.

❓Q4: How do I use the “Build International Listings” tool?

Step 1: Go to the “Build International Listings” tool and click “Get Started”;

Step 2: Select your source Marketplace from the list, which can be the Marketplace where you regularly create products;

Step3: Select your target Marketplace from the list. You can choose where you want to expand your business, or click “Europe” if you want to expand to all of them;

Step 4: Select the products you want to copy in the target marketplace. You can select specific products, or choose by fulfillment method (Fulfillment by Amazon (FBA), Merchant Fulfilled Network (MFN), or all).

Step5: Define the pricing rules you want to use in the target Marketplace. In each target marketplace, you can define specific rules or click “Apply the same rules by region” (if applicable). You can set it to “the same as the source Marketplace, adjusted for taxes and other fees,” or set any custom pricing rules. It’s very flexible.

Step6: Check your input, save, and continue. Please wait 4 hours. Amazon will refresh and sync your catalog. If you run into any difficulties, please contact Seller Support.

❓Q5: Why is VAT registration required to use Pan-EU?

To get started with Pan-EU, you only need to provide at least two VAT registration numbers in Seller Central, or enable at least two inventory placement countries, and list products in all required stores.
Storing products in countries/regions other than the country/region where your local store is located will create additional VAT registration and filing obligations for your business, as well as Intrastat and other tax filing requirements. You are responsible for collecting and paying your taxes, as well as all required related tax returns.

❓Q6: What is VAT Services on Amazon?

VAT service on Amazon is a VAT compliance solution that allows you to manage your European VAT registration and filing obligations through third-party tax service providers in up to 7 countries/regions (United Kingdom/Germany/France/Italy/Spain/Poland/Czech Republic). This solution allows you to handle VAT compliance matters more easily and efficiently, so you can spend more time expanding your European business.

💥 Special promotional offers

After you join VAT service on Amazon, you can get a €50 (previously €300) discount on VAT registration fees for each European country, including the costs of VAT numbers, EU and/or UK EORI numbers, and notarized translation services for official documents. Start filing VAT returns for as low as €33.30 per month (for 1 country/region, excluding Fiscal Representative services). Once you start filing in 5 countries, Amazon will also cover your filing fees in the sixth and seventh countries. Use free EORI to grow your business in Europe: you can also get a UK and/or EU EORI number for free.

❓Q7: Can I use Pan-EU to sell products in the UK?

No. Starting January 1, 2021, the UK is no longer part of Pan-EU. To sell products using Fulfillment by Amazon in the UK and 4 EU countries, you need to send inventory to fulfillment centers in the UK and 4 EU countries, or sell products through the European Fulfilment Network (EFN) between the UK and 4 EU countries.

👉 Sellers in the UK Marketplace can sell products through the European Fulfillment Network (EFN). Click the WeChat article to learn about EFN eligibility requirements.

Have you discovered the hidden gem that is Pan-EU logistics?Expand into Europe’s blue-ocean markets by using the right tools and keeping up with the pace!Amazon will continue to help you expand in Europe easily at a lower cost and provide as much logistics support for your business as we can!