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BizReport : Ecommerce archives : August 24, 2016

UK: Post-Brexit sees rise in overseas online orders

In the wake of Brexit, and perhaps because of its effect on the exchange rate, more than a quarter of orders placed with online retailers in the UK were from overseas customers.

by Helen Leggatt

According to the IMRG MetaPack UK Delivery Index, 26.7%, or 26 million, of the total of 98 million orders dispatched during July went to international destinations. It is the highest percentage since IMRG began recording data in 2011. The usual percentage of cross-border sales is 23%.

More than half of those international deliveries went to the EU (55%), up 35% on the same time last year.

July represents the first full month of data since the EU referendum result on 23 June and since then the value of sterling has fallen sharply against the euro and dollar, making products on UK retail sites attractive to foreign shoppers in Europe and the US.

"While it's hardly surprising that cross-border volumes have risen since the Brexit vote, the question is whether this upturn in orders will be temporary or sustained over a longer period," said Andrew Starkey, head of e-logistics at IMRG.

"As the July average order value has risen on June, we might surmise that shoppers initially used the opportunity to snap up a bargain or two, but are now realizing that the deals are very attractive and are loading up their baskets with more goods each visit. While this upturn is good news in a way, clearly there will be pressure on margins due to all products being discounted for cross-border shoppers, in effect."

Tags: Brexit, ecommerce, Europe, online shopping, UK

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