Amazon.com has asked British businesses that use its platform for trading to initiate measures so that they would be able to continue trading on the e-commerce platform to the customers in the European Union in the case of a no deal Brexit
No deal “may temporarily prevent cross-border trade”, the world’s largest online retailer told the UK sellers.
Come March 29, the UK is set to leave the EU irrespective of whether there is a deal or not with the EU unless there is something very dramatic such as the UK choosing to hold a second referendum and choosing to stay back in et EU block.
Plans for ensuring enough supplies European “fulfilment centres”, or warehouses of Amazon should be initiated by UK sellers now, Amazon said.
Right now, Amazon can deliver products to anywhere in Europe that are stored in its UK warehouses.
Sellers need to “be prepared that any units in a UK fulfilment centre might not be fulfilled cross-border to EU customers”, Amazon has told the British firms selling on its platform in relation to being prepared for a no-deal Brexit.
Retailers should “consider sending inventory to an EU fulfilment centre by March 17”, Amazon said in an email to UK-based sellers sent earlier this month.
The e-retailer has also said in the e-mail that UK retailers should maintain “the standard recommended minimum of four weeks of inventory coverage at all times.”
According to analysts the Amazon e-commerce platform is used by tens of thousands of UK-based companies and very many among them are also equally keen to continue to use the platform to expand their market to Europe and the rest of the global market.
“We sell a lot of our products throughout Europe via Amazon and we’ve been making contingencies in recent months to ensure demand can be met, at least in the short term, in the event of a hard Brexit,” Joe W. Doherty who manages Marble Hill Natural Skincare, a company based in Derry, Northern Ireland told the BBC in an interview. Derry is a city that is set to be placed right in between the scheduled EU-UK border after Brexit is implemented.
While accepting the no deal advice from Amazon, they also are aware of the cost to their business.
“We have been loading our products into Amazon’s pan-European warehouse to help ensure supply is available for distribution to the European markets,” he said.
“Production has been increased and that is having an obvious effect on our business because the products are not being sold immediately. There is only so much contingency planning businesses can afford in the face of so many different outcomes,” he added.
According to a statement from Amazon to the British media, the no deal advice is aimed to make sure that plans for preparation for all scenarios, including the risk of border disruption, after Brexit, is undertaken by British sellers.
(Adapted from BBC.com)