Amazon FBA vs. Allegro One Fulfillment: A Cost & Logistics Breakdown for US Sellers

The European market is no longer just an “expansion option” for US brands; it is a necessity for diversification. However, the traditional playbook—shipping directly to Amazon FBA Germany or UK—has become a “Red Ocean” strategy. Saturation is high, CPCs rival the US market, and logistics costs in Western Europe are eroding margins.

This analysis proposes a “Blue Ocean” alternative: Utilizing Poland not just as a market, but as a strategic logistics hub. By leveraging the cost differentials between the DACH region (Germany, Austria, Switzerland) and CEE (Central & Eastern Europe), US sellers can optimize their supply chain for the entire continent.

The thesis is simple: You do not have to choose between Amazon and Allegro. Instead, you should use Poland’s infrastructure to serve Allegro (the dominant local player) while drip-feeding inventory into Amazon FBA Germany. This “Hybrid Model” can reduce storage and fulfillment overhead by approximately 30-40% compared to a pure German-centric approach.

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The Battlefield: Germany vs. Poland Logistics Costs

Direct Answer: Germany offers proximity to high-income consumers but comes with some of the highest operational costs in the EU. Poland serves as the “Logistics Back Office” of Europe, offering significantly lower real estate and labor costs—often 50-60% cheaper—while remaining within a 2-hour drive of the German border.

The Cost of Doing Business

For a CFO looking at the P&L of a European expansion, the fixed costs of logistics are the primary killer of ROI. When you analyze the “Golden Triangle” of European logistics, the shift has moved East.

• Real Estate (Warehousing):
  • Germany (Berlin/Brandenburg): Prime logistics real estate averages €7.50 – €9.00 per sqm/month. Availability is scarce (vacancy rates often <3%).
  • Western Poland (Poznań/Gorzów/Szczecin): Modern Class-A warehouse space averages €3.90 – €4.50 per sqm/month. These facilities are often newer and more automated than their German counterparts.
• Labor Markets:
  • Germany: Warehouse associates command €14.00 – €18.00 per hour (fully loaded cost to employer including social security). Stringent labor laws and union involvement restrict flexibility during Q4 peaks.
  • Poland: Warehouse associates average €8.00 – €10.00 per hour (fully loaded). Poland has a highly skilled logistics workforce accustomed to e-commerce demands.

The “Amazon Proof”

It is not a coincidence that Amazon has built massive fulfillment centers in Polish cities like Poznań (POZ1), Wrocław (WRO1), and Szczecin (SZZ1). They are servicing the German market from Polish soil. US sellers should look at Amazon’s infrastructure map and mimic that efficiency: hold stock where it is cheap (Poland), and deliver where the money is (Germany/Europe).

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Amazon FBA (Fulfillment by Amazon) in Europe: The Gold Standard?

Direct Answer: Amazon FBA in Europe offers unparalleled reach via the Pan-EU program and the trusted Prime badge, essential for conversion. However, it imposes strict storage limits, high Q4 fees, and complex VAT registration requirements across multiple countries if inventory is decentralized.

The Mechanics of FBA in Europe

Expanding to Amazon Europe is not a “copy-paste” of Amazon US. You generally have two logistics choices:

1. EFN (European Fulfillment Network): You store goods in one country (e.g., Germany) and Amazon ships across borders.
   • Pros: Only one VAT number needed initially.
   • Cons: Cross-border fulfillment fees are significantly higher. Delivery times are slower.
2. Pan-EU FBA: You ship to a central hub, and Amazon distributes your stock to warehouses in France, Italy, Spain, Poland, and Germany.
   • Pros: Local fulfillment fees (cheaper) and Prime delivery speed.
   • Cons: The VAT Trap. You must register for VAT in every country where stock is held. This increases compliance costs by €5k-€10k annually.

The “Germany Surcharge”

If you choose to store your goods exclusively in German fulfillment centers, you face the “Germany Surcharge.” Not only are the base storage fees higher, but the “Aged Inventory Surcharge” (long-term storage) kicks in aggressively.

• Q4 Peak Fees: Amazon triples storage fees in Q4 (October-December). If you are holding slow-moving SKUs in a German FBA center, your Q4 margin is effectively wiped out before you make a sale.
• Commingling Risks: Just as in the US, commingling inventory in massive FBA hubs risks your genuine product being mixed with counterfeits or returns from other sellers, damaging brand integrity.

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What is Allegro One Fulfillment? (The Challenger)

Direct Answer: Allegro One Fulfillment is the official proprietary logistics service of Poland’s largest marketplace, offering next-day delivery via an extensive network of “Paczkomaty” (Parcel Lockers). Unlike Amazon FBA, it is optimized specifically for the CEE market, offering lower storage fees and a simplified fee structure without monthly subscription costs.

Beyond the Warehouse: The “Paczkomat” Culture

To understand Allegro One, you must understand the Polish consumer. In the US, doorstep delivery is king. In Poland, the Parcel Locker (Paczkomat) is king. Over 70% of Polish online shoppers prefer picking up their package from a locker at their convenience rather than waiting for a courier.

Allegro One Fulfillment is vertically integrated with InPost (the locker network provider) and Allegro’s own delivery fleet.

• Cut-off Times: Orders placed as late as 8:00 PM are often delivered the next day. In major cities (Warsaw, Kraków), same-day delivery is becoming the standard.
• The “Allegro Smart!” Badge: This is the Polish equivalent of Amazon Prime. Using One Fulfillment guarantees this badge. Without it, conversion rates on Allegro plummet.

The Algorithm Difference: A9 vs. Trafność

• Amazon A9: heavily weighs sales velocity and conversion history.
• Allegro Trafność (Relevance): heavily weighs shipping time and seller quality score. By using One Fulfillment, you max out the logistics metrics in the algorithm, giving a new US seller immediate visibility boost over local sellers fulfilling from their own garages.

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Head-to-Head Comparison: FBA vs. Allegro One (Cost Breakdown)

Direct Answer: While Amazon FBA offers broader geographic reach, Allegro One Fulfillment is approximately 20-30% cheaper on storage and “heavy” item handling. FBA fees escalate rapidly with size/weight, whereas Allegro maintains a flatter rate structure suited for the CEE economic zone.

The Scenario

Let’s compare a standard D2C product:

• Item: Premium Coffee Maker
• Weight: 2.5 kg
• Dimensions: Standard Shoebox size
• Sale Price: €100 ($108)

Cost Component	Amazon FBA (Germany)*	Allegro One Fulfillment (Poland)**	Winner
Pick & Pack Fee	€6.80 – €7.50 (depending on tier)	~16 PLN (€3.70)	Allegro
Storage Fee (Monthly)	~€26 – €36 per cubic meter	~25 PLN (€5.80) per cubic meter	Allegro (Landslide)
Long-Term Storage	Aggressive penalties after 180-365 days	Standard rates apply longer; penalties are lower	Allegro
Return Processing	Fee charged + potential “unsellable” disposition	Free verification + lower restocking fees	Allegro
Subscription Fee	€39/mo (Pro Account)	€0 (No monthly sub)	Allegro
Removal Fee	High (per unit cost to dispose/return)	Low (local courier rates)	Allegro

• Estimates based on FBA Germany rate cards (Euros).
• Estimates based on Allegro One rate cards converted to Euros (approx 4.3 PLN = 1 EUR).

The Analysis

1. Storage Arbitrage: The storage cost difference is massive. Storing 1,000 units in Germany costs roughly 4-5x what it costs in Allegro’s warehouse near Warsaw.
2. Oversized Goods: Amazon punishes oversized items with steep fees. Allegro, accustomed to shipping tires and garden equipment via lockers/couriers, is much more forgiving on dimensional weight.

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The Hybrid Strategy: Using Poland as Your EU Hub

Direct Answer: The most efficient strategy for US sellers is to ship bulk inventory to a bonded warehouse or 3PL in Poland via the Port of Gdynia. From there, stock is split: 60% is allocated to Allegro One for the CEE market, and 40% is “drip-fed” into Amazon FBA Germany via truck to minimize storage costs while maintaining Prime eligibility.

The Workflow

Stop shipping directly to Amazon warehouses in Germany or the UK. You are paying a premium for flexibility you don’t need on Day 1.

1. US to Gdynia (Sea Freight): Ship a 40ft container to the Port of Gdynia/Gdańsk. This is a major Baltic hub.
2. Bonded Warehouse / Fiscal Rep: Goods arrive. Important: You do not necessarily have to clear customs immediately if you use a Bonded Warehouse, aiding cash flow.
3. The Split:
   • Allocated to Allegro: Goods move to Allegro One Fulfillment (A1F). You are now live in Poland, Czech Republic, and Slovakia (Allegro’s active markets).
   • Allocated to Amazon: You do not send 6 months of stock to Amazon DE. You send 4 weeks of stock. A truck from Western Poland to the Amazon DE warehouse takes 4 hours. You replenish Amazon FBA on a “Just-In-Time” basis.

The Financial Benefit

By keeping the bulk of your inventory in Poland (either in A1F or a partner 3PL), you pay Polish storage rates (€5/cbm) rather than German rates (€30/cbm). You only pay the “Amazon Premium” for the units that are about to be sold.

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Regulatory Hurdles: VAT, IOSS, and Customs

Direct Answer: US sellers often fear EU compliance, but “Fiscal Representation” solves this by allowing a local entity to handle VAT reporting and customs clearance. Additionally, “Article 33a” allows for deferred Import VAT, meaning you don’t pay VAT at the border but account for it in your tax return, significantly aiding cash flow.

The Fear: “VAT is too complex”

In the US, Sales Tax is messy. In the EU, VAT is strict.

• Fiscal Representation: As a non-EU entity, you must have a Fiscal Representative in Poland. This is a licensed tax agent who is jointly liable for your VAT. They handle the paperwork.
• Article 33a (Deferred VAT): Without this, if you import $50k of goods, you must pay roughly 23% VAT ($11.5k) immediately at the port in cash before goods are released. With Article 33a, this payment is “suspended” and settled on paper in your monthly tax return. This is a critical cash-flow tool for D2C brands.

IOSS (Import One-Stop Shop)

For US sellers doing direct-to-consumer fulfillment (dropshipping or merchant fulfilled) for orders under €150, IOSS allows you to collect VAT at checkout. However, if you are using FBA or Allegro One, you are storing goods in the EU, so standard VAT rules apply, not IOSS. Do not confuse the two.

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Why Westom (YTECS) Recommends the “Allegro First” Approach

Direct Answer: We recommend starting with Allegro because it has no monthly subscription fees, allowing for a “cheaper failure” or “leaner scale-up.” Navigating Polish KYC (Know Your Customer) and setting up the Hybrid Logistics model requires a local partner to bridge the language and legal gap.

The “Fail Fast, Fail Cheap” Philosophy

Amazon requires a monthly commitment and high initial stock levels to get the Flywheel spinning. Allegro allows you to list for free.

• Testing Ground: Use Allegro to test which SKUs resonate with the European consumer. Tastes in Warsaw are often similar to Berlin.
• No “Gatekeepers”: Amazon frequently suspends new accounts for arbitrary “velocity reviews.” Allegro’s verification is strict upfront (KYC) but generally more stable once operational.

The Service Reality

While the opportunity is “Blue Ocean,” the water is deep.

• Language: Polish contracts are in Polish.
• KYC: Polish banks and Allegro require notarized translations of US Articles of Incorporation.
• Integration: You need a partner who can physically move pallets from the Gdynia port to the Allegro warehouse.

This is where YTECS fits. We don’t just advise; we execute the legal entity setup, the fiscal representation, and the physical 3PL integration. We turn the “Black Box” of Poland into a transparent dashboard.

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Conclusion & Actionable Next Steps

The era of “easy wins” on Amazon Europe is over. To succeed in 2026, you must be operationally superior to your competitors.

• ROI Logic: By shifting your logistics center of gravity to Poland, you reduce fixed costs by ~35%.
• Market Logic: You gain access to Allegro (22M+ customers) while still servicing Amazon Germany.

Don’t Guess. Audit.

If you are planning an EU expansion, or if your current EU margins are below 15%, you are likely overpaying for logistics.

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Frequently Asked Questions (FAQ)