Recently Amazon attested that they are taking a business as usual approach to doing business in the wake of the UK referendum result to leave the EU. In a statement the company said: “The way we run our business and support our customers and sellers is unchanged.”
It’s good that Amazon made such a statement because it shows confidence and should hopefully encourage Amazon merchants to apply the same approach to business. As it stands, we have no idea what sort of BREXIT deal the government will agree and, in any case, it doesn’t seem that any changes will come into force any time soon. Nothing is certain, but we must be talking about at least 2 years. If it ever happens at all.
Last week, I had a conversation with an Amazon seller I know well and we discussed how the BREXIT decision was affecting his approach to doing business and, whilst not gloomy about the result in general, was concerned about the uncertainty that it engenders.
To compile his concerns in a little list:
– Is it worth investing and growing operations into the EU if there is a possibility that the free movement of people will be limited?
My view is yes, because we have no idea of the timeframes. And Amazon makes it very easy to expand and contract with very little risk. So I suggest ploughing on. What do you think?
– What about currency fluctuation?
The pound has fallen against the dollar and that’s potentially a good opportunity for selling to buyers over to the USA. But for this seller, who sources from China, Sterling’s weakness does make purchasing stock more expensive. What’s your experience there?
– Does BREXIT make it more worthwhile to invest in selling outside of the EU?
I’d say that expanding operations to take advantage of international opportunities is a good thing in general, and it all depends on what you’re selling. But certainly it’s worth considering all the overseas selling opportunities. Sterling’s weakness could have an upside.
– Recession in the UK is a big worry.
For me this is the crux of it and the Bank of England is already thinking down these lines. It’s a strange situation whereby the people of a country make a decision that is almost immediately detrimental to that nation’s economic welfare. But that does seem to have been a result of the BREXIT decision and this seller is worried, first and foremost, about domestic sales. With a recession seemingly on the way, shoppers will have less spending power and that can hardly be a good thing.
How is BREXIT influencing your business decisions?