A pan-European service means that you authorize Amazon to distribute your inventory across any/all sites in Europe. Once your item has been sent to an EU fulfillment center, Amazon will place your inventory in the country where you have enabled FBA Inventory to meet potential buyer demand.
When sellers join the Amazon Pan-European Program, on the one hand, sellers do not need to arrange goods to European countries, and they do not need to bear cross-border costs, which saves logistics and labor costs. On the other hand, buyers can quickly receive the ordered products, which improves the buyer's shopping experience.
However, Amazon sellers who have joined the Pan-European plan need to register for the VAT tax number of the countries in the Pan-European plan and declare it normally. If they join the Pan-European plan, Amazon will deduct 25 pounds per month in Europe, not to mention the cost of registering VAT. After that, the monthly tax agency fee is also an expense.
Image source: Know everything about the cross-border community
For sellers with good sales, it is more cost-effective to open the pan-European plan. If the sales volume is not so large, it is not recommended to join the pan-European plan. If you don't plan to do the whole Europe, you can do EFN and use a country's inventory for long-distance delivery, and the delivery fee may be a little more expensive. However, if the pan-European plan is opened and the VAT tax number is registered, you need to keep reporting and entrusting an agent. If you leave it there, the tax number is likely to be cancelled, and the store may be closed.