What is the Call-Off Stock Program on Amazon?
Amazon’s call-off stock program made it possible for sellers to keep their products in consignment warehouses located in several nations, which expedited the order fulfilment process and guaranteed quicker consumer delivery. One major benefit of this approach was that items kept in consignment warehouses were excluded from Value Added Tax (VAT) settlement. In order to help manage cash flow and lessen administrative responsibilities, vendors were only required to pay VAT when the goods were sold and sent to the client.
Vendors had to keep thorough records on the location, movement, and stock levels of their goods in consignment warehouses in order to be eligible. Vendors had to adhere to the country-specific maximum storage period for their products, and Amazon requested regular updates and checks. Penalties or removal from the program may follow noncompliance.
Why Amazon decided to Discontinue Call-Off Stock?
Due to Amazon’s termination of the Call-Off Stock program, merchants in the European Union (EU) must modify the way they hold and handle their inventory. To keep holding inventory and earning domestic FBA fees, sellers must register for VAT in the appropriate EU countries by August 1, 2024, in order to activate Pan-EU FBA. The goal of this change is to simplify inventory control and tax compliance throughout Europe.
How Does it Impact the Amazon Sellers?
Sellers will have to deal with increased compliance requirements and possible cost hikes as a result of Amazon ending the call-off stock program. Now, sellers need to:
- Get a VAT registration number (VRN) for each nation where inventory is kept in order to register for VAT in the relevant EU countries. Major implications, such as fines and unpaid taxes, may arise from nonregistration.
- Comply with the New Inventory Declaration Guidelines: At the end of each calendar year, sellers are required to disclose the worth of unsold items and pay any necessary taxes. This stops tax avoidance and guarantees adherence to regional tax laws.
- Enrol in Pan-EU FBA: This program enables sellers to store merchandise in several European nations, enabling quicker delivery and improved customer support, although it does require a VRN.
What Sellers can do in Transition Period in the wake of Amazon Ends Call-Off Stock?
Amazon has given merchants a window to migrate to Pan-EU FBA between August 1 and November 1, 2024. By November 1, 2024, sellers must receive a VRN in order to be eligible for cash incentives and prevent business interruptions. In this time frame, sellers ought to:
- Make sure every shop has active seller accounts: Ensure adherence to Amazon’s performance requirements and seller policies.
- Deposit a Verified German VAT Identification Number: This proves compliance with German VAT regulations.
- Utilise Amazon’s VAT Calculation Service to ensure accurate submissions to tax authorities and to streamline VAT calculations.
- Continue to Provide COS-Eligible Products with Active Offers: Verify that the qualifying products fulfil Amazon’s requirements.
What else?
Pan-EU FBA Option – Amazon Ends Call-Off Stock:
An alternate service called Pan-EU FBA makes selling across Europe easier by enabling sellers to keep inventory in Amazon fulfilment centres spread across many nations. Amazon takes care of delivery, packaging, and storage, resulting in quicker deliveries and happier customers.
What are the Pros of Pan-EU FBA?
Wide Customer Base Access: Reach clients across Europe more quickly with delivery services.
Simplified Inventory Management: Amazon distributes goods as needed after sending inventory to a single fulfilment centre.
Streamline Operations: No need to handle complicated logistics or several inventory locations.
Other Seller Central Programs: To assist sellers in better managing their orders and inventories, Amazon Seller Central provides a number of programs. These consist of:
- Sellers can use Amazon’s fulfilment network for orders placed on other platforms thanks to multi-channel fulfilment, or MCF.
- The European Fulfilment Network (EFN) streamlines logistics by enabling retailers to keep inventory in one nation and ship orders throughout Europe.
The Bottom Line:
With Amazon’s call-off stock program coming to an end, sellers must quickly adjust to new inventory management and VAT registration requirements. Sellers can maintain their success in the European market by utilising initiatives such as Pan-EU FBA and investigating other Seller Central choices.