In my last blog post, I talked about the benefits of Selling on Amazon in Europe and touched on the “Fulfilment by Amazon” programme (FBA). FBA offers sellers numerous benefits involving fulfilment and customer service and it also allows them to offer next day delivery to Amazon Prime customers (there are rumoured to be over 63 million active Prime users, but Amazon themselves are very secretive about this number).
In this post I will go into more detail about Amazon’s newest FBA programme:
Pan-European FBA is Amazon’s latest introduction to the already well-established FBA programme. In a nutshell it offers sellers a quick and easy route to fulfilling orders throughout Europe and access millions of shoppers in the UK, France, Germany, Italy, Spain, Poland & the Czech Republic.
Pan-European FBA works in a similar way to Amazon’s European Fulfilment Network (EFN), where inventory is stored locally and then shipped cross-border.
The difference with Pan-European FBA is that the seller only pays a local fulfilment fee with no cross-border fulfilment fee. (See costs below).
Another huge advantage for sellers is that Amazon manages your inventory for you, deciding which Fulfilment Centres your inventory will be stocked in.
How does Pan-European FBA work?
Sellers must sign up to the Pan-European FBA programme via Seller Central and then the process is the same as the previous FBA programmes. You will only have to send your inventory to Fulfilment Centres in your own country – greatly reducing your costs and simplifying the logistics.
Once your inventory has arrived at Amazon’s Fulfilment Centre, they will decide where it will be best placed based on customer purchase trends and demand algorithms. Once the inventory is placed throughout Europe, customers will be able to access Amazon’s world famous fulfilment service, receiving your products more quickly. It is also worth remembering that when you use FBA, Amazon handles the customer service element in the customer’s local language.
So in all it seems like an excellent programme for sellers, offering reduced fulfilment costs, better delivery options throughout Europe, customer service handled for you and automated inventory management .
Please note that if you use Pan-European FBA, you are responsible for any VAT implications of selling into a country – more information can be found here.
Don't forget that to succeed with this programme you will need well translated, high quality listings on all Amazon marketplaces, which is what Clarity E-Commerce Translation specialises in, so get in touch with us and we can help you manage your cross-border expansion.