EU online deliveries to UK drop by 50% since Brexit

14 Apr '21

2 min read

Pic: Shutterstock

E-commerce deliveries to the UK from the EU plummeted by over 50 per cent in the first quarter of 2021 in comparison to the last quarter of 2020, research from shipping platform Sendcloud has found. The research comes in the backdrop of the UK government’s Office of National Statistics (ONS) recent announcement that imports from the EU fell by £6.6 billion in January.

Since Brexit, sellers from the EU have been required to register for VAT in the UK. While goods manufactured entirely inside the EU attract no customers fees when being imported to the UK, goods from the EU which were manufactured outside the bloc do not qualify as tax-exempt.

According to Sendcloud’s findings, 51 per cent of customers surveyed were put off by higher delivery costs and another 32 per cent over increased delivery timelines. Close to 40 per cent were concerned over increased customs duties.

“Brexit shouldn’t stop retailers from buying and shipping abroad, yet it’s clear from these results that many retailers are struggling to overcome post-Brexit delivery issues,” Sendcloud’s founder and chief executive Rob van den Heuvel said in a statement.

“As a result, consumers are much less likely to buy internationally. To continue smooth international trade to our European neighbours, it’s important for UK retailers to streamline their international shipping. A futureproof strategy requires a thorough understanding of international trade rules and the impact they will have on day-to-day operations,” van den Heuvel said.

Fibre2Fashion News Desk (SG)

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