Amazon's New Cross-Border Storage Program Lets EU Sellers Expand to Four Countries With a Single VAT Number
Amazon launched the Cross‑Border Storage (COS) program in early 2024, letting EU FBA sellers keep inventory in Germany, France, Italy and Spain with a single VAT registration. COS can slash local fulfillment fees by up to 53% and grants Prime eligibility in each market, driving sales lifts of up to 30%.
Overview
Amazon has introduced a Cross‑Border Storage (COS) program that lets European FBA sellers keep inventory in Germany, France, Italy and Spain while using only one VAT registration from any of those countries. Launched in early 2024, the service aims to lower fulfillment fees, speed up delivery and simplify tax compliance for sellers looking to expand across the EU.
Key Points
- Single VAT registration — A seller can operate in all four markets with just one VAT number from Germany, France, Italy or Spain, eliminating the need for multiple registrations.
- Cost reduction up to 53 % — Local storage and fulfillment can cut fees by more than half compared with the European Fulfillment Network, especially for heavy or bulky items.
- Prime eligibility in each country — Products stored through COS qualify for the Prime badge locally, a factor that Amazon’s data links to sales lifts of up to 30 %.
- Ownership stays with the seller — Inventory remains the seller’s property until a purchase occurs; at checkout Amazon purchases the unit and then resells it to the buyer.
- No separate logistics management — Sellers receive capacity in four warehouses without having to run distinct inbound or outbound processes for each market.
- Eligibility limited to active FBA sellers — Participants must already be using FBA in at least one of the four countries and hold a valid VAT registration in one of them.
How the COS Program Works
- Enrollment and VAT verification — The seller logs into Seller Central, navigates to the FBA settings page and opts into COS for the desired countries. Amazon validates the VAT number through external databases and its internal checks. Example: A French‑based seller with a French VAT number selects Germany, Italy and Spain as additional storage locations; Amazon confirms the VAT registration before activation.
- Automated inventory distribution — Once enrolled, Amazon’s demand‑forecasting engine moves stock from the seller’s existing fulfillment center to warehouses in the four participating nations based on sales signals.
Analysis & Recommendations
Why This Matters
By using one VAT number, sellers avoid multiple registrations and filing burdens, while the 53% fee reduction lowers costs for heavy or bulky SKUs. Prime eligibility across four markets can increase conversion rates, with Amazon data showing up to a 30% sales boost, enabling faster EU expansion.
Key Takeaways
- A single VAT registration from Germany, France, Italy or Spain covers all four COS markets.
- Local fulfillment fees can be reduced by up to 53% compared with the European Fulfillment Network.
- Products stored via COS qualify for the Prime badge in each country, linked to sales lifts of up to 30%.
- Eligibility is limited to active FBA sellers with a valid VAT number in one of the four participating countries.
Recommended Actions
- →Verify your active VAT registration in Germany, France, Italy or Spain and complete verification in Seller Central > Settings > Fulfillment by Amaz...
- →Enroll in COS for the desired countries via Seller Central > Inventory > Manage FBA Settings > Cross‑Border Storage and select the four markets.
- →After enrollment, review allocated SKUs in Seller Central > Reports > Fulfillment > COS Inventory and adjust pricing using the COS fee schedule to ...
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