The US is the most important retail e-commerce market for British retailers, according to a new report by cross-border e-commerce specialist, Global-e. After surveying 250 retail decision-makers in the UK, 59 per cent said they consider the US as the number one market for them. The funny thing is – less than half (44 per cent) are currently selling to shoppers across the pond, and just 13 per cent are planning to do so.
Global-e says there are a couple of reasons why the US is so popular. First – it is one of the largest, and most sophisticated e-commerce markets in the world. Then, there’s this new bill handling taxes, which made it ‘considerably’ cheaper and in most cases tax-free, for US shoppers to buy things from foreign merchants online. And finally, Brexit has weakened the pound, and the dollar is performing very well against other currencies.
“Now is an opportune time for British retailers to do business in the United States. US consumers’ appetite for cross-border shopping is growing rapidly,” said Nir Debbi CMO and co-founder of Global-e.
“Following the new rules, they can now buy more for the same price from abroad which is great news for foreign retailers selling into the US. Particularly for British retailers, where post-Brexit shock has caused the American dollar to surge against the British pound.” The biggest problem seems to be that UK retailers aren’t localising their offering, making their job somewhat harder to accomplish.
They said they had difficulties with shipping and customs, laws and regulations, shipping options, taxes and duties, local returns and local currency.
Image source: Shutterstock/Maxx-Studio