Affectations or benefits on UK´s e-Commerce?
“Make your buying and selling experience even easier with Local eBay. Find the items you’re after – whether it’s home furniture, garden knick-knacks or even a caravan. Local eBay allows buyers and sellers to connect in an area local to them, making exchanging goods that little bit easier”.
This is what eBay explained on its website, after launching eBay Local in the United Kingdom, which gives visitors the opportunity to buy from sellers who live nearby.
This should make exchanging goods easier as customers can pay with cash and collect the items within minutes of agreeing on a purchase.
Should we consider this as an isolated notice?
According to e-commerce News, eBay Local is promoting the ease of ordering stuff from people who live nearby. Users can start their local search by entering the desired product category, the product they are looking for and the postcode.
As this initiative takes form, there are new projects building and reconstructing the way of doing business in Britain.
Why is that so?
While the pound establishes and the flow of the market asserts,
Besides, after the fall of the currency value, investing in local commerce seems to be the perfect solution for both: UK´s economy and local consumers.
According to The e-Commerce Foundation
On 2015 the British e-commerce industry increased by 11 percent to 157 billion euros, and as told recently, the real effects of Brexit are not totally seen yet, because of the whole process of withdrawal, which will probably take two years approximately.
Even so, it is certainly affecting the European e-commerce industry from now. The pound plunged impacts foreign retailers that accept orders from consumers in the United Kingdom and the other way round.
Products that are priced in other currencies such as American dollars automatically become more expensive for British consumers.
This creates a chain reaction which involves UK consumers spending less at foreign e-commerce websites and changes the consumer behavior.
A Payvision study of 2015 consumers conducts shows that British consumers were one of the most likely to shop online cross-border.
With 54 percent of them who have made at least one purchase on a foreign website. Over 43 million Britons shopped online last year.
Of which, 20 percent used a mobile device for doing this. The UK is currently the most mature e-commerce market in Europe.
Ecommerce Europe and the E-commerce Foundation
According to Ecommerce Europe and the E-commerce Foundation’s joint 2016 European B2C e-commerce report. The UK was leading market size (€157.1 billion) and compared to their European counterparts.
British consumers were far less shy to shop online, spending an average of €3,625 in 2015.
36% Of British shoppers said last year that they had bought items online in other countries according to a survey. Besides the next biggest spenders after the British were Irish consumers, who spent €500 less on average.
Consulting firm MarketPlace Ignition
“Today our clients can land anything in an Amazon fulfillment center in the EU and be eligible for Prime shipping anywhere in the EU. It’s a shame that eventually goods will have to be sent separately to the UK. This will make reaching that market a little more complex than it is today.”
Consulting firm L2
But According to consulting firm L2, digital products (such as online advertising or digital intelligence) are unlikely to be impacted directly by Brexit. Because the European Union doesn’t impose tariffs on intangible goods.
For British online retailers, removal from the European Single Market could spell the resurrection of tariffs on products entering the EU.
This means higher prices for British goods, which could choke the high demand coming from other EU countries.
Another potential cost to be incorporated is the necessity to have all imported goods quality controlled on entry into the European Single Market.
The principle of Mutual Recognition will no longer apply to British goods on the continent, so they will have to be certified for a European market.
The EU is the UK’s largest trading partner
The EU is the UK’s largest trading partner accounting for 45% of its exports and cross-border online shopping is popular in the country.
Mr. Paul Edwick, Chief Executive of online retailer LucyLocket.com. Voiced his intention to rehouse his company within the EU in the wake of Brexit.
“I will not be waiting two years for the politicians to make their decisions”.
Having just successfully completed an agreement with French online platforms that will bring his products to France, he sees an opportunity in the crisis.
“We have an increasing market presence in the EU, so Brexit simply means that we will change emphasis and orient ourselves towards the continent,”.
Something that he doesn’t anticipate will be overly arduous, given the online nature of his business.
“We can relocate to anywhere where there is an internet connection, so maybe I’ll move somewhere. Between Barcelona and the French border, so we can relive Brexit through Catalonia!” he quipped.
On the other hand, for outsider citizens. This makes products and services purchased from British companies cheaper if they pay in another currency. Increases the attractiveness of business agreements with UK´s retailers.
The Economist, explains that the best hope for markets and investment is that Britain opts for a Norway-style deal.
Membership of the European Economic Area. Which means continued membership of the single market. But at the “cost” (in terms of political risk) of free movement of labor and a budget contribution.
It is not clear how politically feasible this is, on either side of the negotiations.
Now there is, an opportunity for entrepreneurs on e-commerce
According to The Economist, one thing both pro- and anti-EU voices agreed on before the referendum. It was, that the short-term impact of Brexit was likely to be negative.
Uncertainty over future trade arrangements convert the present time decisions a wager. It is up to the creativeness and consciousness of British companies. Besides, fearless foreign initiatives taking