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Ecommerce In The Netherlands: Time To Expand?
The Netherlands is an interesting place when it comes to ecommerce. On the one hand, the country has been thought for a long time to be a place which favours buying from domestic sellers. On the other, it is well known that ecommerce in the Netherlands is considered to be one of the fastest-growing and most exciting markets in the world. Whilst the purchasing decisions of the Dutch population has put UK sellers expanding to the Netherlands in the past, this trend seems to be changing as the Dutch become more open to cross-border ecommerce. There has never been a better time to register for VAT in the Netherlands.
Dutch Ecommerce Grew 24% In 2021
Once again, last year saw ecommerce in the Netherlands enjoy yet another year of growth. Dutch online turnover grew by almost 25%, which is staggering when you consider that 2020 was the year of ecommerce because of the effects of the pandemic. Due to the lockdowns, many brick-and-mortar stores had to close for several months in 2021. Dutch consumers placed more purchases online, which is evident in the lower turnover growth of brick-and-mortar stores.
What is slightly strange was that Dutch ecommerce only saw a 2% growth in December. This is surprising since ecommerce normally flourishes in December as people buy gifts for the holiday season. This could possibly have wider implications than just merely the Netherlands. Perhaps consumers are finally beginning to spread their holiday shopping out across the year.
Most Sellers On Amazon.NL International
Part of the reason for the Netherlands’ ecommerce growth is the fact that international sellers are gradually making their way into the Dutch ecommerce market. This is most evident when looking at the Dutch version of Amazon, where Dutch sellers are actually in the minority. Dutch sellers make up 2% of the sellers on Amazon, whereas most sellers on the platform are from China (59.5%), followed by Germany (11%) and the UK (5.8%). There are also sellers from Italy (4.4%), Spain (3.2%) and France (2.6%).
Another interesting fact is that these Dutch sellers tend to use their own logistics rather than Amazon FBA. This means that the FBA service in the Netherlands is far from crowded. Whilst Amazon is not entirely dominant in the Netherlands yet, you would not bet against them being the dominant ecommerce platform in the next few years. Sellers would be wise to become established on the platform before the market becomes too crowded.
Have Any More Questions Regarding Amazon Netherlands Or Dutch Ecommerce?
If you are wondering how to get registered for VAT in the Netherlands or how you can set up on the Dutch version of Amazon, don’t worry as this will be the focus of our next article later this week.
If you are new to Amazon seller central, or indeed in case you have any questions about selling via Amazon Netherlands, please do not hesitate to get in touch – we work with Amazon sellers across the globe and can assist you with any queries you have. Please give us a call today on 0161 637 1080 to speak to one of our advisors. Alternatively, you can write us an email to enquiries@jpaccountant.com.
What You Need To Do For The Plastic Packaging Tax
As you may remember from earlier this month, we released an article reminding you about the upcoming UK Plastic Packaging Tax that will be introduced from April 2022. This is a tax that all those involved in supply chains should be aware of as it will affect anyone who imports using plastic packaging. We’d like to think our previous article gave a pretty clear explanation of what the plastic tax is, but we realized that we didn’t necessarily give you advice on what to do to prepare for the tax. This article will hopefully rectify this.
What Is The UK Plastic Packaging Tax?
The UK Plastic Packaging Tax will come into force on 1 April 2022. The new tax will apply to plastic packaging manufactured in or imported into the UK that does not contain at least 30% recycled plastic. Please be aware that this percentage refers to weight rather than surface area, and also applies to all plastic packaging that is imported into the UK, whether it is filled or not.
Those who may be affected should also be aware that this tax will apply to anyone who has imported over 10 tonnes of plastic packaging in the last 12 months, or expects to do so within the next 30 days. Please also note that the tax rate is set to be £200 per ton of plastic packaging.
What Do You Need To Do About The Plastic Packaging Tax?
The first thing you will need to do if you think there’s a chance you will be affected by the tax is to research the new tax. There is a chance that this will incur an initial cost if you seek professional advice, especially if you have to train yourself and/or your staff on complying with the tax. Even if you are a company who is no longer liable to pay the Plastic Packaging Tax, you will have to keep records in order to prove that you are not in scope of the tax.
In addition to these costs, there is of course the unavoidable cost of tax filing and the payment of the tax itself. In these cases, it is best to employ the services of tax experts, such as ourselves at J&P, to guide and you assist you through the process. You should also be aware that you could have joint or secondary liability for your suppliers if they do not comply to the tax so checking on your supply chain partners would also be wise.
Failure to comply with the Plastic Packaging Tax will incur an initial fixed penalty of £500, followed by a daily charge of £40. This will chargeable for failure to register and failure to submit acceptable returns.
The Imminent Plastic Tax Makes Sustainability Even More Urgent Than Ever
The Plastic Packaging Tax will surely act as an extra incentive for UK merchants to reduce their use on non-recycled plastic. Find out more about the incoming plastic tax by following the link to our previous article.
Should you require any assistance, don’t forget that our long history of working with ecommerce sellers, especially those who use Amazon and eBay, means we offer expert advice when it comes to your processes.
Please do not hesitate to send us an e-mail at enquiries@jpaccountant.com or contact us through social media to receive a quote today for our support with all your tax needs or logistic support. In addition to our logistic and ecommerce services, we would be more than happy to help you register for UK & EU VAT and file your UK & EU VAT returns, and help you comply with VAT in case your account faces any issues.
Shopify Has Grown By Over 200% In Last 24 Months
As you may have noticed, many of our recent articles have focused on the healthy nature of ecommerce at present. As if you needed more evidence, recent research has shown that amount of Shopify stores worldwide grew by 200% over the course of the pandemic, as entrepreneurs looked to capitalize on the needs of consumers as brick-and-mortar stores were forced to close. As Shopify is one of the leading ecommerce website platforms, it is no surprise that fledgling business owners flocked to the platform.
What Is Shopify?
Shopify is a platform used to create websites, much like WordPress or Wix. However, the thing that sets Shopify apart is the fact that it has been specifically designed to support ecommerce sites. This means that uploading products to a site is relatively straightforward and the site comes ready-made with tracking and analytics capabilities.
Thus it is no wonder that the popularity of the platform has shot up over the last 24 months. The platform has attracted over 2 million new businesses over the last 2 years, with most of the stores sprouting up in the US and the UK. However, the country which has seen the most growth is Germany, where there has been an increase of over 400%. This is indicative of Shopify’s global appeal.
Who Is Opening Online Stores On Shopify?
For the most part it is small businesses that are opening up on Shopify. These sites are typically made up of Amazon sellers or new business owners. In terms of where these users are from, there is perhaps no surprise that the US has the most amount of Shopify users by a distance. There are over 2.5 million Shopify stores based in the US. This dwarves the UK, the second highest country, who have just under 160,000 Shopify stores.
Platforms such as Shopify are best suited to these smaller ecommerce sellers. In order to compete with bigger competitors in the market, these sellers must be willing to focus on customer satisfaction by placing an emphasis on key factors such as deliveries and returns. Shopify is a great place to begin for these sellers since a user-friendly website can go a long way in securing a customer.
How To Get Started On Shopify
It is pretty simple to get started on Shopify. Whilst we won’t provide a full guide here, there are some useful tips you should know. Before signing up for the service and creating a new site, you should make sure that you add your entire inventory to the online store and identify your most successful products ahead of launch, so you can make special pages for these key products.
You should also have all your shipping settings in order and tax settings. Shopify stores can be easily translated into other languages, meaning you can sell to customers across the globe. However, this obviously requires your tax obligations to be completed beforehand. As experts in VAT registration for ecommerce sellers who are looking to expand their business, this is the part of the process that we would be more than happy to assist with.
We Can Help You Expand Your Business
If you are a business who participates in cross border e-commerce, or importing of any kind, we would be more than happy to help you register for an EU and UK EORI number. We can also help you register for UK VAT, the UK VAT deferral scheme, file your UK and EU VAT returns, and help you comply with VAT in case your account faces any issues.
At J&P, helping your business is our passion, and we understand that companies across the UK are at risk now more than ever. We are here to support you through this post-Brexit period, so please do not hesitate to give us a call on 0161 637 1080 or send an e-mail to enquiries@jpaccountant.com.
Amazon Introduce New Buy-Now-Pay-Later Option
Any seasoned ecommerce seller will know the importance of payment options. In many cases, the payment options offered by a seller can be the difference between securing a sale or losing a customer. Amazon are obviously aware of this and have therefore teamed up with Barclays to offer their consumers a Buy-Now-Pay-Later payment option called ‘Instalments’. So let’s take a look at the new Buy-Now-Pay-Later option offered by Amazon and discuss how it could benefit you and your business.
Buy-Now-Pay-Later The Latest Craze In Ecommerce
The popularity of Buy-Now-Pay-Later (BNPL) payment options has sky-rocketed in recent times. The driving factor of this is the fact that these payment options allow consumers to get products quickly rather than having to save up beforehand. This also allows consumers to budget during busy shopping periods, such as the festive season. Many British consumers claimed that they would not have been able to afford all of their festive shopping without BNPL payment options.
Klarna has been the main service provider. The Swedish start-up is now one of the most popular payment options around the world, and its popularity is only growing. This form of payment option will continue to increase in popularity and has already proven to be extremely successful in Europe. For more information on these payment options you can check out our article on Buy-Now-Pay-Later payment options.
Amazon & Barclays New Buy-Now-Pay-Later Payment Option
As stated earlier, the new BNPL payment option from Amazon and Barclays is called ‘instalments’ and is now available to consumers in the UK. This option was previously available in Germany, and the popularity of the feature has convince Amazon to offer the option more widely. Whilst users will be able to use the option to pay for many third-party products on the site, they will not be able to use it for groceries or digital products.
Interestingly, the payment option will charge an annual interest of 10%. This interest will only apply over the payment period, but it is still a slight disappointment, since other providers of the service, such as Klarna, do not charge any interest. Amazon sellers will be able to use the service so long as they remain within their credit limit and monthly payment limit. Amazon will determine this limit by asking users for their income and employment status.
Be Careful Of Debt When Using Buy-Now-Pay-Later Services
As much as the requirement to submit personal income information may seem cumbersome, it is likely more sensible. It has been well documented at this point that there has been growing debt in consumers as a result of the BNPL payment options. It is thought that UK ecommerce consumers have already accumulated over 4 billion euros worth of debt from using the service.
Conclusion – We Specialise In Supporting Amazon Sellers
As usual, we would like to take this opportunity to remind you that our long history of working with Amazon and eBay sellers means we can offer you expert advice. As a trusted member of the Amazon Service Network, we can act as a third-party service provider for the Amazon VAT service.
As well as helping with your Fulfilment, we would be more than happy to help you register for the OSS and help you with all your VAT compliance needs in case your account faces any issues. So please do not hesitate to give us a call on 0161 637 1080 or send an e-mail to enquiries@jpaccountant.com for a quote today.
Ecommerce Businesses Prospered In 2021
2021 was an extremely strange year for small and medium sized ecommerce businesses. Whilst businesses undoubtedly faced many challenges with cyber fraud and marketing fatigue on the rise, not to mention the lingering effects of the pandemic, figures have shown that 92% online traders enjoyed a growth in sales in 2021. Indeed, over 20% saw a surge of more than 40%. Let’s take a look at why.
The Issues That Ecommerce Businesses Faced In 2021
Of course, the most obvious issues that ecommerce businesses have faced are as a result of the pandemic. Shipping delays are probably the biggest concern for most ecommerce providers at the moment, as ports across the globe still experience delays. This has a knock on affect for the entire supply chain as couriers struggle to keep up with increased demand. Obviously, Brexit will not have helped this situation.
However, the other issues faced by these businesses are perhaps a little less obvious. 35% of businesses are reportedly most concerned by cyber fraud. As more and more transactions are taking place online, there is obviously more scope for fraudsters to go unnoticed. In addition, many ecommerce business owners have expressed concerns that consumers may be getting inundated with marketing messages. This has caused concerns that some marketing channels, such as mailing lists, are becoming less effective.
The Positives That Ecommerce Businesses Enjoyed In 2021
Despite all the issues facing ecommerce businesses in 2021, the industry still was able to prosper. Almost a third of ecommerce businesses are thought to have experienced a 40% growth in sales, with up to 90% of online SMBs thought to have had an increase of 10%. Whilst there are still lingering effects of the pandemic, the increased stability in the financial position of many consumers over the last year has meant that consumers are feeling more confident to purchase again.
Furthermore, since 2020 the shrewdest of ecommerce business owners have invested heavily in their websites to ensure that they are able to deal with the increase demand. This spending seems to have grown, with surveys showing that 85% of online retailers invested more in their online technology in 2021 than they did in 2020. This, coupled with the reduction in random spikes of ecommerce, has meant that the industry has flourished.
What The Experts Say
“The past year has been an exciting and complicated time for eCommerce”, said Jimmy Kim, CEO of Sendlane in an interview with ‘ecommerce news EU’. “Certainly the pandemic has accelerated the shift to online shopping, but consumer buying habits were moving in this direction well before Covid, too.
What really stands out about our 2021 eCommerce Health study is that 53 percent of respondents believe the state of ecommerce is ‘strong,’ and 39 percent believe it is ‘very strong.’ This tells me that despite the concerns related to the economy, shipping issues, cyber fraud, etc., ecommerce retailers are in a great position to succeed in 2022.”
We Can Help You Expand Your Business
If you are a business who participates in cross border e-commerce, or importing of any kind, we would be more than happy to help you register for an EU and UK EORI number. We can also help you register for UK VAT, the UK VAT deferral scheme, file your UK and EU VAT returns, and help you comply with VAT in case your account faces any issues.
At J&P, helping your business is our passion, and we understand that companies across the UK are at risk now more than ever. We are here to support you through this post-Brexit period, so please do not hesitate to give us a call on 0161 637 1080 or send an e-mail to enquiries@jpaccountant.com.
It’s Time To Invest In Cross-Border Trade: Here’s Why
Even before the pandemic, ecommerce was on the rise. The dependence of consumers of non-physical shopping has obviously accelerated this trend, but what is not clear is why international cross-border trade has seemed to rise simultaneously. The most obvious reason would seem to be that desired items are not available in the residing country of the consumer. However, there are other factors, which is what our article today will be focusing on. If you are an ecommerce seller who is considering expanding your business into foreign markets, hopefully this article will help you with your decision.
What Is Cross-Border Trade?
Simply put, cross-border trade is when a purchase is made from abroad and then shipped over to the consumers’ residing country. This is obviously a complicated process which involves a number of logistical factors and, in many cases, different parties completing different tasks within the trade. For example, a consumer may buy a product via an online marketplace from a seller abroad, who then will employ the services of a logistics firm to deliver the purchased product.
There are many factors for an ecommerce seller to consider before participating in cross-border trade. For example, what are the tax implications of selling your products in another country? At what point do you have to pay customs duties? Whilst these questions can seem daunting, don’t forget that we are extremely experienced when it comes to supporting ecommerce sellers and can offer you expert advice. Get in touch with us today for a free consultation.
Why Is Cross-Border Trade Become So Popular?
So, to the crux of the matter. As stated in the introduction, one of the main reasons that cross-border trade is on the rise is the increased availability of options that are available to consumers. Since the improvements in supply chains and online marketplaces, it has never been easier to receive products and deliveries from abroad. However, there are other factors.
One such factor is the fact that products from abroad can usually be cheaper. This is surprising, when you consider how much logistical mileage is needed. Another factor is novelty. In many cases, consumers can want a variety of options, regardless of whether those options are better. This is especially true of decorative or luxury items. If you are an ecommerce seller, it is definitely worth doing some research into other countries to find out if there is anywhere else that would be specifically interested in your products.
We Can Help You Expand Your Business
If you are a business who participates in cross border e-commerce, or importing of any kind, we would be more than happy to help you register for an EU and UK EORI number. We can also help you register for UK VAT, the UK VAT deferral scheme, file your UK and EU VAT returns, and help you comply with VAT in case your account faces any issues.
At J&P, helping your business is our passion, and we understand that companies across the UK are at risk now more than ever. We are here to support you through this post-Brexit period, so please do not hesitate to give us a call on 0161 637 1080 or send an e-mail to enquiries@jpaccountant.com.
