New PAN-EU feature 2019: Different VAT, same margin

Amazon has announced to change how prices for Amazon sellers using Pan-European FBA are set. The goal is that the margin for product stays the same, regardless of the country of export. This article will give a brief summary on the new system and how PAN-EU sellers can profit from it.

Christoph Prokeš
Feb 4 · 3 min read

E-Mail to Amazon Sellers

Many PAN-EU sellers have recently received an e-mail that looks like the one above. And now they can take advantage of the new way to set their prices.

But what is actually new?

As mentioned before, consistent prices for all PAN-European FBA offers is the goal of these changes. Not only the estimated fulfilment fees are taken into consideration, but from now on, the estimated VAT rate differences between the different European countries are taken into account as well. This makes calculating the prices easier than ever before.

The adjustment of the VAT when it comes to pricing means the following:

Let’s assume you are from Germany and the sale price of the item you sell via Amazon‘s PAN-EU FBA is €100. The base price is the price of your main marketplace. Now, when selling an item abroad (to the marketplaces of Amazon UK, IT, ES, FR), the VAT and the shipping costs are added, and therefore the prices are adjusted, automatically. This leads to the same margin, no matter where you are selling to.

How to activate this feature?

This is a step-by-step guide to actiavte this new feature. For more information, visit Amazon’s Pricing Page and scroll down to Pan-European FBA price rule example. Now, step by step:

Christoph Prokeš

Written by

“Get out of your comfort zone!”