{"id":2043,"date":"2020-10-23T07:41:34","date_gmt":"2020-10-23T07:41:34","guid":{"rendered":"https:\/\/www.chilliapple.co.uk\/blog\/?p=2043"},"modified":"2022-05-05T12:34:06","modified_gmt":"2022-05-05T11:34:06","slug":"is-your-e-commerce-business-ready-for-brexit","status":"publish","type":"post","link":"https:\/\/www.chilliapple.co.uk\/blog\/is-your-e-commerce-business-ready-for-brexit","title":{"rendered":"Is your e-commerce business ready for Brexit?"},"content":{"rendered":"

If you have an e-commerce business<\/a>, you may be especially affected by Brexit and the impact on cloud computing services such business continuity, cloud storage and data sovereignty is still uncertain.<\/p>\n

It is essential that e-commerce businesses connected to the UK market understand how Brexit is going to develop. \u00a0You should spend time with your web and app development agency<\/a> to make adjustments to your online shop to reflect the changes as a result of being out of the EU. \u00a0There are just a few months left to get your site in order. \u00a0From 1st<\/sup> January 2021, e-commerce businesses must be ready.<\/p>\n

Trade and Travel<\/strong><\/p>\n

Until 31st<\/sup> December 2020, cross-border trade between the UK and the EU will continue as normal. \u00a0After that date, it is hoped that the UK and the EU can come to a mutually beneficial trade agreement.<\/p>\n

Travel regulations will stay the same until the end of 2020 so people can travel between the UK and the EU without restriction of movement.\u00a0 It also means that until the end of the year e-commerce business owners can live either in the UK or the EU and may work and live where they want.<\/p>\n

However, as of the start of 2021, this will change. E-commerce owners will need to consider changing their residence to a place where they can legally work and registering their business in a place where it can be a legal entity.<\/p>\n

Impact on E-Commerce<\/strong><\/p>\n

A no deal Brexit will be detrimental to the e-commerce sector. \u00a0Many e-commerce businesses are small and medium-sized enterprises and operate efficiently because they don\u2019t have the cost of tariff barriers. A no deal Brexit could mean that trade tariffs are imposed.<\/p>\n

Large e-commerce stores will also be impacted. The extra cost of trade tariffs is likely to be covered by increasing the price paid by their customers. \u00a0Shipping delays between the EU and the UK should also be expected. \u00a0If there is no solid deal, there may not be the legal framework available for trade to happen or trade happens but with added complications that come with working within a tenuous legal framework.<\/p>\n

E-commerce stores<\/a> should also be mindful of the potential implications of their hosting packages. Hosting prices may change as a consequence of the UK no longer being a part of the trade agreement.\u00a0 There are many web hosting providers based in the EU and operating in the UK.\u00a0 Their hosting services could be subject to tariffs as a result of supplying the UK.<\/p>\n

All e-commerce stores will need to consider the importance of offering both sterling and euros before 2021 too. Clients may change their currency preferences when buying online should the value of the pound fluctuate as a result of Brexit.<\/p>\n

Get Prepared for Brexit<\/strong><\/p>\n

The better prepared you are now, the less likely your e-commerce business will be adversely affected when Brexit hits.\u00a0 Foreseeable bureaucratic challenges will be customs and sales tax. You can avoid these issues by setting up logistic centres in both the UK and the EU or by joining an existing fulfilment network.<\/p>\n

If you are a small or medium-sized organization, you may feel this is too expensive to do but bear in mind that several e-commerce businesses have already moved much of their business to Germany.<\/p>\n

It is important to consider both the supply and demand sides of your business before you decide whether investing in extra logistic centres is crucial to overcome the Brexit challenges.\u00a0 Review from where you will source your raw materials and how that impacts importing and exporting, shipping and delivery.\u00a0 Assess where the majority of your online orders come from and if an extra logistic centre will help.<\/p>\n

There are many challenges ahead for e-commerce businesses. chilliapple<\/a> can support you with any design or development requirements for your web or app to ensure your business does not suffer as a result of Brexit.\u00a0 The clock is ticking and we are ready to help.<\/p>\n","protected":false},"excerpt":{"rendered":"

If you have an e-commerce business, you may be especially affected by Brexit and the impact on cloud computing services such business continuity, cloud storage and data sovereignty is still uncertain. 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