New policy! Amazon Singapore products can be sold to Malaysia for free

On August 28, Amazon announced that its Singapore site officially launched the "Export to Malaysia" program. This program does not require merchants to pay additional fees or set up additional settings. Sellers on the Singapore site can sell qualified products directly to Malaysia, which is definitely good news for sellers because it means that sellers can reach more Southeast Asian consumers.

Among them, FBA (Amazon Logistics) sellers will automatically join the program. Malaysian consumers can directly purchase goods that meet the export conditions on the Singapore site on Amazon.sg. FBA will be responsible for delivering the seller's orders to Malaysia. FBA sellers do not need to take any action, just like selling products to Singapore consumers.

Relatively speaking, it is more complicated for MFN (self-delivery) sellers to join the program. MFN sellers need to join manually. First, open the international delivery template in the seller backend. If you do not use the default template, the seller can set the delivery time, delivery fee, etc. After saving and confirming, all ASINs that meet the export conditions to Malaysia can participate in international delivery.

Goods participating in the program must meet export requirements and comply with all applicable laws, including trade control laws in Malaysia or other jurisdictions, Amazon policies, etc. In addition, FBA sellers need to note that Amazon Logistics banned goods are not eligible to participate in the program.

It is worth mentioning that sellers do not need to pay import taxes and tariffs for goods exported to Malaysia. Malaysian consumers, as the registered importers of the goods, will be responsible for paying the applicable import taxes and tariffs. Amazon Singapore will calculate the estimated amount when buyers check out and collect a deposit for import fees, which will then be transferred to the local customs broker for customs clearance.

This is not the first time that Amazon has used this business model. According to Amazon, in July last year, Amazon's Australia and New Zealand export plan was launched. In early August this year, Amazon also planned to start exporting from the Middle East station to multiple countries in the Middle East. Now this plan is being implemented in Singapore and Malaysia, and is very popular among sellers. Some sellers have called it "a very good measure that is much faster" and "this is very convenient and powerful."

According to data from the Malaysian Statistics Department, Malaysia's e-commerce revenue exceeded RM1 trillion (equivalent to approximately RMB 1.5 trillion) for the first time in 2021, an increase of nearly 22% year-on-year. Driven by the epidemic and the gradual popularization of smartphones, the number of e-commerce users and online spending in Malaysia continue to increase.

The local Digital Economy Development Authority said that Malaysia's e-commerce revenue is expected to reach 1.65 trillion ringgit, or about 2.54 trillion yuan, in 2025, an increase of about 1 trillion yuan from 2021.

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