LIFE AFTER BR EXIT
As Mike is a major importer of parts from Europe, it’s fair to ask him how Brexit has affected business. So far, it’s been a mixed experience but on one point he’s certain. “Since the changes, the only way anyone can offer quick delivery is to have items in stock.” When I looked puzzled, he gave me a crash course in retail supply.
“Before Brexit it was possible to trade with no stock,” he explained. “As long as the seller had a trade account and offered a seven-day turnaround, they could advertise an item, take the customer’s payment, order the item from Europe, receive it in a couple of days and post it out in time to meet the promised delivery date. Profits were small but as no money was tied up in stock or storage space the seller could still undercut full retail price. A lot of eBay sellers worked this way and that was fine until something went wrong. Invariably the customer would then find that any after-sales service was shocking. Because of the time it’s now taking to clear customs I don’t see how it’s possible to operate that way. I’ll let you decide whether that’s a good thing or not.”
When asked about his experience of customs clearance, once again Mike was clear on his answer. “It was difficult at first,” he admitted, “but we’ve always had good relationships with our couriers, and we’ve worked hard to understand how they operate. I think most people have grasped British customs allowances, but couriers also have their own ‘internal’ thresholds. It’s these that determine how they treat consignments.” He pauses, laughs and adds: “No, I’m not going to say what they are, that’s taken a lot of effort! We’re constantly receiving packages from across Europe and it’s very rare that we now get our fingers burnt.”
He also went on to explain that Brexit hadn’t been the only cloud on his horizon this past year. “Covid has had a big impact on suppliers,” he added. “Some components, particularly electronics, are in short supply but demand remains unchanged. Maintaining stock levels is difficult but not impossible. A few weeks ago I saw 50 BGM stators for sale and bought the lot. Of course, someone can import from Europe and if they keep below the personal limit of £135 the process is relatively straightforward. However, postage charges don’t always make that economical. I can have a part delivered to the customer’s door in 24-48 hours at a competitive price and with no hidden costs.”