Amazon EU FBA Shock For Global Sellers Thanks To Brexit

fba

Unsurprising for some but surely a shock for others today as Amazon has announced that due to Brexit on the 1st January 2021 the UK’s FBA operations will be separated from the rest of Europe.

This means that any sellers that utilised the EFN (European Fulfilment Network) or Pan-European FBA that these benefits that they had access to will be coming to an end.

This will be a huge blow to certain Amazon sellers in the UK who utilise EFN and P-E FBA as they are going to see a huge part of their online audience disappear from the 1st January 2021.

All of this is due to ongoing impact of Brexit and that from the 1st January 2021 there will exist a customs border between the UK and the rest of Europe adding an extra layer of complexity for products moving between the two entities.

As it stands right now with so many unknowns existing regarding Brexit, Amazon has taken the decision to remove itself for the time being in getting involved with any of the logistics surrounding that, which is a blow for UK and European sellers.

The Impact for US Sellers

This isn’t just an issue for UK and European sellers but could affect US sellers too. As the UK and Germany are some of Amazon’s largest markets, there are many US sellers who have utilised the collective European market and fulfilment network to sell their products across the EU including the UK.

What these changes now mean is that if a US seller wants to continue selling (and having product in stock in the country to be Prime eligible) they will need to split some stock between the UK warehouses, and those of Europe.

Most likely resulting in two lots of shipping fees and two lots of storage fees.

Let us know if this is going to be impacting your business in the comments below or over in our Facebook group.

The Full Amazon FBA Statement

“On January 31, 2020, the UK left the EU and entered a transition period where existing arrangements are being kept in place until December 31, 2020. The UK is due to formally leave the EU’s Single Market and Customs Union from January 1, 2021.

While UK-EU negotiations are ongoing (including determining what tariffs, if any, will apply), from January 1, 2021 there will be a customs border between the UK and EU which will have an impact on businesses working across this border.

This will have the following impact for Amazon Selling Partners from January 1, 2021:

FBA offers using EFN will not be fulfilled across the UK-EU border.
Pan-European FBA inventory transfers will stop between the UK and EU (however, Pan-European FBA will continue to transfer inventory within the EU region, supporting your sales on Germany, France, Italy and Spain sites)
To mitigate the impact of these changes, you should consider splitting your inventory and sending it to a fulfilment centre in the UK and the EU, so that you have sufficient stock either side of the new customs border
This may require you to ship your products across the new UK-EU customs border and provide additional information as part of a customs declaration

Your Amazon business will continue to operate as usual until January 1, 2021. However, there are actions you can start taking now to prepare your business for the new customs borders. For information about how you can prepare for these changes, and for all of the latest information about Brexit, please see our BREXIT guidance help pages and the UK government website.

Thank you for selling on Amazon. We remain committed to supporting your business selling in the UK and in the EU as we make this transition, and we will continue to provide the latest information to support you and help your business thrive in the future.”
– Amazon

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