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Amazon cancels the commission for Ukrainian entrepreneurs for a year

21 Sep, 2022
Amazon cancels the commission for Ukrainian entrepreneurs for a year

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Amazon UK and EU cancels the referral commission for Ukrainian sellers-exporters: from September 6, businesses that ship goods from Ukraine are exempt from paying interest on sales for a period of one year.

This is stated in the press release of Ukrposhta.

"A few months ago, the Ministry of Digital Transformation of Ukraine, Ukrposhta, the marketplace promotion agency Disqover Agency, and Startup Ukraine, with a joint initiative, turned to Amazon to ease the conditions for Ukrainian sellers. As a result, today we have great news: Amazon is canceling the referral commission for a whole year," the company said.

"In response to your request to support Ukrainian sellers on our marketplace, I am happy to confirm that we are now introducing special terms for businesses with a shipping address in Ukraine. From September 6, we are reducing the referral commission to 0% for a period of 12 months for all Ukrainian sellers on Amazon in Europe and Great Britain," said Vice President of EU Seller Services Xavier Flamand.

"Despite the war, Ukrainian business continues to work. At the same time, a significant number of companies are entering the international market. First, the demand for Ukrainian products is growing, and secondly, for many companies, this is an opportunity to expand and find new customers. The support of Ukraine and the world is extremely important for every business owner. That is why, together with our partners, we appeal to global companies to support Ukrainian small and medium-sized businesses. The new conditions for our entrepreneurs on Amazon are our joint victory on the economic front. Now Ukrainians will be able to promote their goods to the world market on more favorable terms," ​​said the head of the Ministry of Digital Trnsormation Mykhailo Fedorov.

Amazon typically charges a commission on each sale. Previously, the referral commission was from 7 to 17% of the price, depending on the category. In most cases, its size reached 15%, Ukrposhta explains.

"Ukrposhta, as the main logistics partner of Ukrainian exporters, has been actively lobbying for the interests of entrepreneurs since the beginning of the war and, together with the world's leading marketplaces, is looking for ways to support small businesses in Ukraine. This is how we have already managed to agree on special conditions for Ukrainian merchants on Wish, Joom and eBay.

And now, thanks to joint efforts with partners, Ukrainian entrepreneurs have received unprecedented working conditions on the European Amazon. The decision of the marketplace to cancel for one year the commission for sales in the countries of the European Union and Great Britain is an excellent addition to the EU policy in matters of supporting Ukrainian business.

Taking into account the fact that the European Union abolished customs duties on goods, including those sent in parcels from Ukraine from June 4, for a period of one year, such a decision by Amazon further improves the conditions for exporters. Thus, Ukrainian sellers will need to pay only the VAT of the destination country, and this process on Amazon is automated through the Import-one-stop-solution (IOSS) system," said Ukrposhta General Director Ihor Smilyanskyi.

Previously, Joom, Wish, Shopify, Etsy and eBay marketplaces canceled commissions for sellers from Ukraine at the request of Ukrposhta.

Also, Ukrposhta became the first post office to open an official store on Amazon.

The Odessa Journal

The Odessa Journal

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