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EU sellers set to shun Brexit Britain, says Parcelhero

[ December 8, 2020   //   ]

The need for customs clearance next year will mean that many EU traders will stop selling direct to UK shoppers, while the cost of EU-UK deliveries is likely to rise – irrespective of whether there is a trade deal, says head of consumer research at wholesaler, ParcelHero, David Jinks.

Brits should make the most of EU bargains this Christmas, he urges. “The UK is going to be a considerably less attractive and competitive market for European sellers by next Christmas. EU traders will face new paperwork, delays and complicated tax arrangements when selling directly to British companies.”

He says that the ParcelHero price comparison site shows the cheapest pick-up economy service to Italy will ship a 10kg package for just £20.85. However, the cost of sending the same parcel to non-EU Switzerland, which is broadly the same distance but outside the EU, is £37.01, a difference of over £16.

Shipping a 10kg package from the UK to EU-member Sweden costs just £19.52 using an economy service. Shipping it to neighbouring non-EU Norway costs £35.84.

Jinks argues: “Delivery companies are not exactly fighting each other to serve non-EU countries because of the complexities of border controls, including customs declarations. This means that there is little of the fierce competition between couriers that serve the EU market. Just like Switzerland and Norway, Britain will soon be out of the EU and that will impact on the competitiveness of delivery costs to the UK.”

From 18 December, Amazon’s Pan-European programme will no longer include the UK. From that date, EU retailers who want to continue selling to Great Britain will have to pay to get their items shipped to Amazon’s UK warehouses at their own cost. Previously, Amazon covered this.

He adds: “Even if the EU and UK strike a last-minute deal and British goods aren’t hit with new duties when entering the EU, UK exporters are potentially looking at increased courier charges to compensate for delays at the EU borders. Likewise, UK-based Amazon sellers will also have to pay to transport items into EU warehouses and sign up to complicated new tax arrangements.”

ParcelHero also believes that delivery times to and from the EU will increase later this month as more senders try to avoid Brexit chaos by sending goods as early as possible.