Smart Selling in 2025: Expanding on Amazon EU while minimising tariff costs

In 2025, businesses and consumers are trying to make sense of the impact of new US tariffs that threaten to disrupt supply chains and inflate costs. But while all this is going on, the UK and EU are right there on Amazon, offering a lucrative e-commerce market with over 500 million potential customers – but did you know that only an estimated 1-2% of US businesses are already exploring this? 

In this Partner Spotlight, we’ll look at:

• The problems posed by tariffs, and the current situation, which continues to evolve
• Why expanding into Europe is such a smart move for your long-term growth
• How AVASK and Amazon agency Sitruna can help you navigate the challenges that come with this, and support your successful growth

The bad news first: what’s the problem with tariffs? 

As we’ve noted from the outset, President Donald Trump’s proposed tariffs and increases have significantly affected global trade dynamics. These tariffs increase the cost of imported goods, disrupt supply chains, and create regulatory complexities.

That means businesses like yours face higher operational costs, reduced profit margins, and increased consumer prices.  

What’s the current situation with Trump’s tariffs? 

As of May 2025, here’s a quick overview of the tariffs: 

• 10% baseline tariff on nearly all imports into the US, implemented in April 2025 – but most of these tariffs were paused for 90 days starting April 8, except for those involving China
• 30% tariffs on Chinese imports as of May 12, 2025 – down from the previous 145%, but the US administration has warned they could rise again
• 25% tariff on all steel and aluminium imports: the 25% tariff remains, reaffirmed as of March 2025
• 25% tariff remains on all automobile imports, including non-USMCA-compliant automobiles and light cargo trucks, as of January 2025

❗A quick sidebar: VAT isn’t a tariff!  

As sellers and consumers alike try to get to grips with the changing landscape, let’s quickly clarify the differences between VAT and tariffs: 

What is VAT (Value Added Tax)? 

VAT is: 

• a consumption tax like sales tax, meaning it’s ultimately paid by the end consumer 

• added to the price of goods and services at each stage of production and distribution (unlike sales tax, which is just applied at sale) 

• applied in the UK, Europe, and other regions worldwide 

• less varied across the region than sales tax, with fewer rates to track. (We dig more into the differences between sales tax and VAT here.) 

• collected on behalf of the government then passed on to the tax authorities – and can be reclaimed by the business 

For example, when you buy a product in a UK or European store, the price you pay includes VAT.   

What are tariffs? 

Tariffs are: 

• taxes imposed by a government on goods imported from other countries 

• intended to make imported goods more expensive, encouraging consumers to buy domestic products instead 

For example, if a country imposes a tariff on imported cars, those cars will be more expensive than locally produced cars, which can help protect the local car industry. 

We cover the top questions around tariffs, VAT and more in our March Global E-commerce Unlocked Broadcast (subscribe to our YouTube channel for monthly insights and Q&As). 

While AVASK supports you with VAT registration in Europe and the UK, you’ll also need expansion support on Amazon – which is where Sitruna comes in. Let’s look at why Europe presents such a great opportunity, and how you can capitalise on it. 

The trillion-Euro question: Why expand into Europe and the UK via Amazon?  

Where the US is a fixed and heavily saturated market, the European e-commerce market continues to grow and offer new opportunities. And, as we mentioned at the top, only a few US businesses are expanding into Europe – but as awareness and confidence grows, so does competition. So it’s wise to strike early.  

Some encouraging numbers…

• €887 billion – the approximate total B2C e-commerce turnover in Europe in 2023
• €900 billion – the projected value of the European the market by the end of the decade
• 25 international marketplaces on Amazon, who continue to add marketplaces in Europe, notably Ireland in early 2025.  

This growth is driven by high e-commerce penetration in leading economies such as the UK, Germany, and the Netherlands, as well as emerging markets in southern and Eastern Europe. Amazon offers a ready-made pathway to explore them all. 

The good news: expansion into Europe is already at your fingertips 

Amazon’s extensive fulfilment networks in Europe ensure efficient and reliable delivery, and its existing tools let you manage multiple EU marketplaces from a single account, simplifying operations. Amazon’s established marketplaces like Germany, France, and Italy offer robust e-commerce markets with high consumer demand.  

Amazon’s European Fulfilment Network (EFN) and Pan-European Fulfilment by Amazon (FBA) networks cover key marketplaces across Europe, giving customers a broad selection and efficient delivery.  

What’s the difference between EFN and Pan-EU?

EFN lets you store inventory in one European Amazon fulfilment centre and fulfil orders across multiple European marketplaces

Pan-European FBA lets you store inventory in multiple Amazon fulfilment centres across Europe. Amazon then distributes the inventory based on anticipated demand, ensuring faster de livery times and lower shipping costs. 

Following Ireland’s recent welcome into the Amazon family, AVASK and Amazon are offering free VAT registration and up to 2 years’ worth of filings reimbursed through 2025 to kick-start your expansion

4 steps to get started with European expansion with Sitruna and AVASK 

1. Start with a solid strategy 

Partnering with experts like Sitruna can help optimise your Amazon strategy, from logistics and warehousing to product listings, advertising, and customer engagement. As industry professionals with former Amazon insiders on their team, they understand the marketplace’s complex systems (and its quirks!). 

2. Speak the local lingo 

Europe isn’t a monolith, so Sitruna’s localisation services help you adapt your product listings and marketing strategies to meet local languages, preferences and – crucially – local regulations 

3. Lead with logistics 

Amazon’s fulfilment centres across Europe provide a robust infrastructure for timely deliveries. Sitruna’s logistics solutions ensure your supply chain runs smoothly, and your Amazon store remains fully stocked, by offering fully managed inventory services – including warehousing, FBA preparation, and global shipping.  

4. Stay out of the red and go green 

Compliance with VAT and environmental compliance rules like Extended Producer Responsibility (EPR) regulations are essential for operating in the EU.

AVASK provides expert guidance on VAT registration and compliance, helping you navigate the complexities of European tax laws and avoid penalties. With our EPR registration services, we’ll ensure your business meets environmental regulations, promoting sustainability and legal compliance across multiple European countries. 

Your quick checklist to guide your expansion into the EU 

🎯Target the strongest established countries on Amazon: Germany, UK, France, Italy, Spain  

🎯Target new countries: Ireland 

Key steps to expand:

• Register for a European Unified Account 

• Localise product listings and marketing 

• Optimise logistics and supply chain 

• Monitor and adapt to regulatory changes 

• Register for VAT and EPR 

Watch: ‘Navigate Trump’s global tariffs and stay competitive’ 

AVASK co-founder Melanie and our Business Expansion Account Manager Lewis take a deeper dive into the far-reaching effects of tariffs on US manufacturers, consumers, and the e-commerce landscape – and cover the strategic adjustments you need to stay competitive.  

Tariffs might be here to stay – so start expanding into Europe today 

Expanding into the EU via Amazon isn’t a knee-jerk move against tariffs, but a strategic pivot that can drive growth and resilience. Leverage the opportunities in the UK and EU markets, and stay compliant with local regulations, so your business can thrive despite the challenges posed by tariffs.