Amazon offers three primary fulfillment models for sellers operating in Europe:
1. Pan-European FBA
How It Works: Sellers store inventory in one or more Amazon fulfillment centers across Europe, and Amazon distributes the inventory to other locations based on demand.
Benefits:
Faster delivery times for customers.
Local fulfillment fees apply when inventory is stored in the destination country.
No additional cost for inventory distribution.
Considerations:
VAT compliance is required in each country where inventory is stored.
Oversize items may incur surcharges.
2. European Fulfillment Network (EFN)
How It Works: Sellers store inventory in their home country's fulfillment center, and Amazon fulfills cross-border orders to other EU marketplaces.
Benefits:
Simplified inventory management (single storage location).
Access to customers across all EU marketplaces.
Considerations:
Cross-border fees apply for orders shipped outside the home country.
Longer delivery times for cross-border shipments.
3. Multi-Country Inventory (MCI)
How It Works: Sellers manually send inventory to fulfillment centers in multiple countries, allowing for local fulfillment in each marketplace.
Benefits:
Local fulfillment fees apply for sales in countries where inventory is stored.
Greater control over inventory distribution.
Considerations:
Requires sellers to manage inventory forecasting and replenishment.
Cross-border fees apply for sales in countries without local inventory.
Comparison Table:
Model | Storage Locations | Fees for Local Orders | Fees for Cross-Border Orders | VAT Complexity |
---|---|---|---|---|
Pan-European FBA | Multiple (auto-distributed) | Local fees | No additional cost (auto-distributed) | High |
EFN | Single (home country) | Local fees | Cross-border fees | Moderate |
MCI | Multiple (seller-managed) | Local fees | Cross-border fees | High |
For more information, visit the FBA Rate Card.
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