Looking to expand your Amazon business to Europe? Amazon's European Fulfilment Network program is an excellent option for you. It provides a hassle-free solution for sellers who want to store their products in Europe and reach a wider audience without the stress of managing their warehouse or dealing with shipping logistics. Utilizing Amazon's European fulfillment centers, the EFN program takes care of the heavy lifting, giving you more time to focus on growing your business. In this post, we'll explore the benefits of the EFN program and why it's a game-changer for Amazon sellers looking to expand into Europe.
What is Amazon EFN fullfillment program
What Is Amazon EFN Program?
Amazon EFN (European Fulfillment Network) is a program allowing Fulfillment by Amazon sellers to store their products in the Amazon fulfillment centers, from where local and cross-border orders will be handled.
That means you can reach customers across all marketplaces, even if you only store your products in one country. With EFN, you can list your FBA inventory for sale on all of Amazon's European marketplaces using just one selling account. When customers place orders on any of these marketplaces, they will be fulfilled from your FBA inventory, leveraging Amazon's efficient and dependable European Fulfilment Network.
If you are new to selling in Europe, Amazon EFN is the solution for you. It offers a straightforward method for storing and shipping your inventory across all European marketplaces on Amazon.
Related: How Does Amazon FBA Work. Is Amazon FBA worth it in 2023?
How to Send Products to Amazon FBA
How does Amazon EFN work?
If you are already registered for Fulfillment by Amazon, you can quickly start using EFN with no additional registration or startup fees. Simply list your products on each European Amazon marketplace where you want to sell.
When a customer places an order, Amazon picks, packs, and ships the product across its European Fulfillment Network on behalf of the seller, handling all aspects of the fulfillment process. This program also includes customer service and returns management, which can save sellers time and money. Once an order is fulfilled through EFN and shipped to a destination outside your home marketplace, you'll pay a fee for each order on top of your other FBA fees.
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Amazon EFN Process
Here's how EFN works
Step 1. You send your inventory to a fulfillment center located either in your local marketplace or your home country in Europe, such as Italy.
Step 2. After listing your products on one or more of Amazon's European marketplaces, like Amazon.de (the German retail website), customers from all over Europe can place orders for your items.
Step 3. Customer orders are then fulfilled by Amazon from your inventory pool, which means that when a customer in Germany buys your product on Amazon.de, it will be shipped from your inventory pool in Italy and fulfilled by Amazon.
Step 4. Customers can view the shipping location and the estimated delivery time as they track their orders.
How to join Amazon EFN?
Once you have registered for Fulfillment by Amazon, you can use EFN without any additional registration or startup expenses. All you have to do is add your listings to the relevant Amazon European marketplace where you wish to sell. Following that, for each order shipped beyond your domestic marketplace using EFN, you will be required to pay a charge in addition to your other FBA fees.
In order to sell on Amazon across the EU marketplaces, you must adhere to the seller rules for each country where you wish to operate. These rules are designed to enhance the overall shopping experience for Amazon customers, thereby increasing the likelihood of customers purchasing your products.
Additionally, you must provide a bank account supported by Amazon in one of the eligible countries (the list is here). It is essential to be familiar with the legal and regulatory obligations both locally and within the EU, and it is your responsibility to ensure compliance with all relevant requirements.
Pros and Cons of Amazon EFN
EFN is an excellent option for sellers who start selling in Europe. However, alongside its benefits, you must be aware of a few downsides it has. Below you can find some pros and cons of selling on Amazon EFN.
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Pros and Cons of Amazon EFN
Pros
Increased reach: With Amazon EFN, you can reach customers across Europe without storing your products in different countries.
Simplified logistics: You can simplify your logistics by sending all your products to one fulfillment center instead of multiple locations.
Amazon Prime benefits: You can offer Amazon Prime benefits to your customers, which can increase your sales.
Cons
Increased fees: Selling on Amazon EFN comes with additional costs, which can involve higher cross-border fees.
Tax implications: When you sell with EFN, you must be VAT-registered. VAT-registered sellers are required to file a VAT return for each relevant period to comply with tax requirements.
Less control: When you use Amazon EFN, you give up some control over the fulfillment process, which could lead to issues with order accuracy or delivery times. In addition, you may not be able to customize your packaging or include personalized notes with your orders when you use Amazon EFN.
What Are Amazon EFN Fees?
EFN comes with additional fees. Each order shipped outside your domestic marketplace using EFN is charged in addition to your other FBA fees. To calculate these fees, you must add your fulfillment and storage fees and any optional services you use.
Fulfillment Fees
Amazon charges a flat fee per unit based on the product's dimensions and weight (unit weight or dimensional weight). Envelopes and special oversize products will be charged based on the actual unit weight. In contrast, small and standard parcels, small oversize, standard oversize, and large oversize products will be charged based on the greater of the unit weight or the dimensional weight. To calculate the dimensional weight in kilograms, you can use the following formula: (length x width x height) divided by 5000.
Amazon EFN fulfillment fees
Storage Fees
Amazon applies storage fees to all items stored in their fulfillment centers. These fees are based on the fulfillment center's location, calendar month, and the daily average volume of inventory. Storage fees are charged per cubic meter or cubic foot per month.
Amazon EFN FBA optional service fees
Optional Service Fees
Optional services refer to additional services offered by Amazon. They are charged per unit.
Optional services
- Returns;
- Disposal;
- Labeling;
- Bagging;
- Bubble wrap;
- Taping;
- Opaque bagging.
Amazon EFN FBA optional service fees
Removal fees
Amazon charges sellers removal fees for removing their items from FBA inventory. To steer clear of long-term storage fees, it's advisable to opt for a removal order. If you need to remove inventory from your EFN FBA, and the removal is ordered to an address in the same country as your home marketplace, Amazon will charge you local removal fees based on your home marketplace. It doesn't matter where the inventory is located at the time of the removal order.
Amazon EFN FBA removal fees
How to Deal with Amazon EFN VAT?
If you are selling goods on Amazon's European marketplaces using EFN, you are required to register for VAT in the countries where your products are stored and shipped from. Dealing with Amazon EFN VAT can be complex, but with the right knowledge and tools, you can manage your VAT obligations and ensure compliance with local regulations.
Dealing with Amazon EFN VAT step by step
Dealing with Amazon EFN VAT step by step
Step 1. Determine your VAT obligations: The first step is to determine your VAT obligations by understanding the VAT rules and regulations of the European countries where your products are stored and shipped from. You can consult a VAT specialist or accountant to help you understand your VAT obligations.
Step 2. Register for VAT: Once you have determined your VAT obligations, you must register for VAT in the relevant countries. You can register for VAT online or by mail. You must provide your business details and other relevant information to complete the registration process.
Step 3. Collect and remit VAT: After registering for VAT, you must collect VAT from your customers on your Amazon sales and remit the VAT to the respective tax authorities.
Step 4. Keep records: It is essential to keep accurate records of your VAT transactions, including sales, purchases, and VAT payments. You should also keep records of your VAT registration and any correspondence with tax authorities.
Step 5. Monitor changes: VAT rules and regulations can change, so monitoring changes affecting your VAT obligations is crucial.
Tip. If you are considering using sales tax software, we recommend Hellotax. It offers an extensive service package at the best price. Hellotax is an excellent solution for sellers operating in Europe. The company provides a user-friendly interface and self-learning AI-powered tax letter inbox feature supporting your tax tasks.
Related: Best Tax Software for Amazon Sellers in 2023
Is EFN Worth It?
EFN would be a suitable option for you if you're a small or starting business seeking to leverage Amazon's fulfillment networks and don't require multi-country storage for your products at this point. In that case, Amazon EFN can prove to be a highly beneficial service.
Selling on Amazon EFN can be a good option for sellers looking to expand their reach and simplify their logistics, but it's essential to weigh the pros and cons and determine if the program is the right fit for your business.
Related: Seller Assistant App Extension Review
Seller Assistant App — the Ultimate Tool for Amazon Online Arbitrage
FAQ
What is EFN on Amazon?
EFN on Amazon stands for "European Fulfillment Network." It is a program that allows Amazon sellers to store their inventory in European fulfillment centers, enabling them to fulfill orders from customers across Europe more efficiently and with lower shipping costs.
What are the different types of Amazon fulfillment?
Amazon offers two main types of fulfillment services: FBA (Fulfillment by Amazon) and FBM (Fulfillment by Merchant). FBA involves sellers sending their products to Amazon's fulfillment centers, where Amazon handles storage, packaging, shipping, and customer service, while FBM allows sellers to fulfill orders themselves without using Amazon's fulfillment network.
What does Amazon fulfillment do?
Amazon fulfillment refers to the range of services provided by Amazon to handle the storage, packaging, shipping, and customer service aspects of order fulfillment for sellers. It allows sellers to leverage Amazon's logistics network and expertise to streamline the fulfillment process and deliver products to customers efficiently.
What's the difference between Amazon and Amazon fulfillment?
Amazon refers to the overall e-commerce platform and company that offers a wide range of products and services to customers. Amazon fulfillment, on the other hand, specifically refers to the set of services provided by Amazon to assist sellers in storing, packaging, and shipping their products to customers through the Amazon platform.
What is the difference between FBA and EFN?
FBA (Fulfillment by Amazon) is a program that allows sellers to store their inventory in Amazon's fulfillment centers and have Amazon handle the storage, packaging, shipping, and customer service. EFN (European Fulfillment Network), on the other hand, is a specific program within FBA that enables sellers to store inventory in European fulfillment centers, allowing them to fulfill orders across Europe more efficiently and with lower shipping costs.
Final Thoughts
EFN helps merchants sell their products using Amazon's European fulfillment network, while Amazon handles the shipping and customer service for European orders. This program allows you to reach a wider audience without the hassle of managing your own European warehouse or dealing with international shipping logistics. It can be an excellent solution for those who want to sell in Europe but don’t have massive cross-country sales yet.
Amazon EFN is an excellent tool for simplifying cross-European sales. However, researching profitable products is equally essential to ensure your business growth. Seller Assistant Аpp will effectively and reliably help you with this task. This all-in-one extension incorporates all features vital for product research. Seller Assistant App shows your product’s profit, margin, and ROI. It also helps you immediately see if a product has any sales restrictions or previously triggered account health problems. It combines an FBM&FBA profit calculator, Quick View, Stock Checker, and Restrictions Checker in one tool.
Originally published at https://www.sellerassistant.app/blog/what-is-amazon-efn-fulfillment-program
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