Note that neither Amazon nor its fulfillment centers can serve as the IOR for FBA shipments. The IOR is the entity responsible for paying import duties and taxes, ensuring that your imports comply with local laws and regulations. Importer of record An IOR is required to sell in Europe. These largely involve who is responsible for paying fees such as import duties and taxes. Two of the most important ones are providing an importer of record (IOR) and using delivery duty paid (DDP). Regardless of which fulfillment method you choose, shipping to Europe involves certain requirements. “However, we were confident that our sales velocity would be sufficient to minimize that loss in working capital between paying VAT at customs and final product sale.” “For our business, the initial cash outlay for import VAT was a substantial amount,” says Dan McCarthy of Blink Home Security. For example, in the UK, the import VAT rate is currently 20%. As soon as you ship inventory into Europe, you might have to pay import value-added tax (VAT) upon its arrival. It also provided Prime badging, which is important for sales conversion.” Keep in mind that using FBA in Europe does involve some costs.
Compared to fulfilling each individual order ourselves, FBA was more cost-competitive. “We sent inventory to a fulfillment center in the UK, which fulfills orders across all five European marketplaces. “In the end, we chose to skip the warehouse and just use a freight forwarder, which reduced our inventory costs.” Her business did its due diligence in trying out freight forwarders and “working out a system that will get our inventory straight from the manufacturer into the fulfillment center.” “FBA simplified our launch process in Europe significantly,” says Carolina Aguerrevere of Hot Chocolate Design. “We started with a warehouse closer to the Europe fulfillment centers, so we spent a good deal of time and money researching and setting up the warehouse to perform how we needed,” says the seller who expanded to Europe in 2015. Benefits of FBAFBA can provide an ideal way to get started selling in Europe. As in the US, one of the main things to decide is whether to fulfill orders yourself, use FBA, or use a combination of both.
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