​Brexit challenges for businesses selling online into Europe

The post-Brexit reality for British businesses exporting to the EU is much harder and more expensive than imagined. Initial relief at the dramatic eleventh hour Brexit trade deal gave way to frustrated disbelief from British business owners. EU customers are discovering they are liable for additional customs and administrative fees on their doorstep when accepting delivery of British products purchased online. Online business owners aren’t the only ones affected. Courier and pallet shipping companies and UK hauliers are also adversely affected by the expensive reality of post-Brexit EU trading.

The team at Wares of Knutsford are proud of our solutions-driven attitude. We have worked hard to understand and solve our EU exporting challenges. We are delighted to confirm export of our products including our glass bottles and glass jars will continue to our loyal EU customers. Our solution ensures our customers do not incur any additional charges after purchase.

Yet due to the ongoing pandemic situation, the extra expense and logistical chaos experienced by business owners isn’t reaching headline news. We are highlighting the challenges facing small businesses across the UK, to remind everyone the value of supporting local business, particularly during such as stressful time.

Post-Brexit export nightmare

UK online businesses exporting their wares have been horrified to learn their EU customers are liable for extra charges when they receive their British products. This has understandably caused UK business owners embarrassment for their customers' experience, frustration at the sudden hike in costs and anxiety for the future of their business.

It appears every sector of British online business is affected, from small business owners exporting art deco posters, online cheese shops to online fashion retailers, to online medical suppliers for veterinarian products. Every type and style of business exporting their products to the EU has been shocked to learn their customers have incurred additional charges upon receiving their products.

Reliable courier companies halting service to EU

Global courier DHL announced they have abandoned business-to-consumer deliveries to areas in the EU immediately, due to high numbers of products being detained for EU customs checks. British businesses are shocked that a renowned logistics firm such as DHL chose to suspend deliveries until such time as a solution to EU customs delays and deliveries can be arranged. DHL’s decision joins other pallet shipment services such as DB Schenker and Palletways who have also temporarily suspended EU services.

What are the additional charges?

The layperson’s understanding of the Brexit ‘free trade’ deal meant most were unprepared for the bureaucratic fine print imposed on products once they arrived in the EU. Online businesses exporting goods between the UK and the EU have been hard hit by unexpected logistical delays and additional charges.

The Brexit free trade deal ensured British products would not face any tariffs and quotas for exporting goods to the EU. Yet bureaucratic fine print enabled customs clearance fees to be charged to customers receiving their pre-paid products from the UK. Customers also faced extra charges imposed by delivery companies for the additional customs paperwork.

Extraordinary times for British business

One small business owner discovered his EU customers were charged £30 upon delivery of his £80 product. The charges related to customs clearance fees and handling costs for additional paperwork. He fears his regular stream of EU orders will evaporate due to the hefty doorstep charges. Other business owners have been given the extraordinary advice from officials from the Department of Trade to move warehouse facilities from the UK to the EU as a way of avoiding the expensive doorstep fees imposed on their EU customers. Upset business owners have contacted their local MPs requesting immediate action.

A small business owner trading in bicycles said shipping fees from the EU have sky rocketed. Many specialist and mainstream bicycle suppliers are located across Europe. Some big names have halted shipping to the UK completely. Others have added up to 10% surcharge. If no solution is reached and the situation does not change, the business owner expects bicycles to be in short supply by the end of this year.

Not-for-profit expert advice service, the Federation of Small Businesses, says British businesses were ill-prepared for the realities of Brexit. They said most businesses did not have the resources or transparency required to prepare themselves adequately for the bureaucratic realities of EU trading post Brexit.

Our support means everything

The extraordinary circumstances of the global pandemic, combined with the realities of Brexit, have resulted in a chaotic new year for many British businesses. Let’s all do our best to support our local businesses as they navigate a particularly uncertain, stressful period.

The team at Wares of Knutsford is working hard packaging our online orders of glass jars and glass bottles for export to the EU. We are fortunate to have reached a satisfying solution and we hope every other online business shares our success in the weeks and months ahead.