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In today’s global marketplace, the political choices made in other countries can have far reaching effects on local sellers.
Prior to the BREXIT vote, the UK was part of the EU Amazon Marketplace. This meant that, if you were selling products on Amazon, you were able to sell freely in the European Union from country to country. However, with BREXIT and United Kingdom voting to leave the EU, you will no longer have that freedom or flexibility. Instead, you’ll be forced to market your products through UK Amazon, separate from the EU.
While this change will not happen instantly, eventually BREXIT will impact shipping costs, customs regulations, exchange rates for currency in your new market, and much more if you ship your Amazon product outside of the UK and into the EU.
Immediate Impact of BREXIT
While Great Britain remains a part of the EU, and will for the next two years, the immediate impact of the BREXIT vote was a drop in the value of the British pound. Within hours of the vote, the pound began to lose value, making the exchange rate far less attractive to international sellers than it was even days before. As we learn more about the transition, currency fluctuations could have a huge impact on the viability of selling to the UK market.
According to an article at BobsledMarekting.com, there are other key points to consider:
- The laws will not change for at least two years. It is as easy today to import and export from the U.K. as it was before the vote. Changes to duties, taxation and tariffs will only be known as BREXIT plays out
- The immediate impact for Amazon sellers is currency fluctuation. The depreciation of the British pound against other major currencies will have an impact both on UK-based Sellers and those who sell to customers in the UK
- Consider suppliers: will your position be helped or hindered by currency fluctuations?
- There are lessons to learn from Brexit for all sellers, particularly from what big brands do to avoid fallout from such geopolitical events.
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While it’s impossible to say at this point whether the British voters’ decision to leave the EU will be good or bad for US-based Amazon sellers, it must be said that patience will be a virtue. Yes, changes are coming but, as of today, it may be true that the current uncertainty could be a huge plus for anyone with a stable, recognizable brand in the UK.
One thing you should seriously consider is this: You can no longer afford to restrict yourself to familiar markets. Marketplace diversification will become ever more valuable, if and when other countries decide to change their political affiliations.
Do you have more questions about international marketing, and the consequences of geopolitical changes to your amazon business? The Training Programs offered at Private Label University are exactly what you’ve been looking for!
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