Since the Brexit, shipping orders to the UK has become a real headache for e-tailers. Complex customs formalities, longer shipping times, rising import costs… How can you optimize your supply chain to stay competitive in this market? In this article, discover the post-Brexit logistics challenges and the best strategies for simplifying your shipments, reducing your costs and guaranteeing a smooth customer experience.

Brexit e-commerce logistics. These few words have transformed e-tailers’ relationship with e-commerce logistics. Indeed, there have been several major changes: new lead times, new costs and new administrative formalities for shipments between the European Union and the UK. For e-tailers, adapting is a necessity to maintain their competitiveness and ensure a smooth customer experience.

Between import VAT, customs duties and customs restrictions, managing cross-border flows has become more complex. How can you optimize your supply chain and reduce the costs associated with post-Brexit shipments? Discover the major challenges and solutions for automating your logistics processes and guaranteeing efficient deliveries.

Impact of Brexit on e-commerce logistics

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Since Brexit came into force, trade between the European Union and the United Kingdom has been subject to new rules. For e-tailers, this means more complex logistics processes, higher costs and longer shipping times. These new constraints call for rapid adaptation of supply chains to guarantee sales continuity and maintain customer satisfaction.

Regulatory changes for e-tailers

The UK’s exit from the European Union has brought an end to the free movement of goods. From now on, all shipments between the EU and the UK are considered international trade, subject to specific formalities. Key changes include the requirement for e-tailers to provide customs declarations, integrate VAT at the point of sale, and comply with new certifications for certain products.

Stricter border controls can lead to delays if documentation is not complete or compliant with UK requirements. To avoid these complications, it is essential to implement optimized logistics processes. The use of an Order Management System (OMS), for example, can automate the transmission of customs documents and anticipate restrictions applicable to products sold.

New customs and VAT obligations

Before the Brexit, transactions between the EU and the UK were free of customs formalities and additional charges. This is no longer the case. Now, every shipment requires a detailed customs declaration, including precise information on the nature of the products, their value and origin.

Another major change concerns VAT. Sales under £135 are subject to VAT levied directly by the seller, who must register with the UK tax authorities (HMRC). For higher amounts, it is the customer who is liable for import VAT, which can put the brakes on purchases due to unforeseen additional costs.

Managing these new obligations is a challenge for e-tailers, who need to adapt their logistics infrastructure to limit the impact on lead times and costs. Automating customs declarations and VAT via ERP or a specialized SaaS solution speeds up shipments and ensures full compliance with current regulations.

The logistical challenges of Brexit for e-tailers

Since the UK’s exit from the European Union, e-tailers have been facing more complex and costly logistics. Between increased shipping times, inventory management and adapting to new administrative formalities, companies need to review their organization to avoid disruption. Additional costs, customs controls and carrier restrictions further complicate exporting to the UK. In the face of these challenges, supply chain optimization and the adoption of appropriate logistics solutions become essential.

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Increased shipping times and costs

Before the Brexit, deliveries between the European Union and the UK were carried out without customs formalities, with short lead times and controlled costs. Now, every shipment is subject to strict controls that can significantly lengthen transit times. The new customs and tax obligations also mean higher costs for administrative formalities, customs duties and transport costs.

Carriers have had to adapt their services by integrating additional charges for managing customs declarations. In addition, the saturation of customs services leads to unpredictable delays, impacting customer satisfaction and increasing the risk of returned goods.

To overcome these difficulties, e-tailers need to consider alternative solutions, such as pooling shipments or using local stock in the UK. Optimizing routes and diversifying logistics partners can also reduce delivery times and minimize additional costs.

Inventory management and administrative formalities

New customs barriers are making inventory management more complex for companies exporting to the UK. Inadequate anticipation of administrative formalities can lead to delays and additional costs, with a direct impact on customer satisfaction.

The main challenges related to post-Brexit inventory management are:

  • Increased transit times for goods
  • The risk of customs blockage due to non-compliant documents
  • Additional costs for returning goods between the UK and the EU

There are several possible strategies for minimizing these constraints:

  • Store some goods directly in the UK to reduce delivery times
  • Automate customs formalities with specialized SaaS solutions
  • Implement real-time inventory tracking systems to avoid stock-outs

An efficient logistics organization is essential to ensure smooth cross-border flows and a high level of customer service.

Carriers and adapting to the new rules

Carriers have had to adapt their services to post-Brexit requirements, integrating new procedures for customs, VAT and shipment traceability. Some offer dedicated solutions for e-tailers, including automated customs clearance and UK storage options.

However, not all have the same infrastructure, and some have reduced their offerings to the UK in the face of customs complexity. So it’s crucial to choose reliable partners capable of ensuring fast, compliant deliveries.

Adopting a multi-carrier solution allows you to optimize costs and adapt to market fluctuations. Transparent communication with customers on lead times and any charges is also essential to avoid unpleasant surprises and guarantee customer satisfaction.

How does Shippingbo help manage post-Brexit logistics?

Shippingbo offers a comprehensive solution to help e-tailers overcome the logistical challenges associated with Brexit. Thanks to its automated management system, the platform simplifies customs formalities by automatically generating the necessary documents, including CN22 and CN23 forms, essential for international shipments outside the European Union.

The CN22, used for parcels worth less than €300, is a label affixed directly to the parcel packaging, containing a summary declaration of the goods shipped (nature, value, weight and origin). The CN23, on the other hand, is required for consignments worth more than €300, and must be accompanied by a commercial invoice or a more detailed customs declaration.

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Thanks to Shippingbo, these documents are generated automatically, guaranteeing compliance with customs requirements. This automation helps to reduce administrative errors, avoid customs blockages and optimize shipping times, thus reducing the extra costs associated with delays and any additional taxes.

By optimizing the management of cross-border flows, Shippingbo centralizes orders and integrates different carriers to guarantee the best route for each shipment. This approach enables e-tailers to reduce delivery times while maintaining total control over their shipments. The platform also facilitates stock management by providing real-time visibility of inventory levels, enabling them to anticipate needs and avoid stock-outs.

With one of the major post-Brexit challenges being regulatory compliance, Shippingbo helps companies meet tax obligations by integrating dedicated features for VAT management and invoicing automation. The platform enables specific rules to be configured for each market, guaranteeing compliance with current marketplaces and e-commerce regulations. This proactive management reduces the risk of administrative errors and ensures total transparency for customers, enhancing their shopping experience.

By relying on Shippingbo, e-tailers can adapt their supply chain to the new requirements of cross-border trade, and maintain their competitiveness in the UK market. Process automation, intelligent flow management and optimized logistics costs make this solution an indispensable ally for successful post-Brexit shipments.

Best practices for shipping to the UK after Brexit

Faced with new logistical constraints, e-tailers need to adapt their strategies to ensure fast, compliant and profitable shipments. Here are the best practices for optimizing deliveries to the UK:

  1. Selecting the right carriers: Not all carriers offer the same services for post-Brexit shipments. It’s essential to compare offers and choose partners who specialize in handling customs formalities.
  1. Anticipate customs costs and formalities: To avoid unpleasant surprises, it is essential to identify the customs duties and VAT applicable before shipment. Automating customs management with ERP or OMS eliminates errors and speeds up procedures. In addition, the IOSS (Import One Stop Shop) system simplifies VAT collection for sales under £135.
  1. Optimize inventory management to avoid delays: One effective solution is to store part of the goods on site in a UK warehouse. This approach ensures rapid delivery and avoids customs formalities for each shipment. Shippingbo has a network of specialized e-commerce logisticians throughout Europe, and our teams can guide you in your UK outsourcing project.
  1. Precise tracking and tracing: With longer shipping times, keeping customers informed in real time is essential. Advanced tracking allows them to follow their parcel every step of the way. Sending automatic notifications improves the customer experience and reduces customer service requests.
  1. Adapt returns and after-sales policy: To avoid high costs and ensure smooth customer service, we recommend setting up a returns center in the UK. This enables efficient management of returns without immediate reimportation. Automated customs declarations simplify the process and reduce the risk of disputes.
  1. Informing customers about new regulations: UK consumers may be surprised by additional charges due to VAT or customs duties. It is therefore important to communicate these costs transparently at the outset of the purchasing process. Clearly displaying estimated delivery times and explaining any import formalities can help avoid disputes.
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Optimize your post-Brexit logistics with Shippingbo

Brexit has profoundly transformed trade between the European Union and the United Kingdom, imposing new logistical challenges on e-retailers. Longer shipping times, rising import/export costs and complex customs formalities make it essential to adopt appropriate solutions to maintain an efficient and profitable supply chain.

Faced with these challenges, Shippingbo has positioned itself as a strategic ally, offering a SaaS solution to optimize the management of cross-border flows and reduce administrative errors. Thanks to its multi-carrier approach and its network of logisticians in Europe, the platform secures shipments and facilitates the deportation of stock to the UK, guaranteeing a seamless shopping experience for British customers.

To remain competitive in the post-Brexit market, it’s essential to adopt high-performance tools and rethink your logistics strategy. By integrating Shippingbo into their supply chain, e-tailers can not only save time and reduce shipping costs, but also ensure compliance with new regulations.

Don’t let logistical constraints hold back your international development. Optimize your shipments to the UK now with Shippingbo and turn Brexit into a growth opportunity!

To go further and maximize your international growth, discover how marketplaces can become a strategic lever in 2024. Watch our exclusive webinar and learn how to increase your sales beyond borders right now!

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