11 Feb How does Brexit affect brands and sellers on Amazon?
As you may know, since January 1, 2021, Brexit has been affecting Amazon and all e-commerce in general. In the wake of the United Kingdom’s exit from the European Union (EU), new regulations came into force for companies selling their products in both the UK and the EU.
The UK has withdrawn from the EU’s Customs Union and Single Market. As a consequence, trade now works differently as the UK cannot freely ship goods through the EU as it used to. Although the UK and EU continue to negotiate terms, Amazon has announced how Brexit will change sellers’ business operations with the information currently available. Are you ready for change?
How does Brexit affect Amazon sellers?
The United Kingdom is at the forefront of e-commerce in Europe. 93% of Brits shop online and, in total, Brits spend an average of €900 per year per person. For this reason, it is important for sellers or those responsible for delivering products to remain active in the electronic marketplace and adapt to a series of changes in order to continue their commercial activity in Amazon.uk.
Fulfillment By Amazon (FBA) offers using the Fulfillment Network Europe (EFN) will not be made across the UK-EU border.
FBA’s pan-European inventory transfers will stop between the UK and the EU. However, pan-European FBA will continue to transfer inventory within the EU region, supporting its sales in the markets of Spain, Germany, France and Italy.
To mitigate the impact of these changes, consider splitting your inventory and sending it to a fulfillment center in the UK and EU to have sufficient stock on both sides of the new customs border.
This may require you to ship your goods across the new UK-EU customs border and provide additional information as part of a customs declaration.
Delivery advantages and fulfillment costs will no longer be available to sellers.
Stock sent to an Amazon warehouse in Europe will continue to be distributed to other European warehouses, but will not be shipped back to the UK.
To stay up-to-date on all the changes and learn more relevant information about Brexit on Amazon, visit Amazon Seller Central.
Brands and sellers should also be aware that their EU trademarks will no longer be valid for the UK. The UK Intellectual Property Office (IPO) is creating a compatible UK mark for holders with an existing EU trade mark. Amazon will help sellers transfer the corresponding trademarks into their accounts.
Brands and those responsible for delivering products can upload their trademark in the UK by following the steps below:
- Log in to your Brand Registry account.
- Click on “Support” in the Trademark Registry panel.
- Select “Update Your Brand Profile” from the drop-down menu.
- Click “Add additional trademarks.”
- Fill out the form and submit it.
- Brexit Recommendations for Sellers
From now on, brands and sellers doing business in the UK and EU through Amazon will have to change their shipping strategy. To minimize the impact of these changes as much as possible, Amazon recommends splitting your inventory. Send some to UK fulfilment centres and some to EU fulfilment centres, so that you have enough inventory on both sides of the new border. When shipping goods from the UK to the EU and vice versa, you may need to provide additional information as part of the customs declaration. To ship goods across a customs border, review the following requirements:
TAX IDENTIFICATION NUMBER
When moving products to another country and storing them there, a tax identification number for that country is required. If you’d like to learn more about VAT in the EU as an Amazon seller, you can find information about existing regulations and how VAT obligations may affect you here.
During the first year of your subscription, you can use VAT Services on Amazon for free to manage your VAT registrations and returns.
EORI NUMBER (ECONOMIC OPERATOR IDENTIFICATION NUMBER)
You’ll need to obtain a UK and EU EORI number to move your inventory in bulk to the UK and any EU country. Once you have your EORI number, you can use it for all EU countries. You can apply for your EORI number in Spain directly through the Tax Agency’s e-Office. If you want to get the UK EORI you will need to follow the steps provided.
You can also get the Economic Operator Registration and Identification Number (EORI) for free through tax services on Amazon. The tax service provider provides you with the EORI service free of charge. Your tax service provider also determines the appropriate EU country to apply for an EU EORI number.
If you’re a seller who uses your own logistics and only ships goods directly to customers across the border, you may only need an EORI number to do so. For more information, please contact your logistics agent or tax advisor.
COUNTRY OF ORIGIN INFORMATION
Trade agreements between the EU and the UK will determine whether your products are eligible for preferential treatment (e.g. reduced or no tariff rates). You can find more information here.
HARMONIZED SYSTEM CODES
These codes determine the level of duties and import VAT for your products. You can find more information here.
INTELLECTUAL PROPERTY RIGHTS
If you don’t own the intellectual property rights (IPRs) for your products, you will also need the consent of the owner of the IPRs to sell products from the UK in the EU.
PROVIDE DOCUMENTS FOR CUSTOMS CLEARANCE
You’ll need to decide how you want to make customs declarations and whether you’re going to hire a person or company to take care of all the paperwork. You can find more information from the UK Government here or on the European Commission’s website. It’s a good idea to check with your carrier to determine how they can help you move your goods across the UK-EU border as a result of Brexit.
COMPLIANCE WITH NEW LABELING OR PRODUCT REGULATIONS
Please refer to the UK Government’s guidelines to confirm if the new requirements apply to your products. You can refer to the Product Compliance & Labeling section or the Frequently Asked Questions section.
We can help you
As an Amazon agency with 9 years of experience in the sector, we have a team specialized in seller account management that can help you continue your commercial activity on the Amazon.uk platform. If you want to know more information, contact our team of experts.
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