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29 October 2025Expand Your Amazon EU Sales Without High Tariffs
In an era of booming cross‑border e‑commerce, sellers are increasingly looking to expand into the European Union via platforms such as Amazon. But with opportunity comes complexity: tariffs, customs, VAT, fulfilment and logistics must all be navigated smartly. At FLEX Logistik, we believe that with the right strategy you can scale your Amazon EU sales while minimising tariff and indirect cost burdens. In this article we explore how you can do exactly that.
OUR GOAL
To provide an A-to-Z e-commerce logistics solution that would complete Amazon fulfillment network in the European Union.
Tapping into Europe: The Amazon EU Advantage
The EU market remains one of the most attractive for sellers looking to scale across borders. According to Amazon itself, more than €15 billion in total export sales were generated by some 127,000 EU‑based SMEs in 2024.
Of that sum, around €12 billion came from intra‑EU exports (i.e., sales from one EU country to another) — roughly 80 % of their total export sales.
This tells us two things:
The potential scale is large.
Cross‑border (within the EU) is already proven viable.
For sellers outside the EU, especially those considering selling on Amazon’s European marketplaces (e.g., Amazon.de, Amazon.fr, Amazon.it, etc.), the appeal is clear: access to hundreds of millions of consumers, strong consumer trust, and the operational leverage of Amazon’s infrastructure.
However — and this is critical — success in this region cannot simply mean “list and forget”. Tariff costs, VAT burdens, customs delays, fulfilment inefficiencies and referral/fulfilment fees all eat into margins. That is where FLEX comes in.
What We Mean by “Tariffs” – And Why They Matter
When sellers hear “tariffs”, they often think of big headline customs duty rates on imports. In the EU context, tariffs and related cost burdens can come in various forms:
Customs duties when goods are imported into the EU from non‑EU countries (e.g., Asia) and the goods are above certain value thresholds or fall within specific HS codes subject to duty. For example, a proposal to remove the low‑value import duty exemption (currently under €150) would tighten this.
VAT burdens: The EU sets a minimum standard VAT rate of 15 % but member states often have much higher standard rates (for example, Poland 23 %) for domestic goods and services.
Platform and logistics fees: Although not tariffs in the strictest sense, these costs also affect landed cost and margin — e.g., referral fees on Amazon (8‑15% typical) and FBA/storage/fulfilment across EU countries.
Compliance and administrative costs: The time and money spent registering for VAT in multiple countries, or managing the EU’s Import One‑Stop Shop (IOSS) scheme for goods being imported, or dealing with customs brokers.
For a seller looking to enter Amazon EU, failing to optimise around tariffs and indirect cost burdens can significantly reduce profitability or make expansion unviable.
Navigating the Maze: Major Hurdles for Amazon EU Sellers
Expanding into Amazon EU offers enormous potential, but it comes with a complex web of regulations, costs, and operational challenges. Understanding these hurdles early is critical to maintaining profitability and scaling successfully.
1. Complex VAT and Distance‑Selling Rules
If you are shipping goods to EU consumers, you must navigate:
Variable VAT rates across member states (Poland 23 %, France 20 %, etc.).
Distance-selling thresholds (now largely replaced by the One‑Stop Shop/OSS model) and the Import One-Stop Shop (IOSS) for imports.
Risk of double compliance: registering in multiple countries where you hold inventory or fulfilment centres.
2. Tariffs and Import Duties from Non‑EU Sourcing
Sourcing outside the EU introduces additional costs and complexities:
Import duties for goods entering the EU.
Upcoming changes, such as the EU’s proposal to remove the “under €150” duty exemption for e‑commerce imports.
Supply chain delays, customs holds, and increased brokerage or clearance fees.
3. Marketplace and Fulfilment Costs
Even after tariffs and VAT, Amazon‑specific fees affect margins:
Referral fees ranging from 8% to 15% of sale price.
Fulfilment and storage fees, including long‑term surcharges (€26–€36 per cubic metre per month, with seasonal spikes).
Cross‑border logistics within the EU can add further costs and operational complexity.
4. Pricing, Currency, and Competitive Dynamics
Local consumer behaviour varies across countries (Germany, France, Italy), requiring listing localisation.
Currency fluctuations (e.g., PLN to EUR) impact landed costs and margin.
Absorbing higher landed costs (duty, VAT, fulfilment) may force higher prices and lower conversion rates.
Strategies to Expand Amazon EU Sales While Minimising Tariffs & Costs
At FLEX, we recommend a multi‑layered approach. Below are key strategies which your business should consider when scaling on Amazon EU.
Strategy 1: Source with tariff in mind
Where possible, source within the EU (or from countries with favourable trade agreements) to eliminate or reduce customs duty on import into the EU.
If sourcing from outside the EU, ensure accurate HS classification, verify origin rules and consider strategies to mitigate duty (e.g., value engineering, free trade zones).
Monitor proposals such as the EU’s plan to remove the low‑value exemption (which could increase duty exposure for small parcels).
Negotiate with suppliers to share duty/clearance costs or restructure contracts to reflect landed cost more accurately.
Strategy 2: Optimise warehouse, fulfilment & inventory location
Consider using Amazon’s Pan‑EU or European Fulfilment Network (EFN/PP) but understand the cost trade‑offs (storage in multiple countries vs single country).
Use FLEX’s network to select strategic warehousing locations in the EU to reduce cross‑border freight and customs formalities.
Minimise long‑term storage to avoid surcharges; optimise inventory turnover. Storage surcharges and long‑term inventory fees can eat into margins.
Use duty‑paid (DDP) shipping terms if you wish to avoid surprise customs duties borne by the buyer or discover late in the chain.
Strategy 3: VAT and compliance streamlined
Register for and use the OSS (One‑Stop‑Shop) to simplify cross‑EU VAT obligations — one portal, one quarterly return.
Ensure your pricing includes VAT so the consumer sees the final cost, no surprise “customs clearance” charge at delivery.
Work with logistics providers (like FLEX) who handle the paperwork and can alert you to VAT thresholds before they hit.
Align your invoicing and bookkeeping to ensure you reclaim input VAT where possible; attention to detail here improves cash‑flow.
Strategy 4: Localised marketplace strategy
Launch on core Amazon EU marketplaces: Germany (DE), France (FR), Italy (IT), Spain (ES), Netherlands (NL) etc. Prioritise based on your product fit.
Localise your listings: language, currency, customer service, returns handling and cultural considerations.
Monitor referral and fulfilment fee structures per marketplace: e.g., standard referral fee ~8‑15% depending on category.
Use competitive pricing toolsets and repricing strategies to account for translation of landed cost into final price. Keep your margin buffer to absorb tariff or duty risk.
Strategy 5: Continuous cost‑monitoring and scenario modelling
Build a “landed cost calculator” for each country: include product cost, shipping, import duty, VAT, Amazon fees, fulfilment, returns rate, storage.
Model scenarios: What if duty rises? What if VAT rate changes? What if fulfilment cost increases?
Monitor EU customs/tariff policy changes: e.g., the EU’s proposal to change low‑value import rules may impact your cost structure.
Review product mix: Some items might have good margin after cost‑burden; others may not. Consider phasing out low‑margin SKUs.
Your Partner in Smart Amazon EU Growth: FLEX Makes It Simple
At FLEX, we guide sellers through the complexities of Amazon EU, ensuring cost‑efficient expansion while protecting margins. Here’s how we create value:
Customs & Import Advisory: We classify HS codes, apply preferential origin rules, and manage import documentation to minimise duties and prevent costly delays.
Warehouse & Fulfilment Infrastructure: Strategically located EU hubs reduce freight and customs burdens, optimise stock placement, and ensure fast delivery to customers.
VAT & Compliance Management: We coordinate with VAT experts to integrate OSS registration, VAT invoicing, and data flows with your Amazon account, avoiding fines and maximising tax efficiency.
Marketplace Cost Modelling: We build landed cost models, forecast margin impacts, and advise on optimal pricing per country, factoring in Amazon fees and cross‑border costs.
Continuous Optimisation: By monitoring returns, fees, taxes, and storage, we identify cost leakage and suggest improvements to safeguard your margin.
Partnering with FLEX lets you focus on growing your brand, while we handle the back‑office complexity of Amazon EU expansion.
Real-World Impact: How Strategic Planning Transforms Amazon EU Expansion
To illustrate how the strategies we’ve discussed translate into tangible results, let’s walk through a hypothetical seller’s journey.
Company Profile:
A US-based brand specialising in premium kitchen accessories.
Objective: Expand into Amazon.de and Amazon.fr within 12 months while maintaining healthy margins.
Scenario A – Going In Without a Strategy
Imports from China, declared value = US$10/unit, duty applicable 4% + German VAT at 19%.
Amazon entry fees, FBA storage across Germany and France, and high returns due to lack of local customer service.
Result: Margins shrink from an initial 30% to approximately 12%. To maintain margin, prices must increase 20%, reducing conversion and stalling growth.
This scenario highlights the common pitfalls: high landed costs, inefficient logistics, VAT surprises, and poor planning can quickly erode profitability.
Scenario B – Applying FLEX’s Smart EU Strategy
Sourcing Optimised: Final packaging moved to the EU (Portugal), so goods are imported as EU-origin → 0% customs duty.
Warehousing & Fulfilment: Stock centralised in Germany, with allocation to France only as demand requires.
VAT & Compliance: OSS registration in Germany; VAT included upfront so customers face no surprise import fees.
Cost Modelling: Landed cost model built, including product cost, freight, Amazon fees, and storage by country.
Pricing Strategy: Prices increased only 5% to cover fees; conversion remains stable.
Outcome: Margins improve to ~22%, launch succeeds, and expansion is sustainable with minimal tariff burden.
Key Takeaway: Strategic planning around tariffs, sourcing, fulfilment, and VAT can make the difference between stalled growth and profitable expansion. By leveraging FLEX’s expertise, sellers can confidently scale across Amazon EU while protecting margins and operational efficiency.
Tracking Success: Essential KPIs for Scaling on Amazon EU
Growing your Amazon EU business is not just about listing products — it’s about monitoring the right performance indicators to make informed, data-driven decisions. Keeping a close eye on these key metrics ensures you maintain profitability, optimise operations, and respond quickly to challenges.
1. Landed Cost per Unit
This is your all-in cost for each unit sold, including: product cost, duty, VAT, shipping, Amazon fees, and returns. Tracking landed cost helps you understand true profitability and adjust pricing or sourcing strategies before margins erode.
2. Gross Margin per Country
After all costs are accounted for, gross margin tells you which markets are genuinely profitable. Comparing margins across countries helps prioritise inventory allocation, marketing spend, and expansion focus.
3. Storage Turnover Rate
This measures how long inventory stays in a warehouse. Long storage periods can trigger surcharges and tie up capital. Optimising turnover ensures your products move efficiently, reduces storage costs, and improves cash flow.
4. Return Rates by Marketplace
High returns increase costs through reverse logistics and can impact your seller metrics on Amazon. Monitoring return rates per marketplace enables proactive quality control, improved packaging, and better customer service.
5. VAT Refund / Input Reclaim Efficiency
Delays in reclaiming input VAT can strain cash flow. Tracking the time taken to recover VAT ensures your capital is optimised and prevents unnecessary working capital drain.
6. Customs / Duty Surprises
Monitor shipments held or delayed due to incorrect documentation or unexpected duty charges. This KPI highlights risk exposure in your supply chain and points to areas needing process improvements.
7. Country Penetration Ratio
This metric shows the number of units sold per marketplace relative to your target. It helps identify underperforming markets, adjust marketing efforts, or redistribute inventory for maximum impact.
Bottom Line: By maintaining a tight dashboard on these KPIs, you can detect early warning signs such as rising landed costs or shrinking margins. FLEX helps sellers monitor and analyse these metrics, providing actionable insights to optimise performance, reduce costs, and scale efficiently across Amazon EU.
Future-Proof Your Amazon EU Strategy: Trends and Tariff Insights
Expanding into Amazon EU isn’t just about today’s sales — it’s about anticipating regulatory changes, rising costs, and market dynamics to stay competitive. Here’s what sellers should watch in the coming years.
1. Changing Tariff and Duty Environment
The EU is reviewing its low-value import duty exemption (goods under €150), which currently allows some e‑commerce parcels to avoid customs duties. The proposed change, expected from March 2028, would eliminate this exemption.
Implication: Sellers importing from non-EU sources need to factor potential duties into pricing and inventory planning, building in a buffer to protect margins.
2. Rising Platform and Logistics Costs
From 2024 onward, Amazon adjusted storage and shipping fees in Europe, including increases to long-term storage surcharges and monthly storage fees.
Implication: Efficient inventory management and cost discipline are critical. Sellers who optimise warehouse turnover and shipping strategies will maintain profitability despite rising platform costs.
3. Increasing Competition from Local EU Sellers
Amazon data shows that over 60% of sales on Amazon Europe come from independent sellers .
Implication: As local competition rises, margins will tighten. Minimising unnecessary costs — tariffs, duties, and inefficient logistics — becomes a key advantage.
4. Sustainability and Shipping Efficiency
European consumers increasingly prioritise sustainability. Lean logistics, reduced returns, optimised packaging, and efficient warehousing are not only environmentally responsible but also cost-effective.
Implication: Sellers who integrate low-waste, efficient operations will reduce overhead and appeal to eco-conscious consumers, creating a long-term competitive edge.
Bottom Line: Staying ahead of regulatory shifts, cost increases, and market trends ensures your Amazon EU expansion is profitable, scalable, and future-proof. FLEX helps sellers navigate these changes, keeping operations lean and margins healthy.
Maximise Your Amazon EU Success: Key Takeaways for Smart Expansion
Expanding into Amazon EU presents enormous growth opportunities, but success requires more than simply listing products. Strategic planning around tariffs, VAT, fulfilment, and logistics is essential to protect margins and scale efficiently.
By carefully managing landed costs, warehouse placement, and local compliance, and by leveraging insights into market-specific consumer behaviour and competition, sellers can optimise performance and reduce risk.
Partnering with FLEX ensures you have expert guidance on customs, VAT, storage, and Amazon fee optimisation — allowing you to focus on your brand while navigating the complexities of EU expansion. With the right strategy, your Amazon EU growth can be profitable, sustainable, and future-proof.
