Brexit and UK Market Sales
Now that the Brexit dust has settled . I was wondering how other sellers are finding the UK Marketplace. Our sales have never really recovered from about a 10% drop in UK
Brexit and UK Market Sales
Now that the Brexit dust has settled . I was wondering how other sellers are finding the UK Marketplace. Our sales have never really recovered from about a 10% drop in UK
40 replies
Seller_qZO3ZCjoBXEeL
There are a huge number of factors at play, and I do not believe BREXIT has anything (significant) to do with current market conditions.
What is harming the UK economy currently (and therefore sales) are high interest rates, inflation (food costs, utilities and fuel in particular) and high levels of taxation. There is just far less disposable income so a great many people are watching their money carefully.
Seller_Ce8pCzhbVPubz
We initially switched off our sales to Europe until everything had settled down and the IOSS system had been up and running for a while. It seems to be working ok for us since we switched everything back on although I must admit we don’t sell to Europe through Amazon… that’s a headache we definitely do not need. 
However, the pandemic and energy crisis has had a massive impact… prices from suppliers have increased a number of times over the last couple of years and they don’t look like they are going to be reducing anytime soon. Unfortunately for non-essential items there is only so much you can pass on to the customer before they just stop purchasing it, especially as most people have been tightening their belts where they can.
Fingers-crossed things will improve as the months and years roll on. 
Seller_esvgLzKXw2YAl
I really don’t believe that Brexit is now a factor. Or if it is, very minor.
It’s much more to do with the cost of living etc going through the roof.
And if you where selling during the lockdown, you will also be seeing a big slump in sales since then, as that was basically artificially produced due to people not being able to go out.
Seller_wqciCXuQbNS4p
Agree with the points above, in addition to which I would add that there are more and more competitors emerging each and every day.
So, we have that bad situation whereby there are an increasing amount of sellers chasing a diminishing amount of sales. Throw in the increase in cost price and seller fees that we’re all facing and it’s turning into a real maelstrom
Seller_tRuvBEHDedp4q
Whilst all the above points are very valid and true Brexit has indirectly led to a reduction in sales into the EU for me.
However, it was more through a case with how Amazon have implemented the changes rather than Brexit itself, which was just the catalyst.
Examples:
Iimmediately after Brexit I had to close down my sales on the EU sites because of Amazon insistence that a customer should not have to pay more on delivery than it was advertised at. This meant I had to add any taxes/duties that may be due on an item to the shipping cost, work out the cost per country and then send the item as DDP (Delivery Duties Paid). Royal Mail (initially) did not have a system in place to send DDP - it came several months later. To save the headache I stopped listing on the EU sites and removed International option on the UK site.
The same problem did not exist on eBay as they allowed me to put in listings a statement that taxes may be due on delivery and supported me when I did once get a complaint from an EU customer (only EU customer ever complained - Ive never had the same complaint from other countries because they are used to having pay taxes on buying goods from aboard)
Later IOSS came into being - and I thought good, Amazon would be paying the VAT due so I could list my items again. Then came the shock that Amazon implementation of IOSS was wrong. They were not removing UK VAT and then adding on the VAT rate for where the item was being sent. Instead they just used the VAT rate where the item was being sent. This meant if I sold an item (zero rated in UK like a childs dressing gown) into say Ireland (which has a VAT rate of 23%) they would reduce my price by the 23% Irish VAT - even though there was no UK VAT added in the first place.
Again eBay implemented IOSS properly and my sales on there have been consistent.
So yes I can say Brexit has seen a reduction in EU sales for me - but only on Amazon. On other marketplaces it has had very little effect.
Seller_ZQyopdiwkUHOZ
Our UK sales are higher than they were pre-Brexit, for various non-Brexit reasons.
Given the online bump that came with the lockdowns, I’d be surprised if that wasn’t true for most sellers, at least for the first couple of years after.
Seller_8IYTW1LPZFPUG
I don’t believe Brexit is currently having any effect on our sales, as others have said cost of living ect. is having an effect.
It’s extremely easy to blame Brexit for any problems businesses are facing, I’ve worked in some of the biggest corporations in the UK, and like most businesses I have blamed Brexit for our shortcoming on multiple occasions, it’s low hanging fruit.
Seller_29AF2b8VJNr8z
The problem selling in Europe is you prepay your taxes on Amazon through the IOSS scheme and then the delivery company doesn’t transmit the IOSS number even though you provided it so the customer also gets charged along with an extortion brokerage fee often triple the tax and then the parcel gets returned and Amazon then hammers your ODR as if you’re in charge of the government or have some control over customs, it’s a total disgrace, they’ve made my life a living hell since Brexit started, it’s one thing refunding customers but to then have your sales messed with for something you have no way of controlling is a total disgrace!
Seller_gZRzAMEozGzBt
Brexshit indeed has a huge imapct on pan european sales. EU customers have to make orders under 150 Euros limit, delivery time is slow. Expensive items like a leather suit cannot be shipped easily. Before brexit i could send a leather suit worth of £300 to Poland in just £12.
If i keep stocks in EU there is 12% levy of third country duty that i have to pay before making any sales. There are about 30% returns on amazon. Who is gona claim duty back from French Government on returns.
Its a big big mess.
I am sure amazon cross border sales must have suffered big time.
Seller_RSaktJ3KqN82w
Although I’d love to, selling outside the UK has become too much of a hassle. My items are low value, so the time and effort involved in selling elsewhere is just not worth it. This must be the same for other who sell low-value items. I’ve even had to stop selling to Northern Ireland.
Is Brexit responsible for low UK sales? It depends on where you draw the line. Brexit has given the public higher inflation and is responsible for increased costs. There are other things involved.
