Today, I’m diving into a significant update impacting sellers using or considering the Pan-European FBA program. The key takeaway? Amazon Expands Pan-European Program: Netherlands Now Under Mandatory Compliance. This change requires sellers seeking auto-enrollment in the Pan-EU FBA program to have an active product listing in the Netherlands marketplace (Amazon.nl). Let’s break down what this means for your business.
Understanding the Netherlands Requirement for Pan-EU FBA
Amazon has officially announced that an active offer on Amazon.nl will soon be a prerequisite for auto-enrollment into the Pan-European FBA program. As confirmed by sources like AVASK and Blue30, this requirement applies to both existing Pan-EU sellers and those looking to join the program.
While the exact enforcement date hasn’t been specified yet, Amazon has committed to providing sellers with 30 days’ advance notice before the change takes effect (AVASK, Blue30). This makes the Netherlands a crucial marketplace alongside existing ones like Germany, France, Italy, Spain, and Poland for seamless Pan-EU operation.
Operational Impacts and Opportunities for Sellers
Integrating the Netherlands into the Pan-EU FBA framework brings several operational considerations and potential benefits:
Enhanced Inventory Distribution
With the Netherlands included, Amazon will automatically distribute your FBA inventory across its European fulfilment network, including Dutch facilities. This strategy aims to place your products closer to customers across the EU, potentially speeding up delivery times and improving customer satisfaction (AVASK, Blue30).
Potential for Lower Fulfilment Fees
A significant advantage highlighted is the potential for cost savings. If Germany is one of your enabled storage countries, fulfilling orders within the Netherlands through Pan-EU FBA will incur local fulfilment fees. These are estimated to be, on average, 43% lower than the standard European Fulfilment Network (EFN) fees for fulfilling Dutch orders from outside the Netherlands (AVASK). This presents a compelling cost-saving opportunity for sellers with significant sales volume in the region.
Exemptions May Apply
It’s important to note that there might be exemptions. Sellers whose Dutch listings are inactive due to specific reasons like language barriers, legitimate product restrictions, or unresolved account blocks might qualify for an exemption from this requirement (AVASK). I advise sellers facing such issues to investigate their eligibility directly with Amazon Seller Support once more details are available.
Navigating VAT Compliance and Program Scope
The expansion impacts the program’s scope and necessitates a review of VAT obligations.
Pan-EU Program Countries
The Pan-European FBA program facilitates selling across Amazon’s EU marketplaces, including Germany, France, Italy, Spain, Poland, Sweden, Belgium, and now the Netherlands. Inventory storage under Pan-EU can also occur in the Czech Republic, Ireland, and Slovakia, triggering VAT obligations in those countries (SimplyVAT).
Understanding VAT is critical when using Pan-EU FBA
- Non-EU Sellers: Under the EU’s VAT e-commerce package (effective July 2021), for B2C sales valued up to €150 where goods are imported into the EU, Amazon acts as the “deemed supplier.” This means Amazon collects and remits the VAT due, simplifying compliance for non-EU businesses in many scenarios (SimplyVAT). However, storing goods in EU countries still requires VAT registration in those locations.
- EU Sellers: EU-based businesses remain fully responsible for their VAT compliance, including registering for VAT in all countries where their inventory is stored under the Pan-EU program and filing regular VAT returns (SimplyVAT). Adding the Netherlands as a storage location will likely necessitate a Dutch VAT registration if you weren’t already registered there.
Strategic Benefits of Pan-EU FBA Adaptation
Despite the new compliance step, the strategic advantages of the Pan-European FBA program remain significant:
- Cost Efficiency: Benefit from lower local fulfilment fees compared to EFN and potentially reduce cross-border shipping costs (Blue30).
- Expanded Market Reach: Gain seamless access to millions of Amazon customers across the EU, allowing for continuous sales across different time zones (Blue30).
- Simplified Operations: Amazon handles customer service and returns in local languages, reducing operational complexity for sellers (Blue30).
What Sellers Should Do Now
Given that Amazon Expands Pan-European Program: Netherlands Now Under Mandatory Compliance, proactive preparation is key.
- Audit Amazon.nl Readiness: Review your product catalogue. Are your products suitable for the Dutch market? Are listings translated and localized?
- Assess VAT Obligations: Consult with a VAT expert to understand if storing inventory in the Netherlands (or enabling it as a fulfilment country) requires you to register for Dutch VAT.
- Prepare Active Listings: If you plan to use or continue using Pan-EU FBA auto-enrollment, start preparing compliant listings for the Amazon.nl marketplace.
- Stay Informed: Keep an eye out for the official announcement from Amazon regarding the exact enforcement date.
- Broader Compliance: Remember other upcoming EU regulations, like the General Product Safety Regulation (GPSR), effective from December 13, 2024, which impacts product compliance across the EU.
Conclusion: Embrace the Change for Pan-EU Success
The inclusion of the Netherlands as a mandatory marketplace for Pan-European FBA auto-enrollment marks a significant step in Amazon’s strategy for the EU market. While this adds a compliance requirement, understanding that Amazon Expands Pan-European Program: Netherlands Now Under Mandatory Compliance allows sellers to adapt proactively. By preparing your Dutch listings and ensuring VAT compliance, you can continue to leverage the powerful benefits of the Pan-EU program – reduced costs, faster delivery times, and access to a vast European customer base.
