Pan-European is a cross-country shipping plan launched by Amazon for FBA in five European countries (UK, Germany, France, Italy, Spain, Poland and Czech Republic). Sellers participating in the Pan-European plan can place their products in the FBA warehouse of any of the five European countries and publish product listings that meet the requirements in the five sites. When an order is placed, Amazon will arrange for pickup, packaging, delivery and customer service. If you use this service, sellers need to pay the corresponding product storage fees, platform service fees and delivery fees.
Operation of the Pan-European Plan
You can upload listings in five countries separately, using the same ASIN code SKU. You can also create listings in five EU sites separately, using the same ASIN code SKU.
Conditions of a pan-European plan
1. The product itself meets the Pan-European standard (the backend shows that it meets the conditions)
2. All five sites have active offers (you can synchronize first and then create Pan-European)
3. Have FBA inventory in one country
4. The ASIN information on the five sites is consistent, including SKU, UPC, labeling or no labeling.
Advantages of a pan-European scheme
1. Save costs. Shipping to any country saves on logistics costs and does not require cross-border charges.
2. Reduce the hassle of shipping and inventory in multiple countries.
3. VAT tax number issue means that you only need to deal with the VAT of the country where the inventory is located
Theoretically, it perfectly avoids VAT payments in multiple countries, which is also acknowledged by Amazon, but in fact it has flaws. VAT has already been proposed by the UK after Brexit and various countries are now raising VAT. There are precedents. Suppose you sell from the UK to Germany, but Amazon may actually have inventory in Germany and ship it there. If you are caught, you will still have to pay a fine and VAT in Germany. There is a certain probability of this.
Received VAT emails from five countries:
1. If you have opened a Pan-European bank or used a local warehouse, you must bind the local country VAT according to regulations.
2. If you have only used a warehouse in a certain country and have exceeded the remote sales limit, you will also need to bind the local country VAT and will be required to pay back.
3. All goods are shipped by ourselves, which is not illegal, but there is no guarantee that you will not be asked to provide VAT
4. August 31 is coming. If you are not going to process VAT, you can clear your positions if you can, and follow the sales if you can, to reduce the risk.
