Brexit effect on companies selling on Amazon
January 1 , Brexit and Amazon
As of January 1, 2021, in fact, everything changes: with the official start of Brexit and the birth of a formal border between the UK and the EU, in fact, UK companies will no longer be able to adhere to the offers of the European Fulfillment Network or the Pan-European FBA (Fulfillment by Amazon). This means that we no longer have Amazon's own logistics service available, thus making full use of the advantages that the marketplace is able to make available. Amazon has only communicated this news to interested companies in the last few hours, opening the need for immediate and heavy reorganization for all.For these stores, both visibility and distribution capacity will be lost. To reorganize, they will have to split between the UK and European activities, independently managing the two parties, creating two different price lists, retaining a sufficient quantity of products on site and hoping, in the meantime, that from the ongoing negotiations between the European Commission and the United Kingdom does not snack on special duties to penalize an exchange of goods which, from a logistical point of view, will suffer a sharp slowdown.
The collateral damage will weigh largely on UK businesses , something that everyone should keep in mind also in virtue of the fact that in the past there were also companies in the USA to take advantage of FBA to sell in Europe and in the United Kingdom: for all, there will be a shortcut to take about the markets within which you want to deploy, where to allocate its storage on which question point. The EU obviously has many strengths compared to the United Kingdom, which could strengthen the European market and weigh further on the UK.
But these are the accounts that will be possible only after the 1st of January, when the Brexit will become a reality and it will be possible to take this division in all its nuances.
Source: Esellercafe
