Attention! Starting from August 1st, Amazon will terminate this service plan!

Attention! Starting from August 1st, Amazon will terminate this service plan!



Normal, once there is data abnormality, such as sales are falling, conversion rate is abnormal, flow is 0, etc., we need to deal with it in time. Regarding data analysis, we will mainly analyze store traffic data, sales data and advertising data. Through these data, we can observe whether today's sales have increased or decreased. If there is a problem, we can accurately know which link has the problem and make reasonable adjustments.

Attention European sellers, the COS program is about to end!


Recently, Amazon updated a notice in the backend: "Amazon announced that it will terminate the Pan-European Inventory Accelerator Program ("COS") on August 1, 2024. Before that, sellers can still continue to sell existing Pan-European Inventory Accelerator inventory and pay local Amazon logistics fees, but they can no longer enable the Pan-European Inventory Accelerator in other countries/regions. "



After August 1, 2024, countries that previously enabled the Pan-European Inventory Accelerator will no longer pay local Amazon Fulfillment Fees and will instead pay European Fulfillment Network (EFN) Fees.


As to why Amazon shut down COS, the reason is unknown. You know, in November last year, Amazon launched three updates to the Pan-European Inventory Accelerator Program (COS). Unexpectedly, the program was closed so quickly.



So, what impact will the termination of the COS plan have on sellers? What do sellers need to prepare in advance?


PART
0 1

What is the “COS” program?


Amazon COS is the abbreviation of Call-Off Stock (COS), which is an advanced version of the Pan-EU program launched by Amazon for European merchants. COS allows sellers to store inventory in countries/regions that have registered for Amazon Logistics Europe Integrated Service Program (Germany, France, Italy or Spain) without obtaining a VAT registration number in that country/region.


By enabling COS, sellers only need an EU Value Added Tax (VAT) number in Germany, France, Italy or Spain to enable local storage for eligible ASINs in these countries and ship products to 7 European countries (Germany, France, Italy, Spain, the Netherlands, Belgium and Sweden) with 0 cross-border fees.


Simply put, the COS program allows sellers to enable local inventory placement in multiple countries without registering a VAT registration number . In this way, inventory can be stored closer to consumers, with faster shipments and lower shipping costs!


But now Amazon has announced that it will terminate the plan on August 1, 2024!


PART
02

How to prepare for the end of the COS program?


If you want to store inventory and pay local Amazon Fulfillment fees in the country where you used the Pan-European Inventory Accelerator, you can enable Pan -European Fulfillment by Amazon (Pan-EU) through your VAT Registration Number (VRN).


If Pan-European Fulfillment by Amazon is not enabled via a tax ID by August 1, 2024 , Amazon will return your COS program inventory to an Amazon fulfillment center in the country where it was originally shipped, free of charge, by August 31, 2024.


In other words, if you want to continue storing inventory in the previous pan-European region/country and enjoy local FBA service fees, you need to register for local VAT and enable the Amazon Pan-European program . Otherwise, Amazon will return the seller’s inventory in the Pan-European program to the operating center where it was originally stored before the end of August.


PART
03

How to avoid being affected after canceling COS?


If sellers want to enable Amazon Logistics Europe Integration Service (Pan-European Program) through a Value Added Tax (VAT) registration number and register for VAT in pan-European countries before November 2024, they can receive compensation of €540 from Amazon for each country/region (please consult Amazon customer service for details of the compensation).


In addition, for sellers who have registered their VAT number before November 1, 2024, Amazon will refund the difference between the European delivery network fees and the local Amazon logistics fees for products that have previously registered for the Pan-European Inventory Accelerator .


PART
04

What is Amazon Pan-EU

The Pan-European Plan is a cross-country FBA delivery plan launched by Amazon for eight European sites: Germany, France, Italy, Spain, the Netherlands, Poland, Belgium and Sweden (new sites in the Netherlands, Poland, Belgium and Sweden, Poland can also be used as an independent Pan-EU inventory configuration, and the UK is no longer included in the plan due to Brexit).


If Germany/France/Italy/Spain/Poland all have VAT numbers and local inventory, then all countries will have zero cross-border logistics fees.


Simply put, after the seller opens the Pan-European plan, as long as the same SKU and ASIN are used , the products can be placed in any overseas warehouse in multiple countries except Belgium, the Netherlands and Sweden. After the order is placed, the platform will arrange the processing of the order. One warehouse handles FBA in 8 European countries.


In addition, Amazon's Pan-EU plan requires VAT numbers from at least two countries . If you need to use warehouses in multiple countries, you need to configure the corresponding VAT numbers based on the principle that if you have warehouses, you must have VAT.

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