GFS launches trade tool ahead of Brexit
Written by Peter Walker
Global Freight Solutions (GFS) has launched a tool to help e-commerce brands navigate Brexit trade barriers.
As the Brexit deadline is extended, the enterprise carrier management firm pointed out that UK retailers should still prepare for a hard Brexit.
GFS’ new Duties & Taxes Calculator claims to bring clarity to international online delivery tariffs for consumers by estimating the full landed cost of delivery anywhere in the world.
According to recent UK retailer data from Tamebay, 76 per cent of UK retailers expect to increase international revenue over the next few years, but 52 per cent also said ‘calculating duties and taxes’ was one of the top three barriers to international growth.
A large portion of the UK’s exports are international, with around a quarter of all UK dispatched orders currently sent to non-UK consumers, according to IMRG.
Retailers can choose to present delivery costs as Deliver Duty Paid (DDP), with all taxes and duties included, or Deliver Duty Unpaid (DDU), with an estimate of the cost to be paid by the customer upon delivery. Additionally, customers can decide for themselves whether they want to pay for Duties & Taxes at the checkout, or when their order is delivered.
GFS noted that this means consumers can buy with confidence without the fear of unexpected fees and charges – reducing cart abandonment and returns.
Chief executive Neil Cotty commented that Brexit is forcing UK online retailers to deal with the logistical challenges of cross-border selling. “The prospect of a no deal Brexit is really forcing the retail to face up to the underlying issue in the e-commerce industry, which is that as Brits we export much less via ecommerce than we import.
“Duties and taxes are big constraints for retailers in a post-Brexit world, unless retailers have the ability to be transparent and offer choice to consumers, so, if you’re a UK retailer with plans to sell within the EU, you need to face up to that,” he added.