Selling on Amazon Europe: A Complete Guide

How to List Your Products on Amazon Europe

If you're looking to expand your sales to Europe via Amazon, here’s a step-by-step guide to help you list your products on Amazon Europe and navigate the process:

1. Activate EFN (European Fulfilment Network) in Your Seller Central Account

To start selling across Europe, you'll need to enable EFN in your Amazon Seller Central account. This allows you to store inventory in the UK and ship it across Europe via Amazon’s network.

2. Create Your Listings

As usual, go to Manage Inventory > Add a Product to create your listings. This is the same process you follow for any other product listing.

3. Ship Your Products to Amazon’s FBA Warehouse in the UK

Once your listings are created, send your inventory to the Amazon FBA warehouse in the UK. This serves as your central distribution hub for Europe.

4. Set Your European Pricing

While your products are in transit, go to Manage Inventory, click Edit on your listing, and scroll to the pricing section. Here, you can set your product prices in Euros. Keep in mind that this price should be in euros, not in British Pounds (GBP).

5. Listings Go Live Across Europe

Once Amazon receives and processes your stock, your listings will automatically become active across the five European marketplaces (UK, Germany, France, Italy, and Spain). Processing usually takes between 2 and 14 days.

6. Treat EU Orders Just Like UK Orders

After your listings are live, treat any European orders the same way you would UK orders. The key difference is that you'll be paid in Euros, and your bank account will handle the currency conversion.

7. Be Aware of Product Suitability

Some products might not be suitable for certain European markets. For example, items with UK-specific plugs or toys that only speak English could result in negative reviews or customer dissatisfaction. Be mindful of local preferences and standards.

Pro Tip: To increase your reach, you can enable listings across all 26 EU countries. Simply adjust your FBA Settings and select Export Settings to make your products available in every EU country. 💡

How to Set Competitive Prices in Euros for Amazon Europe

When pricing your products for the European market, it’s important to set individual prices for each country, as market conditions can vary significantly. Using a flat pricing strategy or a percentage markup may not maximize your potential sales or profits.

By checking your competitors’ prices in each European market, you can adjust your pricing accordingly to remain competitive.

Tip: Selling on Amazon Europe can offer better profit margins compared to selling solely on Amazon UK, so it’s crucial to set your prices to reflect market differences across Europe.

Pricing Strategy

Here’s a rough method for calculating your price in Euros based on the current exchange rate:

If your UK price is £15 and the exchange rate is 1.16, you’ll get roughly 1.18 Euros per GBP.
Add 2 Euros for EFN fees for standard-sized products, or 3 Euros for oversized items.

Example Calculation:

UK Price: £15
Exchange Rate: 1.16
Euro Price: 15 * 1.16 = 17.4 Euros
EFN Fee: +2 Euros
Final Euro Price: 17.4 + 2 = 19.4 Euros

This pricing method ensures that your European profits are similar to what you would make in the UK.

Understanding EFN Fees

When selling through EFN, the fulfillment fees can vary depending on the size of your product. For example:

Standard Size Items: EFN fees can be about £1.30 or 1.60 Euros more compared to domestic UK shipping.
Oversize Items: You may face additional fees of about £2.20 or 1.83 Euros for shipping to European customers.

It’s important to factor these costs into your overall pricing strategy to maintain profitability.

Exchange Rates and Profit Protection

Since exchange rates fluctuate, it’s essential to monitor them regularly. Large swings in the exchange rate can significantly affect your profits. Aim for a minimum of £15 profit per unit to safeguard against currency changes.

For better exchange rates than those offered by Amazon, consider using a service like Currencies Direct. You can set up an account and add the relevant bank details in your Seller Central account for better conversions.

Choosing Between Amazon EFN vs Pan-EU

What is Amazon EFN?

EFN (European Fulfillment Network) is ideal for new sellers. With EFN, you store your inventory in the UK and Amazon ships it to European customers from there. The downside is slightly higher fulfillment fees, and delivery might take a bit longer (2-4 days), but it still qualifies for Prime shipping.

What is Amazon Pan-EU?

Pan-EU is better for established sellers with larger sales volumes. With Pan-EU, Amazon stores your products in warehouses across six EU countries, including Germany, France, Italy, Spain, Poland, and the Czech Republic. This reduces fulfillment costs and speeds up delivery.

However, to use Pan-EU, you must register for VAT in all six countries, which can be time-consuming and costly. Pan-EU is a better choice once your sales approach the VAT registration thresholds in any of these countries.

VAT Thresholds for Amazon Sellers in Europe:

Germany: €100,000
France: €35,000
Italy: €35,000
Spain: €35,000

Pro Tip: If you’re approaching these thresholds, consider selling smaller value products with higher margins to avoid crossing the VAT registration thresholds.

The Future of Selling on Amazon Europe

Although selling on Amazon Europe remains a great opportunity, the market is becoming more competitive. Brexit and potential import duties may impact sales, especially for UK-based sellers. Currently, Brexit has led to changes in the tariff-free trade system, which could make it harder to sell in the EU without higher costs.

While Amazon will likely find solutions to keep the European Fulfillment Network operational, there may be a shift toward moving more stock to local EU warehouses or registering for Pan-EU.

Stay informed and adaptable to these changes, as they will continue to shape the future of selling on Amazon Europe.

Conclusion

Expanding your business to Amazon Europe can offer substantial growth opportunities, but it’s important to understand the nuances of European sales. From shipping logistics to VAT registration and pricing strategies, planning ahead can help you succeed.

If you need further advice, feel free to join our Amazon FBA Facebook Group, where we share tips and updates for both beginners and experienced sellers.