Non-UK online customers take advantage of Brexit effect

26 Aug '16
2 min read

Online retail customers are taking advantage of the sharp fall in value of sterling against the euro and dollar post-Brexit referendum. The volume of online retail orders being sent cross-border from the UK has risen in July—the first full month since referendum—as products on UK retail sites became attractive to foreign shoppers in Europe and the US.

The proportion of orders leaving the UK in July was recorded at almost 27 per cent, the highest percentage in the five year history of the IMRG MetaPack UK Delivery Index, which tracks a wide range of key benchmark metrics to enable organisations to benchmark performance, track trends and take informed strategic decisions.

“While it's hardly surprising that cross-border volumes have risen since the Brexit vote, the question is whether this upturn in orders will be temporary or sustained over a longer period. As the July average order value has risen on June, we might surmise that shoppers initially used the opportunity to snap up a bargain or two, but are now realising that the deals are very attractive and are loading up their baskets with more goods each visit. While this upturn is good news in a way, clearly there will be pressure on margins due to all products being discounted for cross-border shoppers, in effect,” said Andrew Starkey, head of e-logistics, IMRG.

“July is usually a month in which retailers enjoy a mini-peak in sales, but the impact of Brexit on shopper confidence is now being felt. The increase in order values from EU consumers snapping up bargains thanks to the drop in Sterling is welcome, however. We expect that over the next few months we'll see a return to much greater volume growth, ensuring that forecasts for the year are met,” said Kees de Vos, chief product officer at MetaPack, which provides e-commerce and multi-channel delivery technology to leading retailers. (RKS)

Fibre2Fashion News Desk – India

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