Amazon releases new countermeasures! Will take effect at the end of the year

More than half of this year has passed unknowingly, and the UK finally got its wish to leave the EU at the beginning of the year. However, there is no conclusion to disputes such as trade treaties, tariffs and intellectual property rights, so the two sides agreed to a buffer period when they signed the agreement at the beginning of the year, that is, until the end of this year, all tariff treaties and trade processes will proceed as usual, and the latest bilateral policies will be implemented starting from January 1 next year.

Recently, Amazon released a "Brexit Impact Guide" for third-party sellers based on the updated policies of the EU and the UK to help sellers adapt to the policy impacts that have been reached between the EU and the UK.

Currently, the negotiations between the EU and the UK are still ongoing, and the specific tariff policy has not yet been determined. However, it is certain that after the transition period ends at the end of this year, the customs border between the UK and the EU will be re-established, which will have the following impacts on cross-border sellers.

●Amazon logistics sellers using the European Fulfillment Network (EFN) will not be able to deliver cross-border between the EU and the UK. This means that sellers with inventory located in the EU cannot sell products to the UK, and vice versa.

●Like the service above, sellers under the Pan-European program are unable to sell and deliver products between the UK and the EU normally, but the Pan-European program still operates normally in other countries within the EU.

●If you must ship goods between the UK and the EU, you may need to go through the customs clearance process, and the seller needs to prepare relevant information. And it is very likely that tariffs will be incurred. As for how much tax will be collected, this issue is currently being negotiated between the EU and the UK. Anyway, it will definitely be collected, but there should still be certain tax rate concessions.

During the buffer period, Pan-European and EFN will continue to operate as usual. Officials recommend that everyone make plans in advance. If you want to continue selling in both the UK and EU markets after the buffer period, you will need to store your shipments in FBA warehouses in both the UK and EU. Pan-European could originally sell to the entire EU with one FBA inventory, but now the inventory pressure has doubled and the advantage is much smaller.

In addition to the problems caused by the establishment of customs between the EU and the UK, another more serious problem is that the patents of the UK and the EU are no longer interoperable. After the transition period, EU trademarks/patents registered by UK institutions will automatically be converted into UK trademarks/patents and will not be protected within the EU.

If the patent is still pending when the transition period ends on January 1, you may need to resubmit the application and pay the conversion fee. This will depend on the negotiation between the EU and the UK.

After the UK site became independent, the attractiveness of the European site was definitely affected. Although the US site is still experiencing crazy warehouse overflows and delays recently, Amazon is still working to strengthen the delivery capabilities of its warehouses.

I have analyzed before that the epidemic is basically impossible to control in the United States. Before the vaccine comes out, Amazon has to abide by the "social distance" rules and maintain epidemic prevention work in the warehouse. These will seriously affect the delivery capacity of the warehouse, so if Amazon wants to increase its warehouse capacity, it can only take a simple and crude method, hiring more people and renting more warehouses.

In the past week, Amazon has added more than three large delivery centers in Florida, Michigan and other places.

The smallest of these warehouses is more than 50,000 square meters and is expected to be put into use around September at the latest. At the same time, Amazon has already started recruiting workers, releasing more than 8,000 positions. The purpose is to relieve Amazon's warehouse pressure before Prime Day comes (it seems that Prime Day will really have to wait until October)

The new warehouse and new personnel can effectively alleviate Amazon’s current problems of warehouse overflow and insufficient transportation capacity caused by the epidemic. Amazon will certainly gradually open up replenishment and IPI storage restrictions based on the actual situation of the warehouse . Now all we have to do is maintain the products and wait for Amazon’s policies to open up.