How Brexit impacts e-commerce companies in Britain and the US

Following on from the EU Referendum and the UK’s collective decision to leave the European Union, many online businesses and marketplace sellers are now faced with a single, albeit monumental, question: What does this mean for my business as of March 2019?

Brexit creates distribution uncertainty

As part of the EU, Britain benefits from having almost no restriction on the shipment of goods and packages throughout Europe. The regulations governing cross-border trade into EU countries, which are currently covered by EU legislation such as the consumer rights directive and data protection directive, will concern most of the exporting and importing companies. After Brexit, even if a trade agreement has not been negotiated yet for UK with the EU, it is very probable that all UK packages will need to go through customs in the recipient country. This will require paperwork and incur additional expenses and potential shipping delays, which could impact shipping costs and duties.

Hard Brexit and US online retailers

Brexit may have a deep impact for US online retailers as well, using the UK as the bridge to the rest of Europe. Language and cultural similarities help significantly and it is perceived as easier. Although in time the UK leaving the EU may change this outlook and more US companies will bypass the UK and put stock directly into EU warehouses to benefit from a common EU market. This means that if a US sellers are selling in the UK, now they can easily list and sell in other European markets. It may be more efficient for US sellers to hold stock in other EU member country and forget about using fulfilment from the UK.

Where to put an inventory?

Considering the Brexit, many online retailers thinking about expansion into the EU prioritising Germany over France. But more abvious would be The Netherlands because of many tax related advantages but mainly the easy way of communicating and open mindedness of the Dutch makes the Netherlands the place to be if you want to sell your product in the EU.

E-fulfilment business solutions

MoreStorage offers the right solution for this problem. Due to our state of the art warehouse, WMS and our complete chain of fulfilment. We can take care of everything from import and export, customs and bonded warehousing to picking and packing and even support in building and maintaining your webshop. In the mainy years, we gained great experience locally and internationally. We know the market undoubtedly, perform e-commerce logistics daily as well as efficient consumer and business parcel and pallet return handling.