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Alexandre Darrigo, communication manager at Bizon and Amazon Expert

Alexandre Darrigo

11/09/2020

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How Brexit will impact UK and EU sellers on Amazon

And why British sellers should already sell from Europe.

On January 1, 2021, the United Kingdom will officially leave the European Union (EU) and will emerge from the transition period we currently are. If you sell your products on Amazon's UK and EU marketplaces, big changes will soon have a significant impact on your logistics and sales: you'd better get ready now!

"The UK will not extend the transition period & the moment for extension has now passed. On 1 January 2021 we will take back control and regain our political & economic independence." Michael Gove, Minister in the UK Cabinet Office on Twitter on June 12.

In reaction to these announcements by the British government, Amazon announced on July 14 that Amazon's FBA activities in the UK will be separated from those in the EU. The so-called "Amazon-shipped" feature, which guarantees fast delivery, may disappear from your products.

In short, this means that you will no longer be able to ship your orders to European markets from a UK warehouse. But what exactly are the changes announced by Amazon? What are your solutions for continuing to sell in Europe? Bizon deciphers for you.

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What you need to know from 2021 when selling on Amazon in the UK and Europe

To begin, you need to understand that Brexit has already officially taken place. On January 31, 2020 at midnight, the United Kingdom was officially no longer part of the European Union. As of February 1, 2020 we entered a so-called "transition period" for one year, during which EU law applies to the UK.

During this transition nothing changes for consumers, sellers and borders. What's next?

After this one-year period, nothing is certain anymore. 2020 is the theater of negotiations between the European and British governments, the outcome of which is not yet known. What we do know, however, is that Amazon has made a decision and that this separation will indeed have a very high impact for sellers.

Here are the 2 major changes on January 1st, 2021 on the UK and EU marketplaces:

  • Sales in FBA through the EFN (European Fulfiment Network) program will no longer be guaranteed between the UK and EU borders. This means that if your goods are stored in the UK, you will no longer be able to distribute them in Europe from your UK warehouses. In order to be labeled "shipped by Amazon" in Europe, your products will need to be stored and shipped from a European marketplace (i.e. France, Spain, Germany or Italy).

🔴 In summary: you will no longer be able to sell in Europe from the United Kingdom under the mention "shipped by Amazon".

  • Stock transfers will no longer be possible between the two countries. If your inventory is stored at Amazon in the United Kingdom, it can only be shipped to the United Kingdom and you will not be able to transfer it to the European Union. Your European stocks can still be distributed on the 5 European marketplaces and transferred on a pan-European scale as before, but on the UK side you will have to restrict yourself to amazon.co.uk.

🔴 In summary: your products in the UK will be blocked there geographically.

What solutions for UK vendors in Europe?

To sell in FBA in Europe after Brexit in 2021, it will be imperative to have its stocks in Europe. At a time when delivery is a central criterion of choice for a large majority of consumers, doing without FBA is inconceivable on Amazon. We will be able to help you on this point!

By 2021, you will have to deal with potential additional customs fees and extended delivery from the UK to Europe: forget this idea. Other sellers will be privileged by both Amazon's algorithms and consumers, which means sacrificing your European sales.

Source : Feedvisor / Can you do without this clientele?

But we have the solution. Bizon is here to help British sellers!

To mitigate the impact of these changes, you will need to split your stock: UK sales on one side, the European market on the other.

However, we know that your distribution networks may not be ready and that the administrative steps frighten you: we offer you our know-how to distribute your products throughout Europe via Bizon stores. Bizon Distribution, our "plug and play" offer to simplify all the steps of your sales, is more relevant than ever for all British sellers. We will take care of all the administrative, logistical and accounting aspects of your sales.

The big winners will be those who have adapted to future changes the earliest: let's discuss it together and continue to distribute your products in FBA on the European side!

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