Huge news for Amazon UK sellers! Just in case you missed it, Amazon has announced the European Fulfilment Network Programme (EFN) from the UK to the EU is relaunching in March 2022. Eligible offers will become live in phases until May 2022.
EFN was one of the programmes Amazon UK had to let go of when Brexit hit, and its return means that UK sellers can now move inventory faster and test new markets across Europe.
What does EFN mean for UK sellers?
European Fulfilment Network (EFN) is one of the best ways to sell their inventory in Europe on Amazon. It allows sellers with an Amazon UK account who are also registered for Fulfilment by Amazon to store their inventory in their local fulfilment centre and fulfil orders coming from other European stores from the same local inventory stock.
With one Amazon UK seller account through the EFN, you can sell in Germany, Italy, France, and Spain thereby reducing the entry barrier for UK sellers into European marketspaces. Now that’s a huge market right there to drill oil.
So, given that Amazon stores your products in a UK warehouse and sends them to Europe to fulfil when a customer places an order, you are not required to register for VAT in those countries.
For new sellers and sellers who have never sold in Europe before, this development should particularly bring some excitement as it affords them the following wins;
- Access to more opportunities than they previously could.
- Double their customer base
- Sell-out stagnant inventory
- Double their revenue
- Test new markets
- Expand sales opportunities
What are the requirements to enrol for the EFN programme?
To sell between the UK and the EU using the European Fulfilment Network, you are required to have the following:
- Access to both the UK and the EU Seller Central accounts
- FBA offers for your products in both the UK and the EU
- Inventory for eligible offers stored in local fulfilment centres.
- Shipping programmes and export settings enabled. For EU to UK fulfilment, all EU stores must be enabled for export (Germany, Italy, France, Spain).
If you have more than one EU account, each account must be managed separately.
How do I enrol my seller account for EFN?
To enrol into the EFN between the UK & Europe, go to Cross-Border Fulfilment settings then request enrolment for your eligible offers.
Your shipping programme and export settings may automatically be turned on, still, definitely check for yourself if you are already enrolled on the EFN programme.
Note that the option to opt-out is available at any time; simply by deselecting the countries from <Enrol into EFN between the UK and the EU > in your Cross-border fulfilment settings.
Are my listing offers eligible to be sold through EFN
The price of an eligible item must not exceed €135 in the EU or £122 in the UK. Once enrolled, you can check the eligibility of your offers through the European Fulfilment Network ASIN Eligibility report in Pan-European FBA Inventory reports. You can also remove offers from the EFN cross-border programme at the store level at any time.
What FBA Fees are attached?
Selling in the EU is subject to European fulfilment fees. As a result of the increased fees, It is more expensive to fulfil to EU marketplaces from local inventory sometimes twice or three times the amount of selling in the UK
However, you can charge more in Europe for your products if you make a few price amendments
Read more about associated fees here
How to avoid losing money
To ensure you are still selling at a profit despite the fees being higher, you may want to make a few amendments to your seller's account to prevent you from getting stung by the extra fees that occur when selling in other EU marketplaces. You should;
- Ensure that your prices reflect European Fulfilment Network fees and VAT. Then Set your price higher for each market as amazon fees are almost double for EFN
- Get some listings translations
- We recommend using Build International Listings pricing rules to adjust prices automatically.