How Brexit Will Impact Amazon FBA Sellers in 2021

Introduction

The impact of Brexit on Amazon FBA sellers in the EU is significant, with changes in customs regulations and VAT requirements. Learn about the practical implications and necessary adjustments for Amazon FBA businesses.

Impact of Brexit on Amazon EU tickets business

• The United Kingdom officially left the European Union on January 31, 2020.

• Until December 31, 2020, the existing provisions will remain unchanged for Amazon EU ticket sellers, providing a transitional period to prepare for potential impacts.

• From January 1, 2021, significant changes will come into effect, marking the official departure of the UK from the EU and impacting various aspects of business operations.

• Amazon has communicated updated information and guidelines to prepare sellers for the changes and minimize potential negative impacts on their turnover.

• The detailed actions required to mitigate the impact are outlined in the communication from Amazon, providing clarity and direction for sellers to adapt to the post-Brexit business environment.

Impact of Changes on Amazon Logistics in Europe

• The changes in the customs union will have implications for businesses outside Amazon’s European network in terms of importing, stock circulation, and product shipment in Europe.

• These changes will particularly affect sellers already operating in England or across Europe from stock stored in England, leading to logistical complications and the need to implement new measures to minimize the impact.

• Amazon specifies that from January 1, 2021, offers shipped using the European distribution network will not be transported between the United Kingdom and the European Union, including the European Film Network (EFN). EFN allows sellers to test new markets without registering for VAT in other countries by shipping from a single warehouse to end customers in multiple countries.

• The restriction on transporting offers between the UK and the EU, including EFN, will impact sellers using Amazon’s distribution network, particularly those using the EFN to test new markets without VAT registration.

Impact of Brexit on Amazon’s Pan-European Shipping

• Brexit will result in a significant change in the operation of Amazon’s Pan-European Shipping program

• Stock from England will no longer be able to circulate freely within the EU, limiting deliveries to English customers only

• The Pan-European Amazon program will halt stock transfers between the UK and EU, but will continue within the EU, supporting sales in Germany, France, Italy, and Spain

• This change will have implications for VAT registrations in all countries where Amazon operates, potentially increasing costs for sellers

• From January 1, 2021, Amazon’s Pan-European Shipping will only work between Germany, France, Italy, and Spain, with England being treated separately

Impact of Brexit on Amazon EU Ticket Sellers

• The key points from the given text are about the impact of Brexit on Amazon EU ticket sellers. The email mentions the need to distribute stock and send it to a distribution center in the United Kingdom and within the European Union to avoid interruptions in sales.

• There are concerns about the increased shipping costs to the European zone due to the need to make separate shipments for England and the rest of Europe. This would result in higher expenses and logistical challenges for Amazon EU ticket sellers.

• The email also highlights the positive aspects of Brexit, with England regaining its sovereignty being a good thing for them. It is suggested that the complexity in Europe has slowed down external players from selling in Europe, which could limit competition for Amazon EU ticket sellers.

• Most Chinese and American sellers use England as a logistics platform, which is technically illegal as they are not registered for VAT in other European countries. This practice, though illegal, has been common among foreign sellers.

Impact of Brexit on Amazon Sellers

• Brexit will bring changes to VAT regulations, providing an advantage for sellers who do not register for VAT in other countries.

• VAT in England is relatively easier compared to other countries, making it more favorable for sellers.

• This change is expected to create more space in search results on Amazon and reduce the presence of Chinese and American sellers, especially in countries like France, Spain, and Italy.

• The speaker emphasizes the importance of staying updated on the evolving legislation related to Brexit, with potential major changes expected before January 1, 2021.

• She also highlights a training program, ‘the super it’s their academy’, designed to help sellers set up a profitable and sustainable Amazon FBA business, providing video content and access to a mastermind group for support and guidance.

Conclusion

As the UK officially leaves the EU, Amazon FBA sellers must prepare for drastic changes in logistics, VAT regulations, and market competition. Stay informed and adapt to the evolving landscape by leveraging resources that support a sustainable Amazon FBA business in the post-Brexit era.

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