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Important Things To Know About Brexit’s Impact on Amazon Business


Apart from the global health crisis that brought about the COVID-19 pandemic, Amazon sellers, particularly those active in the European marketplace, have another undertaking to face. With Brexit already in effect as of January 1, 2021, Amazon sellers are now met with updated marketplace rules and guidelines to follow.             

To give you a better understanding of Brexit and how it affects eCommerce, especially the Amazon industry, here are some key points to remember. 

Changes After January 1, 2021

With the exit of The United Kingdom from the European Union, significant changes will be observed by both parties. These changes center mainly around how the aforementioned parties will have to trade, work, and live together. 

In the context of the trade relationship and upon the effect of Brexit, the UK-EU trade agreement will be implemented. This includes the reduction or elimination of taxes for trading goods across borders. 

Additionally, limitations for a number of goods that can be traded between the UK and EU have no limit. This shared trade rule aims to avoid the price increase of goods between two parties. 

The Impact of Brexit on European Amazon Marketplace 

Like any other company, Amazon has likewise prepared counter-measures while anticipating Brexit. Here are some of the changes highlighted by Amazon prior to January 1, 2021:

Now that the UK has formally left the EU’s Single Market and Customs Union, Amazon has laid down its implication for its Amazon Selling Partners which took effect last January 1, 2021. An Amazon News detailed that:

Additionally, Amazon sellers who are categorized under Merchant Fulfilled Network (MFN) may still fulfill orders using third-party carriers. However, MFN Selling Partners are obliged by Amazon to provide additional information, including the following:

Protecting Amazon Sales Amidst Brexit 

In order to mitigate the impact of Brexit on your Amazon sales, Amazon has recommended that FBA sellers split their inventory between the UK and the EU. This simply means that FBA sellers should send inventory items to the Amazon UK warehouses, as well as the Amazon warehouses within the EU regions. 

By splitting the inventory, sellers will have sufficient stock for both the UK or EU marketplaces. Amazon emphasized that sellers can protect their European sales by “inbounding to both the EU and UK FC networks through the Multi-Country Inventory.” 

Since your stock or inventory items will potentially be located close to your customers, hopefully,  sales will be maximized even after Brexit. 

Pan-European Amazon Business Preparation Tips

With the UK leaving the European Union, sellers should prepare accordingly to avoid any debilitating issues or concerns. Here are some tips on how Amazon sellers could prepare their business amidst Brexit. 

To be properly guided with your Amazon business amidst Brexit, you may CLICK HERE for more details. 

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