Key takeaways
- New customs declarations and paperwork are now required for all goods moving between the UK and EU, adding time and cost to ecommerce fulfilment processes.
- VAT rules for ecommerce have changed post-Brexit, with different treatment for imports and exports that sellers must account for in their pricing strategies.
- Supply chain disruptions and shipping delays remain common, particularly for businesses relying on EU-based suppliers or fulfilment centres for their stock.
- Ecommerce businesses must decide whether to absorb increased import costs or pass them on to customers, which directly affects competitiveness and profit margins.
- UK companies and citizens lost eligibility for .eu domain registrations, and businesses selling into the EU must comply with separate EU regulatory frameworks.
Here's a brief summary of the ways in which ecommerce businesses will be impacted:
- Businesses will have to abide by the new import and export rules. We've covered the VAT changes impacting ecommerce businesses in greater detail in our https://www.goforma.com/business-resources/vat-guide-ecommerce-businesses" target="_blank">guide.
- Businesses may face additional paperwork and customs checks.
- These changes will impact other aspects of your business, such as your supply chain, fulfillment process and pricing. Additional checks may mean a delay in shipping, while the new VAT changes will lead to a rise in costs. As such, businesses may need to decide who will bear the burden of the increased costs, and to assess if revising their prices is necessary.
- UK citizens and companies established solely in the UK will https://www.lexology.com/library/detail.aspx?g=a6a3258a-1857-410f-a307-fc177841bd5e" target="_blank">no longer be eligible to hold .eu domains. This will likely result in additional costs incurred, as business purchase new domains or undertake the necessary measures to demonstrate compliance with the .eu regulatory framework.
