Brexit and how it may affect my business

Brexit and how it may affect my business

Recently i was asked by an important wholesale customer based in Antwerp about how our relationship might be affected by Brexit. If there was anything she needed to do to prepare to do. From europe, the UK looks like it is a total shit show. I decided it might be a good idea to answer her as honestly as possible as well as do some research into exactly how our customer/supplier relationship might be affected over the coming months.

This is what i came up with.

  • potential price rise in the future due to increased manufacturing costs due to the weakening of the £

  • General financial market turmoil leading to more conservative approach to borrowing money.

  • Shipping costs will rise by about 30% and there will be more admin involved in shipping parcels to europe.

  • We may see slower parcel delivery times. As soon as the UK officially leaves the EU, every package that is sent to and from the UK will need to go through customs and pass a number of safety practices

  • European customers may have to pay vat - which is a tax of up to 20% of the sale.

  • As a result of complications regarding wholesale export, Goodordering may focus on direct sales in the UK, limiting wholesale in europe at least at the beginning.

  • Higher chance i will sell out of certain items and be low on stock due to being more conservative in this unpredictable environment.

  • I have already started to explore UK manufacturing which could result in a doubling of retail prices, but be a made in the UK product.

As we are a micro business, we don't have too many issues related to HR and staffing that may affect larger companies, however our biggest impact has been in the weakening of the pound against the USD. There have been some benefits too which include increased orders from europe as the euro increases in value against the pound, and the continued support of independent boutiques looking to stock independent brands like ours.

I'd love to hear from customers and other brands on the impact Brexit has had on your business. It would be great to compare notes!

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