Pan-European FBA vs EFN: Which Should You Use?
Pan-EU lowers fulfilment fees but adds VAT registrations. EFN is simpler but costs more per unit. How we decide, with a decision matrix.
Short answer. Use EFN (European Fulfilment Network) while your volume outside your home-stock country is modest: stock sits in one country and Amazon ships cross-border for an extra per-unit fee. Move to Pan-European FBA when cross-border volume is high enough that local fulfilment fees and faster delivery outweigh the cost of VAT registrations and filings in every country Amazon stores your stock.
How each model works
EFN. You send inventory to fulfilment centers in one country. Orders from other EU marketplaces ship cross-border, and you pay a cross-border fulfilment fee on each of those units. One VAT registration for the stock location, plus OSS for cross-border B2C sales above the EU-wide €10,000 distance-selling threshold.
Pan-European FBA. You send inventory to one country and Amazon redistributes it across its EU network based on demand. You pay local fulfilment fees, delivery is faster, and Prime eligibility is stronger in each marketplace. To enroll an ASIN, it must be listed on the required marketplaces (Germany, France, Italy, Spain and, since 2025, the Netherlands; check Seller Central for the current list). Every country where your stock is held typically requires its own VAT registration and periodic returns.
Multi-country inventory (MCI). A middle path: you choose which countries hold stock and ship to each yourself. More control, more admin.
Decision matrix
Situation | Usually best | Why |
|---|---|---|
Just launched in Europe, one main marketplace | EFN | Lowest admin, one VAT registration, cross-border fees on small volume are tolerable |
Most sales in one country, small tail elsewhere | EFN | Cross-border fees only hit the tail |
Strong sales in three or more marketplaces | Pan-EU | Fee savings and delivery speed compound across markets |
Heavy, bulky or low-price products | Model carefully | Cross-border fees bite harder on low-price items; storage spread can raise costs on bulky ones |
Not ready for multiple VAT registrations | EFN or MCI | Pan-EU without compliance is a liability, not a saving |
Fast-moving, Prime-sensitive category | Pan-EU | Delivery promise affects conversion and ranking |
The calculation we run
For each marketplace, over 12 months:
Units sold cross-border × EFN cross-border fee premium = annual EFN premium.
Number of additional VAT registrations Pan-EU would trigger × (registration cost + annual filing and accountant cost) = annual compliance cost.
Estimated conversion uplift from faster local delivery × revenue × margin = delivery benefit (be conservative).
If (1) + (3) is clearly larger than (2), Pan-EU pays. If it is close, stay on EFN another quarter and re-run.
Where brands get this wrong
Comparing per-unit fees only. The VAT and accounting cost of four extra registrations is a fixed annual cost that small volumes cannot absorb.
Enrolling without registering. Amazon may move stock into countries where you are not VAT-registered. That creates obligations whether or not you planned for them.
Forgetting the exit. Leaving Pan-EU later is possible, but stock already distributed and registrations already open take time and money to unwind.
FAQ
Is the EFN fee the same everywhere? No. It varies by destination marketplace and product size tier. Use Amazon's current EU fee schedule; fees change at least once a year.
Can we use Pan-EU without being VAT-registered in every country? You should not. Inventory held in a country normally creates a VAT registration requirement there. Speak to an EU VAT advisor before enrolling.
Does Pan-EU include Poland and Czechia? Amazon has used fulfilment centres in both for Pan-EU storage. Check current Seller Central settings, as opt-outs and country lists change.
