Amazon Comparison
Amazon EU vs. US – Where to Start First?
Overview
The question of whether to start as an Amazon seller in Europe or the United States first is one of the most strategically important decisions in e-commerce. Amazon EU encompasses over five major marketplaces (Germany, France, Italy, Spain, UK) with a combined total of over 500 million potential customers, offers less competition in many niches, but imposes strict regulatory requirements (CE marking, EPR, GPSR, multilingual requirements). Amazon US is by far the largest single marketplace in the world with the highest revenue potential, offers simpler logistics (one country, one language), but has an extremely competitive market. Both options have clear advantages and disadvantages, and the right choice depends on your product, budget, risk tolerance, and long-term expansion strategy.
Amazon EU (European Marketplaces)
Amazon EU comprises multiple independent marketplaces – including amazon.de, amazon.fr, amazon.it, amazon.es, and amazon.co.uk as the five largest. Additionally, there are growing markets like amazon.nl, amazon.se, amazon.pl, and amazon.com.be. Sellers can list on all EU marketplaces through a single EU seller account and choose between EFN or Pan-EU as their logistics model. However, the European market requires significantly more compliance effort than the US market.
Pros
- +Less competition in many niches: Many product categories that are completely saturated on amazon.com still offer significant potential on European marketplaces with considerably less competition.
- +Diversification across multiple markets: Instead of depending on a single marketplace, you spread your risk across 5+ countries. If one market weakens, others can compensate the revenue.
- +Higher margins due to less price pressure: Less competition means less aggressive price undercutting. European consumers are also often willing to pay more for quality and fast delivery.
- +EU compliance as competitive advantage: The high regulatory requirements in Europe act as a natural entry barrier. Those who correctly implement CE, EPR, and GPSR have a sustainable advantage over less compliant competitors.
- +Access to high-purchasing-power markets: Germany, France, and Great Britain are among the largest e-commerce markets in the world. Together, the EU marketplaces offer revenue potential that approaches the US market.
Cons
- -High compliance requirements: CE marking, EPR registration (packaging, electronics, batteries), GPSR conformity, REACH, multilingual labeling – the regulatory burden is significant and requires specialized knowledge.
- -Multilingual requirements: Listings, packaging, instructions, and customer service must be provided in the respective local language. Professional translations for 5+ languages are costly.
- -Complex VAT situation: VAT registrations in multiple countries, OSS reporting obligations, different tax rates, and ongoing compliance costs make the tax side significantly more demanding than in the US.
- -Logistics complexity: The choice between EFN and Pan-EU, cross-border shipping, different packaging requirements per country, and various return policies increase operational complexity.
- -Fragmented market: Instead of one large marketplace, you must manage 5+ separate markets with different customer preferences, seasonalities, and cultural specifics.
Amazon US (amazon.com)
Amazon US (amazon.com) is the largest and highest-revenue Amazon marketplace in the world. With over 300 million active customer accounts and an estimated GMV of over 700 billion US dollars (2025), it offers the highest revenue potential of all Amazon markets. Logistics are comparatively simple: one country, one language, one tax system. However, competition is extremely intense, and sellers must contend with aggressive pricing strategies and high advertising costs.
Pros
- +Largest Amazon marketplace worldwide: Over 300 million active customer accounts and the highest revenue potential. A single successful product launch on amazon.com can generate more revenue than all EU markets combined.
- +Simple logistics: One country, one fulfillment network, one tax system. No cross-border shipping, no multi-country compliance, no varying packaging requirements.
- +One language: All listings, packaging, and entire customer service only need to be provided in English. No expensive translations into 5+ languages needed.
- +Fewer regulatory hurdles: Compared to the EU, regulatory requirements in the US are less stringent for many product categories. No CE marking, no EPR, no GPSR – instead FCC, FDA, and state-level regulations depending on the product.
- +Mature advertising ecosystem: Amazon PPC in the US is the most developed advertising system with the most tools, data, and optimization options. Experienced PPC managers can achieve high returns here.
Cons
- -Extremely high competition: Almost every profitable niche on amazon.com is heavily contested. Hundreds or thousands of sellers compete for the same keywords, making market entry and profitability challenging.
- -High advertising costs (PPC): Cost-per-click prices on amazon.com are significantly higher than in Europe. In competitive categories, CPCs of USD 2-8 per click can heavily burden margins.
- -Aggressive price competition: The US market is known for price undercutting and race-to-the-bottom dynamics. Sellers must expect thin margins and constantly optimize their pricing.
- -Complex tax system (Sales Tax): Although it's only one country, each US state has its own sales tax rules. Amazon collects sales tax automatically (Marketplace Facilitator Laws), but nexus rules can be complex.
- -Dependency on a single market: Your entire revenue depends on one marketplace. Algorithm changes, account suspensions, or policy updates hit you with full force.
Comparison Table
| Criterion | Amazon EU (European Marketplaces) | Amazon US (amazon.com) |
|---|---|---|
| Market size (estimated GMV) | Approx. EUR 150-200 billion combined across all EU marketplaces. amazon.de as the largest EU marketplace with approx. EUR 40-50 billion annual revenue. | Over USD 700 billion on a single marketplace (amazon.com). By far the largest e-commerce marketplace in the world. |
| Competition level | Moderate to high depending on the niche. Many categories still offer room for new sellers. Fewer Chinese direct-to-consumer sellers than on amazon.com. | Very high to extreme in almost all profitable niches. Thousands of established sellers, aggressive PPC strategies, and constant price pressure. |
| Compliance requirements | High: CE marking, GPSR, EPR (packaging, WEEE, batteries), REACH, multilingual labeling, EU Authorized Representative. Strictest product safety rules worldwide. | Moderate: FCC certification (electronics), FDA registration (food, cosmetics), CPSC compliance (children's products), Prop 65 (California). Fewer regulations but strict enforcement. |
| Logistics complexity | High: Choice between EFN and Pan-EU, cross-border shipping, inventory storage in up to 6 countries, different return policies per country. | Low: One FBA network, Amazon distributes inventory automatically across US fulfillment centers. Simple inbound shipping and uniform returns processing. |
| Language barriers | High: Listings in German, French, Italian, Spanish, and English (UK) required. Professional translations cost EUR 500-3,000 per product for all languages. | None: Only English required. A single listing covers the entire US market. |
| Startup costs (estimated) | EUR 10,000-30,000: VAT registrations, EPR registrations, CE testing, translations, EU Authorized Representative, GPSR compliance. Higher upfront investment but more sustainable market access. | EUR 5,000-15,000: Product certifications (FCC/FDA if needed), listing optimization, initial PPC budget, product liability insurance. Lower upfront costs but higher ongoing advertising expenses. |
| Average PPC costs (CPC) | EUR 0.15-1.50 depending on country and category. Germany and UK most expensive, France, Italy, and Spain significantly cheaper. Overall 40-70% lower CPCs than in the US. | USD 0.50-8.00 depending on category. Competitive categories like supplements or electronics have CPCs of USD 3-8. Advertising costs are the biggest margin killer. |
| Profit potential | Solid margins of 15-30% are realistic in many EU niches. Lower price pressure and lower advertising costs compensate for higher compliance costs. | Higher absolute revenue potential, but net margins often only 8-20% due to high PPC costs and aggressive price competition. Top sellers still achieve millions in revenue. |
| Tax system | Complex: VAT registration in 1-6 countries (depending on EFN/Pan-EU), varying tax rates (19-25%), OSS reporting obligations. Specialized tax advisors recommended. | Simpler: Amazon collects sales tax automatically (Marketplace Facilitator). No own sales tax nexus management needed for pure FBA sellers. State income tax can be complex. |
Our Recommendation
Our recommendation strongly depends on your starting situation. For European brands and manufacturers, we recommend starting in the EU – you know the market, compliance is easier to implement, and margins are often better. For US-based sellers or brands with a strong English focus, starting in the US may make more sense. Generally: If you have a differentiated product with good margins and are willing to invest in compliance, Amazon EU often offers the better risk-reward ratio. The US market is ideal for sellers with large advertising budgets, scalable products, and willingness to offset thin margins through high volume. At SpaceGoats, we focus on EU expansion and guide brands from their first listing to full Pan-EU coverage – including all compliance requirements.
Frequently Asked Questions
Can I sell on Amazon EU and Amazon US simultaneously?
Yes, this is technically possible and many successful sellers do exactly that. You need separate seller account regions (North America and Europe) that you can link through the Amazon Global Selling program. However, note that you need separate inventory, listings, and compliance measures for each market. We recommend first building one market profitably before expanding to the second – this avoids overextending your resources.
Which market has lower startup costs?
Amazon US typically has lower startup costs (EUR 5,000-15,000) since compliance requirements are less extensive and no translations into multiple languages are needed. Amazon EU requires higher upfront investments (EUR 10,000-30,000) for VAT registrations, CE testing, EPR registrations, and professional translations. However, ongoing costs (especially PPC) in the US are often significantly higher, so the total cost of ownership over 12 months can be similar.
Is Amazon Germany alone large enough as a starting market?
Absolutely. Amazon.de is the second-largest Amazon marketplace worldwide after amazon.com and generates an estimated annual revenue of EUR 40-50 billion. Many sellers achieve six- to seven-figure revenues on amazon.de alone. Our recommended approach: Start on amazon.de as your primary market, use EFN for initial sales on other EU marketplaces, and switch to Pan-EU as volume increases. This way you gradually build a strong EU presence.
How does customer service effort differ between EU and US?
In the EU, customer service effort is higher since customers want to communicate in their local language. French customers expect French support, Italian customers expect Italian. With FBA, Amazon handles first-line support in the respective language, but for seller-specific inquiries you need multilingual capabilities. In the US, English is sufficient. Service providers like SpaceGoats handle multilingual customer service for EU sellers as part of their full-service package.
Which product categories perform better in the EU than in the US?
Based on experience, the following categories perform particularly well in the EU: premium home products and kitchen accessories (high willingness to pay), outdoor and sports equipment (strong European outdoor culture), sustainable and eco-certified products (growing awareness in EU countries), and specialized niche products with fewer than 50 competitors. Categories like supplements, generic electronics accessories, or basic fashion items are also competitive in the EU, but significantly less so than on amazon.com.
Do I need a US company to sell on amazon.com as an EU seller?
No, you don't need a US company. Amazon allows international sellers to register on amazon.com with their European company. However, you need a valid credit card, a bank account (or a payment service provider like Payoneer or World First for USD payments), a tax identification number, and US product liability insurance above a certain revenue volume. Many EU sellers still establish a US LLC to take advantage of tax benefits and limit liability.