Expanding your Amazon business beyond the U.S. is an exciting step, especially as global markets offer tremendous growth opportunities. While the Amazon US marketplace is vast, the potential for growth doesn’t stop there—one of the most promising regions for expansion is Europe.
With a large and diverse consumer base spread across multiple countries, Europe offers unique opportunities for Amazon sellers. Amazon EU connects sellers with a network of European marketplaces, each with its own growth potential and customer demographics.
However, selling on Amazon EU is different from selling on Amazon US. From regional regulations to distinct fulfillment methods and varying customer expectations, there are critical aspects sellers need to understand to succeed in this market.
In this guide, we’ll cover everything you need to know about selling on Amazon EU. We’ll explore Amazon’s European marketplaces, the benefits and challenges of expanding into Europe, and best practices to help you thrive in this dynamic market.
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Selling on Amazon EU
Many Amazon sellers are venturing into expanding their businesses, and the European region is an enticing choice. With a population of over 400 million and a growing demand for online shopping, Europe offers a vast customer base and unique growth opportunities.
Sellers who expand into Amazon EU gain access to multiple marketplaces, each with distinct advantages, allowing them to reach new audiences and diversify their revenue streams.
What Is Amazon EU?
Amazon EU, the European division of Amazon, is a major player in Europe’s e-commerce market. Established in 2004 with headquarters in Luxembourg, Amazon EU spans key markets like the United Kingdom, Germany, France, Italy, and Spain.
In 2023, Amazon EU S.à r.l. generated over €53 billion in revenue, highlighting Europe’s strong demand for e-commerce. Beyond retail, Amazon EU also provides Amazon Prime and operates extensive logistics and fulfillment networks, serving millions of consumers.
Europe’s e-commerce sector is thriving, particularly in the United Kingdom, Germany, and France. British consumers, for instance, spent an average of over €1,000 online in 2022, demonstrating a high level of engagement across Amazon’s European platforms.
Amazon EU supports over 125,000 small and medium enterprises (SMEs) in Europe, generating more than €30 billion in sales in 2022. With an investment exceeding €150 billion since 2010 and over 150,000 employees in 21 member states, Amazon EU remains committed to helping European businesses and communities thrive in the digital economy.
Which Marketplaces Does Amazon EU Cover?
Amazon EU encompasses nine primary marketplaces across Europe, each providing access to millions of customers within its country and beyond. These marketplaces are:
From these central marketplaces, sellers can reach customers in up to 28 European countries. This network makes it possible to expand throughout Europe without setting up in each individual country, allowing sellers to grow their reach while maintaining efficient operations.
Why Do You Need to Sell on Amazon EU?
Expanding into Amazon EU offers significant benefits for sellers looking to grow internationally:
- Amazon EU connects you with millions of active shoppers across multiple European countries, giving you a powerful channel for reaching new customers and boosting sales.
- Your existing U.S. product reviews carry over to EU listings (when using the same UPC or EAN). This builds immediate credibility with European buyers, helping to improve trust and drive conversions.
- Amazon EU provides fulfillment options like Pan-European FBA, European Fulfillment Network (EFN), and Multi-Country Inventory (MCI). These options allow you to store products in Amazon’s European centers while Amazon manages packing, shipping, and customer service, streamlining the logistics process.
- Compared to the crowded U.S. marketplace, Amazon EU has fewer active sellers, providing an opportunity to stand out and capture market share.
- Selling in multiple regions helps you diversify revenue, strengthen cash flow, and protect against sales fluctuations. Additionally, you can capitalize on European holidays and unique seasonal demand, driving revenue growth.
Amazon US vs Amazon EU
Even though both Amazon US and Amazon EU have similarities, like their shared Seller Central platform and customer-centric policies, there are notable differences between them. These differences impact areas like regulations, logistics, and even customer expectations.
Here are the major similarities and differences between Amazon US and Amazon EU:
The Similarities Between Amazon US and Amazon EU
- Both use the same Seller Central platform, which allows for familiar navigation and tools across both regions.
- Amazon’s dedication to customer service and support remains consistent across the U.S. and EU marketplaces.
- Both regions offer FBA services, enabling sellers to store products in Amazon’s warehouses, where Amazon handles packing, shipping, and customer service.
The Differences Between Amazon US and Amazon EU
- Amazon EU has stricter regulations, including compliance with GDPR (General Data Protection Regulation) and product labeling in multiple languages. Sellers also need to comply with specific VAT (Value Added Tax) requirements across EU countries, which are not required in the U.S.
- While FBA is available in both regions, Amazon EU offers unique programs like Pan-European FBA, which allows inventory to be distributed across EU countries to improve shipping times and costs. In the U.S., FBA centers are nationally based, without the same level of cross-border logistics.
- Amazon US operates as a single marketplace, while Amazon EU comprises several individual marketplaces. Each EU marketplace requires country-specific listings, and language translations may be necessary for effective selling.
- European customers tend to have different expectations around sustainability, product quality, and customer service, often seeking more eco-friendly options. Adapting listings and product descriptions to match these preferences can enhance appeal.
- Amazon US transactions occur in U.S. dollars, whereas Amazon EU transactions occur in euros, pounds, and other local currencies. Sellers must account for currency conversions and fluctuations when managing prices across EU marketplaces.
The Pros and Cons of Selling on Amazon EU
Before deciding to sell on Amazon EU, it’s essential to understand both the pros and cons to determine whether the advantages outweigh the potential obstacles. Here’s a breakdown of the key pros and cons of selling on Amazon EU:
Pros of Selling on Amazon EU
- Access to a Fast-Growing Market
Amazon’s EU marketplaces are growing rapidly, with significant increases in sales each year. For instance, Amazon UK saw its revenue grow from $17.5 billion in 2019 to $31.9 billion in 2021, making it a promising market for expansion.
- Seamless Expansion with Existing Operations
Expanding to Amazon EU can be straightforward since sellers can use their existing supply chains and product listings. This means you don’t have to create new products, suppliers, or packaging—just ship extra units to the EU, and you’re ready to go.
- Global Review System for Quick Traction
Amazon’s global review system allows your existing U.S. product reviews to appear on your EU listings (as long as they share the same UPC or EAN). This transfer of reviews can build immediate trust with new customers and give you a head start in gaining traction.
- Cross-Border Fulfillment Options
Amazon’s European Fulfillment Network allows sellers to store inventory in one EU country and ship to others. Additionally, programs like Pan-European FBA can simplify logistics across the EU, making it easier to test products in multiple markets without setting up in each one.
- Currency Gains
Fluctuations in currency values, particularly between the British pound and the U.S. dollar, can sometimes result in favorable gains. This can help sellers maintain or improve margins despite additional costs.
Cons of Selling on Amazon EU
- Lower Overall Demand than the U.S.
Although the EU is a promising market, demand is generally lower than in the U.S. For example, Amazon’s 2020 revenue in the U.S. was around $263.5 billion, while Amazon UK’s revenue was about $26.4 billion—a much smaller market size.
- Higher Competition per Sale
While fewer sellers operate in the EU compared to the U.S., the smaller market means there is often higher competition per unit sold. With the global rating system in place, early entry advantages are also reduced.
- Separate Accounts and Subscription Fees
Selling in Europe requires creating a separate professional seller account, which involves additional monthly subscription fees. This setup can make managing multiple accounts slightly more complex and costly.
- Additional Compliance and VAT Requirements
Unlike the U.S., where sellers deal with sales tax, selling in the EU means navigating VAT requirements, which can be as high as 20% in countries like the UK. Sellers must also ensure that products comply with local regulations, which can differ significantly from U.S. standards, adding further costs and complexities.
- Platform Bugs and Glitches
Many sellers report that Amazon’s EU marketplaces can sometimes be less stable and more prone to technical issues compared to the U.S. platform. These glitches may include listing errors, delays in updates, or issues with the Seller Central interface, which can make account management more challenging.
Step-by-step Guide to Start Selling on Amazon Europe
Getting started on Amazon EU can be overwhelming with all the requirements and options available to sellers. This guide will walk you through each step, from setting up a seller account to selecting the right fulfillment methods, helping you launch smoothly and effectively in the European marketplace.
Step 1: Decide Which EU Marketplace is Best for Your Business
When expanding to Amazon EU, it’s important to select the marketplace that aligns best with your business goals.
Germany
Recommended for most sellers due to its large market size, central location, and high number of English speakers. Ideal for general products like electronics and household items, with easy access to other EU markets.
United Kingdom
Popular for English-speaking sellers, though Brexit has introduced cross-border complexities within the EU. Suitable for businesses based in the UK or those targeting British consumers, particularly in personal care and beauty.
France
Known for consumers who value quality and sustainability, making it ideal for eco-friendly or artisanal products. If you’re in the organic skincare or handmade goods sector, France could be a great fit.
Italy
Italy’s growing e-commerce market favors high-quality, stylish products. For sellers in fashion, home decor, or specialty foods, Italy presents strong opportunities.
Spain
With a rising e-commerce adoption rate, Spain is a good market for products with mass appeal, such as electronics or sports goods, especially as more Spanish consumers turn to online shopping.
Netherlands
This is a smaller but growing market, good for testing new products or targeting Dutch-speaking customers. If you’re in the household, books, or fashion categories, the Netherlands can be a strategic addition.
Poland
Poland’s e-commerce market is expanding, offering a solid entry point for early-stage products and brands aiming to establish a presence in Central Europe.
Sweden
With growing online shopping trends, Sweden provides a valuable opportunity for brands to reach Scandinavian consumers in an emerging market.
Choosing the right starting marketplace can make your expansion smoother and more profitable. Start with one or two markets aligned with your product’s appeal and potential reach, and expand from there.
Step 2: Research the Rules, Regulations, and Legal Requirements
Expanding to Amazon EU involves understanding each marketplace’s specific legal and regulatory requirements. Thorough research is essential to ensure compliance, avoid penalties, and smoothly launch in the new market.
Here are the key areas to focus on:
- Intellectual Property Laws
Make sure your products don’t infringe on existing trademarks or patents in the EU. Intellectual property laws can vary by country, so protect your brand and respect other sellers’ rights.
- Taxes and VAT
VAT is a sales tax that applies to most goods sold in Europe and is included in the product’s retail price. Each EU country has different VAT rates (e.g., 19% in Germany and 20% in France). You’ll need to register for VAT in each country where you sell and collect this tax from customers. Additionally, customs fees may apply when importing products into the EU, impacting your overall costs.
- Consumer Protection Laws
European countries have strict consumer protection laws to safeguard buyers. Be prepared for policies around returns, refunds, and warranty requirements, which may differ from U.S. standards.
- Health and Safety Regulations
Product safety is taken seriously in the EU, with specific certifications (like CE marking) required for many products. These regulations ensure product safety and compliance, particularly for items such as electronics, toys, and personal care products.
- Packaging and Environmental Standards
The EU has strict rules for packaging and waste management, requiring sellers to follow guidelines for recyclable and eco-friendly packaging. Each country may have specific rules, so ensure that your packaging meets all local standards.
- Customs and Import Requirements
Import duties and customs fees apply to products entering Europe from outside the EU. These fees can impact your pricing, so be sure to research each country’s requirements to understand the costs involved.
Researching these regulations before you begin can prevent costly issues and delays. Consulting with an experienced Amazon agency can help you tackle these complexities, ensuring you meet all necessary requirements across different markets.
Amazon provides resources on taxes and regulatory considerations, but professional guidance from a full-service Amazon agency will help you confidently expand to Europe.
Step 3: Choose a Fulfillment Method
When selling on Amazon EU, selecting the right fulfillment method is crucial to managing logistics and meeting customer expectations. Amazon offers two main fulfillment options: Fulfillment by Amazon and Fulfillment by Merchant, each with its own set of benefits and limitations.
Here’s an overview of each, along with additional options available within Amazon FBA for the European market.
- Fulfillment by Amazon:
With FBA, Amazon handles storage, packing, shipping, and even customer service, including returns. This option is ideal for sellers who want a hands-off approach and the benefits of Prime eligibility, which often leads to higher conversion rates.
In Amazon EU, FBA provides three additional options:- European Fulfillment Network:
Store your products in a single Amazon EU warehouse, and Amazon will distribute orders across Europe from there. This keeps logistics simple, but cross-border fees apply. EFN is a good starting point, as it requires shipping to only one EU location. - Pan-European FBA:
Amazon distributes your inventory across multiple countries based on demand forecasts. This minimizes cross-border fees and improves delivery times but requires VAT registration in each country where inventory is stored. Pan-European FBA is recommended for sellers seeking broader coverage and faster delivery. - Multi-Country Inventory:
With MCI, you store inventory in Amazon warehouses in multiple countries of your choice. This allows you to control stock allocation, reduce delivery times, and lower shipping costs for local orders. Products are Prime-eligible only in the countries where they are stored, making MCI suitable for sellers targeting specific EU markets.
- European Fulfillment Network:
- Fulfillment by Merchant:
With FBM, you handle your own storage, packing, shipping, and customer service, either directly or through a third-party logistics provider. FBM offers more control over inventory and may be more cost-effective for low-volume or high-margin products. However, FBM listings are not Prime-eligible unless they qualify for Seller Fulfilled Prime, which requires meeting strict delivery standards.
When starting out, many sellers find FBA the easier option, as Amazon manages the complex logistics of cross-border shipping. As your business grows, you may consider switching to FBM or combining both methods to optimize costs and maintain flexibility.
Step 4: Pick Your Payment Options
Choosing the right payment option is essential when selling on Amazon EU, as it impacts how efficiently you receive funds and manage currency exchanges. Amazon offers its own payment service, but third-party options can provide additional flexibility.
Here’s an overview of your choices:
Amazon Payment Services
With Amazon’s built-in payment system, funds from your sales are deposited directly into your home bank account. This option is straightforward, but currency conversion fees may apply if you’re selling in multiple countries and receiving payments in your local currency.
Third-Party Payment Providers
Alternative payment providers allow you to receive payments in EUR, GBP, or other European currencies, offering flexibility with currency exchanges. These services can simplify VAT management and help reduce exchange fees, as they let you transfer funds to your home account when exchange rates are favorable.
Step 5: Conduct Product Research
Thorough product research is essential for any seller planning to enter Amazon EU, particularly for those who don’t yet have a specific product in mind. Identifying high-demand, low-competition products can help you pinpoint profitable opportunities and increase your chances of success in a new market.
Here’s a guide to effective product research for the EU marketplace:
- Use product research Tools like AMZScout. Its Product Database feature allows you to explore popular products in major European markets, such as Germany, France, Italy, and Spain.
- Filter for profitable products using Advanced Filters which can help you narrow down products based on factors like estimated sales, competition level, and profitability.
- Once you’ve identified potential products, assess their profitability by calculating expected monthly profits, FBA fees, and net margins. This will help you determine each product’s financial viability before committing to inventory.
- Evaluate demand and competition levels to find niches with high demand but manageable competition. Look for indicators of low saturation and strong profit potential to identify promising products.
- Examine each product’s sales history to check for stable demand and consistent pricing. Look for trends and seasonal fluctuations to select products with steady performance.
For sellers who are just starting out or don’t have a product in mind, conducting thorough research can reveal profitable niches and new opportunities. Careful evaluation will help set you up for a successful expansion into Amazon EU.
Step 6: Find a Supplier
Once you’ve selected profitable products to sell on Amazon EU, the next step is to find a reliable supplier. Whether you’re looking for local suppliers within Europe or more cost-effective options overseas, careful supplier selection is key to ensuring product quality and consistency.
Here’s a guide to help you find and evaluate suppliers:
- Search for Suppliers on Platforms like Alibaba
Alibaba is a popular choice for finding suppliers, especially if you’re looking for affordable options in China. Many product research tools offer features that link directly to Alibaba suppliers for similar products, simplifying your search.
- Evaluate Supplier Credibility
When selecting a supplier, prioritize those with verification badges, certifications, and high ratings, as these indicate credibility and reliability.
- Review Feedback from Other Buyers
Customer reviews and feedback are valuable for understanding the supplier’s product quality and service level. Look for suppliers with positive ratings and consistent praise for product durability and timely delivery.
- Request Product Samples
Before committing to a large order, always order samples. This allows you to personally inspect product quality and address any issues upfront, reducing the risk of receiving substandard items.
Are you still having trouble finding suppliers? Check the detailed video guide from our Amazon agency on how to source products on Alibaba:
Step 7: Price Your Products
When pricing for Amazon EU, consider additional costs unique to the European market, such as VAT and customs duties, to stay competitive and profitable. Ensure these expenses are factored into your pricing to protect margins.
Fulfillment and shipping costs also impact pricing, with expenses varying based on your chosen fulfillment method and any cross-border fees. Researching competitors’ prices in your target EU marketplace will help you align with market expectations.
Regularly updating prices based on market trends can further support profitability across EU markets.
Step 8: Set Up Your Amazon Account
Once you’ve chosen your target marketplace and ensured EU compliance, it’s time to set up your Amazon seller account. Amazon’s European Unified Account lets you manage multiple EU marketplaces from a single dashboard, simplifying expansion across countries.
To get started, create a European Unified Account in Amazon Seller Central by providing your business details, including tax and bank information for smooth payments. While this unified account allows you to list products across multiple countries, each EU marketplace may have unique regulations.
Make sure you’re fully compliant with the specific laws of each country to avoid issues once you begin selling. However, if you are still confused about the process, check this detailed guide on how to set up an Amazon EU seller account to sell in Europe.
Step 9: Create Product Listings
With your Amazon EU account set up, the next step is to list your products and optimize them for your target marketplaces. Effective listings are essential for visibility in search results, especially across diverse EU markets.
Here’s how to get started:
- Choose a Listing Strategy
Manage listings separately for each marketplace, tailoring to specific market needs, or use a unified listing that can be adapted across multiple countries to streamline updates.
- Optimize Listings for Each Market
Language and phrasing vary across EU countries, so adapt titles, keywords, and descriptions for each marketplace. Localize your listings to align with the preferences and search behaviors of each market.
- Regularly Update Listings
Refine product details and update keywords as needed to improve search rankings and reach a wider audience.
Grow Your Amazon Business and Sell on Amazon in Europe
Expanding your business on Amazon to the European marketplace opens doors to a vast, diverse customer base. Although learning new regulations and fulfillment options can be challenging, the rewards of selling on Amazon in Europe make it a worthwhile investment.
By selecting the right Amazon marketplace, understanding local laws, and optimizing listings, you can set your brand up for success. With careful planning, you’ll be ready to grow sales, build brand presence, and make the most of the opportunities that come with selling on Amazon in Europe.
Want to sell on Amazon in Europe? Contact our Amazon agency today and get expert support for a successful expansion into the European market!
