Brexit’s Peak impact

Brexit’s Peak impact

Electio’s Commercial Director Andrew Hill looks at how Brexit could impact Peak 2016 for retailers. There’s plenty in the headlines to capture our attention on the Brexit debate, but what about its potential impact on the most important time of the year for retailers: Peak 2016?

“Don’t drop your guard for Peak 2016 amid the uncertainty about Brexit,” is Electio’s advice.

Here are three reasons why retailers need to find a way to plan for the unknown and what they can do right now to prepare.

1) Brexit and an unprecedented Black Friday period  

UK 2016 ecommerce sales are levelling following growth earlier in the year, as consumers evaluate their financial position. Combine this with the fact that the Black Friday/Christmas discounting period is increasingly part of the UK shopping psyche, and you can see why retailers need to brace themselves.

There is a possibility that customers could hold off making purchases for the next few months, adding higher value and gift items to wish-lists, only to jump on the “buy” button as soon as items are discounted in the run up to Christmas.

Even more so than during Peak 2015, retailers need to communicate with their carriers about current fluctuations in volume. This will help them prepare for the potential of an unprecedented rise in orders during peak period 2016 if consumers do continue to be more cautious in the short term following Brexit. The Electio report on Black Friday 2015 is a useful resource for retailers looking to learn from past experiences.

2) Cross border sales and the falling pound

The drop in sterling also means that our goods are cheaper overseas which could bring new opportunities. Retailers should ensure they’re doing everything they can to take advantage of this opportunity while it lasts. We all know that payment, language and shipping options influence cross border online sales so it’s important to make sure all of these aspects are right. And if overseas orders go up, retailers need to check they’re transporting the increase in goods as economically as possible.

The Electio free guides on international sales outlines in more detail how to manage cross border sales to help you maximise on these opportunities.

3) Rise in fuel costs and matching delivery expectations

As a nation we import fuel, so a fall in the pound also means that we may need to pay more to transport goods. Retailers should be talking to carriers to find the best way to remain competitive, in profit and popular with customers at the same time.

Occurrences such as half empty lorries can make the problem worse and lead to extra charges from carriers so should be avoided as much as possible. Equally, retailers should check they aren’t unnecessarily offering expensive next day delivery to customers who would wait a week for a cheaper deal.

Retailers wanting further information about fluctuations on the horizon should read Electio’s most recent study entitled ‘Drilling Down: Oil prices and the economy’ which covers global economy influences on ecommerce transportation and fuel costs. The report also gives you a step-by-step guide to understanding how your delivery costs are calculated and how you could future-proof your business in uncertain times.

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