Ukrainian entrepreneurs can sell on Amazon for a year without rate

Amazon UK and EU cancel the referral rates for Ukrainian export sellers! From September 6, a business with the Ukrainian shipping address is exempted for a year from paying a percentage of sales.

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

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

“Since the beginning of a full-scale war, we at Disqover Agency have seen the actual situation among Ukrainian manufacturers. Many entrepreneurs have lost their sales market, or it has significantly decreased. For many, scaling up to foreign markets has become a way out.

We understood that at present many giants are helping Ukraine, that the demand for Ukrainian is growing and will continue to grow. Amazon’s individual barriers to entry, including high site fees, are significant for many sellers. We have been observing this trend for more than 4 years, cooperating with hundreds of clients from Ukraine.

Due to the abolition of the referral commission, the investment burden on the entrepreneur is significantly reduced, which allows you to continue working in Ukraine and fight on the economic front of the state. We are grateful that the largest marketplace in Europe and the UK allows Ukrainian businesses to scale up and find new customers. I am glad that we managed to achieve such a result through joint efforts with partners.” – comments Alina Smolenskaya, CPO at Disqover Agency.

“Despite the war, Ukrainian business continues to operate. At the same time, a significant part of the companies enter the international market. Firstly, the demand for Ukrainian is growing, and secondly, for many companies this is an opportunity to scale up and find new customers. For every business owner, the support of Ukraine and the world is very important. That is why, together with partners, we appeal to global companies to support Ukrainian small and medium-sized businesses. The new conditions for our Amazon entrepreneurs are our common victory on the economic front. Now Ukrainians will be able to promote their goods to the world market on more favorable terms,” commented Mykhailo Fedorov, Minister of the Ministry of Digital Transformation of Ukraine.

Usually, Amazon charges a commission on every sale. Previously, the referral commission ranged from 7 to 17% of the price, depending on the category. In most cases, its size reached 15%.

“Ukrposhta, as the main logistics partner of Ukrainian exporters, has been actively lobbying 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. So 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 Amazon. The decision of the marketplace to cancel the commission on sales in the EU and the UK for a year is an excellent addition to the EU policy in support of Ukrainian business. Given that the European Union has abolished duties on goods, including those sent in parcels from Ukraine, from June 4 for a period of a year, this decision by Amazon further improves the conditions for exporters. Thus, Ukrainian sellers will only have to pay the VAT of the country of destination, and this process is automated on Amazon through the Import-one-stop-solution (IOSS) system,” commented Igor Smelyansky, CEO of Ukrposhta.

“The abolition of the Amazon referral commission for Ukrainian sellers will not only allow us to keep the economic front, it is extremely important in general for the promotion of the Made in Ukraine brand. In the past, small entrepreneurs have faced many barriers when setting up their Amazon store. Now it will be much easier to do this, respectively, it will facilitate entering new markets and promoting made in Ukraine products in the world,” says Anna Petrova, founder of Startup Ukraine.

Xavier Flamand also noted that Amazon Web Services was honored to receive the Ukraine Peace Prize from the Ukrainian government and continues to help Ukrainians through many initiatives to support our country.

.