PAN-EU & CEE on Amazon FBA: An Overview
Amazon offers retailers two logistics solutions with the Pan-European Shipping (PAN-EU) and Central Europe Program (CEE) programs that optimize the sale and shipping of goods in Europe. Both programs are based on the Fulfillment by Amazon (FBA) service and offer various advantages depending on the goals and needs of retailers.
Pan-European Shipping (PAN-EU)
The PAN-EU program enables retailers to efficiently distribute goods in up to seven European countries. Retailers send their products to a single Amazon shipping center, from where Amazon distributes the goods to shipping centers in Germany, Italy, France, Spain, Poland, Czech Republic, and the United Kingdom. This strategy ensures that products are delivered to customers quickly and cost-effectively.
A particular advantage is that local shipping fees always apply for orders from the five most important European marketplaces (Germany, Italy, France, Spain, and the United Kingdom) – regardless of where the goods are stored. Retailers benefit from reduced shipping costs while customers receive fast delivery times.
Important aspects of the PAN-EU program:
- Logistical advantage: Distribution across multiple countries enables fast delivery times and increases reach within Europe.
- Tax obligations: Since goods are stored in up to seven countries, retailers must be tax-registered in each country and submit corresponding VAT returns.
- Application possibilities: Particularly suitable for retailers who want to expand their market to all of Europe and are willing to accept the higher administrative effort.
Central Europe Program (CEE)
The CEE program offers a less complex alternative. Here, goods are stored in shipping centers in Germany, Poland, and Czech Republic. Retailers initially deliver their products to a German shipping center. Amazon then distributes the goods as needed to the other locations. This solution is ideal for retailers who primarily want to optimize their costs.
Important aspects of the CEE program:
- Cost savings: Retailers participating in the program save €0.25 per sold item, as this additional fee is charged if they don't participate.
- Tax obligations: Tax registrations are only necessary in Poland and Czech Republic, which reduces administrative effort compared to PAN-EU.
- Efficiency: The CEE program enables lower storage costs and more efficient distribution of goods in Central Europe.
Similarities and Differences
While both programs aim to optimize shipping costs and delivery times, they differ in reach, complexity, and cost structure.
PAN-EU is the more comprehensive solution and enables access to a broader customer base, but brings higher tax requirements with it.
CEE focuses on optimizing logistics in Central Europe and is less complex, but also less far-reaching.
Which program is right for you?
The choice between PAN-EU and CEE depends on the goals and capacities of the respective company:
Retailers who aim for Europe-wide reach and want to benefit from Amazon's comprehensive logistics network should consider PAN-EU.
Those who want to focus on Central Europe and keep administrative effort low will find an efficient alternative in the CEE program.
Both programs offer attractive opportunities to make your own business more efficient through Amazon's logistics – the right choice depends on your individual requirements.
