Brexit confuses e-commerce retailers, and their customers

According to research conducted by consumer organisation Which? two in five UK consumers who ordered online after Brexit have experienced problems. A quarter of respondents reported delays. 10% of shoppers said they have had to pay extra handling or delivery fees.

The unexpected additional costs have resulted in confusion. Customers are unsure whether they will have to pay couriers additional fees, or even what these amounts they might be expected to pay.

Why Brexit adds to the cost of imports

Following Brexit, imports into the UK from Europe are now subject to VAT. In many cases, duties also apply. Not all online retailers have adjusted their pricing to reflect these additional costs.

In addition, courier companies are charging additional handling fees, owing to the additional bureaucracy now involved in clearing customs.

Clarity for your customers

Brexit uncertainty has caused headaches for exporters. The additional costs and complexity of UK-EU trade can lead to delays and increase costs.

The consumer survey reveals an additional dimension. Getting clarity on the precise costs involved are crucial from a marketing and sales perspective. Providing accurate pricing information and timelines is also important in terms of maintaining customer trust.

Facilitating returns

Modern e-commerce customers expect an efficient and simple returns process. However, returning goods to the EU from the UK effectively means exporting those items into Europe. 

In order to return unwanted or faulty items, customers now need to fill in a customs declaration.

According to the Which? survey, almost no consumers were fully apprised of the process. The report showed that “an overwhelming 87% of people who returned items to the EU after 1 January have experienced delays, unexpected paperwork or extra charges.”

Online retailers that wish to continue selling from an EU state to the UK (and from the UK to the EU) need a means to effectively communicate and facilitate the cross-border returns process.

Full clarity and support, for you and your customers

Brexit has created uncertainty for everyone from large-scale exporters and artisan online retailers that sell to an international market. re:TRADE, powered by VAT, is a complete supply  chain solution. We provide full clarity and support on everything from customs duties, import VAT and logistics. It’s an elegant, integrated solution that ensures your goods always get to your customers, as efficiently and affordably as possible.