With TEMU and SHEIN fully exploiting the lax UK duty and VAT regime on mail order consignments shipped directly into the UK from China it is hardly surprising that Amazon is intending to launch a direct Chinese shipping service (according to reports apparently leaked from an Amazon Private Seller event in China).
When the Channel Islands were abusing a VAT exemption back in 2005 Amazon was similarly forced to compete. I know from speaking to them at the time that they were never keen on the arrangement, mainly because it was logistically inconvenient. Whether shipping direct from China to UK customers is logistically advantageous or not is unclear but in 2005 Amazon selling goods with no VAT into the UK had a major impact on UK retail. You can't blame Amazon for doing this and you can' really blame TEMU and SHEIN because they are being allowed to do it by the UK.
eBay already has already in place a service that allows Chinese sellers to sell and ship directly into the UK. Orange Connex is a joint venture between CITICPE, a leader in Chinese private equity investment, and eBay.
Amazon SHEIN, eBay and TEMU selling goods directly into the UK with pricing advantages unobtainable by UK retailers will have nothing but a negative impact on the UK economy. There is no benefit for the UK.
Hopefully the new Government will look at this issue sooner rather than later and re-establish not only a situation where UK retailers can sell goods without having to face unfair competition from imports but one where all goods entering the UK are properly taxed for the benefit of the exchequer and the domestic marketplace.
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