Brexit, e-commerce and fulfilment: all you need to know

21 December 2018

Brexit delivered a shockwave to the entire e-commerce branch in june 2016, and continues to stir things up for international oriented businesses. The main nuisance: uncertainty.

As we write, negotiations are still ongoing, as it is still unsure if a deal can be reached in time for the exit date (march 29, 2019). This deal will indicate if we are facing a ‘soft Brexit’ or a ‘hard Brexit’, indicating if any agreements will be made before Britain leaves the EU. In the meantime, the European Commission presented a contingency plan, to prevent chaos when a no-deal hard Brexit is the outcome.

Brexit

“What is the impact of Brexit on the e-commerce sector, and what are possible solutions for entrepreneurs within and outside of the UK?”

We’ll discuss these points from the perspective of parties who might aid International Oriented Businesses to conquer the post-Brexit e-commerce landscape: fulfilment companies!

Brexit and e-commerce

Brexit will probably have quite the impact on the e-commerce business. Businesses face potential higher shipping costs due to raised value-added taxes (VAT) as soon as Britain leaves the EU. Furthermore, the risk of shipping delays is a realistic consequence of Brexit. Products from outside of the EU will be subjected to more sincere controls by customs services before they are cleared for final delivery to the recipients. One also has to keep in mind that customs services might be understaffed once Brexit is in full effect, lacking the immediate manpower to thoroughly check all parcels in a timely manner.

The upside of Brexit is the decreased value of the pound sterling, making UK suppliers an interesting alternative for shoppers within the European Union. The exchange rate allows UK-based businesses to offer competitive pricing for their products. However, at the same time these companies face the negative consequences mentioned earlier. Higher shipping costs and delayed deliveries will negatively influence the willingness of European consumers to purchase goods from UK-based suppliers.

Brexit and fulfilment

UK-based companies with a selling market within the European Union, especially with markets based in Western Europe, are already looking for solutions to account for the measures following Brexit. The same goes for entrepreneurs in the US, using the UK as a stepping stone in order to gain a foothold in the European Union.

In response to Brexit, a noticeable shift is occurring within the way these companies arrange their e-fulfilment process. If it is no longer viable to collaborate with UK-based fulfilment companies, a new solution has to be found. Therefore, many companies choose to act ahead of the impending Brexit, and relocate their fulfilment process to countries that are still part of the European Union.

Favorable countries to relocate to are Germany (providing a large selling market) and Poland (providing a decent infrastructure and lower delivery costs compared to Germany). However, it would be a shame to overlook an appealing alternative: The Netherlands.

MCS Fulfilment

A fulfilment solution in the Netherlands

Relocating your fulfilment setup to the Netherlands comes with quite a few advantages. First of all, the Netherlands provide a favorable business climate, with tax advantages and relatively flexible laws and regulations. Secondly, the Dutch have always embraced entrepreneurship, welcoming new business opportunities and collaborations with open arms.

Furthermore, the Dutch are consistently represented amongst the top scoring countries on the English Proficiency Index, proving our willingness to ensure clear communication between us and our international business partners. The open minded nature of the Dutch, our directness when communicating and our proficiency with the English language ensure a smooth collaboration with any foreign parties aiming to gain a foothold within the European Union.

Lastly, the Netherlands are favorably situated in Western Europe, only being separated from the UK by a narrow stretch of sea. Our great infrastructure ensures rapid delivery of your products to the Netherlands, neighbouring countries Germany & Belgium, France and all other countries within the European Union.

Business case

Also read our business case about Hubble Contacts, an ambitious and fast growing American company we partnered up with at the end of 2017: Case Hubble Contacts: fulfilment for hunderds of contact lenses per day

Hubble

MCS Fulfilment: your fulfilment partner for the entire EU

Are you looking for a trustworthy fulfilment company within the European Union? MCS Fulfilment would gladly help you conquer the post-Brexit market in the EU. Our warehouse is situated in a central location in the south of the Netherlands, opening the way for speedy deliveries all over Europe.

Still in doubt? Choosing for MCS Fulfilment means choosing for:

  • Cut-off times of 11.00 PM for the Netherlands and 10.00 PM for Belgium
  • 24-72 hour delivery all across the EU
  • Collaborations with many carriers, providing (amongst other possibilities) next day delivery with DHL in Germany
  • Extensive return options
  • Competitive shipping rates
  • Control over your current inventory and insights into all fulfilment aspects
  • Accurate order picking
  • Plugins for all e-commerce platforms

It is time to allow your company to thrive in a post-Brexit landscape! Think ahead, act now and bypass the negative consequences of Brexit, by basing your fulfilment needs in the Netherlands.

Do you wish to learn more about choosing us for all your fulfilment needs? We’ll gladly inform you about our possibilities. Contact us for more information.

E-fulfillment at MCS Fulfilment

We take care of distributing packages on a domestic and international level and always offer a tailor-made e-fulfillment solution.

E-fulfillment solutions

Thuiswinkel Business Partner Skal
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