Amazon Comparison
Amazon Pan-EU vs. EFN – Which Logistics Program?
Overview
When expanding as an Amazon seller across Europe, you face a critical decision: Pan-EU or EFN? Both programs use Amazon's FBA infrastructure but differ fundamentally in how inventory is distributed across European countries. With Pan-EU, Amazon automatically distributes your products across fulfillment centers in multiple EU countries (Germany, France, Italy, Spain, Poland, Czech Republic) to ensure the shortest possible delivery routes. With EFN (European Fulfillment Network), all inventory is stored in a single country – typically Germany – and shipped cross-border to other EU countries from there. The right choice depends on your sales volume, willingness to register for VAT in multiple countries, and your long-term EU expansion strategy.
Pan-EU (Pan-European FBA)
With Pan-EU, the seller ships their inventory to Amazon, and Amazon independently distributes the goods across fulfillment centers in up to six EU countries (DE, FR, IT, ES, PL, CZ). The distribution is based on Amazon's demand forecasts and algorithms, ensuring products are stored as close to the end customer as possible. This means orders are fulfilled as local shipments rather than expensive cross-border deliveries.
Pros
- +Significantly lower shipping costs per order: Since products are stored locally in each target country, only domestic fulfillment fees apply instead of expensive cross-border delivery charges.
- +Faster delivery times for customers: Local storage typically means next-day or even same-day delivery, significantly boosting customer satisfaction and conversion rates.
- +Better Prime performance and Buy Box chances: Local delivery is preferred by Amazon's algorithm. Pan-EU listings win the Buy Box more frequently than EFN listings with longer delivery times.
- +Higher sales across all EU marketplaces: Fast, reliable delivery increases visibility and sales volume across all European Amazon marketplaces simultaneously.
- +Automatic inventory distribution by Amazon: You don't need to manage distribution yourself – Amazon's algorithm places stock where demand is highest.
Cons
- -VAT registration required in every country with stock: You need VAT registration in all countries where Amazon stores your inventory – that's up to six countries with ongoing tax filings and compliance costs.
- -Higher tax advisory costs: Ongoing VAT compliance in up to six countries requires specialized tax advisors or services like AVASK, hellotax, or Taxdoo, which can cost several thousand euros annually.
- -Less control over inventory distribution: Amazon independently decides how much stock goes to which country. This can lead to uneven availability or undesirable inventory distribution.
- -More complex returns and disposal: If you exit Pan-EU or want to retrieve inventory, stock is spread across multiple countries, making returns more complicated and expensive.
EFN (European Fulfillment Network)
With EFN (European Fulfillment Network), all FBA inventory is stored in a single country – usually Germany as the central European hub. From there, Amazon ships the goods cross-border to customers in other EU countries such as France, Italy, Spain, and other markets. The seller is listed on all EU marketplaces but only needs VAT registration in the storage country.
Pros
- +Simple VAT situation: You only need VAT registration in the storage country (e.g., Germany) as long as you don't exceed country-specific delivery thresholds – this saves significant tax advisory costs.
- +Lower setup complexity: Entering the European market is significantly easier since only one storage country needs to be managed and regulatory requirements remain manageable.
- +Full control over inventory: All your stock is in one location, which significantly simplifies inventory planning, reordering, and potential retrieval.
- +Ideal entry point for new EU sellers: EFN is the perfect first step to test European markets before investing in the full Pan-EU infrastructure.
- +Access to all EU marketplaces despite central storage: Even with only one storage country, your listings appear on amazon.de, amazon.fr, amazon.it, amazon.es, and other marketplaces.
Cons
- -Higher cross-border shipping costs: Shipping from Germany to France, Italy, or Spain costs significantly more than local delivery – these cross-border fees eat into margins.
- -Longer delivery times for foreign customers: Cross-border shipping typically takes 3-5 business days instead of 1-2 days with local delivery, negatively impacting conversion rates.
- -Worse Buy Box chances in foreign markets: Amazon's algorithm prefers listings with fast local delivery. EFN listings frequently lose the Buy Box to Pan-EU competitors.
- -OSS reporting obligation above certain thresholds: Once your cross-border revenue exceeds the EU-wide threshold of EUR 10,000, you must register for the One-Stop-Shop (OSS) and remit VAT in destination countries.
- -Limited scalability: As sales volume grows in other EU countries, higher shipping costs and longer delivery times increasingly become a competitive disadvantage.
Comparison Table
| Criterion | Pan-EU (Pan-European FBA) | EFN (European Fulfillment Network) |
|---|---|---|
| Shipping cost per order | Low – local fulfillment fees in each country, comparable to domestic FBA costs. Typically EUR 2-5 for standard packages. | High – cross-border shipping fees of EUR 5-15 on top of regular FBA fees, depending on destination country and package size. |
| Delivery speed | Fast – 1-2 business days in all EU countries with stock. Prime customers frequently receive next-day delivery. | Slower – 1-2 days in the storage country, but 3-5 business days for cross-border deliveries to other EU countries. |
| VAT complexity | High – VAT registration required in up to 6 countries (DE, FR, IT, ES, PL, CZ). Ongoing tax filings and compliance in each country. | Low – only one VAT registration needed in the storage country. OSS registration required once cross-border revenue exceeds EUR 10,000. |
| Prime eligibility | Full – Prime badge and fast delivery in all countries with stock. Optimal visibility for Prime members. | Limited – Prime badge in the storage country yes, but in other countries often displayed without Prime or with longer delivery times. |
| Buy Box chances | Very good – local delivery is strongly preferred by Amazon's A10 algorithm. Clear advantage over EFN competitors in foreign markets. | Moderate in foreign markets – cross-border delivery is viewed as a disadvantage by the algorithm. Equal to Pan-EU in the storage country. |
| Setup effort | High – VAT registration in multiple countries takes 4-12 weeks. Tax advisor costs of EUR 1,500-5,000 annually for multi-country compliance. | Low – only one VAT registration needed. Simple setup within a few days. Lower ongoing tax advisory costs. |
| Inventory management | Complex – inventory is automatically distributed across multiple countries. Less direct control, but Amazon optimizes placement based on demand. | Simple – all inventory in one location. Clear overview, easy reordering, and full control over stock levels. |
| Recommended sales volume | Profitable from approx. EUR 50,000 annual revenue in foreign EU markets. The higher the volume, the greater the cost savings compared to EFN. | Ideal for starting out and with low foreign revenue under EUR 50,000. The tax savings outweigh the higher shipping costs. |
| Tax compliance costs | EUR 1,500-5,000 per year for VAT filings in up to 6 countries. Services like AVASK or hellotax offer package deals for Pan-EU sellers. | EUR 200-800 per year for VAT filings in one country plus optional OSS registration. Significantly lower ongoing compliance costs. |
Our Recommendation
For most Amazon sellers, we recommend a phased approach: Start with EFN to test European markets and generate initial sales. Once your foreign revenue reaches a critical mass (approximately EUR 50,000 annually in foreign EU markets) and the shipping cost savings exceed the additional VAT compliance costs, switching to Pan-EU is the logical next step. At SpaceGoats, we support our clients with both models and help determine the optimal timing for the transition – including coordination of VAT registrations and tax advisor selection.
Frequently Asked Questions
Can I switch from EFN to Pan-EU without re-sending my inventory?
Yes, the switch is relatively straightforward. Once you activate Pan-EU in your Seller Central account and have entered the VAT registrations for the target countries, Amazon automatically begins distributing your existing inventory to other countries. You don't need to create a new shipment – Amazon transfers the goods internally between fulfillment centers.
Do I really need a tax advisor in every country for Pan-EU?
Not necessarily a local tax advisor in every country. There are specialized EU-wide service providers like AVASK, hellotax, or Taxdoo that offer VAT registrations and ongoing filings in all Pan-EU countries from a single source. These services cost between EUR 1,500 and 5,000 annually and significantly simplify compliance. At SpaceGoats, we connect our clients with proven partners.
Which countries are included in Amazon Pan-EU?
As of 2026, Amazon Pan-EU includes fulfillment centers in Germany, France, Italy, Spain, Poland, and Czech Republic. Your inventory is automatically distributed across these six countries. Orders from other EU countries (e.g., Netherlands, Belgium, Sweden) are shipped cross-border from the nearest warehouse but still benefit from shorter delivery routes than the pure EFN model.
How does the choice between Pan-EU and EFN affect my product pricing?
The choice directly impacts your cost structure and thus your pricing. With EFN, you pay higher cross-border shipping fees (EUR 5-15 per shipment), which either reduce your margin or must be added to the selling price. With Pan-EU, shipping costs are lower, but annual VAT compliance costs (EUR 1,500-5,000) must be factored in. Above a certain volume, Pan-EU is almost always cheaper per unit.
What happens to my inventory if I deactivate Pan-EU?
When you deactivate Pan-EU, Amazon stops distributing new goods to foreign warehouses. However, already distributed inventory remains in the respective countries until it is sold or you request a paid return or disposal. Note that the VAT obligation in these countries persists as long as stock is stored there. Therefore, plan the exit carefully and try to sell through the foreign inventory first.
Can I use Pan-EU and EFN simultaneously for different products?
Yes, this is possible and in many cases even advisable. You can activate Pan-EU for your bestsellers with high volume where the VAT compliance costs are worthwhile, while simultaneously using EFN for niche products or new items with low foreign sales. This hybrid strategy allows you to optimally combine the advantages of both models.