How will Brexit affect Amazon Sellers

Brexit affects on Amazon Sellers – read this blog post to learn what will change and what you need to do.

By João Fernandes | 26 November 2020
On 31 January 2020, the UK left the EU and entered a transition period where existing arrangements are being kept in place until 31 December 2020. The UK is due to formally leave the EU’s Single Market and Customs Union from 1 January 2021. While UK-EU negotiations are ongoing (including determining what tariffs, if any, will apply), from January 1, 2021 there will be a customs border between the UK and EU which will have an impact on businesses working across this border. Amazon is committed to supporting all businesses selling in the UK and across Europe. In these bullet points we explain what will change and how.
  • Starting on the 21st of December, Cross-Border Fulfilment via EFN and Pan-European FBA will start winding down, stopping in full on Monday December 28. To maintain your European sales, you will need to send products to fulfilment centres in the UK and the EU.

 

  • Inventory/Warehouse Management: To mitigate the impact of these changes, you should consider splitting your inventory and sending it to a fulfilment centre in the UK and the EU, so that you have sufficient stock either side of the new customs border.

 

  • VAT Registry: To move goods across a border and store them locally you will require a VAT number for the country in which you are storing these products. Starting at the beginning of next year, you will need a VAT registry in the UK in order to sell through the UK marketplace and an european VAT in order to sell in other European Marketplaces.

 

  • EORI Number: You will need to obtain both a UK and EU EORI number (Economic Operators Registration and ID number) to bulk move inventory into or out of the UK and any EU countries from January 1, 2021. One EU EORI number will be sufficient for all EU countries.

 

  • Brand Registry: Brands doing business in both UK and EU – Brands having only a EU trademark are currently protected across UK and EU in Brand Registry. However, post 1 Jan 2021, these brands will no longer be able to report potential infringements in the Amazon UK store and hence the brands will need to register both their UK and EU trademark in Brand Registry. They will need to update in Brand Registry the comparable UK trademark that the UK IPO is creating for all brands with an existing EU trademark. Brands can update their trademark by logging into their Brand Registry account and following the instructions under Contact Brand Support –> Add a Trademark.

 

  • Tariffs: Will there be tariffs on products when they cross the UK-EU border? This will depend on the trade-agreement that the UK and EU agree and is the focus of the current negotiations.

 

Commerce 8 is happy to help if you have any further questions. Contact us and let’s take it from there.

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