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The UK has led the world when it comes to ecommerce. It is one of the most tech-savvy nations on the planet with literally billions riding on purchases from websites every year. But what about Brexit? How will that impact ecommerce businesses based in the UK?
Up until the decisive vote for Brexit, the UK was regarded as the gateway to Europe for online sales. It is strategically positioned, has a highly skilled workforce and industry-leading tech developers. Experts predict that bigger ecommerce enterprises may shift their entry points to EU member states, most notably the Netherlands and Germany. This could mean a migration of jobs and skills away from the UK. British-born enterprises will have to move the goal posts to stay competitive.
Dani Attard, of B2B ecommerce specialist Comgem, says the ecommerce market in the UK alone is huge.
“There is plenty of money to be made in the UK. However, businesses that have traditionally sold online to EU countries are likely to be at a cost disadvantage as a result of Brexit. All B2B ecommerce businesses will need to revise their suppliers. Importing goods from the EU is likely to be unsustainable. The immediate impact of Brexit was the devalued pound, but ongoing challenges are likely to include increased tariffs and shipping costs.
“B2B businesses may find it hard to recruit the tech specialists needed to run their ecommerce platforms. We urge anyone concerned about this to contact us now. We offer a dynamic range of custom website development and hosting services, and use cutting edge technologies to optimise sales and reflect changing trends in the market.”
While the EU has provided a good revenue stream to B2B ecommerce businesses in the UK, there are emerging markets elsewhere that could more than plug the gap. Dani says:
“B2B websites that have traditionally attracted sales from the EU can extend their reach. What’s more, they can reduce the amount they spend on providing multi lingual customer services by targeting growth markets where English is commonly used.”
Comgem believes the Philippines, India and the United Arab Emirates offer huge potential. In the Philippines, for example, around 38 million people shop online, including businesses. A further 18 million are expected to follow suit over the next three years. Increased industrialisation in India, together with improved infrastructure, makes it a hot spot for B2B ecommerce. Dani says:
“By choosing the right suppliers, you can penetrate emerging and growth markets that are sustainable. At the same time, you can increase efficiency and lower costs associated with doing business in the EU.”
What about ecommerce businesses committed to the EU market? Dani says:
“It makes sense to evaluate potential costs now. By understanding the likely impact, you can make cost savings to offset any potential increases and remain competitive. You may be able to increase prices in markets that can absorb them to keep your EU prices attractive. The right B2B ecommerce website solution will enable you to show different prices to different sets of customers. Partially segmenting them according to their location could help.”
Worried about the impact of Brexit on your B2B ecommerce business? Contact Comgem here.