Brexit’s impact on its broader economy began almost immediately. How the British decision might affect eCommerce sales in the UK is not clear yet.
Views on Post-Brexit eCommerce in the UK
According to Scurri, a software company automating online fulfillment, the hit by Brexit could be enormous. Scurri believes the 10% of UK eCommerce sales coming from other countries’ consumers could be brought under question or even lost if these consumers will stop shopping on UK-based sites. The adverse is also possible.
Key Business Drivers and Opportunities in Cross-Border E-Commerce from Payvision and CardNotPresent.com has recently released a report. Based on the report, UK consumers will probably do their shopping at foreign Websites: 54% have already had at least one such experience.
Gijs op de Weegh, Payvision’s COO, thinks British consumers cannot afford buying as much with their money abroad since the British pound is losing its value to a great extent. This could also lead to consequences for the United States.
These days, it is critical for merchants to apply to a trustworthy payment processor like eMerchantBroker to get the best for their business. EMB is voted the top payment processing company in the US and has an A+ rating with the Better Business Bureau.
The US and the UK after Brexit
Op de Weegh believes the US and the UK are strong cross-border trade partners. About half of international US merchants are exported to the UK, and a third of UK consumers make purchases from US websites.
The UK might also leave the EEA (the European Economic Area), which allows for free movement of persons, services, goods, and capital among countries. If this happens, US-based exporting retailers could regard eCommerce between the 2 countries more expensive and complex.
On the other hand, the pound’s decline could make the British stop shopping abroad. This is according to Aite Group’s senior analyst Ron Van Wezel. He further notes that the UK has a trade deficit with the EU and a cross-border eCommerce surplus with EU member states.
So if the EU and the UK go on with a free trade scenario with no tariffs introduced, the eCommerce trade balance will depend on the value of the pound sterling against the euro. The devaluation of the pound could stimulate exports to the continent.