Primarily, Amazon’s European Fulfillment Network (EFN) is a useful option for sellers who have recently started selling on Amazon. In addition, it’s a real asset for sellers considering starting out on the e-commerce platform. With EFN, you can store your inventory in one country to deliver all over Europe.
Starting to sell on Amazon’s European marketplaces
Essentially, there are two options for selling on Amazon in Europe: Fulfillment by Merchant (FBM) and Fulfillment by Amazon (FBA).
With FBM, you’ll take charge of selling all your inventory yourself. With FBA, Amazon manages storage, distribution and order fulfillment for all your products.
There are several options for FBA: the European Fulfillment Network (EFN), the Central Europe Program (CE) and Pan-European FBA (Pan-EU). In this post, we’ll look at Amazon EFN in detail.
Amazon EFN: an introduction
To take advantage of Amazon EFN, sellers need:
- An Amazon Europe Marketplaces account
- To be registered for Amazon FBA
With EFN, sellers can store their inventory in one or more of Amazon’s local Fulfillment Centers within one European country. Then, orders for the sellers’ products are fulfilled from that local center, no matter which European country they come in from.
Which countries in Europe have an Amazon marketplace?
Amazon now operates 7 marketplaces in Europe (Amazon.nl and Amazon.se are recent additions):
With Amazon EFN, you can store your inventory in any of these countries. In addition, you can store inventory in Poland and the Czech Republic.
Selling on multiple Amazon European marketplaces
You can list your EFN inventory for sale on any (or all) of Amazon’s European marketplaces. Firstly, you’ll need to log into your Amazon Seller Central Europe account. Secondly, select the marketplaces where you want to sell your products. Thirdly, ensure they’re enabled for FBA.
Using FBA in one European marketplace automatically means you can use the EFN on all other Amazon marketplaces. Simply upload your product listings via your Amazon Europe Marketplaces account. Then, make sure they’re enabled for FBA on each marketplace.
Advantages of Amazon EFN
- Simplifies inventory management
- Warehouses all seller inventory in one local pool
- Increased control and flexibility of inventory
- Sellers can list FBA inventory on all Amazon European marketplaces
- Only one seller account required
- Rapid and reliable fulfillment network
- Sell on all Amazon’s European marketplaces while storing inventory in one European country
- A useful option for smaller-scales businesses
- Access to Amazon Prime status
- Increased product visibility
- Only 1 VAT number required
Disadvantages of Amazon EFN
- Higher storage fees
- Higher cross-border fees
- Longer delivery times
- All international orders fulfilled from a single storage country
Amazon EFN fees
Compared to Amazon’s other FBA options (Central Europe (CE) Program and Pan-European), EFN does have fairly high fees.
However, these fees aren’t fixed. One the one hand, your fees will depend on where you store your products. On the other hand, they’ll depend on the type, size and weight of the products you’re selling. To work out your fees, you can use Amazon’s Fulfillment Fee Calculator.
Is Amazon EFN right for you?
EFN is generally the best Fulfillment by Amazon option for smaller-scale sellers. Generally speaking, those are sellers with a turnover of up to 500 units per month.
With EFN, you can list your products on all Amazon’s European marketplaces from one seller account. As a result, it’s a useful platform to raise awareness of your product across Europe.
Once you’re well established on EFN and your turnover starts to rise, you can look at moving to other types of FBA. These include the Central Europe Program (CE) and Pan-European FBA (Pan-EU).
Want to find out more about EFN for your brand? Contact the Sawa team.