Just like in the US, Amazon offers their FBA program in Europe and the UK. That means that you can ship your inventory to an Amazon warehouse in Europe and they will handle order fulfillment for local customers. This means that you can access millions more Amazon customers, and continue to leverage the operational simplicity of the FBA program.
So how does it work? Let’s answer some frequently asked questions from Sellers about Amazon FBA in Europe.
Once your inventory has been imported into Europe and is with Amazon, there are two fulfillment options to choose from - European Fulfillment Network (EFN) or Multi-Country Inventory.
EFN allows sellers registered for FBA in Germany, France, Italy and the UK to store their inventory in one country’s Fulfillment Centre, and still fulfill orders throughout Europe, regardless of the marketplace the item was sold on. Alternately you can arrange to have inventory held and shipped from FC’s in individual countries, known as Multi-Country Inventory.
Once your Amazon Europe Seller account is set up, all your orders will be managed in the one Seller Central account.
When you register to sell in any of the Amazon European marketplaces, your seller account is automatically enabled to allow you to sell in all other Amazon European marketplaces.
However, this does not automatically create listings in each of the Amazon European marketplaces - you need to set each listing up individually on each marketplace.
But finally, good news! You can still view Seller Central in the local marketplace language of your choice, as well as in English.
Yes. Using FBA will require importing your products to another country for storage in an Amazon fulfillment center to sell them to customers in that marketplace.
To import products into the UK or Europe, you’ll be paying import taxes and duties upon arrival. Your shipping carrier may assist with this process. You’ll also need to apply for an an Economic Operator Registration and Identification Number (EORI) in order to import your goods.
Tip: Your company (or your freight forwarder) needs to be listed as importer/consignee and nominate a customs broker. Do not import goods as "Amazon" or to show Amazon as the declarant, importer of record or consignee!
Inventory sent to Amazon’s fulfillment centers needs to be sent under “Delivery Duty Paid Destination” freight terms with all relevant import duties, import VAT and other taxes paid by you. If inventory arrives at Amazon with unpaid taxes or duties, it will be returned at your (predictably exorbitant!) expense.
Yes. You must collect and pay VAT if your inventory is sent to and held in the EU. Amazon will require a VAT number from you to complete your account registration.
VAT can be avoided only if items are sold from outside the EU, are genuinely low-value and are imported in small packages already addressed to individual consumers. And in that case, you’ll probably be either paying hefty international shipping fees or having to pass that onto your customers, inevitably resulting in less sales or profits for you. Sometimes the end customer is even sent a bill by the customs authorities for the import duties. Not a good customer experience!
Best to buckle up and invest properly in being compliant in this new potential market. For that, you might want to consult a professional firm that specializes in VAT applications and ongoing reporting on your behalf.
VAT, or Value Added Tax, is a consumption tax which applies to goods and service that are bought and sold for use or consumption in the EU.
As a seller, you collect the applicable VAT (currently the standard rate is 20%) from the buyer at the point of sale. You’re then required to forward on the VAT payment to the relevant country’s revenue authority on specific dates.
If you’re familiar with Sales Tax in the US, this concept may be familiar.
So, it can be a long journey to get started on Amazon in Europe, but from many accounts it is well worth it. We’ll cover in more detail Why Selling On Amazon in Europe is Worth the Hassle.