United Kingdom’s Brexit: Pros & Cons
Two years after the United Kingdom (UK) decided to leave the European Union (EU) and halfway through the process, it is still debating with the facts about what it stands to gain and lose in the process. Different companies in the UK have expressed their concerns about the trade issues that Brexit will bring. They have begun developing strategies for how they’ll cope once Brexit is completed.
One such sector is the e-commerce platform that includes online retailers especially for those originating from the UK. It is important to look at it from the perspective of online shopping because it is likely that online shoppers will bear the full effects of Brexit.
Brexit has led to the devaluation of the sterling pound which is good for online shopping outside the UK. International based shoppers can get UK based products online at a cheaper bargain compared to other international products.
This means that UK based retailers can make more sales abroad as well as include online discount codes to bump up their sales. Black Friday and Cyber Monday would make more sense for UK based products being sold abroad. This is of course until the UK negotiates and makes new trade deals after Brexit is concluded.
The UK enjoyed free tax and free trade regimes when under the EU. Brexit is going to change the status and like any other country not under the EU, the UK is going to be exposed to new tariffs unless they negotiate well after Brexit is complete.
Currently, devaluation of the pound is a burden for UK based shoppers as goods imported to the UK for online shopping costs more. Shoppers have to pay for more. Once Brexit is over and the UK has to pay for tariffs, goods and services may cost more.
Online shopping will only make sense if shoppers only buy UK products.