A new report has revealed the impact Brexit is having on e-commerce businesses, with a huge decline in exporting to and from Europe due to excess charges.
The data from one of Europe’s leading price comparison sites idealo.co.uk, shows the effects of the trading implications caused by Brexit, as its inventory of retailers dropped by 20% since 2020.
So far, there has been a 28.8% decline in imports from the EU to the UK, and 40.7% from the UK to Europe, making it difficult for shops to fill out stock itineraries and fulfil orders.
As well as product shortages, complex delivery times throughout Brexit and the pandemic are causing prices across consumer goods to skyrocket, reporting surges of 41%.
The table below compares the average prices from January 2020 across popular product categories to 2022. The data shows the huge leaps in cost due to product unavailability, which in turn is causing e-commerce businesses to lose custom – making shoppers more money conscious.
|Category||Avg. Price Jan 20||Avg. Price Jan 22||Price Increase %|
|Electric Kids Ride Ons||£250.02||£280.62||12%|
|Toy Action Figures||£21.84||£24.93||14%|
Those looking to get into VR this year will see the biggest price increase of up to 41%, closely followed by sex toys, which have seen a further cost of more than a third (37%) just before Valentine’s Day.
Other products such as speakers and headphones including Apple Airpods 2 (29%), kid’s bikes (28%), video games such as Call Of Duty (13%), TVs (12%) and fridges (10%) all have hefty price tags now compared to January 2020.
However, a small number of products such as laptops (23%), musical instruments (19%) and LEGO, including the Star Wars Millenium Falcon and Frozen Elsa’s Magical Ice Palace, are seeing savings:
Whilst it’s been a challenging period, idealo has managed to recover its inventory of retailers, by working with more UK-based shops. The new import VAT charges are expected to push consumers away from European markets, meaning it’s vital for small retailers and brands to strengthen their online presence within the UK.
Katy Phillips, brand and communications manager at idealo commented: “We will never forget 2020 as a year of major changes. 2021 further supercharged the world of e-commerce leaving no place for doubt, the e-commerce landscape has changed irrevocably. Now moving into 2022, the ship is steadying and although prices for consumers have increased, it seems as though it’s settling down again and shoppers are being as smart as possible, buying less and only spending when they need to.
“For businesses, adaptation is key as the industry is forever changing. Hopefully, the UK focus will help boost sales until importing fees are reduced in future.”