Amazon Surprises Swiss Retailers with Information on Exporting through Their Platform

On May 3, 2023, the US giant Amazon invited Swiss retailers to an event in Zurich to talk about “strategic initiatives”. But instead of the initiative for market entry in Switzerland that was rumored beforehand, the online giant provided Swiss retailers with information on how to use the platform successfully to export can go.

That was a big surprise, because before the event, the managing director of the Swiss trade association, Bernhard Egger, told the “20 Minuten” platform that Amazon by “strategic initiatives” probably means that Amazon wants to import many more products into Switzerland. A major reason for this is the elimination of customs duties / customs duties on industrial products (“industrial tariffs”) as of January 1, 2024. This abolition was controversial until recently, as we reported in this article: Federal Council decision: Industrial tariffs will definitely be abolished as of January 1st, 2024. Dealers in the EU who want to sell in Switzerland must declare their goods imported from third countries in our country until then. These taxes will soon be abolished, which makes it worthwhile for Amazon to sell more goods in Switzerland and thus officially announce its entry into the market.

Egger said to 20 minutes that Amazon could set up a warehouse in Switzerland and take over the customs clearance process for third-party providers and sales partners on its platform. Because the obligation to declare imports and the declaration of customs tariff numbers will remain in place even after customs duties have been abolished. That would lower costs and make it attractive for third parties to offer their goods in Switzerland. The Swiss Post has already been mentioned as a possible partner for an “Amazon warehouse” in Switzerland. The Post could take over the “fulfillment” for Amazon, i.e. the compilation of the goods for dispatch, quality control, packaging and labeling as well as the operation of the warehouse.

Nothing will come of it, at least in 2023. How successful Amazon was in attracting companies that want to export their products via Amazon is not known. Because the FBA service (Fulfillment by Amazon) is not quite as easy for Swiss exporters as it is for traders from other countries due to the VAT problem.