Pan-EU FBA: The Smart Way to Expand Across Europe on Amazon

If your business is planning to scale across the European market via Amazon, understanding the PAN-EU FBA (Fulfillment by Amazon) program is critical. As an Amazon consultant working with businesses expanding from one EU country to multiple markets, I can say that PAN-EU FBA offers one of the most efficient and scalable logistics solutions for cross-border ecommerce within Europe.

What is PAN-EU FBA?

PAN-EU FBA (Pan-European Fulfillment by Amazon) is a program that allows Amazon to automatically distribute your inventory across multiple fulfillment centers within the EU, based on customer demand. You send your products to one Amazon fulfillment center (e.g., in Germany or Poland), and Amazon takes care of storing, distributing, and delivering those items to other European countries, all with Prime-eligible delivery speed.

Who is PAN-EU FBA suitable for?

This program is ideal for:

• Established Amazon sellers already selling in one EU country and looking to scale.

• Brands and businesses aiming for fast delivery (1–2 days) in multiple EU markets.

• Companies with localized listings and VAT registrations in multiple countries.

• Sellers are ready to manage VAT compliance across multiple jurisdictions.

If you're a new seller or not yet VAT-registered in several countries, PAN-EU might be premature. In that case, Central European FBA or Multi-Country Inventory (MCI) could be better starting points.

Fees and Costs of PAN-EU FBA

While PAN-EU FBA helps reduce shipping costs per order (due to local fulfillment), it comes with important cost considerations:

1. FBA Fulfillment Fees: Similar to local FBA, but vary depending on item size and shipping destination.

2. Storage Fees: Monthly and long-term fees apply for each warehouse where stock is stored.

3. Inbound Shipping: You only need to ship once to a central location.

4. VAT Compliance Costs: You'll need to register and file VAT in every country where Amazon stores your products.

While the logistics are simplified, tax and accounting complexity increases — a crucial point many sellers overlook.

Tax and VAT Obligations in PAN-EU FBA

This is the most important part for expanding businesses:

When using PAN-EU FBA, your inventory is physically stored in multiple countries, and that creates VAT obligations in each of those countries. Here's what that means:

• VAT Registration: You must register for VAT in every EU country where Amazon stores your stock (Germany, France, Spain, Italy, Poland, the Czech Republic, etc.).

• VAT Filing: You'll be required to file VAT returns in each country, even if only a small volume is sold there.

• OSS Scheme: For sales from your home country, you may be able to use the One-Stop Shop (OSS), but this does not cover stored inventory abroad, so PAN-EU always requires local VAT numbers.

Many companies work with tax automation providers like Avalara, HelloTax, or Taxdoo to handle these filings efficiently.

Is PAN-EU FBA Worth It?

Yes, for sellers who:

• Have high sales volume across multiple EU marketplaces.

• Can manage (or outsource) VAT registration and compliance.

• Want to offer Prime delivery to boost conversions and win the Buy Box.

No, or not yet, for sellers who:

• They are early in their Amazon journey.

• Want to test the market before committing to multi-country tax registrations.

• Prefer centralized storage (e.g., in Germany or Poland) to minimize obligations.

PAN-EU FBA as Your Expansion Strategy

The PAN-EU FBA program is one of the most powerful tools for Amazon sellers looking to scale efficiently across Europe. With centralized shipping, faster delivery, and access to multiple local markets, it offers enormous upside, but requires serious attention to VAT compliance and logistics planning.

As an Amazon consultant, I recommend this program to businesses that are ready to handle cross-border obligations or are working with trusted VAT partners. Done right, PAN-EU FBA can be your growth engine for Europe.