Brexit puts e-commerce business in trouble, with exports down 41%

It has been more than a year since the UK left the EU. During this period, regardless of whether the British people's sense of well-being has improved, the UK's e-commerce business has been greatly negatively affected.

According to a new report from foreign media, the UK's exports to the EU have dropped significantly due to the increase in import and export costs after Brexit, and its e-commerce development has also fallen into trouble. Data from European price comparison website Idealo.co.uk shows that the inventory of retailers in the UK has dropped by nearly 20% since Brexit .

Data shows that so far this year , the number of goods imported by the UK from the EU has fallen by 28.8%, while the number of goods exported by the UK to the EU has fallen by a sharp 40.7% , causing many stores to experience product shortages during this period .

In addition to shortages , multiple factors such as Brexit , the impact of the epidemic and the shipping crisis have caused the price of consumer goods in the UK to soar. Due to Brexit, a large number of foreign workers left the UK, which once caused a serious labor shortage in the UK. It is reported that from January 2020 to 2022 , the price of best-selling products in the UK has increased by 41%.

Among them, products in the VR field had the largest increase , with a price increase of 41%; followed closely by adult toys, with a price increase of 37%; in addition, the prices of headphones, children's bicycles, electronic games, TVs, refrigerators, etc. have also increased by 10% to 29% compared to the beginning of 2020.

Idealo said that British e-commerce is currently facing a challenging period, and it is expected that new import VAT charges will drive consumers away from the European market, which means that some small retailers and brands should work hard to strengthen their online business in the UK.

Katy Phillips, Brand and Communications Manager at Idealo, commented: “2020 was a year of major change for e-commerce . In 2021, e-commerce business around the world accelerated further and changed irreversibly. Now, as we enter 2022 , the growth rate of e-commerce is slowing down. For businesses, adaptation is key as this industry is always changing. ”

U.K.

Brexit

E-commerce