Tired of US tariff headaches? The European ecommerce market might just be your aspirin.
Selling internationally on Amazon sounds like a power move—until you’re buried in tariff codes, customs declarations, and regional regulations. For many sellers, it’s less “expansion strategy” and more “logistical nightmare.”
Yet skipping Europe means missing out on the third largest retail e-commerce market in the world, with revenues hitting US$631.9 billion—and projected to grow 9.31% annually, reaching US$902.3 billion by 2027. That’s not a market you want to ignore.
This report simplifies the path forward. With guidance from a seasoned Amazon agency, you’ll get a clear roadmap for breaking into the EU and UK markets without losing sleep over paperwork this 2025 and beyond.
Table of Contents
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Learn how to tackle new EU tariff rules and grow your sales with proven strategies from our Amazon agency specialists.
Simpler inventory shipping in the European ecommerce market
Shipping inventory into the European Union may feel intimidating, but it doesn’t have to be. Thanks to the EU Customs Union, Amazon sellers can benefit from fewer border headaches, if they understand the system’s key elements.
One entry, many destinations
The Problem:
Import duties and customs procedures can derail your profitability and delay export and import shipments when entering international markets.
The advantage of the EU Customs Union:
Once goods clear customs in one EU country, they can move freely across 27 others without additional duties.
Why this matters for Amazon sellers
One external border, no internal duties
Goods imported into any EU country and cleared for free circulation can be shipped to others without new tariff rates.
Simplified FBA logistics
Send your products to one EU FBA warehouse, and redistribute within the Union without customs headaches.
Shared customs rules
All 27 EU countries use the same customs code and tariff system, which means more consistency, at least on paper.
What you still need to watch out for
Initial customs clearance is critical
Errors here can block goods from free movement. Get your product classification and declarations right.
Paperwork still matters
You’ll need:
An EORI (Economic Operators Registration and Identification) number is mandatory for customs declarations
Supporting documents like invoices, certificates of origin, and possibly import licenses
VAT isn’t waived
You’ll still need to register for VAT in relevant countries or use the One Stop Shop (OSS) scheme.
Understanding the €150 rule to navigate tariffs
The EU makes shipping simpler once you’re inside, but getting in requires precision. Nail the first step, and your Amazon inventory can flow through Europe without customs disruptions.
The €150 threshold is a key regulation that affects how customs and VAT are handled for small shipments.
Key points:
€150 threshold
Goods with an intrinsic value of €150 or less qualify for simplified customs procedures and can use the Import One-Stop Shop (IOSS) to collect VAT at checkout.
Above €150
Shipments over this amount follow standard customs rules and cannot use IOSS. Import VAT and duties are paid upon arrival.
No VAT exemptions
The old €22 VAT exemption is gone. Now, all imports into the EU are subject to VAT, regardless of value.
- Important to consider
Starting March 2028, the EU will remove the €150 customs duty exemption, making all imports subject to VAT and duties. The goal is to curb tax evasion and ensure market fairness.
Why it matters for inventory planning
Price products carefully, keeping each shipment under €150 avoids extra customs steps.
Avoid bundling multiple items that push the total over €150.
IOSS makes VAT collection easier and faster for low-value goods, speeding up delivery.
More than 90% of e-commerce imports fall under this low-value threshold. Understanding how it works helps sellers plan inventory and cut shipping friction across Europe.
UK Advantage: Postponed VAT Accounting (PVA)
Postponed VAT Accounting (PVA) helps UK VAT-registered businesses import goods more smoothly by letting them delay VAT payments.
For e-commerce sellers shipping inventory into the UK, PVA simplifies VAT handling and reduces financial pressure, especially helpful when managing stock across both the UK and EU markets.
Key benefits for importing into the UK
No upfront VAT payment
Import VAT is reported and reclaimed on the same VAT return, no cash out at the border.
Applies to all imports
PVA works for goods of any value, whether you’re importing bulk stock or high-ticket items.
Improved cash flow
By postponing VAT payment, you free up working capital for other parts of your business.
How to use it
- Tell your customs agent to select PVA on the customs declaration.
- Download your monthly VAT import statements online for your VAT return.
Is there really no tariff to pay when expanding to the European ecommerce market?
You may have heard that trading between the UK and EU now means “zero tariffs.” But that’s only part of the story.
What "Zero Tariff" really means
If your product doesn’t meet these rules, standard tariffs apply, even under the TCA.
Key requirements
Products must “originate” in the UK or EU, either fully made or substantially processed there.
You must provide proof via a statement on origin on a commercial invoice.
Importers need to claim the tariff benefit and retain proof during customs declarations.
Don’t forget
Even with zero tariffs, customs declarations, checks, and EORI numbers are still required. Businesses must keep detailed records of where materials come from—this can get tricky if your supply chain is global.
When it might not be worth it
If proving origin is too complex or expensive, some sellers choose to skip the paperwork and just pay the standard tariff. This trade-off can make sense for low-margin products or time-sensitive shipments.
Treat Northern Ireland customs distinctively from Great Britain
Northern Ireland (NI) follows different rules from the rest of the UK due to the Windsor Framework.
Key points for sellers
NI stays aligned with EU customs rules and remains in the EU single market for goods.
Shipping goods from Great Britain to NI requires customs checks and declarations.
Shipping from the EU to NI is treated like EU-to-EU movement—no import duties, only VAT acquisition
What this means for your inventory strategy
Treat NI as a separate customs zone from the rest of the UK.
A special XI EORI number is required for moving goods into, out of, or through NI.
NI may offer a smoother pathway into the European market, but only if you can navigate the extra customs rules.
Bottom Line
If you’re considering using Northern Ireland as a hub for European e-commerce, know that it comes with added complexity, but also some potential customs advantages for EU-bound inventory.
Successfully expanding across the UK/EU divide
The UK-EU TCA aims for tariff-free international trade, but involves complex “Rules of Origin”. Here’s how to simplify inventory shipping:
Split inventory across the UK and EU
Avoid cross-border shipping delays by storing products in both regions. Use UK FBA or 3PLs for UK orders, and Pan-EU FBA or EU-based 3PLs for EU orders.
Ship in bulk, not per order
It’s easier to manage customs when importing large shipments versus handling each customer order individually.
Know the rRules for each market
UK: Get a GB EORI, follow UK VAT and product standards (like UKCA).
EU: Get an EU EORI, follow EU VAT (IOSS or import VAT), and meet CE and other EU compliance rules.
Plan for compliance costs
Even with zero tariffs, you’ll face customs fees, brokerage costs, and paperwork. Decide if managing RoO is worth it, or if paying standard tariffs is simpler.
Stay informed
Customs rules are changing (e.g., UK’s BTOM). Work with experienced partners to stay compliant and avoid surprises.
Strategically expand to the European ecommerce market
1. Evaluate market potential in Europe
Before moving inventory, assess the opportunity.
Conduct product-specific demand research per country (Germany, France, Italy, Spain, Netherlands).
Use tools like Amazon’s Brand Analytics, Helium 10, or Jungle Scout with EU filters.
Understand competitive landscape: pricing, ratings, reviews, keywords.
Prioritize marketplaces with lower competition and growing demand.
Output: Select 2–3 target EU marketplaces for initial expansion.
2. Choose a fulfillment model wisel
Match your operational capacity and risk appetite with the right fulfillment approach.
| Fulfillment Option | Pros | Cons |
|---|---|---|
|
Pan-EU FBA |
Fast delivery, broader reach |
Requires VAT registration in every country where stock is held |
|
European Fulfillment Network (EFN) |
Simple start, fewer VAT obligations |
Slower cross-border delivery, higher fees |
|
Multi-Country Inventory (MCI) |
Strategic control over stock locations |
More complex to manage, partial VAT coverage |
|
Third-Party Logistics (3PL) |
Full control, tailored services |
Vetting, integration, and management overhead |
Output: Fulfillment strategy selected with associated VAT obligations mapped.
3. Get your legal and tax house in order
Avoid penalties and delays by starting with a compliant foundation.
Apply for an EU EORI number (economic operator registration and identification).
Register for VAT in each country where inventory will be stored.
Appoint a fiscal representative where required (e.g., France, Italy).
Use Amazon VAT Services or hire EU tax advisors to streamline filings.
Output: VAT and EORI registrations completed for target countries.
4. Optimize your import setup
One-time bulk import to the EU is better than incurring U.S. tariffs on every order.
Ensure accurate HS codes and correct customs valuation.
Source supplier documentation (commercial invoice, packing list, origin certificate).
Explore:
Customs warehousing (duty suspension until sale).
Tariff suspensions and free global trade benefits.
Use customs brokers for initial imports to ensure proper declarations.
Output: First bulk shipment plan with customs clearance support in place.
Assess Product Demand with Amazon’s Tools
Use the Marketplace Product Guidance tool to predict 90-day sales forecasts and identify opportunities in European markets.
Navigate Country-Specific Compliance Requirements
Understand and meet each European country’s unique regulations and product restrictions before expanding.
5. Localize listings and operations
“Copy-pasting” U.S. listings won’t cut it in Europe.
Use professional translations (native speakers + keyword research).
Adapt:
Product descriptions and images for local norms.
Sizes and units (e.g., cm vs. inches, UK vs. EU shoe sizes).
Payment methods and customer service channels.
Localize for currency, language, and shipping expectations.
Output: Localized product detail pages (PDPs) for each EU country.
6. Expand and diversify inventory smartly across the UK and EU
Post-Brexit, treat the UK and EU as distinct markets.
For the EU
Obtain a separate EU EORI number (starting with the country code).
Register for IOSS for shipments under €150, or regular VAT for higher values.
Localize for EU compliance standards (e.g., CE, GDPR).
For the UK
Get a UK EORI number (starts with GB).
Understand UK VAT on goods under £135 and UKCA product compliance.
Use Postponed VAT Accounting (PVA) to defer VAT at the border.
Output: Parallel UK and EU import pipelines with dedicated stock.
7. Leverage fulfillment to reduce cross-border complexity
Avoid constant customs declarations by keeping inventory within each market.
Import in bulk to both a UK and an EU fulfillment center.
Consider:
Pan-EU FBA or MCI for mainland Europe.
UK FBA or 3PL for Great Britain.
Avoid EFN as a long-term solution due to cross-border fees and delays.
Output: Inventory hubs established on both sides of the Channel.
8. Manage VAT and duties efficiently
Avoid overpaying and simplify ongoing compliance.
Use customs warehouses in the EU to defer duty/VAT on unsold stock.
Integrate with IOSS or UK VAT systems for low-value items.
Utilize PVA in the UK to delay paying VAT until your return.
Work with specialized VAT firms to manage filings in each country.
Output: Streamlined import and VAT processes that support cash flow.
9. Track Regulations and Maintain Agility
Customs and VAT rules are evolving.
Monitor:
UK’s BTOM rollout
EU VAT reform updates
Work with partners who stay compliant and updated (Amazon VAT Services, Avalara, SimplyVAT, customs brokers).
Output: Stay compliant, avoid fines, and keep goods flowing across borders.
Ready to tackle e-commerce tariffs? Let’s build your expansion plan
Tariffs are making it harder to stay profitable when selling in or to the U.S. and many sellers are reaching a breaking point. Expanding to the European ecommerce market offers a strategic alternative, especially when done with precision and local expertise.
With the right structure, compliance approach, and fulfillment plan, you can tap into growing EU demand while avoiding unnecessary customs friction. If you’re exploring this route or simply looking for ways to minimize the impact of tariffs, our full service Amazon agency can help.
We’ll work with you to develop a tailored expansion plan and identify strategies that go beyond just switching markets to ease the impact of Trump’s tariffs. Whether it’s navigating VAT, optimizing your FBA footprint, or managing tariff exposure, we’ve got the experience to support your next move.
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