We have been selling successfully on Amazon Europe for more than 5 years. There have been huge opportunities in Germany, France, Italy and Spain with high demand and limited supply. In our guide, we will show you how to sell on Amazon Europe and reap the rewards.
If you are based in the USA you will need a separate Amazon selling account in the UK Marketplace. From this single UK account, you can then sell to over 700 million new Amazon customers in Europe.
If you are a UK FBA seller then you simply send your products to the UK Amazon warehouse and Amazon will take care of the rest. When sourcing new products you can buy specifically for one or more EU markets or just buy a deal for the UK but still list it in Amazon Europe to get extra sales.
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2. Create your listing as you would do normally with Manage Inventory>Add Product.
3. Send your products to the Amazon FBA warehouse in the UK.
4. While you are waiting for the stock to get to the Amazon warehouse view the product in ‘Manage Inventory’ and click on ‘EDIT’. Then you can input your European pricing at the bottom of the page. Remember this is the price in Euros and not in Pounds Sterling.
5. Your listings will automatically go live in all 5 countries once your stock has been processed at the warehouse. This normally takes from 2-14 days.
6. You can now treat any orders just like you would UK orders except you will be paid in Euros. If you are keeping a record of your sales in a spreadsheet remember that you will only know the exact amount you are paid when Amazon transfers your funds. This happens every two weeks and it is converted to Pounds Sterling.
7. Remember some products may not be suitable for the EU markets. For example, if it has an integrated UK plug or it is a toy that only speaks in English. If you sell these you are risking negative feedback as the customer will expect a product designed for their country and language.
Top Tip – you can reach even more customers by making your products available to all 26 EU countries. Just view your FBA Settings and then ‘Export Settings’ to enable this in all 5 marketplaces.
Calculating Prices in Euros to Make a Profit?
You should be pricing per Amazon marketplace as margins can vary massively between markets. Setting blanket prices or a set percentage can mean missing out on extra sales and profits. You can manually check the current pricing in each country and then decide on your price.
You need to see all 5 Amazon countries as completely separate markets and price against the direct competition in each to maximise sales. Remember there are probably more potential profits when you sell on Amazon Europe than Amazon UK. This means pricing competitively for Amazon Europe should be a priority.
Calculating Your Selling Price in Euros
As a very rough guide, you need to multiply your UK price by the current exchange rate paid out by Amazon. For example, if the official exchange rate is currently 1.16 Euros to the Pound you normally will actually get about 1.18 after the exchange. Then add about 2 Euros for additional EFN (European Fulfilment Network) fees for standard size items and 3 Euros for oversize items. This should now mean you will make a similar profit as you would if you sold on Amazon UK.
Here is an example of the additional fulfilment fees for shipping a standard size toy to Europe. Amazon is charging about £1.30 or 1.60 Euros more than if it was shipped to a customer in the UK.
Looking at this example we can see that the fees do increase when sending oversize products. Amazon are now charging £2.20 or 1.83 Euros extra to ship this to customers in Europe.
If you are selling on Amazon Europe you will need to keep checking the exchange rate as any major movements can have a big impact on the profits you make. When selling in the EU we tend to aim for a minimum of £15 profit per item. This offers some protection from fluctuations in the exchange rate.
We recommend you use Currencies Direct as the bank to receive your payments from the European marketplaces. The exchange rate is much better than you get directly from Amazon. Simply set up an account with them and add the new banking information in Seller Central for Germany, France, Italy and Spain.
Should You Sign up for Amazon Pan-EU or Amazon EFN?
What is Amazon EFN?
If you have just started selling on Amazon Europe then it is best to select EFN (European Fulfilment Network). EFN is when your inventory is stored in the UK and then shipped by Amazon to customers in Europe. With EFN you pay one or two Euros more in fulfilment fees than with Pan-EU. Your offer will still appear as Prime but the customer may be told it will take 2-4 days to arrive rather than next working day. This can have a small impact on sales.
What is Amazon Pan-EU?
With Amazon Pan-EU you have to register for VAT in the 6 EU countries which can be expensive and time-consuming. With Amazon Pan-EU you are allowing Amazon to move your inventory to Germany or other countries to be nearer your customers. This makes the fulfilment charges lower and delivery faster. We would recommend that you move to Pan-EU when you reach the VAT thresholds in one of the EU countries as you will have to register for VAT at this point anyway.
The money you save on fulfilment fees will go some way to covering the costs of getting the VAT filed in the 6 countries. There are six countries because Amazon make you sign up for VAT in every country the goods are stored and they have warehouses in Germany, France, Italy, Spain, Poland and the Czech Republic. You can opt not to hold stock in Poland or the Czech Republic but you will pay slightly higher fulfilment fees.
Amazon VAT Thresholds
Current VAT Thresholds (total value of sales in the 12 month period) Germany – €100,000 per annum France – €35,000 per annum Italy – €35,000 per annum Spain – €35,000 per annum
Top Tip: To avoid going over the thresholds focus on lower value products with high margin.
Some people will temporarily stop selling in one particular country if they are getting close to the threshold. Getting a letter in German from the German VAT office demanding you register and pay backdated VAT charges is not a nice way to start the day. Be careful and constantly monitor your total sales volume.
Remember if you are VAT registered and selling to other VAT registered businesses in Europe these transactions are VAT free and are not included when calculating the total sales for the threshold.
What Is the Future of Selling on Amazon European?
There are still great opportunities to sell on Amazon Europe. However, it is getting more competitive as companies realise they can sell their brands directly in the EU themselves. There is also more software available to help people source and sell in the EU like BuyBotPro which adds to the competition.
We cannot ignore the implications of Brexit. At the time of writing, it is looking like Britain is heading for ‘Hard Brexit’ which means an end to tariff-free trade. Customers in Germany, France, Italy and Spain might have to start paying import duties on items ordered from the UK. This could have a hugely detrimental effect on sales and could effectively kill off selling in the EU as a viable option. At the moment we are not sure how Amazon will handle this and what the outcome of negotiations will be.
Amazon has invested so heavily in the European Fulfilment Network market they will probably be trying to figure out a way of keeping the current system working. It may be that you would need to send more of your stock to the European warehouses for example or register for Pan-EU.
We are constantly monitoring this situation and will offer more information when it is available in our Facebook Group. If anyone has any information please let us know in the comments below. As with other threats to your Amazon business it again highlights the need to diversify.
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