Since Brexit was announced in June 2016, uncertainty is everywhere among European and British e-commerce businesses owners. Planning your next move has become much more difficult in light of this uncertainty, but planning your next moves means you’ll be ahead of the curve. There are some things you can’t control and some that you can, so it is time to start getting an action plan ready to overcome Brexit’s side effects!
Keep in mind that continuing doing business with the EU is very important since European consumers are still confident with online purchasing. But who is buying from who? As you could expect, UK is a key exporter to a lot of nations, especially in Western Europe, but what about tomorrow?
In this e-book, Trusted Shops has gathered a list of must-do tips to help your e-commerce face the sensitive situation around Brexit.
The Brexit effect
The first thing to notice is the positive effect of Brexit among British exporters. The Euro came out strong against the Pound after the Brexit vote and this better exchange rate is a real incentive for international buyers. 32% of UK retailers actually face an increase concerning their overseas sales. But will the GBP recover after the dust settles? Banking experts say that it should not change much from today’s rate.
But more questions are to be answered like: What kind of access will UK have concerning the single market? Is Brexit going to be strong or soft? Is it going to durably change consumer confidence like it happened right after the vote?
As an online retailer, what can you actually do in such times of uncertainty?
Preserve your e-commerce site from exchange rate traps
Exchange rates inevitably vary, so what can you do to prevent your store from suffering too much because of it? How much do you have to anticipate the Brexit?
- Make sure your payment services providers’ fees are completely transparent and include everything you need.
- If you run a small e-commerce business, forward payments can be good to use, as it allows you to lock in advantageous exchange rates from your payment service provider and keep it for a future date.
- Opening a multi-currency account with your bank is also a good option to minimize costs, as you will be able to convert your currencies whenever the exchange rate is more favorable for you.
- Last possibility, ask your suppliers to give you dual currency invoices that you can actually pay in the currency of your choice and save money.
Improve your logistics
If your logistics are working smoothly your customers will be happy and keep ordering from your site, so the Brexit won’t have a bad effect on it. A study from DHL reveals that cross-border retail volumes should increase at an average rate of 25% per year until 2020.
Build your e-reputation thanks to customer reviews
To stand out from the crowd, you need to build yourself a good online reputation. Displaying customer reviews in your website can help. As they are the modern version of word of mouth, other people tend to trust them a lot. And trust is very important when ordering online.
Display a trustmark to increase confidence
Displaying a trustmark certification will increase potential online customers’ confidence in your website. If your application is accepted then you will benefit from the peace of mind it brings to customers.
Reassure customers with a money-back guarantee
By doing so, you will show customers your confidence in your product and they will also feel more comfortable ordering from you, since they know they won’t face any troubles.
Stay informed of new regulations
Brexit is a complex process to implement and you don’t want to miss anything that could affect your cross-border activity.
Though Brexit is provoking much uncertainty in the European e-commerce market, staying on top of what’s happening and preparing your e-commerce will help you protect your business. Check out the e-book by Trusted Shops for the biggest tips on how to be proactive when everyone else is being reactive: