If you’ve heard about the European fulfilment network for Amazon sellers, then you’re probably aware of Amazon’s global program and FBA services. Becoming a global seller on Amazon is not an easy task and this undertaking comes with its own set of problems. Selling your product in an international market can be intimidating, however, with the help of Amazon FBA and Amazon Global services, this process has become a tad bit simpler. If you’re planning on selling your products offshore, there are three basic types you can consider.
European Fulfillment Network (EFN)
With European Fulfillment Network (EFN), you ship your products to Amazon’s fulfilment centre, which will then be held in one country. Once an order is placed by a customer, the items will be picked, packed, and shipped by Amazon. You pay only local fulfilment fees on domestic orders. With Amazon’s EFN Network, you can sell on Amazon’s other European marketplaces with cross-border fees.
With Pan-European FBA, you ship your products to Amazon’s fulfilment centre in your home marketplace. The order fulfilment process is done by Amazon. Amazon distributes your products throughout Europe based on anticipated demand without any cross-border fees. You can also save up to 52% in fulfilment fees.
Multi-Country Inventory (MCI)
With Multi-Country Inventory (MCI), you can choose which countries you want to ship and store your products. You have to pay local fulfilment fees for sale in the marketplaces you store products. With Multi-Country Inventory (MCI), you can sell on other marketplaces too with cross-border fees.
European Fulfillment Network
Typically, sellers can choose between FBA & FBM while deciding on the kind of carrier they want to choose for boarding their products offshore. EFN is part of the Amazon FBA program that dictates Amazon cares for the transport and delivery of your packages using one of its local warehouses. If you have a European marketplace seller account that’s registered under FBA, you can store your inventory in Amazon’s warehouses (also known as fulfilment centres), across Europe, and manage orders coming in from your European marketplace using the same local inventory pool.
The reason why EFN is beneficial is that it keeps your stock stored in a single space, also known as the local pool, in a single fulfilment centre so that you gain maximum control and flexibility for marketing your goods. Now if you’re planning on selling your goods in a certain country in Europe, EFN allows storage of inventory in multiple fulfilment centres in one country to complete your local and trans-border orders. There are precisely only seven countries that allow the storage of goods within their fulfilment centres.
- United Kingdom
- Czech Republic
Pay Cross Border EFN fees
When you sell your products to customers of other marketplaces via the European Fulfillment Network (EFN), you have to pay a cross-border fee for each order shipped. Let’s say for example you want a 600g Standard Parcel (non-media item) product across all five European marketplaces and ship your inventory to UK fulfilment centres. The cross-border EFN fee would be €4.39 for orders placed on amazon.de, amazon.fr, and amazon. it, and amazon.es.
|Standard Parcel 600g Fulfilment Fees||Sale on amazon.de||Sale on amazon.fr||Sale on amazon. it||Sale on amazon.es|
|Fulfilment fee for EFN (fulfilling amazon.de, amazon.fr, amazon. it, amazon.es orders from UK inventory pool)||€4.39||€4.39||€4.39||€4.39|
There is no need to separately register for Amazon EFN because you automatically get this service under the FBA program but it’s important to choose your marketplace. Whichever European marketplace you select enables you to use EFN for all marketplaces as your listings are uploaded with the same SKU. What’s the benefit you ask? Single VAT number that eliminates financial stress for a chunk of your inventory. EFN gives you the flexibility of enlisting your products on all European marketplaces under a single VAT number and you also become applicable for Prime status. The storage fees are higher and it’s apt for a small business, however, if you’re thinking large scale, there are better options under FBA for selling your goods in the international market.
But just like the EFN has its benefits, it comes with a set of disadvantages.
EU) 2019/1020 Regulation needs most non-EU businesses to have an authorized representative located in the EU. You can read more about this here, a full guide on having an Authorized Representative by Instrktiv.
FBA European fulfilment network functions under Amazon, which means you don’t need to worry about setting up your inventory at the warehouse or supervising third-party logistics. However, the downfall is that you will need to pay cross-border fees applicable from the home country to other shipping countries, which can weigh down on your expenditure.
While EFN provides fast shipping in Europe, it might take three more days for the shipment to get delivered if your product is to be delivered outside the home country. You must also have a VAT registered number in your home marketplace to be applicable for EFN. Though this option offers Prime delivery, fast shipment works when you’re delivering your product within your home. However, EFN is an excellent option to consider since FBA fees are much lower as compared to using third-party logistics services.
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