Full steam ahead for British firms
THE further delays to Theresa May’s Brexit proposal this week were unsurprising, but the knock-on uncertainty on tariffs remains a huge barrier for uK exporters, and a lot of retailers are unsure what effect it will have on their businesses. They know they will have to navigate new duties and taxes, but haven’t worked out how to relay that to their customers. The bottom line is that consumers don’t like unexpected costs when buying online, and retailers need to figure out a way to break down the barrier that the Brexit uncertainty brings, particularly as duties and taxes vary in different countries. Historically, Britain is one of the biggest importers of e-commerce goods, but from an exporting perspective, we’re only the third largest. Pair that with the removal of the Irish backstop and we’re stuck in World Trade organisation trade tariff land with variable duties and taxes. The last thing a customer wants is to buy an item from another European country and get stung paying extra tax to receive the parcel. Preparing as though we’re entering a hard Brexit is the only solution. one in two consumers abandons an online purchase because of delivery-related reasons, so the checkout is something retailers need to get right, regardless of the outcome of trade negotiations. That means fully transparent pricing at the point of purchase with the option to pay immediately, or delay payment until the parcel arrives at their door. The example of just one company shows the challenges and what can be achieved. Hattons Model railways invested heavily in its approach to international growth as a result of the Brexit madness. This has helped it expand into international markets and penetrate the Eu. As a result, it’s able to offer consumers more delivery options and tailored information about taxes and duties. This approach not only gives choice to consumers, but shows there is an opportunity to reach new marketplaces with uK exports.
DANENNOR, GlobalFreightSolutions, Sussex.