Brexit will force UK Amazon merchants to split inventory

UK sellers on Amazon will no longer be able to transfer inventory to the EU after Brexit, a decision set to have a considerable impact for merchants situated on either side of the border.

Amazon informed its UK sellers earlier this week that “pan-European FBA inventory transfers will stop between the UK and EU” on January 1st 2021, when the UK formally separates from the rest of the EU, reports charged retail.

The UK currently has access to nearly 450 million European customers via a single logistics network.

UK merchants will be required to separate their EU inventory for overseas fulfilment centers, and vice versa for European merchants who sell to the UK.

“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,” Amazon told its sellers.

“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.”

Former Amazon employees and chief strategy officer at Amazon agency Molzi Charlie Merrells added: “Amazon would not have taken this decision lightly. The company has always put customers first and this announcement could limit the selection of products on offer if businesses can’t find a solution. It will also impact sellers of all sizes. “UK businesses that want to capitalise on the huge demand from the European Union will need to take urgent action to ensure products are stocked on the continent in time.

“Similarly, European sellers risk losing out on the demand from the UK which has one of the most mature and largest ecommerce markets in the European Union. If sellers don’t have a solution in place by the end of the year, they risk losing out on huge number of sales and revenue.”

Image via Amazon; Article source: Charged Retail