Uk’s Ecommerce May Suffer If Brexit Curtains Fall Without A Deal
Online retail, also known as ecommerce, is an uncelebrated industry in the UK despite being one of the economy drivers in the nation. The sector has been flourishing and impacting the lives of Britons but critics fear Brexit will have adverse effects on this thriving market.
Brexit is UK’s plan to quit being part of the European Union. Britain became part of the EU in back in ’73 when it was known as the European Economic Community, and has since negotiated and created useful supply chains with other member countries.
Ecommerce is a general term for all sorts of businesses that occur over the internet. Other commercial activities like m-banking (or mobile banking), auction, B2B dealings and many more are other ways UK citizens benefit from e-commerce every day. Ecommerce is made possible by payment providers like payzone merchant services.
But analysts say Brexit could harm the growth of this thriving industry. In fact, a recent study by JP Morgan found that about ten EU nations, including Spain, Italy and Czech Republic are threatening to take over the United Kingdom’s e-commerce supremacy. These new promising countries are being driven by backup from their respective governments and their own investments. Nevertheless, that is not the only risk Britain’s online commerce sectors is facing.
With the UK set to leave by the Oct 31, we sought to analyze how Brexit will affect the commerce in the nation, more if it exits without an agreement.
As part of the membership, the United Kingdom enjoyed zero tariffs, cheap cross-border shipment of items and reduced delays at customs. All these won’t be possible after Britain cuts ties with the EU.
Amazon has already warned its UK retailers to get ready for a no-deal exit in an effort to ensure they maintain ties with their European-Union customer-base. As we speak, Amazon stocks products in its Britain warehouses and uses retailers to deliver these all over Europe. The world-known retailer recently gave its UK-based retailers new guidelines to ensure they operate within the EU rules in terms of inventory and other standards.
Big box stores have also addressed a letter to the UK government cautioning that a no-deal Brexit could lead to major unplanned for interferences.
Asda, Sainsbury’s, the Co-op and Waitrose and Marks & Spencer wrote to express concerns after a notice from the French administration that it will enforce customs checks on all EU exports which may cause prolong interruptions.
Final Words
Curtains fall on Oct 31, but the status quo still shows the possibility of a no-deal Brexit. If this is will be the case, UK business may suffer as retailers from the nation will no longer be entitled to the privileges they enjoyed as EU members.
Author Bio: Payment industry guru Taylor Cole is a passionate payments expert who understands the complex world of merchant accounts. He also writes non-fiction, on subjects ranging from personal finance to stocks to cryptopay. He enjoys eating pie in his backyard porch, as should all right thinking people.