Selling in Europe: At a Glance
Brexit has brought enormous changes to how Amazon sellers in the UK and Europe conduct business. It has created new trade barriers and more complicated regulations for VAT.
Amazon has tried its best to make the global selling process easier but sellers are still struggling to make sense of all the recent changes.
This is where FBU Solutions come in.
We have been working tirelessly to find you a simple, and cost-effective solution to begin selling to more than 300 million European customers.
Our step-by-step guide will walk you through how you can begin conquering an expanding Amazon EU market. Don’t let your brand stop at home, go global!
How do you plan to fulfil and grow your business in Europe?
This is the crucial question for all expansion-hungry sellers, and perhaps the hardest of them all.
Where do I fulfil my orders? What is the cheapest method? Which will benefit my brand image?
All very valid questions, and often a minefield in knowing where to get started.
Each has its benefits and drawbacks for your European expansion on Amazon. It will all depend on your business size, inventory, product type, and even your cash flow.
Nobody should have to suspend their European ambitions due to budget or perceived limitations. Find out what works for you below!
Method 1: PAN-EU (Pan-European)
This is the preferred fulfilment method for customer convenience. It means you can get Amazon’s prime badge on your listings which allows for one-day delivery.
It also means Amazon will distribute your inventory based on sales data, to different territories and fulfilment centres. However, this only applies if you signup for 4 or more territories.
If you decide to sell in only 2 territories, you can still take advantage of the Pan-EU Program. However, you must send it directly to that country for storage and fulfilment.
Method 2: EFN (European Fulfilment Network)
EFN is the basic level, European fulfilment option. It gives Amazon the option to sell your stock to European customers at their expense.
EFN is also subject to longer delivery times which is not great for building a strong brand in Europe. However, EFN does save you on VAT reporting and the monthly fees that pan-EU and formal registration bring.
In effect, you are not the seller, Amazon is in this case, and they will deal with the shipping costs.
Method 3: 3PL (Third Party Logistics)
This is slightly more complicated and does involve a much more hands-on approach. You send your inventory to a non-amazon fulfilment provider in the EU of your choosing.
Essentially, it means VAT, import, and export will be covered by you, the shipper, and your chosen 3PL. Amazon is simply the medium in which you list, promote and update your products.
Things are really that simple and you can find a fulfilment method that works for you and your budget. European expansion is not just reserved for the giants when it comes building a strong brand.
Is your business compliant and ready to sell in Europe?
But have no fear because it is always much more complex when looking from the outside. That is why we’re going to let you in on the secrets to simplifying the process and start selling in the EU, hassle-free.
The 4-Key Requisites
Number 1: VAT & Tax
VAT has been a nightmare for many potential PAN-EU sellers but thankfully, the process can be made simpler.
Amazon offers you the chance to use one of their partnered tax providers. Although you can seek out your own provider, then enter the details on seller central.
FBU would always recommend Taxually for VAT compliance. Having both UK and EU VAT registration for all territories you wish to sell in, will make the process smoother. Failure to comply can get you in big trouble.
As demand for EU expansion grows, costs are going down for compliance. Do not fear the complicated bureaucracy that VAT supposedly brings.
Number 2: EORI Numbers
You must now obtain not 1, but 2 EORI numbers. These are essentially your import and export certifications that allow you to ship across borders.
1 EORI for the UK and 1 for the European Union is all you need to get compliant. This will allow you to ship your products smoothly without customs calamities.
FBU has plenty of experience in obtaining EORI numbers. Seasoned in the European expansion, we will point you in the right direction to get that process moving.
Number 3: EPR Registration
EPR is new environmental packaging legislation implemented by the EU. Amazon now requires UK and EU sellers to pay a yearly fee and a weight-based levy for all packaging that enters its territory.
This is your responsibility to get compliant and pay the costs. Amazon will restrict your listings if you cannot pay the fees. It is essential you add the EPR numbers on Seller Central once done.
Currently, EPR applies to France and Germany only. However, compliance requirements are always growing and changing so you must remain up-to-date.
Our team of Amazon experts will be more than happy to guide you through the process. Recommending you multiple EPR providers, to help you get started, no matter your budget.
Number 4: SDS Sheets
Having the safety data sheets for any potentially dangerous products will always be an important step to selling on Amazon. This is still crucial for selling in the European Union, if not more important.
Translate your existing safety data sheets before you begin your Pan-EU venture. This will put you ahead of the curve before you even begin selling in the EU market.
It is the worst feeling to wake up and see inactive listings because you missed out on crucial compliance procedures.
Assess your Needs and Product Viability in the EU
Nobody ever said selling in a new market would be easy. Different countries have different consumer tastes and you should be prepared for that.
Market research is then a must when it comes to Amazon. So, understanding the volume and type of traffic that makes its way to a specific keyword is essential.
This can be the difference between success and failure when launching a new product. Not just on Amazon, but anywhere in the world.
The 4-Step Process
- Choosing which products you want to sell and how you are going to categorize them.
- Working out your pricing and how you want to position yourself. Allow for different levels of national income and currency conversions.
- Translating your current product listings, graphics, and Amazon branding to the language of the markets you are aiming for.
- Picking an entry time that works for your products. Time of year and seasonality are very important when expanding into a new market. Things are no different when undertaking European Expansion.
Let our in-house experts guide you through the European expansion process.
Conclusion – Europe is Waiting for You!
Just last week, Amazon launched in Belgium, so being able to sell to a larger market is constantly expanding. Be a part of this momentum that doesn’t seem to be letting up.
More customers every day are turning to Amazon’s coveted prime services and ever-increasing convenience.
Taking advantage of the European market will be an enormous next step for your business or brand. Not many brands have so far taken that leap but you can be a pioneer if your vision wills it.
Are you ready to get started?
Let us do the rest and get your free FBU Amazon audit today