If you’re looking to expand your selling to Europe, you have two main fulfilment options: FBM and FBA. Here’s a summary of each.
1. Amazon Europe FBM Fulfillment
You may be familiar with FBM (Fulfillment by Merchant) from selling in your current Amazon marketplace. Well, the option is also available to you as an Amazon Europe seller. This means that you either ship from your current country or from Europe, using third-party storage and distribution centers. Each has its disadvantages:
FBM from your current warehouse country is simpler, but it is an expensive option, not to mention that it slows down order fulfillment as each product ordered would need to go through customs.
FBM from Europe will save you money and hassle, but it relies on finding reputable third-party distributors in the EU and you won’t be Prime-eligible.
FBA from your current warehouse is ideal if you need to ship minimal quantities and want to test the market, but if you’re set on FBA and have a few products, we recommend FBA Europe instead. If you get a good deal from a third-party distribution center in a European country, you could then use FBM from that country and save on costs. But it is important to note that doing that would mean that you would not be eligible for Prime, as your products would not be stored in Amazon’s warehouse.
2. Amazon Europe FBA Fulfillment
Amazon offers three FBA options in Europe: EFN (European Fulfillment Network), MCI (Multi-Country Inventory) or Pan-European FBA, each of which will have their own advantages and disadvantages. Choosing between them will be based on your budget, selling goals and resulting distribution needs. Here’s a summary of each.
EFN (European Fulfillment Network)
EFN enables you to choose one EU distribution center to ship from, meaning your products will be stored in one of Amazon’s fulfillment centers and distributed across Europe from there. Orders from all marketplaces will be packed and shipped from this center, therefore you only have to ship products to one country’s Amazon fulfillment center, and will have Prime eligibility.
MCI (Multi-Country Inventory)
If you want to store your products in multiple countries’ distribution centers, then MCI is for you. MCI gives you control over which products you want to be stored and shipped from which country. The big advantage of this fulfillment option is that you can then distribute from areas closer to your customers, providing faster shipping and saving on cross-border EFN fees.
Pan-European FBA
Pan-European FBA offers you the most simplicity when it comes to fulfillment in the EU, and is perfect for those sellers wanting Amazon to handle everything for them. With Pan-European FBA, after sending your products to one of Amazon’s distribution centers, Amazon will automatically distribute throughout the EU based on expected demand. This will save you the hassle as well as money with Amazon helping you avoid cross-border fees.