How Brexit Has Impacted E-commerce Logistics In Europe

The past few years have been a rollercoaster ride for e-commerce fulfillment businesses in Europe.?

Remember when we were all eagerly awaiting the outcome of the Brexit vote??

Well, the dust has settled a bit, and I wanted to share some of the real-world impacts I’ve seen on e-commerce logistics across Europe.

It's been all about adjustments, new regulations, and honestly, a whole lot of learning.

But hey, that's the beauty of this business, right? We’ve got to adapt and keep things moving for our amazing clients.

In this edition, we will explore the distinct ways Brexit has reshaped and challenged the landscape of e-commerce.?

But first let's understand what exactly Brexit is!

Read through!

What is Brexit?

Brexit, shorthand for "Britain's Exit" denotes the United Kingdom's departure from the European Union after a referendum on June 23, 2016.

This landmark decision reshaped the UK's relationship with the EU, triggering changes in trade agreements, regulations, and economic policies.

Officially initiated on January 31, 2020, with a transition period concluding on December 31, 2020, Brexit granted the UK autonomy to build its own trade pacts and regulatory frameworks independently from the EU.?

In simpler terms, Brexit was the UK's decision to leave the European Union (EU) in 2016.?

Think of the EU as a club of countries in Europe that work together on trade and other things. The UK decided it no longer wanted to be a member of that club.?

This has changed how goods move between the UK and EU countries, which is why we're seeing some of these challenges in the e-commerce world.

Impact of Brexit on E-commerce Logistics in Europe

The buyers across Europe used to be a breeze, but things have changed since Brexit. The once seamless flow of goods now faces new hurdles.?

1. Customs Declarations and Regulatory Compliance

Post-Brexit, things got a bit more complicated for businesses shipping goods back and forth.?

Now they need to fill out more customs forms and get a special ID number (EORI) to keep things moving.?

It's like needing extra paperwork and going through an extra security check whenever you send a package across the border.

Imagine you used to be able to easily send a box of biscuits to your friend in France.?

Now, after Brexit, it's like you need to fill out a detailed customs form listing every single biscuit, get a special ID (EORI) for your business, and wait in a longer line at the "post office" border.

?It adds a bit more hassle to what used to be a simple act of sending a treat to a friend.

Feeling the Brexit paperwork blues? Use EORI for the win!?

Get your clients signed up for this special ID – it's a lifesaver for faster customs clearance.?

Trust me, it saves a ton of time on those extra forms (every biscuit counts!).

2. VAT and Tariffs

Buying stuff online from Britain just got a bit more expensive. Since the UK left the European Union, things you order now might have extra fees added on.?

These fees are like sales tax (VAT) and import duties (tariffs).?

This means the price you see online might not be the final price you pay, which could make some things from the UK more expensive than before and might impact your shopping choices.

Heads up, VAT and tariffs can be a post-Brexit buzzkill for online shoppers.?

Here's a tip: Be upfront about these extra fees. Nobody likes surprise charges at checkout.?

Clear communication keeps your customers happy!

3. Extended Transit Times

Things are taking longer to get between the UK and Europe.?

This is because there are stricter checks at the border now, like extra security checks at the airport. On average, packages take nearly 30% longer to travel between these areas.

Imagine you ordered those fancy new headphones you've been wanting from a store in Germany. Because of the new rules after Brexit, it might take a bit longer for them to get to you.

It's like there are extra checks at the border, similar to extra security checks at the airport.?

This can slow things down.

Patience is a virtue, especially with post-Brexit shipping!?

MyTip: Set clear expectations with clients.?

Let your customers know about the extended delivery windows, like you would warn them about a longer security line at the airport.?

This keeps them informed and avoids any last-minute surprises!

4. Supply Chain Costs

After Brexit, moving goods between the UK and EU got pricier due to new taxes and fees. This can be like extra shipping costs for businesses.?

This has compelled businesses to adjust pricing strategies, passing on additional costs to consumers, thereby potentially reducing demand and profitability.

Here's a cost-saving tip:Explore cost-saving solutions!?

Negotiate with suppliers, optimize packaging, or consider alternative shipping routes.?

Every penny saved helps keep your prices competitive!

5. Operational Complexity

Since Britain left the EU, things got more complicated for businesses selling products there. Now they have to follow different rules in each EU country, which can be a hassle.?

This includes compliance with varying product standards and regulations across different EU member states.

This makes it harder for them to keep things running smoothly.?

Feeling overwhelmed by the new regulations across EU countries??

Team up!?

Partner with other businesses selling in the EU to share resources and knowledge. Together you can navigate the complexities and find efficient solutions.

What’s The Takeaway?

The impact of Brexit on the logistics market caused disruption to the supply chain, increased costs for logistics providers, and caused changes to trade and customs regulations.?

It has also caused an increase in the need for logistics technology, as well as delays and uncertainty for shipments crossing the UK border.

While the trade landscape post-Brexit remains dynamic, proactive adaptation strategies and robust compliance measures are crucial for e-commerce businesses to reduce risks and capitalize on emerging opportunities.?

At HeroFulfillment , we saw it as an opportunity to improve our services. We've invested in building expertise in the new regulations and customs procedures. This allows us to ensure your shipments get through smoothly, avoiding delays and unexpected costs.

If you need any guidance with the logistics/ fulfillment aspect of your business, feel free to message me on LinkedIn. I'll be happy to help!

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Do let me know in the comments what topics you would like me to talk about in my upcoming editions!