Fulfillment Centers in Europe: How to Choose Locations

January 30, 2026

The “central Europe” idea sounds smart, until it isn’t

If you talk to enough founders, Amazon sellers, or DTC brands, you will hear the same sentence again and again:

“We want a fulfillment center in Europe, ideally in a central location.”

On paper, it sounds logical. One warehouse. One inventory pool. Ship everywhere. Simple.

In reality, this thinking causes delays, higher costs, and unhappy customers.

This article explains why the idea of a single, central fulfillment center Europe setup often fails, and how to make better decisions when choosing fulfillment centers in Europe.

No buzzwords. Just real operational logic.

Why brands default to a “central” European fulfillment center

Most brands choose a central European fulfillment center for three reasons:

  • They want to reduce complexity
  • They want to avoid splitting inventory
  • They want one point of control

These goals make sense early on. Especially if volumes are still low and the team is small.

The problem is that Europe does not work like one market.

Europe is not one shipping zone

This is the core mistake.

Europe looks compact on a map, but operationally it is fragmented.

Different countries mean:

  • Different delivery expectations
  • Different carrier performance
  • Different last-mile costs
  • Different return behavior

Shipping a parcel from Germany to France is not the same as shipping to Spain, Sweden, or Ireland.

Yet many brands treat Europe like a single domestic market.

That is why “central” often becomes “slow”.

Delivery speed matters more than distance

Customers do not care where your warehouse is. They care when the package arrives.

A fulfillment center in central Europe might look efficient, but if it adds one or two days to delivery, it hurts conversion and repeat orders.

In many cases:

  • A warehouse closer to the customer is cheaper overall
  • Faster delivery reduces support tickets
  • Faster delivery improves reviews

This is where a fulfillment network Europe approach starts to outperform a single location.

The hidden cost of long cross-border shipping

Longer shipping routes create costs that are not always visible in rate cards.

Some examples:

  • Higher return rates due to slower delivery
  • More lost or delayed parcels
  • More customer service workload
  • More failed delivery attempts

A “cheap” fulfillment center Europe option can become expensive once you factor in these issues.

This is especially true for fashion, supplements, and consumables.

When a central fulfillment center actually works

To be fair, a central fulfillment center in Europe is not always wrong.

It can work if:

  • Your order volume is still very low
  • Delivery speed is not critical
  • Products are high value and low return
  • Customers are spread evenly

But this phase does not last long.

As soon as volume grows, the weaknesses show up.

The myth of inventory efficiency

One argument for centralization is inventory efficiency.

The logic goes like this:
“One warehouse means less stock sitting idle.”

This is partly true. But it ignores demand patterns.

Demand is not evenly distributed across Europe. Some countries sell more, faster, and more consistently.

A single warehouse forces you to average everything. That leads to:

  • Stockouts in strong markets
  • Overstock in weaker ones

A smarter fulfillment network Europe setup places stock closer to demand, even if it means holding a bit more inventory overall.

Local fulfillment improves more than delivery time

Brands often think local fulfillment is only about speed.

It is not.

Local or regional fulfillment centers in Europe also improve:

  • Carrier reliability
  • Delivery predictability
  • Return processing speed
  • Customer trust

Customers notice when parcels arrive “like a local brand”.

That perception matters.

One warehouse vs a fulfillment network

Let’s compare two setups.

Single central fulfillment center

  • Simple to manage
  • Lower setup effort
  • Higher shipping distances
  • Slower average delivery

Fulfillment network Europe

  • Slightly more complex
  • Better delivery speed
  • Lower last-mile risk
  • More flexibility

Most growing brands end up moving from the first to the second, often later than they should.

VAT and compliance reality

Another reason central Europe is often chosen is VAT simplicity.

One country. One registration. Done.

But this is short-term thinking.

Once you sell across borders at scale, VAT obligations appear anyway. Delaying this does not avoid complexity, it just postpones it.

Modern European fulfillment center setups are built with VAT, IOSS, and OSS in mind.

Operations should follow demand, not tax fear.

How to choose fulfillment centers in Europe the smart way

Instead of asking “where is central?”, ask these questions:

  • Where are my customers today?
  • Where will growth come from in the next 12 months?
  • Which countries drive returns and support issues?
  • What delivery promise do customers expect?

These answers usually point to 2 or 3 regions, not one central spot.

Start simple, but plan for expansion

You do not need five warehouses on day one.

But you do need a plan.

Many brands start with:

  • One fulfillment center Europe location
  • A clear second location defined
  • Data-driven thresholds for expansion

That way, growth does not force rushed decisions.

Final thoughts for founders and operators

The idea of a “central” fulfillment center in Europe is attractive because it feels clean and efficient.

But Europe rewards proximity, not symmetry.

The best fulfillment centers in Europe strategies are built around customers, not maps.

If your fulfillment feels harder as you grow, that is a signal. Not a failure.

Rethink centralization. Think in networks. And let operations support growth, not slow it down.

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