The EU referendum: in, or out?

LinkedIn Twitter Facebook

 

Author: Paul Galpin, Managing Director, P2P Mailing

 

The key delivery considerations for retailers

Would the UK be better off leaving the EU, or remaining part of it? This is the key conundrum facing voters on 23 June. The EU referendum is a hot topic in the media as debate intensifies between the two campaign groups. However, with less than six weeks to go, what delivery questions are at the forefront of retailer’s minds in the countdown to this landmark event?

 

Border controls

 

At present, EU membership allows for the free movement of goods so most shipments can be dispatched to other member states of the EU without special customs documentation. However, if the UK were to leave the EU, will UK retailers see additional customs charges? In addition, what implications would stricter border controls have for cross-border trade?

 

Delayed deliveries

 

In the event of a leave vote, delivery from the UK may initially be slightly slower due to customs checks at European borders; this could have far-reaching implications for the customer experience. Customers don’t like delayed or unsuccessful deliveries. Indeed our research shows that experiencing delays or delivery problems just twice or more would convince 87% of people to switch to another supplier.

 

The returns process

 

In addition to working out how items would be delivered cross-border, it’s also vital for retailers to consider how they would get them back, should the need arise. It is reasonable to assume stricter border controls would also complicate the returns process. Research by Harris Interactive shows that 85% of customers will stop buying from a retailer if the returns process is a hassle and, conversely, 95% will return to the same catalogue or internet retailer if the process is convenient.

 

Alternative markets

 

Ecommerce provides UK retailers with a clear opportunity to expand their customer base across the world. However, what effect would an EU exit have on UK retailers targeting European markets? The EU is currently Britain’s largest trading partner, with 52% of the nation’s goods and services exported to the region.1 Would international trade and export plans be reconsidered with an exit from the EU? Or will retailers choose to focus on other overseas markets? For example, the eCommerce landscape in China presents lucrative opportunities for UK retailers. Indeed McKinsey & Co recently produced a report suggesting that the market will be between $420bn and $650bn by 2020. Would an exit hasten this growth?

 

Understanding the European Customer

 

The political uncertainty around the EU referendum adds another level of complexity to an already challenging international delivery market. However, overcoming these challenges doesn’t have to be done in isolation. An expert partner with a proven track record will have the necessary global knowledge, contacts and expertise to ensure that retailers can successfully navigate any cross-border delivery challenges, whatever the result of the referendum in June.

 

1 - BBC News, Better off out or in?, 23 February 2016

 

LinkedIn Twitter Facebook

Royal Mail Sponsor

Register today for unlimited article views, and unique insights

Register Now

5 tips for breaking into online retail in France

5 tips for breaking into online retail in France

France boasts being the 5th largest eCommerce market in the world and with an expectation to exceed €80 billion turnover in 2017, for those looking to enter this thriving online market here are five tips that could help you to break into the French online retail space.
Interview with Melanie Smallwood, International Buying Director at Global Fashion Group

Interview with Melanie Smallwood, International Buying Director at Global Fashion Group

eCommerce Worldwide Cross-Border Summit 2017 - Ahead of our annual event on 24th May, we interview Melanie Smallwood, International Buying Director at Global Fashion Group, to learn from her experience and knowledge in cross-border trading around the world.
Interview with Gregor McMillan, Business Development, China at The Hut Group

Interview with Gregor McMillan, Business Development, China at The Hut Group

eCommerce Worldwide Cross-Border Summit 2017 - Ahead of our annual event on 24th May, we interview Gregor McMillan, Business Development, China at The Hut Group, to learn from his experience and knowledge in cross-border trading into China.
Interview with Michael Truluck, CEO at La Redoute

Interview with Michael Truluck, CEO at La Redoute

eCommerce Worldwide Cross-Border Summit 2017 - Ahead of our annual event on 24th May, we interview Michael Truluck, CEO at La Redoute, to learn from his experience and knowledge in cross-border trading.
The latest view on eCommerce in Germany

The latest view on eCommerce in Germany

There are many benefits to entering the German eCommerce market - it’s the 3rd largest online market in Europe and has a very high internet penetration rate, but what other staistics do you need to know before entering this lucrative country?
How to use colour in cross-border online retail

How to use colour in cross-border online retail

Did you know colour can be an important driver of eCommerce sales? Research suggests 85% of buyers make their purchasing decision based on colour so getting it wrong could be a fundamental disaster for any online business. So what is the right colour to use?
Interview with Richard Longhurst, Co-Founder and Director at Lovehoney

Interview with Richard Longhurst, Co-Founder and Director at Lovehoney

eCommerce Worldwide Cross-Border Summit 2017 - Ahead of our annual event on 24th May, we interview Richard Longhurst, Co-Founder and Director at Lovehoney, to learn from his experience and knowledge in cross-border trading.
Building an eCommerce fraud prevention strategy for Germany

Building an eCommerce fraud prevention strategy for Germany

Being the world’s fifth largest eCommerce market, Germany has become an exceptionally popular destination for online merchants looking to sell their goods and services. However, retailers should still be aware of the high levels of fraud to do with their number one payment method. Therefore, what do you need to know about building an eCommerce fraud prevention strategy for Germany?
Interview with Kai Li, Vice President of International at Revolve

Interview with Kai Li, Vice President of International at Revolve

eCommerce Worldwide Cross-Border Summit 2017 - Ahead of our annual event on 24th May, we interview Kai Li, Vice President of International at Revolve Clothing, to learn from his experience and knowledge in cross-border trading.
How does device usage differ in France, Germany, and the UK?

How does device usage differ in France, Germany, and the UK?

It is well known that the use of smartphones and tablets has grown rapidly but which device dominates the traffic and at what time of day across France, Germany and UK? And how does device usage differ between these Countries?

Contact Us

eCommerce Worldwide
2 Ching Court
49-53 Monmouth St
London
WC2H 9EY

Tel: 0203 696 0980
2016© eCommerce Worldwide

Keep In Touch

powered by Affino

About eCommerce Worldwide

eCommerce Worldwide provides online retailers with all the information, and resources, they need to develop cross-border strategies for entering new markets around the world
Read More