#124 – Die beste Strategie für Wachstum auf Amazon in Europa – Alles zu | PAN-EU, EFN, COS
On 15 Feb 2024 James Farah presented a webinar comparing PAN‑EU, EFN and the new Customs‑Optimized Shipping (COS) models, showing how the right mix can shift storage and shipping fees by up to 20 % and reduce OSS VAT registrations.
Overview
On February 15 2024, James Farah of Avask presented a webinar that outlined the most effective tactics for expanding Amazon businesses across Europe. He compared three fulfillment models—PAN‑EU, EFN, and the newly introduced Customs‑Optimized Shipping (COS)—and explained how each influences inventory placement, shipping speed, and tax compliance. Sellers targeting multiple EU marketplaces need to select the right combination to cut costs while meeting local customer expectations.
Key Points
- PAN‑EU — Centralizes inventory in a single EU fulfillment center, allowing shipments to all member states from one location.
- EFN (European Fulfillment Network) — Keeps stock in multiple Amazon warehouses, but lets any EU order be fulfilled from the nearest available pool.
- COS (Customs‑Optimized Shipping) — Automates product classification and applies duty‑free thresholds, reducing manual customs paperwork.
- Tax simplification — Using PAN‑EU or EFN can lower the number of OSS (One‑Stop‑Shop) VAT registrations a seller must maintain.
- Cost impact — Depending on product volume, the choice between PAN‑EU and EFN can shift average storage and shipping fees by up to 20 %.
- Customer experience — COS shortens delivery times for cross‑border orders because customs clearance is handled before the parcel leaves the warehouse.
How PAN‑EU, EFN, and COS Work
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PAN‑EU – Central‑Warehouse Model —
- The seller designates one EU fulfillment hub—often Poland, Germany, or the Czech Republic—and ships all inbound inventory there.
- From that hub, Amazon fulfills orders for Germany, France, Italy, Spain, and other countries.
- Example: A kitchen‑accessories manufacturer ships 5,000 units to an Amazon center in Warsaw; orders from Berlin, Rome, and Madrid are dispatched from Warsaw within two business days.
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EFN – Distributed‑Network Model —
Analysis & Recommendations
Why This Matters
Choosing PAN‑EU or EFN determines whether a seller can consolidate inventory in one hub or use multiple warehouses, affecting delivery speed and cost. COS automates HS‑code assignment and duty‑free checks, cutting customs paperwork and speeding cross‑border deliveries, which can boost margins and customer satisfaction.
Key Takeaways
- PAN‑EU centralises stock in one EU hub (e.g., Poland) and serves all EU marketplaces from there.
- EFN distributes inventory across several Amazon warehouses, fulfilling each order from the nearest pool.
- COS automatically classifies products, applies duty‑free thresholds and generates electronic customs invoices.
- Switching between PAN‑EU and EFN can change average storage and shipping fees by up to 20 %.
Recommended Actions
- →In Seller Central, go to Reports > Business Reports and analyse the last 12 months of sales by country and SKU to decide between PAN‑EU or EFN.
- →Enable COS via Settings > Fulfillment > Customs Settings and verify HS codes for all listings.
- →If using PAN‑EU, consolidate OSS VAT registrations by registering in the hub’s home country under Settings > Tax Settings.
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