Fulfilment by Amazon (FBA) has helped millions of sellers grow their business on the platform both at home and abroad. Sellers who sign up benefit from a range of benefits, including the ability to offer customers fast delivery and award-winning customer service. FBA sellers also become eligible to promote their wares to Amazon Prime customers, now rumoured to number in excess of 63 million.
You may already be familiar with Amazon’s European Fulfilment Network program (EFN) if you sell internationally. With this FBA program, a seller’s inventory is stored in fulfilment centres in their home land, with orders shipped from there directly to customers in Europe. EFN gives sellers the ability to provide their local UK customers (including Prime customers) with fast and free delivery – however for overseas European customers this isn’t an option.
To help Amazon sellers keep pace with the increasing demand for speedy delivery the marketplace recently introduced a new FBA programme: Pan-European FBA. Pan-European FBA offers sellers a quick, effortless route to selling to European shoppers in the UK, Germany, France, Spain, Italy, Poland and the Czech Republic.
- Pan-European FBA works by placing your inventory closer to European customers
The Pan-European program combines the ease and simplicity of EFN with the advantage of being able to place inventory close to European customers, in fulfilment centres in the five major European marketplaces: UK, Germany, France, Italy and Spain. With items stocked closer to customers in these countries, Amazon can fulfil orders faster and at a lower cost – plus these items can then become Prime eligible. With Pan-European FBA, sellers also benefit from a reduced fee structure compared to the EFN program- being only required to pay a local fee for the marketplace on which the customer buys their product – with no cross-border fees.
- How does Pan-European FBA work?
Sellers who sign up simply need to send their products to an Amazon FBA distribution centre in the UK (or to whichever of the five European countries you are domiciled in), and Amazon ensures the delivery of these items to its other European FBA centres at no additional cost.
Amazon uses its expert knowledge of customer purchase trends (demand prediction algorithms) to allocate a seller’s inventory across the five European fulfilment centres. Consequently, when orders come in, Amazon can provide speedy, reliable delivery of these products from the location closest to the customer.
- Pan-European FBA: Benefits Overview
– Reduced delivery costs into Europe saving on trans-shipping costs throughout Europe – unlike with Amazon EFR, you only pay local fulfilment fees – with no pay per unit cross-border fulfilment fees.
– Faster and cheaper delivery options to shoppers across Europe (and to the millions of Amazon’s loyal Prime members) in five European countries.
– Top rated customer service on your behalf by Amazon in the local language of five European marketplaces. Amazon also facilitates returns, enquiries and refunds, 24/7, 7 days a week.
– Amazon stocks and distributes items in the country of your choice. If demand fluctuates, Amazon will redirect stock at no extra cost so you don’t need to organise or move stock around manually.
- Are you eligible for Pan-European FBA?
You need to have a European Seller Account to set up Pan-European FBA and your products must be eligible for selling on the five European marketplaces: Amazon.co.uk, Amazon.de, Amazon.fr, Amazon.it and Amazon.es. You then need to create ASINs for your products matching them to the existing ones in the Amazon catalogue – or create a new ASIN. Then enrol your products in the Pan-European FBA program and ship the product to Amazon in the country of your choice. Amazon will position your products in the appropriate European fulfilment centres as close to your customers as possible.
Once you’re up and running you can track your Pan-European FBA offers via the standard reporting features in Seller Central or use ChannelAdvisor’s reporting tools.
- Don’t forget VAT implications
When you use the Pan-European fulfilment program you need to consider the tax implications of selling into each country. This differs from Amazon’s European Fulfilment Network which takes care of this for you. So make sure you get in touch with your tax advisor before deciding which countries to sell into. Amazon has some – helpful information here.
Want more e-commerce expertise? ChannelAdvisor is hosting its annual Catalyst Europe event in Manchester on 16 May 2017. Check out the Catalyst Europe website to book your tickets.