Brexit has come and gone, but the consequences for UK ecommerce fulfilment are here to stay. Suddenly, shipping across borders feels like navigating a jungle—dense, unpredictable, and full of pitfalls.
The Brexit Effect on Ecommerce Fulfilment
Brexit has complicated things for businesses that ship products across UK borders.
Changes in tariffs, customs processes, and delivery times have made UK ecommerce fulfilment more challenging than before.
You might be thinking, “Great, just what I needed—more complexity.” We hear you. Let’s break down what this means for your business:
- Increased Costs: New tariffs and taxes can add up quickly.
- Extended Delivery Times: Customs clearance adds delays.
- Regulatory Compliance: More paperwork and regulations to comply with.
Understanding Customs Duties and VAT
One of the most significant changes post-Brexit is customs duties and VAT. These are the extra costs you now have to factor into your pricing strategy.
What are Customs Duties?
Customs duties are taxes imposed on imported goods. The amount depends on the type of product and its country of origin. It’s like a toll booth on the road to your customer’s doorstep.
Navigating VAT
Value-added tax (VAT) is another hurdle. Post-Brexit, UK businesses selling to the EU must register for VAT in each EU country they sell to. It’s like collecting stamps, but much less fun.
Strategies to Manage These Costs
- Include Duties in Your Pricing: Transparency builds trust with customers.
- Use a Customs Broker: Experts can help you avoid costly mistakes.
- Automate Tax Calculations: Tools like Avalara can save you time and headaches.
Adjusting Your Supply Chain
Brexit has disrupted supply chains, leading to delays and increased costs. If your supply chain was a well-oiled machine, Brexit threw a wrench into the works.
Diversify Your Suppliers
Relying on a single supplier is risky. Spread the risk by diversifying your supplier base.
Stock Up on Inventory
Consider increasing your inventory levels to cushion against potential delays. Think of it as a rainy-day fund, but with products.
Use Fulfilment Centers
Fulfilment centers can help manage stock across multiple regions, reducing shipping times and costs.
The Role of Technology in Post-Brexit Fulfilment
Technology is your friend in navigating the post-Brexit ecommerce landscape. It can automate many cumbersome processes, helping you stay compliant and efficient.
Inventory Management Systems
These systems can track stock levels across multiple locations, ensuring you never run out of popular items.
Shipping Software
Shipping software can automate label printing, customs forms, and tracking. It’s like having a personal assistant who never takes a day off.
Tax Automation Tools
Tools like Avalara or TaxJar can manage VAT and customs duties automatically, saving you from manual calculations.
Maintaining Customer Satisfaction
Amidst all these changes, keeping your customers happy is crucial. After all, they’re the reason you’re in business.
Clear Communication
Transparency is key. Keep customers informed about potential delays and extra costs. Honesty goes a long way in building trust.
Offer Multiple Shipping Options
Provide a range of shipping options to cater to different needs. Some customers prioritize speed, while others look for cost savings.
Easy Returns Process
A hassle-free returns process can turn a frustrated customer into a loyal one. Make it easy for them to return products, and they’ll thank you for it.
Adapting Your Marketing Strategy
Post-Brexit, your marketing strategy needs to adapt to the new landscape. Highlight how you’re handling these challenges to reassure your customers.
Highlight Local Fulfilment
If you have fulfilment centers within the EU, make it known. Customers will appreciate the reduced shipping times and costs.
Promote Transparency
Be upfront about any additional costs due to customs duties and VAT. Customers prefer honesty over unexpected surprises.
Leverage Social Proof
Share testimonials and reviews from happy customers to build trust and credibility. Social proof is a powerful tool in uncertain times.
Navigating the post-Brexit ecommerce landscape may feel like an uphill battle, but with the right strategies and tools, you can turn challenges into opportunities. Remember to stay flexible, keep your customers informed, and leverage technology to streamline your processes.