Home BrexitBrexit causing e-commerce struggle with a 41% decline in exported UK goods

Brexit causing e-commerce struggle with a 41% decline in exported UK goods

by LLB Finance Reporter
11th Feb 22 10:10 am

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 Europeโ€™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 %
Baby Monitors ยฃ88.62 ยฃ95.84 8%
Prams ยฃ354.19 ยฃ385.00 9%
Sex Toys ยฃ27.84 ยฃ38.18 37%
Electric Toothbrushes ยฃ77.36 ยฃ93.52 21%
E-Book readers ยฃ149.82 ยฃ185.59 24%
Tablets ยฃ378.83 ยฃ404.02 7%
Action Cams ยฃ211.21 ยฃ261.26 24%
Drones ยฃ330.47 ยฃ362.41 10%
Bread Makers ยฃ138.36 ยฃ145.07 5%
Hair Straighteners ยฃ64.95 ยฃ72.00 11%
Coffee Machines ยฃ128.11 ยฃ150.51 17%
Food Processors ยฃ305.48 ยฃ337.35 10%
Fridges ยฃ732.75 ยฃ803.53 10%
Washing Machines ยฃ456.14 ยฃ467.79 3%
Karaoke machines ยฃ135.73 ยฃ163.91 21%
Headphones ยฃ61.52 ยฃ67.12 9%
Speakers ยฃ228.77 ยฃ294.55 29%
Smartwatches ยฃ177.75 ยฃ185.99 5%
Smartphones ยฃ239.54 ยฃ252.27 5%
TVs ยฃ962.74 ยฃ1,081.74 12%
VR goggles ยฃ169.77 ยฃ239.40 41%
Barbies ยฃ45.62 ยฃ49.17 8%
Electric Kids Ride Ons ยฃ250.02 ยฃ280.62 12%
Electronic Toys ยฃ32.83 ยฃ35.52 8%
Kids Scooters ยฃ81.70 ยฃ90.30 11%
Dolls Houses ยฃ49.93 ยฃ64.02 28%
Toy Action Figures ยฃ21.84 ยฃ24.93 14%
Play Kitchens ยฃ51.74 ยฃ60.25 16%
Video games ยฃ23.01 ยฃ26.07 13%
Trainers ยฃ63.96 ยฃ70.45 10%
E-Bikes ยฃ3,061.72 ยฃ3,104.53 1%
BMX bikes ยฃ470.54 ยฃ488.99 4%
Kids Bikes ยฃ203.75 ยฃ261.22 28%
Football Shirts ยฃ26.01 ยฃ30.26 16%

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 Valentineโ€™s Day.

Other products such as speakers and headphones including Apple Airpods 2 (29%), kidโ€™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 Elsaโ€™s Magical Ice Palace, are seeing savings:

Whilst itโ€™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 itโ€™s vital for small retailers and brands to strengthen their online presence within the UK.

Katy Phillips, brand and communications manager at idealo commented: โ€œWe 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 itโ€™s settling down again and shoppers are being as smart as possible, buying less and only spending when they need to.

โ€œFor 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.โ€

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