Is Your Ecommerce Store Prepared For Brexit?
As things stand those with Ecommerce centred businesses enjoy the benefits of being able to reach customers almost anywhere in the world, a reasonably low operation costs & an easy to manage business model.
What Brexit Means For Ecommerce.
With Brexit quickly approaching the British public are still in the dark on what to expect from the controversial withdrawal from the European Union. Until Brexit actually happens everything is pure speculation. However the potential effects it could have on Ecommerce should be concerning to all involved.
How Will Brexit Affect The Pound
The exchange rate for the pound took a big hit when the result of the Brexit referendum came out. The pound is preforming slightly better since then however, it has yet to completely recover since the vote and with the UK about to finally leave the European Union it is predicted that the Pound is in for a “Bumpy Ride.”
How Will Brexit Affect International Orders
The United Kingdom leaving the European Union could see a major disruption to Ecommerce orders coming in and going out of the UK. If the UK decide to have a hard border between them and the UK it would likely result in all orders being subject to strict custom checks and potentially more expensive international shipping fees. These changes could also put off potential customers who aren’t willing to deal with the hassle of more expensive shipping or longer delivery times.
How Will Brexit Affect Your Ecommerce Store
With the potential damage to the Pound that’s predicted to come following Brexit. Ecommerce stores who purchase their stock from outside of the UK could see an increase in cost for their stock or an increase in the cost of shipping which could result in raised prices in order to compensate. UK sellers could potentially see an increase in local customers who are looking to avoid paying high delivery fees.
Brexit could affect Ecommerce with:
- Potential drop in value for GBP
- Increased customs charge for international deliveries.
- Increased prices from international suppliers
- Customers from outside the UK going elsewhere
- UK based customers preferring to buy products from the UK
How To Prepare Your Ecommerce Store For Brexit
Online sellers getting ready for Brexit should plan ahead by taking steps such as scoping out potential new suppliers for any stock they import from the EU. Those who sell their products within the UK could however see an increase in sales as UK customers shop more local in order to avoid increased shipping fees.
With a lot still uncertain on how the UK market will be affected by Brexit the most sellers can do right now is ensure they have plenty of stock ready in preparation and to keep an eye on customs regulations.