EU Warehouse vs China Direct Shipping
Compare holding inventory in EU warehouses vs shipping directly from China: costs, delivery times, VAT implications, and customer experience.
Fulfillment Strategy
EU Warehouse
Store inventory in EU fulfillment centers (Amazon FBA, 3PL). Enables fast local delivery and Prime eligibility.
Pros
- ✓1-3 day delivery
- ✓Prime/express eligibility
- ✓Better customer experience
- ✓Lower per-order shipping
Cons
- ✗Requires VAT registration in storage country
- ✗Upfront inventory investment
- ✗Storage costs
- ✗Risk of unsold stock
Best for: High-volume, consistent-demand products
Cost: FBA: €0.75-2.40/cu ft/month + fulfillment fees
Setup: 4-8 weeks (including VAT registration)
China Direct Ship
Ship directly from China warehouse to EU customer. Use IOSS for imports under €150 to simplify VAT.
Pros
- ✓No upfront inventory
- ✓No EU VAT registration needed (with IOSS)
- ✓Lower fixed costs
- ✓Test new products easily
Cons
- ✗7-20 day delivery
- ✗Higher per-unit shipping
- ✗Customs delays possible
- ✗Worse customer experience
Best for: Testing new markets, low-volume products
Cost: Shipping: €5-20/parcel via ePacket/eCommerce
Setup: 1-2 weeks
FAQ
Do I need EU VAT registration if I only ship from China?+
If using IOSS and goods are under €150, VAT is collected at checkout and no local registration is needed. For goods over €150, or if not using IOSS, import VAT applies and you may need local registration.