Should you expand to Amazon Europe? What every seller needs to know!

Have you already got an Amazon seller account? Looking for ways to expand your business? Want to break into the European market? Why not unlock your potential with Amazon Europe. Here we’ll break down the processes, costs, VAT and cultural considerations for global expansion into EU marketplaces and, most importantly, how to do it profitably. Take a look at our 10 key tips:

The logistics of joining Amazon Europe

1. Understand the VAT Landscape

Amazon is currently active in France, Germany, Italy, the Netherlands, Spain, Sweden, Turkey, Poland, Belgium and the UK. VAT registration is required in most EU countries, so having it allows storage in that country, making it essential for expansion. Make sure you learn where and when to register in each country and how to handle VAT filing obligations.

2. Choose Between Pan-EU FBA or EFN (European Fulfilment Network)

When expanding into Amazon Europe, planning your fulfilment needs is an important step. Pan-European FBA is a popular choice as it allows for faster delivery and Prime eligibility across countries. You have to ship products to an Amazon Fulfilment Centre in the EU and Amazon will distribute those across the EU in countries you’ve enabled for placement. It’s important to note that Pan-EU FBA comes with complex tax implications.

The EFN offers simpler logistics, allowing sellers to store products in their local fulfilment centre to be distributed across the EU. It maximises a seller’s control and flexibility over their inventory. However, it does have higher fees and longer delivery times, making competitors potentially more attractive. What’s clear is you need to weigh up the pros and cons of each to see what works for your business, considering the locations you’re aiming for, the product demand and the associated costs.

3. Research Market Demand & Competition by Country

Sales potential varies across marketplaces, meaning across different countries. As you would with any market, you must research thoroughly before blindly trying to sell everywhere. Use tools to assess demand, competition and product-market fit before making any decisions.

4. Translate and Localise Listings Properly

Machine translation isn’t enough – AI can only get so many things right. Even if you do an initial translation using a tool like ChatGPT, it’s important to use native speakers or localisation services to adapt your Amazon copy for each marketplace. This includes your product listings, A+ content and brand stores. Within the translation, you should still be maximising your SEO as normal within that content, so that your products get in front of the right customers.

5. Factor in Currency Fluctuations & Transfer Fees

Currencies across countries fluctuate daily. So, to maximise your profit, use tools like Wise or Payoneer to manage foreign transaction fees when converting EUR/GBP back to USD. You don’t want to lose money by not charging enough to cover unexpected FX fees.

6. Comply with Product Regulations & CE Marking

Products sold in the EU will require EU CE marking – a conformity marking that indicates a product meets the essential health, safety and environmental protection requirements of EU legislation.

Safety testing or localised labelling will be required to ensure compliance and avoid listing suspensions. GPSR, WEEE, battery regulations and Waste Packaging Laws also apply in specific EU markets and need to be registered separately in each country, with more being added regularly. Certain products are also required to meet additional regulations, particularly if they’re food, cosmetics, batteries, supplements or chemicals, to name a few. Check the requirements of each country during your research.

7. Adjust Your PPC Strategy for Europe

Creating accurate translations for your general copy is important, but you also need to consider your sponsored adverts and keyword strategies. As we mentioned previously, each country is different. Ad platforms and keyword behaviour vary. You’ll need to create new campaigns in local languages (using a human translator, not just AI) and monitor results separately for each region. You can also do this by A/B testing your content, a great way to make minor alterations to your listings to see what works most effectively in each market and translates into sales.

8. Plan for Longer Lead Times & Customs Delays

Shipping inventory to Europe requires more time. To combat customs delays and longer lead times, not just for your customers but also for you, especially if you’re using Pan-EU FBA, you need to keep on top of your inventory. As well as regularly checking your stock levels, you can also build a buffer stock, giving you some leeway if you start running low. You can also consider using Amazon’s European prep and logistics services to help manage your shipping requirements.

9. Monitor Profit Margins by Marketplace

FBA fees, VAT and local advertising costs differ. You should track net margins at the country level, not just as an average across the board, to avoid unprofitable expansion.

10. Start with One Country Before Scaling Across Europe

Tempting as it is to go big or go home, it’s better to focus your efforts on one area at a time. Begin with a high-potential market, like Germany or the UK. You can test your processes in one country and then expand to others once you’ve optimised. Contained, high-quality work is always better than going for volume, where your efforts will be stretched thin.

So, does Amazon Europe sound like the next step for you? If you’d like any more advice or aren’t sure where to start, get in touch with our expert team today.