We received a message from Amazon saying our listings will be auto-expanded to multiple EU marketplaces via the European Expansion Accelerator (EEA) — UK, Germany, France, Italy, Spain, etc.
Before we move forward, I wanted to ask:
Should we even consider this expansion right now?
Do we need VAT registration for each EU country?
If using FBA, does storing inventory in the EU create tax or VAT obligations?
Any tips, risks, or red flags we should know before going live?
Would love to hear from experienced sellers who’ve done this.
If you are not VAT-registered, then increase your prices in the EU market, otherwise, you will face significant losses because Amazon collects VAT on the sales price if an order comes from the EU.
Expanding through Amazon’s European Expansion Accelerator can be a great opportunity to increase sales, but it comes with important VAT and logistical considerations. If you use FBA and store inventory in any EU country, you are required to register for VAT in each country where goods are physically stored, so yes, VAT registration becomes necessary depending on your fulfillment setup. If you only use EFN from the UK into the EU and keep your stock in the UK, you might not need multiple VATs immediately, but you’ll be limited in service level and face longer delivery times. Many sellers recommend starting with Germany and France as they tend to have stronger traffic, but it’s crucial to plan your tax compliance before sending inventory. Tools like Amazon’s VAT Services or working with a European tax consultant can help ease the burden. Also, monitor your listings closely after expansion, auto-translations can be poor, and pricing may need adjustments. Go step by step and don’t rush the rollout across all markets at once until you’ve confirmed your VAT setup, listing quality, and fulfillment logistics.
Your offers will only show in those marketplaces, but your products will be stored only in the current marketplace. When you get an order from abroad, the item will be shipped to that country. Personally, I wouldn’t go with this program because of the following reasons:
You won’t get many orders.
One return could mean a total loss.
Some brands that you’re currently selling without issues in your current marketplace might trigger IP complaints or other violations in those countries, as each marketplace has different rules.
Thanks for the insights, you’ve raised valid points, especially about returns and IP risks. Just wondering, have you or someone you know tried this program and seen poor results? I’m trying to get a clearer picture before deciding. Appreciate the help!