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

1. 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.

2. EFN – Distributed‑Network Model —