How Can I Sell My Products To The UK Market?

First of all, why is the UK market important? I want to address this issue.

According to statistics, the UK was the fourth largest market for e-commerce with revenues of US$118 billion in 2021, placing the UK ahead of Germany and Japan. Being the 4th largest market makes the UK even more important.

A few items are the benefits of opening up to the UK Market;

1. In accordance with the e-commerce agreement with Turkey, you can bring your products to the UK market and sell them without paying customs duty.
2. It is the 4th largest market in e-commerce.
3. The UK e-commerce market increased by 12%, contributing to the worldwide growth rate of 29% in 2021.
4. In 2020, 87% of people in the UK have shopped online in the last 12 months, making it the highest online purchase penetration rate in the country in the last 11 years.

(These statistics are Statista data) If we look at the data above, the UK market is a very important market for e-commerce.

So, how can I export to the UK?

The fact that the UK currency is valuable and people want to earn income in foreign currency is one of the reasons why brands/people have recently increased their interest in the UK. Opening a company and selling products in the UK is not as difficult as you might think.

If you have a company in Turkey and you sell your products online, you can do this in the UK as well. First, you need to open a company in the UK. There is no investment cost/capital limit to open a company in the UK. By making an agreement with an accounting firm, you can open a company and sell your products in the UK at very affordable prices without any capital limit.

The first thing you need to do is; opening your company by contracting with an accounting firm. I recommend opening a limited company. After establishing your company, you need to make your virtual pos and cargo agreements. (I will explain topics such as virtual pos, and cargo agreements in detail in my next article) Then you can start selling your products on your website or through the marketplaces.

According to your industry, you should research your target audience in the UK and enter the appropriate marketplaces. You can access very detailed information about your target market on the Internet and research your target audience.

Should I Keep a Warehouse in the UK? Can I send products from Turkey for orders?

Of course, you can send it from Turkey. However, this will reflect on you as the shipping cost. My advice would be to keep a warehouse in the UK and have your orders shipped from your UK warehouse to the entire UK. If you cannot keep a warehouse in the UK, you can also negotiate with companies that provide Fulfilment services, and you can get rid of all these costs such as warehouse rental and personnel.

By agreeing with the logistics company, you can send your products to your warehouse in England or to the Fulfilment company you have agreed with. Generally, there are Logistics companies that provide Fulfilment services and work with or deal with.

You do not pay customs duty due to the e-commerce agreement between England and Turkey. However, you will be charged a VAT. The standard VAT rate in the UK is 20% on most products and services. Some products and services also have a discounted rate of 5%. For example; such as child car seats, and home power. The VAT rate on most food products and children’s clothing (not including some products) is 0%. The standard VAT rate was increased to 20% (from 17.5%) on January 4, 2011. (I will talk about customs agreements and taxes in more detail in my next articles).

Things to Know for E-Export to the UK

• In the UK, products such as textiles and sports are the top-selling product categories in online commerce. And this is followed by categories such as travel and household goods.
• More than 70% of shopping for textiles in the UK is done online.
• According to Statista 2022 data, the most popular payment method in the UK is PayPal with 49%, followed by credit/debit cards with 37%. For this reason, it is very important to establish a company in the UK because; To use PayPal, you must have a company in the UK.
• Cargo shipping fees in the UK vary according to the weight of your product and the courier company you will agree with. DPD, Royal Mail, and Hermes (Newly Evri) are the most used cargo companies.
• Customs duty exemption is available for e-export to the UK.

Finally, a tip:

Why should I export e-exports to countries such as Germany and England, not the USA?

If your marketing budget is not high, I can recommend you choose countries such as Germany and England to sell your products. Yes, America is a much better country in terms of selling products online. However, if your marketing budget is not high, it is very difficult to compete with other e-commerce companies in America. It is difficult for you to survive in a country where competition is so intense. Instead, it would be more beneficial for you to start in countries with less competition and potential, such as Germany and the UK.

If you want to get more information about opening to the UK market, Fulfilment, Customs, etc., you can contact us.

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See you in my next post!