Brexit: What Impact Will It Have on Online Retail in Germany?

With a 52% majority vote in summer 2016, Britain chose to leave the European Union. While Brexit has occurred, the process has been considerably complicated. Online retailers should prepare for significant changes, particularly since the UK ranks as Germany's second-most popular destination for international online shopping.

What Does This Mean for Online Retailing?

A disorderly Brexit could severely disrupt goods movement between the EU and UK. Transport restrictions would drive substantial price increases, potentially raising UK product costs by up to 15%. Stricter border controls and customs duties would significantly extend delivery timeframes.

Currently, approximately 30% of international online shipments transit through the UK, with goods exceeding €150 in value facing customs tariffs. Multiple critical issues remain unresolved, including currency fluctuations, internal market regulations, goods trade frameworks, and customs duty structures.

Some retailers have already responded by suspending or discontinuing UK operations indefinitely.

What Do Online Retailers Need to Be Aware Of?

If no transition period materializes without EU agreements, the UK could be treated as a third country for customs purposes. This primarily affects:

• Goods and services supplied to the UK
• Goods and services shipped from the UK
• Goods passing through the United Kingdom

Online retailers must verify whether their operations involve transporting goods to, from, or through the UK. If applicable, they should register with national customs authorities for third-country trade. Certain products like plants or food require additional regulatory checks.

While Brexit's exact implementation timeline and final terms remain subject to ongoing negotiation, online retailers should anticipate inevitable operational changes and maintain transparent customer communication regarding delivery modifications. Preparation today prevents customer dissatisfaction tomorrow.