Over half of retailers in the United Kingdom think cross-border trading will become more complex when the country leaves the European Union. However, 44 percent of retailers who sell abroad will continue with their existing cross-border ecommerce operations, while 23 percent plans to invest more in growing their business outside the UK.
These are some of the results of a survey conducted by Global-E. It asked 250 British retail decision-makers about the impact of Brexit on their business. One in three cross-border retailers said theyâ€™ve seen an increase in overseas sales, while one in five saw sales in the United Kingdom rise. Also, 30 percent have seen a fall and 47 percent say theyâ€™ve seen no impact at all.
Over half of the retailers think Brexit will make cross-border selling more complex. Nir Debbi, co-founder of Global-E, shares this thought. It will likely change the VAT compliance of UK retailers selling to EU and the distance-selling regulations related to duties and taxes, said Nir Debbi, co-founder of Global-E. .In order to avoid any negative impact on their cross-border sales and the customer experience offered to international clients, UK retailers selling internationally should be ready to react to this as legislation is agreed and be wary of the impact it could have on their EU customers.
The study also shows that over two-thirds of British retailers still have no plans for Brexit. But almost half of retailers expect the economy to weaken after the country triggers Article 50, making Brexit reality. â€œAlthough some retailers did revise their plans, our research suggests that most are taking a wait-and-see approach, before considering whether to change courseâ€, Debbi explains. In the months since the EU referendum took place, most retailers have already felt some impact, with many of those that operate internationally seeing an increase in sales from online shoppers worldwide due to the weakened pound and growing trend for cross-border ecommerce.