How Brexit has destroyed online sales to the UK from Canada in 6 months flat - my story

(this is a commentary about my experience selling to the UK from Canada in the last six months)

 

If someone would have told me this time last year that I would essentially no longer be selling to UK customers in one years time I would have laughed in their face.

 

Year after year after year of strong, unrelenting sales from UK customers, my 3rd strongest market in the world, after Canada and the US.   Never faltering, never wavering...the sun never setting on business with British customers.

 

Then hard Brexit hits....most of us outside the UK who kept tabs on their political situation figured this would happen due to Boris the clown's incessant, incompetent dithering about and relentless, careless bungling of the issue.  

 

But I never thought it would affect me personally as bad as it has.  

 

I started hearing feedback from UK customers by mid to late January - wheres my stuff?  You know, you got them too.  The reports just kept coming in, as did the INR claims, and the refunds....and the reports from the customers contacting me in March to report they finally got the item they ordered in the last week of December. 

 

I shut down to UK sales completely by late January 2021 because by then I was already drowning in red ink.  Virtually everything I was sending there was disappearing off the map, only to resurface 8 - 12 weeks after I mailed it.   While I re-opened to UK customers in late April, I barely see them anymore.  I think I've had 4 or 5 sales to UK customers since then, they are just not coming around.  I have spoken with a few folks over there about this and what I have learned is that most are aware Brexit has also changed the online international shopping game for them and they are buying less online due to similar problems they are experiencing domestically after Jan 1. 

 

As other sellers Im sure noticed, not even the onset of COVID last year affected delivery ability to the UK - I even recorded my fastest ever delivery during this time frame, from Edmonton, Alberta to just outside of London UK in 2 - yes, that's right, TWO - days.  The delivery network between Canada and the UK was robust and if that couldnt shake it, what could?

 

Brexit hasnt just shook it....from where I sit, it has completely nuked it.  

 

It appears all the border issues and papers being checked on imported goods and this and that and that issue as created by hard Brexit has tossed globalist economic ideals out the window on top of completely knackering my ability to sell to the UK.  It has become that shipping to the UK - I cant believe Im about to say this, but it has become true - is now like shipping to Nigeria, or anywhere in Brazil other than Sao Paulo, or hinterland western China, or giant chunks of Siberia, or most of Latin and South America in that it has become so unreliable I cannot expect my item to be delivered in any reasonable time frame, and sending the item with a tracking number there has become so cost ineffective that it is just not worth selling there anymore.  

 

For what I sell, tracked to the UK via Canada Post is a completely ridiculous $24, and chitchats, which used to charge the "too high" rate according to several prospective UK customers of around $13.50 Canadian / around 8 quid, is now around $23 Canadian...this, for an item that is all of 125 grams in weight.  Shipping non tracked via Canada Post small packet air rate is equally pointless, as every one I've sent over this way since January 1 has taken 8 - 12 weeks - I thought there would be an improvement eventually, but so far I'm wrong - including one nice fellow in Scotland, who is not happy but he's being very understanding about it all, who has been waiting patiently for his item since I sent it on April 21.  

 

How is international commerce possible under circumstances like this? For me, its not.  I know I'm now essentially priced out of the game selling to the UK, and have to shut sales down there again, this time possibly for good, until there's either a dramatic change in quality of service and / or a dramatic improvement in postal service delivery times. 

 

It just blows my mind that a postal delivery network between the UK and one of the primary nations of the Commonwealth has gone from almost impenetrably robust to, within six months, banana republic unreliable.  It has become one of those countries I cant as a seller sell to because I cannot expect the item to arrive in any reasonable time frame and will be, thanks to platform policy, out the money for the product and the shipping if its not delivered in a timely fashion whether it gets ends up getting there or not.  

 

What a nice double, triple, quadruple, quintuple whammy its been...to someone you'd think wouldnt be effected by a political decision made in a country across a giant ocean 7,000 kms from where I'm sitting to write this.  Special thanks to Boris Johnson and all the leave voters for harming my ability to do business not just to your country, but to do business period....the lesson being that the UK's decision to leave the EC has created a ripple of (unintended?) destructive economic consequences way beyond the reach of their country's borders.   

 

 

 

 

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Re: How Brexit has destroyed online sales to the UK from Canada in 6 months flat - my story

marnotom!
Community Member

While there probably is a connection to Brexit for your lost UK sales, I'd say it's an indirect connection.

 

As of the beginning of this year, eBay has been collecting and remitting VAT (our version of GST) on items sold to UK-registered buyers in a manner similar to how "internet tax" is now being collected and remitted on eBay purchases made by US buyers registered in 40-odd US states.  This change in the UK has probably made some UK buyers think twice about purchasing items from outside of the UK, but it's also meant that Royal Mail and HM Revenue and Customs now have to deal with two different types of postal imports: one where the VAT has been prepaid, and one where the VAT still has to be paid by the recipient.  To complicate things further, duty may or may not need to be paid in either instance.  The UK-Canada Free Trade agreement only went into effect at the beginning of April of this year and there may be some growing pains there.

 

For what it's worth, the EU will be moving to a similar VAT-collection system for eBay (and similiar online) purchases in less than a month and Norway (and possibly some other non-EU countries in Europe) already has a similar system in place.

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Re: How Brexit has destroyed online sales to the UK from Canada in 6 months flat - my story

How do you think Brexit would have affected deliveries to the UK in January?  I think that it's more likely that covid would cause delivery problems.

 

I think too that eBay having to collect VAT on online orders to the UK might also have affected the number of sales to the UK from Canada.   My guess is that Brexit would have affected sales from the EU more then from Canada.

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Re: How Brexit has destroyed online sales to the UK from Canada in 6 months flat - my story

My observation when the US IST (Internet Sales Tax) came in was yes buyers avoided buying stuff on eBay to dodge the taxes.

 

I know this because some of my eBay buyers began buying my stuff off sites small enough not to have to charge the IST.

 

However that only lasted for a couple months or so, and now they're all back here paying the tax. The other sites still don't charge the tax so the folks seem to have gotten "used to" paying the taxes and aren't bothering to do the work to dodge them....or so it seems.

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Re: How Brexit has destroyed online sales to the UK from Canada in 6 months flat - my story

"For what I sell, tracked to the UK via Canada Post is a completely ridiculous $24, and chitchats, which used to charge the "too high" rate according to several prospective UK customers of around $13.50 Canadian / around 8 quid, is now around $23 Canadian...this, for an item that is all of 125 grams in weight."

Can anyone explain why ChitChats has gone up so much to ship small packages to the UK???

I haven't used them in a while to ship to the UK, since my UK buyers have been MIA for listings I will ship to them, but it wasn't long ago that I was able to ship Ascendia for just over $10...

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Re: How Brexit has destroyed online sales to the UK from Canada in 6 months flat - my story

USPS wants US$16.25 to send a 125 gram item by First Class Package International to the UK.
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Re: How Brexit has destroyed online sales to the UK from Canada in 6 months flat - my story

They learned their true costs after a few months of experience?

 

Shipping is more than postage as we all know and sometimes there is a learning curve.

Or of course they may be disgusting sharks who want to put small sellers out of business... oh wait that's Managed Payments... possibly Trudeau ...or George Soros.

 

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Re: How Brexit has destroyed online sales to the UK from Canada in 6 months flat - my story

I don't see a direct Brexit connection at all. 

 

I sell to the UK and Brexit was never a problem . Ebay collecting VATs may have slowed my sales to the UK and sure I lost one package over December/January to the UK, but this was never to do with Brexit. My lost package was due to the Postal service in Canada, US or UK (take your pick). I had lengthened delivery times on every package I sent out due to the Christmas rush, the pandemic, the grounded planes and the US Postal service crisis. 

 

My sales to the UK are slowly returning. 

 

My delivery times to the UK have been anywhere from 2 to 6 weeks.

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Re: How Brexit has destroyed online sales to the UK from Canada in 6 months flat - my story

I too have a fair bit of sales to the UK and those have dropped due to the VAT being charged up front to buyers. What I have found is that UK buyers have shifted to buying on Bonanza for my eBay listings uploaded there as that platform does not charge the VAT.  I would recommend that all sellers use Bonanza as another platform to sell and it's also "approved" by eBay as one fo the third party vendors. Your listings are scrubbed to their site and you can even apply a discount to your eBay pricing. The selling fees are lower and you can still use PayPal.

As for postal services, the pandemic is a big reason for lost packages. Here in Toronto I rely on Stallion Express to ship economically to Europe. At this time I use Post NL (Dutch postal service) as the carrier and buy insurance from Stallion. 

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Re: How Brexit has destroyed online sales to the UK from Canada in 6 months flat - my story

I was born and grew up in England, and have had regular sales there until several months ago. Sales dropped off and packages took 2 or 3 months to arrive. Even birthday cards to our many relatives there have to be mailed several weeks early.

 

I hate not to have to sell there any more, but there really is no choice.

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Re: How Brexit has destroyed online sales to the UK from Canada in 6 months flat - my story

I replied to another comment of yours by saying that it was well said.  Now I read this comment of yours and I have to again say ... "well said".   I too just recently have had enough of it (the overseas shipping and tax issues) and revised all of my 350 listings to no longer permit shipping beyond North America.  It's simply not worth the hassle.  The little bit of profit margin is not even close to worth the grief and possible financial loss from Item not received claims and just the overall angst of hoping the transaction / shipping / taxation  all goes as it should.   Simply not worth it.

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