The Central Europe Programme (CEP) by Amazon is an excellent opportunity for sellers to lower fulfillment costs and improve logistics by using fulfillment centers in Germany, Poland, and the Czech Republic. This allows them to optimize expenses, speed up delivery, and ensure efficient distribution of goods across European markets.
In this article, we’ll explore the benefits, pricing details, and enrollment process to help you make an informed decision.
What is Amazon’s Central Europe Programme?
Amazon’s Central Europe Programme (CEP) is available to sellers in Germany through Fulfillment by Amazon (FBA). This means sellers from any country that sell on Amazon.de and use FBA can participate in the program. By joining Amazon FBA Europe, you can store your inventory in Germany, Poland, and the Czech Republic, reducing fulfillment costs and improving logistics efficiency.
Without joining the program, all inventory is stored in German FBA Amazon warehouses, which can lead to higher fulfillment costs. The program offers an opportunity to expand storage locations and take advantage of lower fees. Sellers must keep track of their Amazon FBA inventory storage limit to optimize stock levels, avoid overage fees, and ensure seamless fulfillment, especially when using the CEP.
This program is available to users with Magento stores and other data sources such as Shopify, WooCommerce, Ecwid, and BigCommerce. To streamline the use of Amazon FBA, we recommend utilizing third-party integrations. In particular, Magento sellers can consider M2E Pro, while Shopify sellers may benefit from M2E Cloud.
Key Benefits of the Central Europe Programme
1. Lower Fulfillment Costs: Sellers save at least €0.26 per unit in fulfillment fees by storing inventory in Amazon FBA Poland and the Czech Republic.
2. Faster Delivery to Customers: Being closer to customers in Central and Eastern Europe reduces delivery times. Strategic warehouse placement minimizes delays, especially during peak seasons.
3. Optimized Logistics: Sellers don’t need to manage inventory in multiple countries manually. Amazon automatically distributes stock across warehouses for efficient order fulfillment.
4. Competitive Advantage: Lower logistics costs allow sellers to offer better prices without sacrificing profit margins. Faster order processing improves customer satisfaction and retention.
Amazon FBA Storage Fees and Cost Savings Example
Amazon offers various fee structures for sellers, particularly concerning fulfillment services. Please note that the fees presented are valid as of March 7, 2025. For a detailed breakdown and the most current information, it’s recommended to consult Amazon Seller Central Europe. Here’s a concise overview of the main fee types:
| Fee Type | Description |
| Selling Plans | Individual Plan: €0.99 per item sold. Professional Plan: €39 (excluding VAT) per month, regardless of the number of items sold. |
| Referral Fees | A percentage of the total sales price, varying by product category. Most categories have fees between 8% and 15%. |
| FBA Fulfillment Fees | For FBA users, fees vary based on product size and weight. For example, standard-size items have specific fees, while oversize items have different rates. |
| Storage Fees | Monthly charges for inventory storage in Amazon fulfillment centers, calculated per cubic meter. Rates differ between standard and oversized items and vary between January-September and October-December periods. |
| Additional Fees | It may include long-term storage fees, removal fees, and optional service fees like advertising or premium account services. |
Larger sellers can save tens of thousands of euros annually, freeing up business expansion or marketing resources. Savings according to CEP:
| Monthly Sales Volume (units) | Annual Savings (€0.26 per unit) |
| 500 | €1,560 |
| 1,000 | €3,120 |
| 2,000 | €6,240 |
| 4,000 | €12,480 |
| 8,000 | €24,960 |
| 16,000 | €49,920 |
Let’s look at the example. A German seller who sells shoes using Amazon’s Central Europe Programme for FBA incurs several key expenses. Below is a breakdown of the estimated costs:
Selling Plan:
- Professional Plan: €39 per month (excluding VAT), regardless of the number of items sold
Referral Fees:
- For the Shoes category, Amazon charges a referral fee of 15% on the total sales price.
Fulfillment Fees:
- Fees vary based on size and weight.
- Assuming a pair of shoes is classified as a standard package under 1 kg, the estimated fulfillment fee is €3.50 per unit.
Storage Fees:
- Monthly charges are calculated per cubic meter;
- January – September: €15.60 per cubic meter;
- October – December: €21.60 per cubic meter;
Cost Savings with CEP:
- Sellers participating in the CEP program save at least €0.26 per unit due to reduced fulfillment fees when Amazon stores products in Poland and the Czech Republic.
Example Cost Calculation for Selling 500 Pairs of Shoes Per Month
| Cost Type | Calculation | Total (€) |
| Selling Plan | Fixed monthly fee | €39 |
| Referral Fees (15%) | 500 pairs (€50 per pair), 15% | €3,750 |
| Fulfillment Fees (€3.50/unit) | 500 pairs × €3.50 | €1,750 |
| Storage Fees (€0.156/unit) | 500 pairs × €0.156 | €78 |
| CEP Savings (€0.26/unit) | 500 pairs × €0.26 | – €130 |
Total Monthly Costs:
- Without CEP Savings: €5,617;
- With CEP Savings: €5,487.
VAT Services for Amazon’s CEP Sellers
When sellers join the Central Europe Programme and allow their inventory to be stored in Poland and the Czech Republic, they may have VAT (Value Added Tax) obligations in these countries. Here’s what sellers need to know:
1. VAT Registration Requirements:
- If Amazon stores your goods in Poland or the Czech Republic, you must legally register for VAT in these countries.
- Even if you do not actively sell there, the mere storage of inventory in a country triggers VAT obligations.
2. How Amazon Helps with VAT Compliance
Amazon provides a VAT Services on Amazon (VISA) program that helps sellers manage VAT compliance across multiple European countries. This service includes:
- VAT registration in Poland, the Czech Republic, and other EU countries.
- Automated VAT filings to ensure compliance with local tax authorities.
- VAT calculation and reporting to help sellers maintain proper records.
3. VAT Rates in Poland and the Czech Republic
- Poland: Standard VAT rate 23%;
- Czech Republic: Standard VAT rate 21%;
- Reduced rates may apply for specific product categories.
4. VAT Compliance Risks
- Failure to register for VAT in Poland and the Czech Republic could result in fines and account restrictions.
- Amazon may require proof of VAT registration before allowing you to store inventory in these countries.
5. Steps to Stay Compliant
- Check if your business has a VAT number in Poland and the Czech Republic.
- Register for VAT if required (via Amazon’s VAT Services or a third-party tax advisor).
- File VAT returns regularly to comply with local tax laws.
- Ensure invoices meet local VAT regulations when selling to EU customers
How to Join the Central Europe Programme
- Go to Amazon Seller Central Europe:
- Log into your Amazon Seller account.
- Navigate to FBA Settings.
- Enable the Central Europe Programme:
- Locate “Allow Storage in Poland & Czech Republic” in the cross-border fulfillment settings.
- Activate it and accept the terms.
- Ship Your Products as Usual:
- Send inventory to German FBA centers.
- Amazon will automatically distribute stock to Poland and the Czech Republic.
FAQs
1. Are there any legal or tax implications for storing goods in Poland and the Czech Republic?
Yes. You may need to register for VAT in Poland and the Czech Republic if you store inventory in these countries. Amazon provides VAT support services to help sellers comply.
2. Can I opt out of the CEP after enrolling?
Yes, sellers can opt out anytime by adjusting their FBA Settings in Seller Central. However, opting out means losing the fulfillment cost savings.
3. Is the CEP available for all sellers?
It is available to Amazon sellers using FBA in Germany. If your business ships directly from your warehouse (FBM), the CEP does not apply.
4. Should I join the CEP if I mainly sell in Amazon EU Germany?
Yes! Even if you only sell on Amazon Germany, the CEP can reduce your fulfillment costs while keeping your delivery speeds high.
5. What happens if I sell across multiple Amazon marketplaces?
If you sell on Amazon.de, Amazon.fr, Amazon.it, Amazon.es, or Amazon.nl, the CEP can help fulfill orders efficiently across these markets.
Conclusion
Amazon’s Central Europe Programme cuts fulfillment costs, speeds delivery, and optimizes logistics by storing inventory in Germany, Poland, and the Czech Republic.
For seamless FBA management, Magento sellers can use M2E Pro, while Shopify sellers can benefit from M2E Cloud.
With lower fees, VAT compliance support, and faster fulfillment, CEP is necessary to scale your European business. Join now and stay ahead. Remember to check out our M2E Pro blog for fresher e-commerce insights!