Up to 60% — Amazon FBA storage fees
Dramatic fee increase for EFN storage. PAN EU and CE storage fees remain on low level. Amazon forces PAN EU storage.
During this year, a lot of changes regarding Amazon fees for storing and for shipping will take effect.
If you are using EFN, your shipping fees will increase tremendously. An increase of about 60% requires reconsidering the distribution service you are, or rather you will be, using. Here are the changes in a chronological order:
Starting on 26 April 2018:
- Adjusted fees for shipping from local warehouses to local customers but only about 1.5 %
If using PAN-EU, the local fulfilment fees are still valid
- EFN fees will increase heavily (by up to 60%)
- The storage fees for storing in European warehouses will increase:
January-September: UK 0.65 GBP (per cubic foot)
October-December: UK 0.91 GBP (per cubic foot)
January- September: DE, FR, IT, ES, PL, CZ 26 € (per cubic meter)
October-December: DE, FR, IT, ES, PL, CZ 36 € (per cubic meter)
- No free shipping for goods of standard size which cost more than 300 GBP/350 € anymore
Starting on 5 September 2018:
There will be new administrative charges for purchase returns in the following categories: clothing, shoes & bags, watches, luggage and jewellery. The fee equates the shipping cost for the product if shipped singly.
Starting on 9 October 2018:
Amazon wants to get information about the content of a parcel in order to be able to process it in a quicker way and if this piece of information is not provided, sellers will have to pay a fee for the manual processing of the parcel.
For parcels which are sent to warehouses in the UK, the fee is 0.06 GBP, and to warehouses in Germany, France, Italy, Spain, Poland or the Czech Republic, the fee is 0.07 €.
PAN-EU might be the only reasonable solution to stay competitively viable, but it is dependent on various aspects. To find the solution which is fitting best to your company, here you can find the practical calculation concept from seitengasse.de which helps you comparing PAN-EU to the service you are using right now and it shows you which concept is most profitable for you and your business.
What does EFN, CE and PAN EU storage means?
These are the Amazon storage options for FBA Sellers in Europe.
EFN (European Fulfilment Network)
With EFN, you are storing in one warehouse in one European country. For local shipping you will have to pay the local fees, for shipping abroad, the EFN fees. You only need one VAT registration, naturally in the country you are storing your goods.
CEP (Central Europe Programme):
The Central Europe Programme expands your fulfilment network compared to EFN. You are storing your fba inventory exclusively in Germany while using the fulfilment network in Germany, Poland and the Czech Republic. A VAT registration in these three countries is required. This concept, also especially because of saving 0.50 € on every unit, could be quite profitable if you were selling at least 500 units/month. With the new fees, unfortunately, this will probably not often be the case anymore.
PAN-EU (PAN-European FBA)
PAN EU enables Amazon sellers to store their goods in up to all European marketplaces, namely the UK, Germany, Italy, France, Spain, Poland and the Czech Republic. The big advantage is that, due to the fact that you are storing “everywhere”, you will only have to pay local shipping fees (and of course the short delivery time). VAT registrations in all countries you are storing in are mandatory, however, especially with the rise of EFN fees, PAN-EU could be advantageous for many sellers.
By using fbahero’s VAT calculation tool you can automate VAT Registration and Filings in each European country.