Blog/ Amazon FBA in Europe: “Where should I store my Inventory?”

T
he decision to go international with your private label can be an extremely exciting time filled with eagerness to get your products on the ground as soon as possible.

That said, most sellers admit to also experiencing lingering uncertainty about the full scope of the process and anxiety over whether or not they’ve made the most cost effective decisions for their brand.

The wonderful news is that European consumers are hungry for new products, and the market is ripe for incoming sellers. The other great news is that we’ve based our entire blog around helping you get your FBA business started off on the right foot and avoid the more common pitfalls that end up costing sellers a lot more than they bargained for.

To begin, we’ve decided to answer one of the most common questions we receive from sellers which is:

“Where should I store my inventory?”.

Amazon EU offers a range of storage options for merchants including Multi-country Inventory (MCI) and Pan-EU, and European Fulfillment Network (EFN).

But for the purpose of today’s article, we’re not going to go into the pros and cons of every storage option. We want to save you a lot of time by giving it to you straight:

Store & Ship your inventory using Amazon’s European Fulfillment Network (EFN)

It will save you time & can save you money in the long run

EFN was created as an easy solution that helps FBA Sellers avoid a logistics nightmare and simplify their inventory management. How so? EFN allows you to ship and store all of your inventory to one local fulfillment center and fulfill orders coming from all 5 EU Marketplaces (UK, Germany, France, Spain, Italy).

While shipping may take slightly longer to reach the customer in another country the benefits of only to send your inventory to one location opposed to five is well worth it. You’ll have much more flexibility and control over your stock. You can expect Prime products to take up to 3 extra days to be delivered if they’re located in a warehouse in another country.

“But what about the increase in fees?”

It’s true that in using EFN, you will incur a separate Pick & Pack fee for each unit in addition to the standard local FBA fees to cover the additional cost of shipping your products to other countries.  

We’ve found this to be an average cost of $1.50 USD for items up to 1lb, and this is why we do not suggest selling products that will retail under £15.