Electronic commerce is now very much present in the UK and has experienced massive growth over the past year. It also offers many opportunities for companies that sell online. Only some challenges come into play. E-merchants who have developed part of their business in the United Kingdom are now faced with new problems and must adapt.
Brexit, which has led to complications in terms of customs (e-merchants must now pay customs fees as they already do with all countries outside the European Union) and delivery times for companies (lengthened due to customs controls). Well prepared, e-commerce companies will meet these challenges and be stronger.
Some of them are taking advantage of this situation to invest more in this new mode of consumption. For example, Scurri, an Irish e-commerce and delivery software start-up, raised €9 million for a stronger stake in the UK market.
It develops software for e-commerce gaming companies to manage and optimize their packaging, shipping and delivery of goods. This includes tracking shipments and analysing data collected throughout the process.
For its executive director, Rory O’Connor, the UK is one of the most sophisticated e-commerce markets in the world with a lot of complexity but a lot of potential. While it already generates 70% of its turnover in the United Kingdom, it makes it want to develop more in this market.
Another British investor, Gresham House Ventures, in growth shares, led the investment with the participation of Pa Nolan, a former director of the financial services company Fexco, and a number of family offices. Its total funding to date is €15.3 million.
Here are some good reasons to invest in e-commerce:
The image perceived by the population and conveyed by the media is particularly beneficial for the actors of e-commerce. Consumers perceive positive values such as: good plans, reliability, quality of service…
The costs of setting up and running an e-commerce shop are much lower than the costs of setting up a physical shop. Although the budget dedicated to the web continues to grow over time, it is still much lower than that of traditional shops.
For companies that want to market their products to a young clientele, opening an e-commerce store is a suitable answer. The web is indeed the privileged communication channel of the younger generations who make the majority of their online purchases.
Read more at Forbes