Selling on Amazon Europe: EFN vs Pan-EU Explained

Amazon Europe is a huge opportunity. Germany alone is one of Amazon’s largest markets in the world, and France, Italy, Spain, the Netherlands, Sweden, Poland and Belgium add millions more shoppers. But selling in Europe is not just “Amazon.com in another language”. Taxes, fulfillment and product rules work differently.

This guide explains your main fulfillment options, especially EFN and Pan-European FBA, and the compliance steps you need before you launch.

How Amazon Europe is set up

Amazon runs separate stores for each country, such as Amazon.de, Amazon.fr, Amazon.it and Amazon.es. One European Seller Central account lets you sell across all of them.

The UK is separate. Since Brexit, Amazon.co.uk works as its own market for tax and shipping, and stock cannot move freely between the UK and EU warehouses.

Most brands start with one “home” country, usually Germany, then expand to others once products prove they sell.

Your fulfillment options

European Fulfillment Network (EFN)

With EFN, you store all your inventory in one EU country, for example Germany. When someone in France or Italy orders, Amazon ships it from your home country warehouse across the border.

Pros:

• Simple. One warehouse country, one main VAT registration to start.
• Great for testing demand in new countries.

Cons:

• You pay a cross-border fee on each unit shipped to another country.
• Delivery to other countries is slower, which can hurt conversion and the Prime badge.

Pan-European FBA

With Pan-EU, you send stock to one country and Amazon spreads it across its warehouses in several EU countries based on expected demand. Orders ship locally, so delivery is fast and fees are lower.

Pros:

• Lower fulfillment fees than EFN.
• Faster local delivery and Prime eligibility in each country.
• Amazon handles the moving of stock.

Cons:

• You need a VAT registration in every country where Amazon stores your stock. That can mean several registrations and filings.
• More admin and accounting work.

Multi-Country Inventory (MCI)

MCI sits in the middle. You choose which countries to send stock to yourself. It gives you control without spreading stock everywhere.

How to choose

• Just starting or testing: EFN from one country.
• Proven products selling in several countries: Pan-EU, once the sales justify the extra VAT work.
• Strong in two or three countries only: MCI for those countries.

Many brands begin with EFN and switch their best sellers to Pan-EU after six to twelve months.

VAT basics

VAT is the EU’s sales tax, and it is the part that confuses most non-EU sellers.

• You generally need a VAT number in any country where you store goods.
• Amazon collects and pays VAT on certain sales by non-EU sellers, but you still usually need registrations and filings for your stock and imports.
• The EU’s One Stop Shop (OSS) scheme can simplify reporting for sales to customers in other EU countries.
• VAT rates differ by country and sometimes by product type.

Work with a VAT specialist before you send stock. Getting it wrong can lead to penalties and blocked listings. This is one area where it really pays to get expert advice early.

Compliance rules you cannot skip

EPR (Extended Producer Responsibility)

Several countries, including Germany and France, require you to register for packaging recycling and, in some categories, for electronics and batteries. Amazon asks for your EPR registration numbers and can block sales without them.

GPSR (General Product Safety Regulation)

Since December 2024, products sold in the EU need a responsible person based in the EU, plus clear manufacturer and safety information. Amazon asks you to add these details to your listings.

CE marking and category rules

Electronics, toys, cosmetics and many other categories need CE marking or other approvals. Check the rules for your products before you ship.

Listings that work in Europe

Do not just machine translate your US listing.

• Do keyword research in each language. A literal translation is often not what shoppers type.
• Use local units, sizes and formats.
• Have a native speaker review the copy. Poor translations hurt trust and conversion.
• Adapt images with text so they are readable in each language.
• Use Amazon’s Build International Listings tool to manage offers and prices across stores.

Advertising in Europe

Each country has its own ads account and its own campaigns. Search behavior and competition vary a lot from Germany to Spain.

• Start with auto campaigns in each country to learn local search terms.
• Build keyword campaigns in the local language, not English.
• Set budgets per country based on sales potential. Germany usually gets the most.
• Review search terms weekly and add negatives. Our free Ad Waste Finder works with any marketplace’s search term report.

The bottom line

Start with one home country, use EFN to test the rest of the EU, and move to Pan-EU once your products prove themselves. Sort out VAT, EPR and GPSR before you ship, not after. If you are coming from North America, our guide to selling on Amazon Canada is an easier first step, and our post on cross-marketplace selling covers the bigger picture.

Maple works with brands selling across the US, Canada, UK and EU. If you want help planning an expansion, see our full service account management or ask for a free audit.

FAQs

What is the difference between EFN and Pan-EU?

With EFN, you store stock in one EU country and Amazon ships cross-border to other countries for an extra fee. With Pan-EU, Amazon spreads your stock across several countries for faster, cheaper local delivery, but you need VAT registration in each storage country.

Which Amazon Europe marketplace should I start with?

Most brands start with Germany. It is the largest Amazon market in the EU and a good base for EFN shipping to neighboring countries.

Do I need VAT to sell on Amazon Europe?

In most cases yes. You generally need a VAT registration in each country where your inventory is stored. Talk to a VAT specialist before you start.

Can I use the same inventory for Amazon UK and the EU?

No. Since Brexit, the UK and EU are separate for stock and tax. You need separate inventory for Amazon.co.uk and the EU stores.