Undoubtedly, Britain’s Brexit vote to leave the EU will have its impact on eCommerce. A logistics technology provider MetaPack based in London reports some views on the steps UK and EU leaders will take in this regard.
The Future of Post-Brexit eCommerce
According to MetaPack, there will be more place for growth. UK and EU leaders will begin negotiating new trade agreements. The UK is a highly important trading partner for countries within the EU, so these agreements are expected to promote cross-border eCommerce between the UK and other EU countries.
The UK is currently considered the most mature eCommerce market within Europe and a leader in the digital economy. MetaPack CEO Patrick Wall thinks it is important to work together collectively so to provide protection for consumers’ access to an open European eCommerce market.
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The Future of the eCommerce Market in the UK
Based on a 2016 B2C eCommerce report released by Ecommerce Europe and the Ecommerce Foundation, the UK is the top country given the market size (€157.1 billion). The average spending per e-shopper is €3,625.
Nearly 20% of UK online merchants are selling cross-border to the EU, and 6.12% of UK GDP is being generated from online sales. So Brexit could bring rather negative implications to both the British and the European eCommerce sectors.
The level of impact caused by Brexit will depend on the outcome brought by Brexit. If Britain is no longer a member of the single market, the consequences will be rather dramatic. The most negative outcomes to expect are mentioned below:
- Alterations to UK companies’ expansion plans
- Cross-border sales difficulties
- Decreased sales
- Import-related customs duties and VAT
- Personal data protection threats
- Talent outflow from the UK
- The Netherlands will get the biggest benefits out of Brexit
- The pound has dropped to its lowest levels since 1985
- The UK will get opportunities to create a powerful eCommerce platform
- Uncertain times will be beneficial for companies