For brands selling across Amazon's European stores, one of the most consequential decisions is where inventory sits. Amazon offers two main routes, and many sellers use a mix of both.
The European Fulfilment Network (EFN)
Inventory is held in one country, and orders from other European stores are fulfilled cross-border from there. It is simple: VAT registration is needed where stock is stored, and cross-border sales to consumers are generally reported through the EU One-Stop Shop. The cost is a higher cross-border fulfilment fee and slower delivery to customers in other countries.
Pan-European FBA
Amazon distributes inventory across its European network according to demand, so customers receive local delivery at local fulfilment fees. In return, the seller needs VAT registration in each country where stock may be stored and must keep offers active across the participating stores. Sellers can opt out of storage in particular countries; orders from those countries are then fulfilled cross-border, at cross-border rates.
How we decide, country by country
- Demand first. Where a country's demand is strong and steady, local storage pays for itself in fees and delivery speed.
- Fixed costs second. VAT registration, filings and representation in each storage country are real costs; for a small market they can outweigh the fulfilment savings.
- Keep options open. A country fulfilled cross-border today can move to local storage when demand justifies it, without changing listings.
What it means in practice
For our packaging range, demand is concentrated in a few large markets. We use local storage where demand is established and fulfil smaller countries cross-border, reviewing the split as each market develops. The right answer changes as a business grows, which is why we revisit it twice a year rather than setting it once.