Amazon’s new international shipping policy will hurt retailers


Amazon’s new international shipping policy will hurt retailers

Tony Preedy, commercial director, Fruugo

“Amazon’s new policy will without doubt be expensive for retailers, as they will have to fragment their bulk stock. Generally that will mean holding more stock in total, driving up working capital at a time where that is under great pressure. Many will see their non-UK Amazon sales drop as a result of this and conclude they cannot cope with the complexity.

“The last few months have shown what a crucial component cross-border eCommerce is in the COVID-era. Merchants up and down the country have had to re-think and adapt their business models to try and weather the significant decrease seen in brick and mortar sales.

“Many smaller businesses who do not have the capacity to manage international trading on their own, but recognise its potential, have sought out marketplaces to help them and benefited almost immediately. As we look ahead to the Brexit deadline, it is important for marketplaces to continue to do their utmost to support these retailers. They should not have to lose out on the revenue stream international sales can provide.

“Even if Brexit results in the UK being a ‘third country’ as far as the EU member countries are concerned, there are platforms available that can minimise the additional costs that will accrue for UK merchants. Fruugo already helps businesses trade seamlessly to non-EU markets such as Canada, Turkey and Australia, and stands ready to support merchants who will want to continue to trade with the EU.”

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