How much stock for europe?


#1

So I am now a proud globalist! getting stock from china and selling it to our fine customers in Europe with the PAN-EU selling program.

The question I have is should I put a lot more stock into the system?

I have been FBA for many years now and understand the juggling act between having lots of stock available for quick despatch and paying high storage fees.

But should I now send a lot more stock in as I’m now using a much larger fulfilment network?

Any input or experience available?

Your help is hugely appreciated!


#2

Consider starting with a lower amount of inventory to avoid damage to your IPI score, which could potentially lead to storage limits. You will be always able to increase your stock amounts after seeing that the products are selling well.

I would advise you to check these help pages regarding IPI metrics where you can learn how to properly manage your storage and what are the consequences of a failure to do so:

The help pages can be found on this link:

https://sellercentral.amazon.co.uk/gp/help/help.html/?itemID=G200685730&ref_=ag_G200685730_h_r0_cont_sgsearch 4

Here is the announcement help page:

https://sellercentral.amazon.co.uk/gp/help/help.html/?itemID=G93D6U2APR9UYBG5&ref_=ag_G93D6U2APR9UYBG5_h_r0_cont_sgsearch 1

Here you can review your current IPI score:

https://sellercentral.amazon.co.uk/inventory-performance/dashboard


#3

I sell cross border, but not PAN EU.
I can only say that start small and build with experience and knowing how things are going to sell.
Far better to have a small amount of stock that doesn’t sell, than find yourself with a shed load, that you need to return.
I think experience of the way things sell is key, before jumping in with both feet.


#4

Ahh Yes the IPI. Well my issue with that so far (pre pan eu) has been never putting enough in stock. My scores are always in the red (low 300’s) I do have a few sticky items (don’t we all). But mostly I get the system telling me to supply more stock than is necessary. That would cause me to incur large shipping and storage costs.

Obviously I will begin to build up my own knowledge base about this and act accordingly. I just wondered if people understood how things work. IE will my German customers get prime delivery if my stock is in Dunfermline?


#5

If your PAN EU, then your German, Italian, French and Spanish customers will all get prime.
That’s the whole point of the program. You ship stock to the UK and Amazon move it around as needed through the EU. So though you may send it to Dunfermline, at least some of the stock will probably be moved elsewhere, to provide coverage for the other countries.


#6

Thank you Neil,

I can see your trying to help. But I was kind of hoping to get answers from amazon. I do understand the concept of pan eu fba.

Just how it applies when I have 5 units say? how can they get next day or prime delivery all across Europe then?

Anyway as per I don’t think anybody really knows yet. I’ll work it out myself as we go along.

cheers


#7

Amazon rarely, if ever, answer on this forum.

If you have 5 units it won’t be available next day all across Europe. It will be available with Prime to customers across those markets, but with a later delivery estimate.


#8

That all seems plain enough. So I should up stock levels in order to achieve greater sales?

(no don’t slap your forehead)

I mean more stock is likley to populated to the europen network? Or will I just end up with a glut of stock in one place?


#9

Having more stock will clearly increase the possibility of having stock sufficiently spread across the EU marketplaces such that it is capable of being delivered next day in multiple markets.

Our experience is that it takes time (read sales history) for Amazon’s algorithm to determine where to store stock, and if I had to guess I’d say that at first the vast majority of stock will remain in the market in which it is initially received.


#10

Yeah,

That’s my assumption too. Thanks for the confirmation though :smile:

We shall just have to grow slowly as per usual. I was just hoping to recoup the cost of Spanish vat registration some time this decade :wink: