After the UK officially withdrew from the EU value-added tax system, shoppers in EU countries would have to pay high taxes and fees after purchasing goods online from the UK. Many shoppers chose to refuse to sign for it.
According to statistics, about 30% of online shopping products are returned to the UK. Simultaneously, the rising cost of returns has also made many UK merchants reluctant to accept returns from EU countries. A British shoe store with a century-old said that before EU customers only had to pay 150 pounds, now they have to pay nearly 250 pounds. The high cost has made them consider abandoning the EU market.
It is understood that due to changes in value-added tax and tariffs after Brexit, parcels from the UK to the EU have plummeted by nearly 90%. Many merchants have suspended overseas shipments, holding a wait-and-see attitude.
One-third of products from the UK that EU customers buy online will eventually be returned. After Brexit, distributors need to fill out tax returns and pay import duties when accepting returns from the EU.
For many apparel distributors, the cost of abandoning goods or burning them may be lower than accepting returns. To solve this problem, many British clothing distributors have established warehouses in Belgium, Ireland and Germany for shipping and accepting returns within the EU. The British government will also provide 80 million pounds of funds to support British companies in entrusting professionals to complete import and export declarations.
If German consumers purchase goods from the UK online, they will be regarded as importers, and they will be required to pay corresponding tariffs when receiving express parcels. Up to now, many EU consumers have therefore refused to accept packages from the UK. Consumers in the UK have also encountered the same problem. According to British media reports, a British consumer paid up to £121 in taxes and other clothing fees shipped from Norway worth £236.