The Brexit date is almost here, and no matter your opinion on the process, there is sure to be an impact on UK-based e-commerce. If you haven’t considered how this might influence you and your business, now might be a good time.
The exchange rate is something to a close watch on, particularly if you have a majority of customers from euro-based countries. If the British Pound rises against the Euro, it will become more expensive for EU shoppers to purchase your items so you may notice a slow down of trade. There may also be jitters in the market for any cross-border purchases as discussions around trade and goods continue. You may need to review your costs, or potentially your larger location strategy overall. Some traders have already made moves to relocate to remain in the EU so they can continue to enjoy the benefits of trading under those agreements.
Costs may increase as tariffs and charges are levied against UK trade into the Eurozone. EU standardised prices may make it more difficult to compete on price alone. In addition to extra costs, the UK will likely see a downturn in traders launching businesses as visa complications and restrictions come into effect. Recruiting international talent will become more difficult and outsourcing to EU countries may not bring the benefits it once did. This will only be a concern for you if you have a larger scale workplace or take on skilled labour from EU countries. If you do, you’ll need to plan to replace that labour with workers who have appropriate visas. There may be a long lead time to get visas arranged, particularly as the date of Brexit gets closer.
UK e-commerce currently enjoys the benefits construed by aligning with European Union online security endorsements such as the Ecommerce Europe Trustmark. As Brexit comes into effect these markers of reliability and trust will no longer be available to UK traders. Consumers will be wary of changes and will be looking for reassurances. Do what you can to promote your security processes and delivery network to your potential EU-based customers.
Brexit is likely going to create a relatively unstable trading environment for a while. Do what you can to prepare your business. You may be able to look into alternative methods or locations of production. Some companies are looking to pivot their markets into other regions, although this can present its own unique logistics issues. Some businesses may not survive the changes that are coming, but there are a lot of things you can do to make sure your business isn’t one of them.
