Has Brexit affected your business yet ?

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Nottingham United Kingdom
Bigian13
Kudos: 2,245
Joined: Feb 21, 2014
Has Brexit affected your business yet ?
29 Jun 2016
All of my UK based clients are being affected by the referendum results both in good and bad ways.

Most of the importers (who purchased in the stable and accepted USD) are now increasing their prices by 10% to take into account the fall in the dollar exchange rate

Smaller sellers are getting this increase passed onto them virtually straight away due to their low stock holdings or use of dropshipping, and are therefore increasing their selling prices.

Bigger sellers that have a larger stock holding (at the old price) are currently reaping the benefits of not only a better exchange rate making their international sales better value for money for the buyer, but being able to increase their prices locally due to the smaller sellers having to increase theirs. Once these bigger sellers start having to pay the 'new price' we shall see what happens.

What I do know is that two prominent sellers who were on both eBay and Amazon have already gone out of business.

The question for sellers is, does Brexit hurt you ?
E-commerce , love it or hate it, that's why we are here
Midlothian, VA United States
Jax Music Supply
Kudos: 2,361
Joined: May 25, 2009
Re: Has Brexit affected your business yet ?
30 Jun 2016
@Bigian13 Surprisingly for me, not much. You figure my prices are a bit more expensive (my prices are based on dollars) but I haven't noticed much change
Dhaka,Bangladesh Bangladesh
elena31
Kudos: 33
Joined: May 12, 2016
Re: Has Brexit affected your business yet ?
1 Jul 2016
@Bigian13 Its true that Brexit has affected the business in many ways. And yes its true that people are involving in increasing the price of their products as well as services.
United Kingdom United Kingdom
rocmah
Kudos: 31
Joined: Apr 24, 2004
Re: Has Brexit affected your business yet ?
5 Jul 2016
Oh, yes. I've had to pay two bills in US$ and both were 10% higher.
I'm getting the exact same service, the supplier is receiving the exact same amount, but I'm paying 10% more.
United States United States
ScarfKing
Kudos: 333
Joined: Oct 7, 2014
Uncertainty
5 Jul 2016
Yes, it has created uncertainty for us. We anticipated this problem by getting VAT registration in Germany, which will enable us to keep selling to the EU, but we are now unsure what part of our inventory to send to Germany and what part to send to the UK. Previously, we could just warehouse it all in the UK, which was much simpler.

Like everyone, we are unsure of the time frame for the UK to be kicked out of the common market. Is this going to happen in the next six months? Two years? Will there be some sort of stalling maneuver by Britain to quietly avoid the results of this plebiscite? Who knows?
United Kingdom United Kingdom
rocmah
Kudos: 31
Joined: Apr 24, 2004
Re: Has Brexit affected your business yet ?
5 Jul 2016
@ScarfKing As I understand it, the process will take a maximum of 2 years from when it starts for Britian to leave the EU.
The process won't start until Britain envokes article 50 and we are not likely to start that soon as the ruling Conservative Party has to pick a new leader (who will become Prime Minister).
Uncertainty will be around for several years.
United States United States
ScarfKing
Kudos: 333
Joined: Oct 7, 2014
Re: Has Brexit affected your business yet ?
5 Jul 2016
@rocmah

Thanks. I was aware of those things, but I thought the EU wanted to act quickly to send a message to the UK. It sounds like I'll have another couple of years of fulfillment from the UK to the EU.

I will not comment on UK politics, but it sure looks interesting over there!
alongtimepoweruser
Kudos: 298
Joined: Dec 10, 2011
Re: Has Brexit affected your business yet ?
6 Jul 2016
We're a non-UK company, with sales and various vendors and consultants in the UK. Our company has suspended any new ventures with UK based companies and is reviewing existing ones in favour of EU based companies.

UK based companies face economic and social dislocation and there is no guarantee of their survival or that they'll be able to deliver an acceptable level of service in future. We will wait until the UK's place in the common market is assured and whether the UK will break apart before seeking any new UK partners.

Some of our staff have expressed shock at the UK's decision to leave and the recent increase in racist attacks.

We continue to sell in the UK, but sales have slumped in the last two weeks owing to the fall in the pound, we expect this to get worse and foresee capital flight as well as businesses relocating to the EU once article 50 has been enacted.
Nottingham United Kingdom
Bigian13
Kudos: 2,245
Joined: Feb 21, 2014
Re: Has Brexit affected your business yet ?
7 Jul 2016
@rocmah

I assume that given time you will have to pass on this additional cost to your customers ?

Will this affect your business ?
E-commerce , love it or hate it, that's why we are here
United Kingdom United Kingdom
rocmah
Kudos: 31
Joined: Apr 24, 2004
Re: Has Brexit affected your business yet ?
7 Jul 2016
@Bigian13

Well over half of the items we sell come from the USA, either directly or indirectly. Prices of these items will certainly increase and so that will affect my business.

We are a very small business here, only 4 staff including me, and one person left last week so I won't look at replacing him for the foreseeable future.

On the plus side, exports are currently up as we are now cheaper to our overseas customers, but I expect this to be short lived as price increases on new stock filters through.

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