PAN-EU on Amazon: Everything you need to know about the requirements, benefits, and pitfalls

The PAN-EU program (Pan-European Fulfilled by Amazon) is an advanced service that allows sellers to store their products in Amazon warehouses across various European countries. With integration into the Amazon platform, products can be offered to customers across the continent, providing sellers the opportunity to increase their reach and sales. However, this program comes with certain requirements, costs, and risks that should be considered before its implementation.

PAN-EU Program Requirements
To take advantage of the PAN-EU program, sellers must meet several key requirements:

• Registration in the PAN-EU program: it is necessary to have VAT numbers in at least four countries: Germany, France, Italy, and Spain, as well as VAT OSS and registration in the VIES system.

• Recycling registrations: mandatory in Germany, France, and Spain.

• Compliance with EU regulations: products must meet all safety, certification, and packaging requirements.

Advantages of the PAN-EU Program

• Wide reach: access to many European markets without creating your own warehouses.

• Fast delivery: products available under Amazon Prime, increasing attractiveness and customer satisfaction.

• Resource management: Amazon takes care of logistics and the proper distribution of products.

• Lower cross-border costs: no additional charges for shipping between countries.

Disadvantages of the PAN-EU Program

• High storage costs: which can be significant, especially when products are in overstock.

• Tax complexity: the necessity to settle VAT in multiple countries and higher administrative costs.

• Risk of excess inventory: demand can be uneven across different countries, which may incur additional costs.

Is PAN-EU right for you?

PAN-EU is an excellent solution for sellers looking to increase sales and reach a broad customer base across Europe. It simplifies logistics, ensures quick delivery, and allows for better competition.

However, it is important to remember that the program comes with costs, tax requirements, and inventory risks. The decision to implement should ideally be preceded by a cost-benefit analysis and assessment of your business's capabilities.