94% of UK online brands have lost EU customers

Brexit has had a severe impact on the UK e-commerce economy, with 94% of UK online brands saying they have lost EU customers since the end of the transition period on December 31, 2020.

E-commerce platform ChannelAdvisor and research firm CensusWide surveyed 304 chief marketing officers of UK brands that sell goods online. ChannelAdvisor asked them whether they had lost business due to Brexit disruptions, such as border delays and the added complications of unexpected taxes.

The vast majority said they had lost EU customers, with two thirds (66%) saying the problems had led to a significant drop in EU customers.

While physical retail stores may be facing a tough environment due to lockdown, brands selling online are thriving thanks to a surge in e-commerce. 92% of brand CMOs say their brand has attracted a significant number of new customers since the COVID-19 crisis began, 82% are seeing sales increase compared to pre-COVID levels, and more than a quarter (27%) say their sales are significantly higher than pre-COVID levels.

93% of brand CMOs believe they are more confident about the future of their brand now than they were before the COVID-19 crisis hit in March 2020 .

However, this bright future for UK e-commerce may be hampered by disruptions from Brexit. When asked about overall international sales, more than two-thirds ( 68%) of brand CMOs said Brexit had caused their international sales to fall, with one in five (22%) saying it had caused their international sales to fall significantly. Only 15% said Brexit had caused international sales to rise .

73% of online brands said Brexit had slowed down their ability to deliver goods to EU customers, with a third ( 33%) saying it had slowed deliveries significantly. Despite this, brands remain confident that their total global revenue will grow over the next year.

91% of online brands expect international sales to grow over the next 12 months , with a third ( 33%) of CMOs expecting international sales to grow significantly.

However, the past few months have caused a huge headache for the vast majority of companies due to delays and complications with UK-EU customs. Brands rarely become e-commerce giants without strong international sales .

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