How Brexit will Affect your Amazon UK/EU FBA Business

There are many changes coming to your business if you sell in the UK/EU on Amazon. 

On January 1st, 2021, the UK plans to formally leave the EU. The current plan with Amazon is that starting on this date, sellers will no longer be able to fulfill EU orders from the UK fulfillment centers. 

Here is Amazon’s official announcement:

“On January 31, 2020, the UK left the EU and entered a transition period where existing arrangements are being kept in place until December 31, 2020. The UK is due to formally leave the EU’s Single Market and Customs Union from January 1, 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.

This will have the following impact for Amazon Selling Partners from January 1, 2021:

FBA offers using EFN will not be fulfilled across the UK-EU border.

Pan-European FBA inventory transfers will stop between the UK and EU (however, Pan-European FBA will continue to transfer inventory within the EU region, supporting your sales on Germany, France, Italy and Spain sites)

To mitigate the impact of these changes, you should consider splitting your inventory and sending it to a fulfillment centre in the UK and the EU, so that you have sufficient stock either side of the new customs border
This may require you to ship your products across the new UK-EU customs border and provide additional information as part of a customs declaration

Your Amazon business will continue to operate as usual until January 1, 2021. However, there are actions you can start taking now to prepare your business for the new customs borders. For information about how you can prepare for these changes, and for all of the latest information about Brexit, please see our BREXIT guidance help pages and the UK government website.

Thank you for selling on Amazon. We remain committed to supporting your business selling in the UK and in the EU as we make this transition, and we will continue to provide the latest information to support you and help your business thrive in the future.”

The biggest impact here for sellers is that you are going to have to have inventory in the UK AND EU in order to avoid paying tariffs that will start in Jan of 2021 if you plan to move inventory between the two areas.

As Amazon mentions above, you can still use Pan-European fulfillment, it just will not apply to the UK any longer. 
You can read Amazon’s official announcement in your UK or EU seller central account.