How Brexit has impacted e-commerce

E-commerce has massively evolved in the post-covid era. Consumers are moving away from the high-street, opting instead for the convenience of online shopping. As such, the market has responded in kind, with e-commerce growing exponentially worldwide, expecting to reach £8 Trillion in global sales by 2027.

With the ongoing growth of online business, and no current expectations for this to slow, it’s important to look at the current markets for the UK and see how this has been impacted by the political climate.

E-Commerce and Brexit

When the Brexit trade deal was finalised at the start of 2020, there was an immediate drop in cross-boarder trading, with companies in Europe nervous of the new fees and regulations that had come into action. In the aftermath of this deal, the UK’s imports from the EU dropped by 28.8%, which impacted the e-commerce market even through the pandemic, when sales were overall higher.

While the legislation had come into effect, it took time for the changes to be understood and operations built to work in the new regulations. Now, six years on from the passing of Brexit, trade has resumed fully, and there’s now opportunities for onboarding into the UK, presuming the companies can navigate the post-Brexit market. Learning how VAT, tariffs and import documents have changed is paramount to trading in the new landscape.

What the future looks like for E-Commerce

As mentioned earlier, there’s an expectation for the global rise in the E-Commerce market, predicting an increase of 8.6% growth in E-commerce sales in the next year alone. With these figures in mind, not only is digital shopping evidently here to stay, but it also a pertinent time to expand to fulfil the demand set. While we are unlikely to reach the levels seen during Covid isolation,

When looking to join on the UK E-commerce market, it’s important to have a strong understand of the new rules and regulations, or to work through with an agent who can ensure compliance at every step.

The Overall Look

When looking to join the UK market, Brexit has added new complications for EU businesses, but once you have learned how to navigate these challenges, there is amazing opportunities to be found.

If you are an EU business looking to onboard into the UK, contact us today at hello@pettiforgroup.com, where we can discuss your brand and it’s place in the UK market.