What will happen to the European EC market after the UK leaves the EU?
Posted: Wed Feb 19, 2025 5:00 am
What impact will the UK's withdrawal from the EU have on the EC market? We have picked up an interview with Paul Edwick, CEO of Lucy Locket, a company that sells children's toys online and is a member of the European EC Association. He explains how his business will be affected by the UK's withdrawal, its impact on the European market, and how to respond to it.
●What impact will Brexit have on the e-commerce market?
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According to a 2016 survey of the European B2C argentina whatsapp data market conducted by EC Europe and the EC Foundation, the UK topped the European market with 34.5%, followed by France with 14.3% and Germany with 13.1%. The UK, said to be the most advanced EC country in Europe, topped the list with a total of approximately 18 trillion yen, and the average annual purchase amount per person was 3,625 euros, or approximately 400,000 yen.
Furthermore, currently, 45% of exports from the UK are to the EU, meaning that approximately half are exported to the EU. In the EU, online shopping on cross-border sites is expanding rapidly, so it is thought that the UK market will be significantly affected by its withdrawal from the EU.
For example, his company's transactions with EU countries account for 50% of the total, and currently, transactions are tax-free within the EU, but the tax rate will change after Brexit, and the form of transactions will likely change accordingly. In fact, in preparation for this, many Indian companies in the UK have begun to relocate to the Netherlands and other EU countries.
However, the UK is working to keep these local subsidiaries by lowering corporate tax to 15%.
At present, it is unclear how tax systems and regulations will be changed, but if things continue as they are, market prices in the UK will naturally rise, which could cause a crisis in the market. A decline in trade between the UK and the EU is likely to pose a significant risk to the European economy.
Edwick, on the other hand, seems to think that this will be a catalyst for the development of his business. The pound has already fallen sharply in response to the news of the UK's departure, and there are rumors that a further economic shock will occur, but in his business, he mainly purchases products from the United States, and if the pound rises, he can reduce the unit price, so he can offer products cheaper than his competitors in other European countries, and there is a possibility of increased sales, so his business does not seem to be affected that much.
However, a temporary economic downturn is inevitable. This has already been communicated in the referendum and is expected, and it is likely to have a major impact not only on the UK but on the entire EU. Furthermore, he says that the cross-border e-commerce business will be the one that is most affected.
●What impact will Brexit have on the e-commerce market?
Chart
According to a 2016 survey of the European B2C argentina whatsapp data market conducted by EC Europe and the EC Foundation, the UK topped the European market with 34.5%, followed by France with 14.3% and Germany with 13.1%. The UK, said to be the most advanced EC country in Europe, topped the list with a total of approximately 18 trillion yen, and the average annual purchase amount per person was 3,625 euros, or approximately 400,000 yen.
Furthermore, currently, 45% of exports from the UK are to the EU, meaning that approximately half are exported to the EU. In the EU, online shopping on cross-border sites is expanding rapidly, so it is thought that the UK market will be significantly affected by its withdrawal from the EU.
For example, his company's transactions with EU countries account for 50% of the total, and currently, transactions are tax-free within the EU, but the tax rate will change after Brexit, and the form of transactions will likely change accordingly. In fact, in preparation for this, many Indian companies in the UK have begun to relocate to the Netherlands and other EU countries.
However, the UK is working to keep these local subsidiaries by lowering corporate tax to 15%.
At present, it is unclear how tax systems and regulations will be changed, but if things continue as they are, market prices in the UK will naturally rise, which could cause a crisis in the market. A decline in trade between the UK and the EU is likely to pose a significant risk to the European economy.
Edwick, on the other hand, seems to think that this will be a catalyst for the development of his business. The pound has already fallen sharply in response to the news of the UK's departure, and there are rumors that a further economic shock will occur, but in his business, he mainly purchases products from the United States, and if the pound rises, he can reduce the unit price, so he can offer products cheaper than his competitors in other European countries, and there is a possibility of increased sales, so his business does not seem to be affected that much.
However, a temporary economic downturn is inevitable. This has already been communicated in the referendum and is expected, and it is likely to have a major impact not only on the UK but on the entire EU. Furthermore, he says that the cross-border e-commerce business will be the one that is most affected.