As part of the FBA program, Amazon offers several options for storing goods in European warehouses. Previously, we discussed the European Fulfillment Network (EFN) program. This is a convenient solution for those just entering the EU market. However, this model limits delivery speed and can increase costs.
For more experienced sellers looking to expand their international presence, Amazon offers the Pan-European FBA program. This program automatically distributes products across various European warehouses, ensuring fast and cost-effective delivery for customers. In this guide, we will take a detailed look at how Pan-European FBA works, its benefits, and how to join the program.
- 1. What is the Pan-European FBA Program?
- 2. How Does Pan-European FBA Work??
- 3. Advantages and Disadvantages of Using the Pan-European FBA Program
- 4. Pan-European FBA Fees
- 5. When Can Pan-European FBA Be a Beneficial Solution?
- 6. How to Start Selling Through the Pan-European FBA Program?
- 7. Taxes and Legal Requirements for Selling on Amazon through Pan-European FBA
Pan-European FBA is an Amazon program that allows sellers to store their products in multiple fulfillment centers across Europe simultaneously. This is a great opportunity to offer customers faster and more affordable delivery without additional cross-border fees. The FBA service fees are calculated based on the local rates of the country where the product is stored, which helps reduce logistics costs.
Pan-EU covers 8 Amazon marketplaces in Europe:
- Germany
- France
- Italy
- Spain
- Poland
- Netherlands
- Sweden
- Belgium
Until 2021, the program also included the United Kingdom. However, after Brexit, it became unavailable for Pan-European FBA. Now, to sell products between the EU and the UK, you either need to send inventory separately to UK warehouses or use remote fulfillment via FBA.
One of the mandatory requirements for participating in Pan-European FBA is VAT registration in all countries where Amazon will store your inventory.
So, Pan-European FBA is a service that provides access to a broad European audience and simplifies inventory distribution. As a participant in the program, all you need to do is send your products to one of Amazon’s fulfillment centers in Europe. The marketplace will then analyze demand for your products and automatically redistribute them among warehouses across the EU.
This ensures that your products are stored close to potential customers in each region. As a result, customers benefit from faster delivery, and you get a higher chance of increasing sales thanks to improved logistics.
Let’s take a step-by-step look at how this process works:
- You send your products to one of Amazon’s distribution centers in the EU.
- After receiving the products, Amazon’s system automatically analyzes sales history, current demand, and seasonal trends for each item in different European regions. Based on this analysis, the marketplace independently distributes inventory across its fulfillment centers in various European countries. For example, if a particular product model is in high demand in France, a portion of the stock will be automatically relocated to French warehouses.
- It is important to note that inventory redistribution between warehouses happens dynamically and is continuously adjusted based on changing demand. For example, before the holiday season, the system may proactively move more products to countries where peak demand is expected.
- At the same time, the seller retains full control through a unified dashboard, which displays information on stock levels at each warehouse, inventory movements, and projected demand. This allows for timely restocking and optimization of the product assortment for each regional market.
- When a customer from any European country places an order, the system selects the nearest warehouse with the available product. This ensures the fastest and most cost-effective delivery possible.
Pan-European FBA offers sellers new opportunities to expand into the European market but also requires consideration of additional factors. Let’s take a closer look at its key advantages and disadvantages.
Advantages of Pan-European FBA:
- Simplified logistics: You only need to send your products to one Amazon warehouse in Europe, and the marketplace will handle the distribution across its fulfillment centers. This eliminates the need to manage inventory in multiple countries manually.
- Access to all European Amazon marketplaces: With Pan-EU, your products will be available across all Amazon platforms in the EU, giving you access to customers in 27 European countries.
- High delivery speed: Products are stored close to customers, reducing shipping times and ensuring faster order fulfillment.
- Reduced logistics costs: No matter which EU country the product is shipped to, you pay FBA fees based on the local rates of the country where your inventory is stored. Amazon does not charge cross-border fees, making delivery more cost-effective compared to standard cross-border trade models.
- Access to Amazon Prime: If your product is part of the Pan-European FBA program, it automatically qualifies for Amazon Prime. This increases buyer trust, boosts product visibility, and enhances sales potential.
Disadvantages of Pan-European FBA:
- Mandatory VAT registration in storage countries: To participate in the program, you must register for VAT in all countries where Amazon stores your inventory. This involves additional time and financial costs.
One of the key advantages of the Pan-European FBA service is that orders are subject to local fulfillment fees rather than international ones, as is the case with EFN. This significantly reduces shipping costs. However, it is essential to consider all associated expenses. The total service cost consists of several types of fees:
4.1 Order processing fees
Pan-European FBA fulfillment fees depend on the type of product, its size, and its weight. These fees are charged each time Amazon processes an order for your product, covering packaging, preparation, and shipping to the customer. Since products are distributed across various EU countries and stored closer to end consumers, Amazon applies local fulfillment rates, making delivery more cost-effective compared to cross-border shipments.
4.2 Monthly storage fees
Storage fees in the Pan-EU system depend on the location of the FBA warehouse and the season and are calculated based on the occupied space (per cubic meter or cubic foot per month). Higher rates apply to items stored for more than 365 days. These fees are charged in addition to standard monthly storage fees and apply to each unit that exceeds the storage duration limit.
4.3 Fees for additional FBA services
In addition to the standard fulfillment and storage fees, Amazon may charge additional fees for various product-handling operations that fall outside the standard FBA conditions. These may include:
- Labeling
- Bagging
- Bubble wrapping
- Taping
- Packaging in opaque bags
4.4 Inventory removal fees
If you need to remove products from the Pan-European FBA inventory pool, you will be charged a removal fee. The cost of inventory removal varies depending on the country where your products are stored, as well as the volume and type of goods you wish to retrieve. The removal fee applies regardless of the physical location of the inventory at the time of return. Fees are determined based on the country where you are registered.
Pan-European FBA is better suited for established businesses selling at least 1,500 units per month. At this scale, the savings on logistics and delivery times significantly outweigh the additional administrative costs. Smaller businesses may find that expenses related to tax compliance across multiple jurisdictions consume a large portion of their operational profit. For such sellers, it is advisable to start with the EFN program and transition to Pan-EU as their business grows.
One of the key advantages of the program is optimized logistics. Products stored in Amazon’s European warehouses are delivered to customers at local rates rather than international shipping rates. This is especially beneficial if your product range is consistently in demand across multiple EU countries and you want to offer Prime delivery without additional costs.
It is important to assess your capabilities in advance and calculate all costs related to tax administration and compliance with local regulations. This will help you determine whether participating in Pan-European FBA will be profitable for your business in the long run.
If you plan to expand your business into the European market using Pan-European FBA, you need to go through several steps. These steps will help you properly set up your account and inventory, as well as efficiently manage sales across various Amazon marketplaces in Europe.
STEP 1. If you don’t have an account yet, register on Amazon Seller Central and gain access to the necessary tools for working with the FBA program. If you already have an account, simply log in.
STEP 2. Register for VAT in the countries where your goods will be stored. This is one of Amazon’s mandatory requirements for participating in the Pan-European FBA program. The process may take some time, so it’s best to take care of registration in advance.
STEP 3. Before enrolling your products in the Pan-EU program, check whether they meet the requirements for sale in EU countries. You can do this using the ASIN report, which will show which products are eligible for FBA.
STEP 4. If your product is already listed in the Amazon catalog, match it with an existing ASIN. If the product is not yet available, create a new ASIN to add it to the catalog and start selling through FBA.
STEP 5. Go to the Fulfillment by Amazon settings in Seller Central and activate Pan-European FBA.
STEP 6. To ensure proper inventory distribution and processing at Amazon’s warehouses in different countries, create FBA listings with the same FNSKU (Fulfillment Network Stock Keeping Unit). Make sure the product labeling is consistent across all marketplaces to avoid errors in order processing.
STEP 7. Register your products in the Pan-European FBA inventory pool. This will allow Amazon to efficiently distribute your inventory across fulfillment centers throughout Europe.
STEP 8. Once your products are registered in the Pan-European FBA program, you need to ship them to an Amazon fulfillment center in the EU. The marketplace will automatically distribute the inventory across warehouses to ensure fast delivery to customers in different regions.
STEP 9. Once your products have arrived at the warehouses, you can start selling. Monitor your sales, inventory, and access detailed reports in Seller Central to maximize the benefits of the Pan-European FBA program.
Pan-European FBA involves the movement of goods between EU countries. In most cases, such movement is considered a taxable transaction, meaning you must register for VAT in all countries where your goods are physically stored. In practical terms, this means you will need to obtain VAT numbers in at least two European countries simultaneously.
If you fail to do this, you risk facing:
- Account suspension by Amazon. The marketplace may suspend your account or restrict access to Pan-European FBA if it detects inconsistencies in your tax reporting.
- Inspections by European tax authorities. Tax authorities may conduct an audit of your activities, leading to additional costs.
- Fines and penalties. EU tax authorities may impose significant fines for failure to register and late VAT payments.
Successful operation with Pan-European FBA also requires a deep understanding of all EU-wide regulations governing ecommerce. For importing goods into the EU, for example, you will need an EORI number, without which you won’t be able to clear your goods through customs. If you sell products in Germany or France, you must also register with packaging recycling systems—LUCID in Germany and CITEO in France. For selling electronics and household appliances, registration in the WEEE registers is mandatory. Failure to comply with these requirements may result in account suspension, legal liability, customs delays, or even a complete refusal to import goods into the EU.
Fulfillment-Box offers a full range of services for sellers operating under the Pan-European FBA program. We assist with logistics, storage, and ensuring your products comply with Amazon’s policies, as well as handling all legal aspects of doing business in Europe. Our experienced team provides comprehensive support at every stage, ensuring the stability and security of your sales in European markets.
Get in contact with Fulfillment-Box
Our managers will answer any questions you may have





