Is what we breathe and has been in our family for generations. We have been in e-commerce since 2012 and still, it took us wakeful nights and
Are you selling on Amazon Europe, or planning to in future? In essence, you can choose from two options for warehousing and dispatching your products. These are Fulfillment by Amazon (FBA) or Fulfillment by Merchant (FBM). Here, we’ll take a look at the advantages of Amazon FBA.
Fulfillment by Amazon (FBA) is a service offered by Amazon. Essentially, it allows sellers to store their products in local Amazon warehouses around the globe.
Your products remain in these Amazon warehouses until a customer orders one from a nearby location. At that point, the product is dispatched from whichever Amazon warehouse is closest to the customer.
This ensures that customers receive their orders as quickly and smoothly as possible. Moreover, Amazon customers trust FBA delivery.
Most importantly, Amazon takes care of the entire logistics process. However, sellers do need to pay an Amazon FBA fee on each product sale. In addition, sellers need to manage taxation procedures for themselves.
All Amazon sellers need to ensure they register for VAT with their relevant local tax authorities. Sellers must also submit their tax returns as required.
As an Amazon seller, you’ll need a minimum of one complete VAT registration to sell your products on the platform. You’ll also need to submit regular tax returns that include your VAT data.
If you expand onto various Amazon Europe platforms, you may need to organise additional VAT numbers.
As such, it’s each seller’s responsibility to regulate their own VAT registration, not Amazon’s. As of January 1 2019, Amazon is liable for any VAT fraud committed by sellers on its platform. In order to try to avoid this liability, Amazon now requires sellers to submit a VAT F22 form.
This form waives Amazon’s liability for seller VAT fraud on the platform. In addition, it allows the relevant authorities to access all sellers’ sales data history. You can find out more about Amazon VAT here.
Below, we’ll outline the advantages and disadvantages of these various Amazon fulfillment options. That way, you can easily choose the right one for your products.
It’s important to note that each fulfillment option carries its own tariffs and obligations. As a result, it’s vital to choose the one that best suits your company’s current scale and turnover. Then, you’ll be set to effectively boost your sales.
EFN lets FBA sellers store their products in Amazon warehouses within one European country. From there, the products are sent out to fulfill national and cross-border orders across Amazon’s European marketplaces.
Fundamentally, EFN simplifies inventory management. By keeping all products in one local inventory pool or Fulfillment Center, EFN optimises product control and flexibility.
As a seller, you can list products for sale across all Amazon’s European marketplaces using a single seller account. Due to this, EFN is best for sellers with a turnover of less than 500 units per month.
The CEP allows sellers to store their products in Germany, Poland and the Czech Republic. It’s best for companies with turnover between 500 and 1500 units per month.
If you’re already selling your products on Amazon’s platform in Germany, the CEP could be a handy expansion option.
Pan-EU FBA is a worthwhile option for sellers aiming to reach as many European customers as possible. Primarily, it offers low-cost, rapid deliveries.
With this FBA option, sellers deliver their products to a local fulfillment center. Then, Amazon manages the rest of the logistics chain. First, inventory is delivered across its Europe-wide network based on predicted local customer demand. Then, once actual orders come in, these are fulfilled from the closest Amazon warehouse.
Pan-EU FBA is the best option for large volume sellers on Amazon’s European marketplaces. As a result, it best suits sellers with turnover of over 1500 units per month.
Fundamentally, the choice between Amazon’s EFN, CEP or Pan-Eu network will depend on your average monthly turnover (< 500 for EFN, 500 – 1500 for CE, 1500 < for Pan-EU).
Is what we breathe and has been in our family for generations. We have been in e-commerce since 2012 and still, it took us wakeful nights and
Is what we breathe and has been in our family for generations. We have been in e-commerce since 2012 and still, it took us wakeful nights and
Is what we breathe and has been in our family for generations. We have been in e-commerce since 2012 and still, it took us wakeful nights and