Cross Border Overview

The coronavirus pandemic saw an extraordinary surge in e-commerce exports around the world between 2019 and 2021, but online shopping is here to stay, not just a passing trend. Indeed, cross border e-commerce sellers can now take advantage of even more opportunities than before, including the UK market, which is particularly worthy of attention. However, the multi-vendor e-commerce logistics chain, Exelot, has recently found that cross-border selling into the UK is still plagued by export problems, especially for those sellers who have just entered the UK market.

How bright is the future for the UK e-commerce market? What should cross border sellers do to prepare for the big VAT reform? In view of the new EU VAT rules, which came into effect on January 1, 2022, how will the UK market continue to operate?

Looking ahead to the period 2022-2025, this article will give you essential tips on how to create a pleasant cross-border shopping experience for consumers. Let’s get started!


Optimization

1

Good value for money: Price is a major concern for UK consumers. About 81% of UK online shoppers will go to Amazon (Amazon) to compare prices, hoping to find the best value for money.

2

No lost items or wrong deliveries: The rate of lost items in the UK is higher than you may expect. Although Royal Mail (Royal Mail) is inexpensive, delivery speed is slow and the rate of lost items is moderately high. To ensure receipt of orders, many consumers choose the “signature on delivery” service, but this option requires consumers to make sure they are home at the scheduled delivery time or to pick up the items themselves from a collection point.

3

Real-time tracking: Perhaps because of the lack of security due to frequently lost items, UK consumers are keen to track the logistics information of their orders. Many local couriers’ prices are cheap, but the courier process is also unusually slow to update. During the pandemic, in particular, customers often complained that their package got stuck at one point and did not move for several days and that customer service response was very slow or even absent.

4

The Adyen study shows that 58% of UK consumers choose brands that deliver quickly and 54% of consumers consider the logistics partner of an e-commerce company to be an important factor in their shopping choices.

5

Specified delivery locations: UK consumers do not only enjoy online shopping, but also like to make their purchases with peace of mind. In terms of logistics, they prefer merchants who can provide fast delivery services and deliver to specified locations to minimize the risk of their package getting lost.

6

Easy returns: The high demand and expectations of UK online consumers regarding logistics are not only reflected in the delivery of goods, but also in the efficiency of returns. In the event of delayed delivery or lost packages, even English citizens, who are known for being especially polite, will not hesitate to return goods or even complain about the merchant.

7

Efficiency: This refers not only to efficient transportation but also to the efficiency with which goods are delivered to the consumer who has requested the signature on delivery option. If the UK consumer is not home or does not open the door at the appointed delivery time, after receiving a notification by SMS + phone + mail, the courier will leave after a maximum of one minute, taking the parcel with them rather than leaving it on the doorstep. In this case, the only choice for the consumer is to re-book the delivery time, but there may be a risk of the situation repeating. For example, a person who is not very mobile might not get down the stairs in time when they hear the doorbell, which causes frustration. Or someone with a busy work schedule will never find the perfect time to receive their parcel.



Summary

As e-commerce becomes more and more popular, UK consumers’ demand for logistics solutions is also increasing, along with expectations of faster delivery speed with guarantees that orders will not get lost. Therefore, the question of how to strike a balance between delivery efficiency and overcoming the risk of lost items has become a difficult challenge for merchants and consumers.