What is PAN EU?
If you as a seller, take part in the pan-European shipping program, or PAN EU,
you allow Amazon to store your goods in other countries and ship to customers
in different countries from there. This has mainly three advantages: First,
customers receive their products notably faster thanks to Prime shipping. Of
course the seller also benefits: You only pay the local, national shipping
costs instead of having to deliver products across one or several borders. And
in the seller central, you get one overview of all of your stock across
Europe instead of several single stock displays for every country.
The difference between PAN-EU and EFN
When selling good on Amazon in Europe, it is important to distinguish between
PAN EU and the European Fulfillment Network (EFN): Just like with PAN EU, EFN
also allows sellers to only have one stock for all of Europe. But in the EFN
program, the articles are always being sent to customers across Europe from
your own country, for example England. This means shipping takes much longer
and is more expensive.
How can I activate PAN EU in the EU seller central?
In the settings in the seller central, you’ll find the option to enable
pan-European shipping easily with one click. However, you have to pay
attention to a few requirements you have to meet in order to receive all the
PAN EU benefits. It’s crucial to understand that while the activation
interface might seem straightforward, meeting the eligibility criteria is
more complex, especially with recent updates to the program.
Sales tax (VAT) liability in other countries by default
As soon as you click on the little box in the seller central and therefore
activate pan-European shipping, Amazon doesn’t wait around and already starts
allocating your goods to warehouse all over Europe in order to send them to
your customers with Prime shipping and speed.
This is where you have to be careful: As soon as you’re selling a product from
another country to this same country, you become liable for sales tax (VAT</a >) there. If Amazon for example delivered your product to a warehouse in
France and then a French customer buys it from there, you have to pay your tax
to French authorities, do your
VAT</a >
registration, return etc. It’s important to note that while inventory storage
in a country like the Netherlands would trigger Dutch VAT registration, simply
listing your products on Amazon.nl doesn’t automatically require it unless you
are also storing inventory there or using third-party logistics in the
Netherlands.
Once activated, you can NOT take this setting back. As soon as PAN EU is
running, you are committed to taxes etc. for a whole calendar year. So sellers
better be really careful and know about all the consequences before activating
pan-European shipping.
Products that are barred from PAN EU
Some products or even whole product groups are not qualified for pan-European
shipping by default. This includes food or hazardous goods.
If you still want to sell these products in European countries, for example
pasta in France when your company is in Germany, you can get around this rule
by delivering these goods separately to the respective country. When creating a
shipping plan, you can use the dropdown menu for the address of the
destination marketplace to choose France, respectively. Your products will be
sent to France and then you can still benefit from the cheaper local shipping
costs. On the other hand, this means you have to supply warehouses in every
country separately, this needs to be planned which requires time and so on. On
top of that, you also have to consider the shipping costs to the warehouse in
the other country which is only possible with UPS and therefore usually twice
as much as for example delivery in Germany with DHL.
Possible reasons for problems with PAN EU activation and important updates
Your product is qualified for PAN EU but somehow there are still problems or
you’re not benefiting from all the advantages of pan-European shipping? The
following settings are common obstacles that occur when activating PAN EU in
the seller central, alongside crucial new requirements.
Inactive product listings in other countries
If there has ever been a listing for a product on a foreign marketplace, this
means you need to have an active listing in this respective country. If this
is not the case, you won’t be able to use all the benefits of pan-European
shipping. For example, if you listed articles in all six marketplace countries
but only have an active listing in five of these countries, then you’ll still
pay the expensive shipping costs in these countries.
IMPORTANT UPDATE: As of June 25, 2025, the Netherlands (Amazon.nl)
will become a mandatory marketplace for all sellers participating in the
Pan-EU Fulfilment Network (Pan-EU FBA). This means you must have active
product offers in Germany, France, Italy, Spain, and now also the
Netherlands. Existing ASINs must be listed in the Netherlands by this date.
New ASINs added after June 25, 2025, must be listed simultaneously in all five
marketplaces to remain eligible for the program. Failure to meet these new
requirements will result in the loss of Pan-EU benefits, including local
delivery fee advantages and streamlined cross-border logistics.
SPACEGOATS extra tip: You’re not sure where you already have
listings? You can easily check: Enter the address for the respective
marketplace in the address bar, then “/dp/” and then add the ASIN for the
respective article. For Italy, that would be amazon.it/dp/ASIN. If you can see
something after you hit enter, that means you already have a listing – it’s
that easy.
Automatic international offer expansion is activated in the seller central
Another setting in the Amazon seller central that can easily be overlooked is
the Automatic international offer expansion. This means that Amazon
automatically lists all products that are being created from now on on every
other EU marketplace as well. In some cases this can be beneficial, but only
causes problems in others. In every case, we definitely recommend manually
listing products that have already been created before.
Here’s an example for problems that might occur: If one product or a whole
group of products is not allowed on one single marketplace but the listing got
created automatically – in all countries -, then one of these listings is not
active per se and that means you won’t get all the pan-European benefits
again. The prime example for this are all kinds of knives, even kitchen
knives, that are banned in the UK.
SPACEGOATS extra tip: If you still want to use PAN EU, you
can list the problematic product, for example the kitchen knife we mentioned,
manually in all other countries (Germany, Spain, France, Italy and the
Netherlands) from the start. This is called PAN EU 5 and grants you the same
pan-European shipping benefits as “regular” PAN EU. As soon as the knife has
once been listed in the UK, though, you won’t be able to remove it – that’s a
bug that Amazon is currently still trying to fix.
Purchase of stock by Amazon is activated in the EU seller central
If you’re now thinking that you’ve never listed any of your products in any
other countries and therefore won’t run into any problems, you definitely have
to check one thing: In the seller central, there is a feature in settings and
“Shipping by Amazon” that allows Amazon to purchase your stock – worldwide. If
this setting is activated, Amazon can buy your goods from you and then list
and sell them with your ASIN in all countries. That means there actually has
been a product listing before and you might not be able to use pan-European
shipping because any of those listings might not be active or something
similar. Some customers might even have left reviews already that – in the
worst case – might not even be positive. That’s why we recommend every seller
to check their listings in other countries!
