Brexit Vs. eCommerce – An Optimistic View

Jul 22, 2016

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

 

 

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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