20 Jan Pan-European Program: the Amazon service that allows you to save logistics costs when selling in Europe
● Sellers who sign up for the Pan-European program will let Amazon store and distribute their products in the fulfillment centers in Europe of their choice.
● The goal is to save costs by keeping inventory close to the customer for fast deliveries and with national logistics rates.
Amazon offers the Pan-European program to those Sellers who want to sell their products in Europe in the simplest and cheapest way possible. It is a service for FBA (Fulfillment By Amazon) where the American company itself receives the items and is responsible for storing them in the countries of its European logistics network that sellers choose and distributing them at no additional cost.
What are the benefits of Amazon’s Pan-European program?
The Pan-European program allows brands that want to sell their products in Amazon’s European stores to increase sales and expand the market. It does this by bringing inventory closer to customers in different EU countries to offer them faster delivery times that improve their level of satisfaction.
In addition, for products that are eligible for this program, Amazon applies domestic fulfillment fees, rather than international fulfillment rates, for the country in which the inventory placement service is enabled. In this way, sellers who choose this type of flexible storage can save up to 53% on fulfillment fees.
In terms of taxes, selling in Europe requires you to have a cross-border VAT/VAT number and meet a series of requirements depending on the country in which the products are to be stored. In order to make this task easier for brands that join this program, Amazon makes its own tax services available to them to manage VAT in Europe through its platform.
How does the Pan-European service work for Amazon Sellers?
To benefit from all the benefits offered by the Pan-European program, you must first have a seller account on the marketplace with items fulfilled by FBA. Then, you need to list the eligible products in Amazon’s European stores as needed and enable the countries in which Amazon will store them. Finally, all inventory needs to be sent to the assigned fulfillment center so that they can start distributing it based on customer demand.
Recently, Jeff Bezos’ company has expanded this program to include three additional stores in the Netherlands, Poland and Sweden. However, due to Brexit, their order handling across the UK-EU border has been limited, so sellers will need to send their inventory directly to fulfilment centres affected by the customs border.
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