ECOMMERCE AFTER BREXIT

The Conservative majority and what it means for eCommerce businesses.

We have had three and a half years of indecision and now we have more certainty. Well, a little more at least. Here are a few points to consider prior to January 31st 2020 with an eye on what happens after that.

1. Changes to Logistics after Brexit

If you are using the main courier and postal services the best option is to check their communications either directly to you or online. This will affect based in the UK selling to Europe, or vice versa. despite some of the headlines, most are prepared for the extra potential administration. Europe and the UK need accessibility for the good of their economies so it will be political but hopefully, reason and less scaremongering should bring rapid transparency.

2. Sourcing from Europe after Brexit

Without clear guidance at this stage, again the onus is on keeping up to date with news about regulation changes as they get decided in January. Having good conversations with your suppliers will help communications that benefit both sides. No doubt each side will be hearing different news but the goal must be consensus. Many eCommerce sellers have been importing from outside the EU for some time so keep an eye on your affected suppliers being up to date. If you are buying components or products from UK companies it will be worth exploring if they will be affected in any way.

3. Reaching your customers

Having operated in eCommerce for nearly twenty years, one thing that is imperative is that they have access to you and your products. Making sure your team are aware of the potential increase in queries and it’s a good time to check your processes or backup solutions..

4. Impact on your costs

We have seen many companies fall foul of what can be confusing matrices of pricing from logistics companies. Fuel duty, customs and excise, taxes and tariffs just to name a few things to keep tabs on. FX rates have fluctuated dramatically although Sterling has remained outside of the Euro. Costs may swing either way as political uncertainty will continue to be reflected in rates.

5. Agility will be key

Whether you are small business who is stretched with current demands of running a business or a larger organisation transitioning to Direct To Consumer channels there will be opportunities. Being agile and informed enough to make changes as required will be essential. Although the vote is cast and the majority lead government have a defined path, we may still be in for some twists and turns as the dance to agree the future relationship continues.