Once you decide to sell across Europe, the next big question is how your inventory gets to customers. Amazon gives you a few fulfilment models, and the one you choose affects your fees, delivery speed, and — crucially — your VAT and compliance workload. Here’s how to pick.
The four options in plain English
- European Fulfilment Network (EFN): you store stock in one country and Amazon ships it to customers all over the EU from there. Simplest setup, fewest VAT registrations — but higher per-unit cross-border fees and slower delivery to distant countries.
- Pan-European FBA: you send stock to one country and Amazon redistributes it across fulfilment centres in multiple countries, so every order ships locally. Lowest fulfilment fees and fastest Prime delivery — but you must be VAT-registered (and EPR-registered) in every country where your stock is stored.
- Multi-Country Inventory (MCI): like Pan-EU, but you choose which countries to send stock to, giving you more control over where you take on obligations.
- Merchant-Fulfilled (FBM / Seller-Fulfilled Prime): you hold and ship inventory yourself.
The real trade-off: fees vs compliance
This is the heart of the decision:
- Pan-EU gives you the lowest fees and best delivery speed (which helps conversion and Buy Box), but the most VAT and EPR registrations to maintain.
- EFN gives you the simplest compliance (often a single VAT registration to start), but higher fees and slower cross-border delivery that can dent conversion in far markets.
Remember: switching on Pan-EU without registering for VAT and EPR in the new storage countries is one of the most common ways sellers get suspended. Never let Amazon place stock somewhere you’re not registered.
Which should you choose?
- Just entering Europe / testing demand? Start with EFN from your home marketplace. Keep compliance simple while you validate the market.
- Proven sales and want to scale margins? Move to Pan-EU (or MCI for your best few countries) — but get the VAT and EPR registrations in place first.
- Fragile, oversized or slow-moving products? MCI or FBM may control costs better than spreading inventory everywhere.
A practical path many brands use: launch on EFN, prove the numbers with a tool like our profit & break-even calculator, then graduate the winners to Pan-EU once the compliance is set up.
Frequently Asked Questions
What is the difference between EFN and Pan-European FBA?
EFN stores your stock in one country and ships cross-border from there. Pan-European FBA distributes your stock across several countries so orders ship locally — cheaper and faster, but it requires VAT and EPR registration in each storage country.
Does Pan-EU FBA require VAT registration in multiple countries?
Yes. Because Amazon stores your inventory in several countries, you need a VAT registration in each of them, plus packaging EPR. This is the main trade-off against EFN’s simpler setup.
Is Pan-EU FBA cheaper than EFN?
Per-unit fulfilment fees are generally lower with Pan-EU because orders ship locally rather than cross-border, and delivery is faster. The offset is the extra VAT and compliance cost of registering in more countries.
Can I start with EFN and switch to Pan-EU later?
Absolutely, and that’s a common approach: launch on EFN to keep things simple, then move proven products to Pan-EU once you’ve set up the required VAT and EPR registrations.
Want help modelling the fees and setting up the compliance before you switch on Pan-EU? Book a free consultation.