Overview

Amazon has introduced Cross‑Border Operated Storage (COS), a new fulfillment model that lets European sellers store inventory in Germany, France, Italy and Spain while maintaining only a single VAT registration in any one of those countries. The change removes the need for multiple VAT filings, cuts cross‑border fulfillment fees dramatically, and gives sellers Prime eligibility in each market—an advantage that can boost sales and simplify expansion.

Key Points

• Single VAT registration — Sellers can place stock in up to four EU fulfillment centers using just one VAT number from Germany, France, Italy or Spain, eliminating the need for separate registrations in each country.
• Ownership transfer model — Amazon assumes ownership of a unit at the moment it is sold and then resells it to the buyer, shifting the cross‑border VAT liability from the seller to Amazon.
• Potential 53% cost reduction — Local placement through COS can lower fulfillment fees by more than half compared with the European Fulfillment Network (EFN) that ships across borders from a single hub.
• Prime badge and faster delivery — Inventory stored locally qualifies for the Prime badge in each market, and Amazon’s internal data suggests sellers may see up to a 30% lift in sales when products are Prime‑eligible.
• Eligibility requirement — Sellers must have an active, verified VAT registration in at least one of the four participating countries and must already be using FBA in that market.

How the Cross‑Border Operated Storage (COS) Works

1. VAT registration verification — The seller confirms a valid VAT number in Germany, France, Italy or Spain through Seller Central. Example: A French‑based seller uploads their French VAT ID, which Amazon validates before allowing COS enrollment.
2. Inventory placement request — The seller selects the additional countries where they want stock stored (e.g., Germany and Spain) and ships units to Amazon’s fulfillment centers in those locations. Example: A seller of compact kitchen gadgets sends 2,000 units to Amazon warehouses in Paris, Berlin, Milan and Madrid.