any may find it surprising to find out that over 50 percent of Amazon’s sales come from third-party sellers who use Amazon’s marketplaces to list and sell their products. Changes coming to Amazon’s European fulfilment services when the Brexit transition period ends on 31 December will have a significant impact on many UK and EU sellers. Effectively, this will reduce a UK seller’s possible customer base from 510 million consumers to just 66 million.

There are two ways of selling goods via Amazon. With the first, you list your products on Amazon and when a customer orders that item, the seller dispatches it directly from their premises. This is known as ‘fulfilled by merchant’. The other way is known as ‘fulfilment by Amazon’ (FBA). The fee structure is higher, but via this method, a seller ships their inventory directly into Amazon fulfilment centres. When a customer orders that item, Amazon ships it straight to the buyer while Amazon customer services take care of all queries, returns, refunds and issues on behalf of the seller.

Currently, there are over 100,000 active registered Amazon sellers in the UK. Although it is difficult to find exactly how many of them presently use FBA services, 66 percent of Amazon’s top 10,000 sellers do. For those who use this FBA service, there are currently two options for listing and selling across all Amazon’s European marketplaces: via the European fulfilment network and via Amazon’s pan-European service. Neither of these options will be available to UK sellers when the Brexit transition period ends in just four months’ time.

Using Amazon’s European fulfilment network is a straightforward service for FBA sellers that enables them to try to crack the European market without the requirement of complex, multi-regional tax systems and accounting. Amazon will list a seller’s items across all European marketplaces, providing exposure to over 400 million customers. All the seller has to do is to ship their inventory to a UK fulfilment centre and pay Amazon the relevant fulfilment fees when a European customer orders that item. In this case, there is no requirement for the seller to be tax registered and pay sales tax (VAT) in the other EU marketplaces, unless their sales exceed the distance selling threshold, which varies from €35,000 and €100,000 per annum, dependent on the country. The loss of this simple service will be a devastating blow to tens of thousands of small businesses and start-ups. It will drastically diminish customer reach and could have a significant effect on sales.

Amazon’s Pan-European service, which will also cease to exist, requires a seller to be tax registered in the other European marketplaces to participate. Vitally, it allows a seller’s goods to be stored and sold directly out of EU countries’ distributions centres. By opting for this service, a seller allows Amazon algorithms to look at the seller’s inventory and, at their discretion, remove stock from a UK warehouse and place it in another distribution hub in Europe. These complex algorithms tell Amazon that, for example, six items may be needed in Germany, five in France or three in Spain. The items are eligible for the ‘Prime’ service to EU customers, while the seller only pays UK fulfilment fees making it a very cost-effective option.

Although sellers will still have the option to ship stock directly into fulfilment centres in the EU, they will have to decide on what items to send, the quantity, to which destination, complete customs paperwork, and, possibly, pay tariffs. While larger businesses may choose to invest in IT solutions or staff to make these decisions, many smaller sellers will not have the resources, the know-how or the experience to do so. Stock in Amazon’s fulfilment centres carries a monthly storage fee and if it does not sell in 12 months, the seller will incur long-term storage fees, or have to pay for the return of their stock. Fundamentally, the process becomes far more expensive, complicated and convoluted.

The double whammy facing sellers this year is that Amazon will almost certainly stop locating stock throughout Europe well before the end of the transition period. Also likely is the repatriation of the seller’s products back to the country of origin before the end of December. So not only will UK sellers be losing these simple, convenient and cost-effective services in January, but they are also likely to lose out on the increased seasonal sales they would traditionally expect around Black Friday, Christmas and New Year.

They didn’t mention that on the side of a bus.

Lisa Burton, Council Member Bremain in Spain

“Many of you have built your homes here and we want you to stay . . . You are part of the Spanish family. You are part of us. The Spanish Government is here to support you in this new phase and we want to send you a very clear message: this is, and will always be, your home.”

Hana Jalloul, Spanish secretary of state for migration (Ministry of Inclusion, Social Security and Migration)

It had always been my dream to retire to Spain, having first fallen in love with the place at the age of 18. Thirteen years ago, my husband and I asked ourselves why we were waiting for retirement before taking the plunge. We couldn’t think of a single, good reason to delay, so we packed up and left the UK behind.

Freedom of movement made the process easy – we bought a house, worked on our language skills, became legal residents and found work. From the very beginning, we were made to feel welcome by the local authorities and the Spanish people. We have always been grateful of that welcome, but never more so than now.

Unlike France, where British citizens are having to apply to retain their legal residency – at the risk of rejection – Spain’s approach has been straightforward and reassuring. The Spanish declaratory system means the status of existing legal residents does not change, and the application process for non-legal residents is simple. As long as new applicants meet the EU residency requirements and start the application process before the end of the transition period, their rights are protected, including those covered by the Withdrawal Agreement (WA). Although I mourn the loss of any EU citizenship rights – especially freedom of movement – I am mindful that thanks to the WA, we will have more rights than Brits in the UK, come 2021.

As a pensioner, I have my healthcare and pension protected for the rest of my life, but pensioners only make up 25 per cent of the Brits in Spain. Younger migrants – with jobs, mortgages and families to consider – are fearful for their job security as the employment of British citizens becomes more complex and less desirable than the employment of other EU nationals.

The message put out recently by Secretary of State Hana Jalloul, in a video with British Ambassador, Hugh Elliot, brought a lump to the throat of many a British migrant. The Spanish government, even through the coronavirus crisis, have kept us informed and reassured. Their approach has been in sharp contrast to the hostile treatment of EU citizens by the home secretary, and what I like to refer to as the ‘Go Home Office’. The attitude of the British government towards EU citizens, including via the settled status process, is in direct contrast to the warmth and compassion shown by the Spanish government towards the British migrant community.

Even in Spain, some voters during the referendum were convinced that Brexit was the right choice and that nothing would change. Many thought Brexit would be the beginning of the end of the European Union, and that most Brits would be heading “back home” to Little England. Yet, EU members have found increasing strength in their bonds, and though Brits are migrating in increasing numbers, it is mostly in the opposite direction – just ask any Spanish estate agent. Spain is welcoming new British migrants with open arms and with open hearts.

The realisation that much is going to change for British residents in Spain – not least the ability for us and our pets to travel in and out of the EU – will be a rude awakening for many. Of course, not all Brits currently living under the radar in Spain will choose to become legal residents. Whilst there are many reasons that Brits have previously elected not to become legal residents, any that did so for tax purposes are either going to have to return to the UK now, or start paying their dues as legal tax residents.

Then there are the ‘swallows’ – those that fly south for the winter months – who will need to restrict the length of their visits once the transition period ends. Instead of spending most of the winter in their second homes, they’ll be limited to staying for a maximum of 90 days in any 180-day period, not just in Spain, but anywhere in Europe.

It’s worth also remembering that non-EU citizens wishing to move from one European country to another, will have to start from scratch. No matter how many years a Brit has been legally resident in France, for example, a move to Spain will mean starting the whole residency process all over again. After 31 December our rights will be restricted to just one European country, instead of all 27 EU member states.

When I moved to Spain in 2007, I expected all the rights and freedoms I enjoyed then to be mine for life. Even now that’s no longer true, I can never imagine living anywhere else. The weather, the culture, the people, the food, the entire way of life, is everything I could have dreamed of for my retirement.

I don’t recognise the country of my birth anymore. I didn’t believe I could feel more ashamed of the country I grew up in, but Boris Johnson and the UK government prove me wrong at every turn. I hope one day in the future the UK will match Spain with a compassionate, outward-looking and progressive government. Though even if that happens, I won’t be packing my bags.

There’s a reason Spain is the most popular destination for migrating Brits, and the attitude of our hosts is a big part of that. Moving here was the best decision I ever made and I’m thankful for it every day. Hana Jalloul was absolutely right about that – this is, and always will be, my home.

Sue Wilson, Chair Bremain in Spain