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Brexit and Amazon


Although it had been announced long before it took place, UK’s withdrawal from the EU caught many businesses cooperating with British enterprises off guard. Enterprises trading with the UK via Amazon were also made feel ill at ease.

Will Brexit affect e-commerce?

It comes with no surprise that the e-commerce industry is concerned about Brexit and its consequences. There are many doubts about how to maintain trade using Amazon services after UK is no longer a part of the EU. This issue involves not only sellers of goods in the UK but also those who send goods to the UK from overseas.

Changes to be made by the end of 2020

The UK has not left the EU abruptly – were that to happen, the world economy would have crumbled. That is why, the existing arrangement includes a transition period which will last until the end of 2020. By that time, Britain should secure their deals not only with the European countries but also with the rest of the partner countries. Until then, all transactions via Amazon will be conducted as usually. UK has time until the end of year to reach an agreement with the EU and ensure that international trade remains uncompromised.


Amazon and Brexit – what to prepare for?

Traders should prepare themselves for huge changes after January 1st, 2021. If UK does not reach an agreement with the EU by that time, complications may arise. Were that to happen, it would become challenging to decide how to settle VAT and whether to impose custom duty on goods imported to the UK. Sellers using Amazon should also take into consideration that Brexit may discontinue FBA inventory transfers between the UK and the EU. What it means is that UK stock warehouses will no longer be used to fulfil orders in Europe. However, such inventory transfers will still operate in Germany, Spain, Italy and France. From 2021, UK and the EU will become separate entities. Moreover, sellers should acquaint themselves with the new rules regarding customs duty – they might require hiring new staff to manage it.

Traders who sell their goods directly via FBM should also be vigilant in terms of new rules.


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