Almost 70% of UK sellers on Amazon Germany have now stopped selling. With Brexit, the pandemic and supply chain issues the number of UK sellers who have stopped selling on Amazon.DE is considerable.
Back in November 2019 over 9,500 sellers from the UK had made at least one sale on Amazon.de. Nearly 50% of these sellers had made over 500 sales. However, by May 2021, 6589 sellers had not made a sale in the previous 3 months. That’s nearly 70% of sellers that have stopped listing products and making sales on Amazon Germany.
From the active UK sellers on Amazon.de, between March & May 2021, 17% predominately sell in the Kitchen & Home category, 9% within Toys & another 9% of sellers within the Sports & Fitness category. 8% of active sellers are in the Pharmacy & Personal Care category, 8% in Clothing and 7% within the Beauty category.
Fulfilment By Amazon (FBA)
45% of UK sellers still listing products on Amazon.de are using fulfilment by Amazon (FBA) to fulfil orders. These UK businesses are using Amazon’s European fulfilment centres to store and ship their products.
Of these FBA sellers some 70% are using FBA only, while the rest are using FBA for some products and are fulfilling other products themselves directly to consumers (FBM).
Almost 50% of UK sellers have an average product price of less than €20. Sellers with an average price between €20-€50 represent 36%. Only 16% of active UK sellers on Amazon.de have an average product price of greater than €50.
Cross Border Ecommerce
With the Free Trade Agreement between the UK and European Union only agreed a week before the end of the transition period, perhaps its not surprising many UK businesses have currently stopped selling on Amazon Germany. With Northern Ireland following EU regulations, to avoid a physical border with the Republic of Ireland, some online retailers have also halted shipping to Northern Ireland. Those that have continue ecommerce selling within the EU have faced compliance complications, shipping delays and incurring extra costs.
UK Ecommerce Growth
With the pandemic forcing many retailers to temporarily close, consumers have shifted online. In 2019 ecommerce sales represented 22% of all retail sales. By the end of 2021 this will have increased to over 30% for the first time.
While the full implications of Brexit and ecommerce sales to the EU are still unknown, domestic growth in UK ecommerce sales have clearly helped many small to medium sized online sellers. Whether UK ecommerce sellers restart selling again on European marketplaces is yet to be seen.