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September 29, 2021

Amazon FBA in Europe: Your Strategy to Start Selling

Selling on Amazon Europe allows smaller businesses to access millions of shoppers across Europe. As a result, it’s an increasingly popular option for independent sellers looking to increase their brand exposure. To guarantee success, it’s key to find the best e-commerce marketplace for your products

Getting started with Amazon FBA 

Fulfillment by Amazon (FBA) is widely used by independent Amazon sellers. With FBA, Amazon handles all the logistics of storing and dispatching your products. 

In addition, you can use Amazon’s customer service. You’ll also be able to sell to Amazon Prime customers. Depending on which type of FBA you choose, you can also benefit from lower shipping fees

So, which European marketplace is best to start on? This will depend on 2 key factors: 

  • The type of product(s) you sell
  • Your target market(s) 

For many sellers, it makes sense to start on Amazon’s marketplaces in the UK or Germany

Starting to sell on Amazon in the UK

Amazon’s UK marketplace is a handy starting point for sellers who are based in other English-speaking countries: 

  • No need to translate your product listings
  • Start out feeling in control of your supply chain

Important: keep a close eye on how Brexit negotiations develop. This may affect cross-border delivery policies and fees. 

Starting to sell on Amazon in Germany

Germany is one of Amazon’s largest European marketplaces. This brings significant advantages for sellers on the platform:

  • Access to around 83 million potential buyers
  • High consumer purchasing power
  • Short delivery times

Due to its central location within Europe, Germany is within easy reach of the countries where Amazon operates. As a result, it’s a practical option for starting to sell your products in Europe. 

Store your inventory in Germany and you’ll benefit from quick cross-border delivery times to customers living in other European countries. 

Should you sell on smaller Amazon marketplaces?

Amazon’s larger marketplaces (such as Germany and the UK) will give you access to huge numbers of customers. 

However, it’s worthwhile considering starting out on smaller Amazon marketplaces, too. These include the Netherlands and Sweden.

In Amazon’s smaller marketplaces, you might discover niche selling opportunities. You could also benefit from lower levels of required inventory investment

Expanding across Europe will allow you to sell your podcasts to millions more customers across Europe. As a result, your turnover can grow significantly! 

To achieve this, you’ll need the right expansion strategy. This means looking into the various types of FBA that Amazon offers its sellers: the European Fulfillment Network (EFN), the Central Europe Program (CEP), Pan-European (Pan-EU) FBA and Multi-Country Inventory (MCI)

Types of Amazon FBA: which is right for you?

Choosing the right FBA option for you will depend on your turnover. For more detail, you can check out our posts on Amazon’s different FBA types. 

For now, we’ll outline the key differences between 2 of Amazon’s FBA options: the EFN and Pan-EU FBA. 

European Fulfillment Network (EFN) 

Plus points:

  • Store inventory in one of Amazon’s 7 European marketplaces
  • Germany, the UK, France, Spain, Italy, the Netherlands, Sweden 
  • Only 1 VAT number required
  • For the country where you store your inventory in Amazon Fulfillment Centers
  • List your products on all Amazon’s European marketplaces 
  • Using 1 Seller Account 
  • Easy inventory management

Minus points:

  • Longer delivery times to customers in other countries
  • Higher cross-border fees

Pan-European (Pan-EU) FBA

Plus points:

  • Store inventory in up to all 7 of Amazon’s European marketplaces
  • List your products on all Amazon’s European marketplaces
  • With higher product visibility thanks to Amazon Prime 
  • Even easier inventory management
  • Manage your stock more efficiently 
  • Rapid delivery to customers across Europe
  • Pay local fulfillment fees only
  • Higher profit potential

Minus points:

  • Multiple VAT numbers required
  • For each country where you store your inventory in Amazon Fulfillment Centers
  • More complex setup (VAT compliance, and so on)

Starting to sell on Amazon: key pointers

To succeed on Amazon, you should focus on optimising your seller setup

Choose your first marketplace strategically. Then, select the FBA type that best suits your business. As you progress, you can update your FBA option as your turnover grows. 

It’s also important to cultivate a positive relationship with your buyers on Amazon. An important part of this is ensuring efficient delivery and returns. Opting for Amazon FBA will take care of those logistics for you! 

This will help you to gain positive ratings and reviews for your products, which will help to grow your business. 

Keen to increase your Amazon sales across Europe? Get in touch with the Sawa team. 

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