News Hub
How To Make The Most Of Alibaba Single’s Day
As the avid readers of these articles will have noticed, we have written quite a lot about Black Friday recently. Black Friday is one of the biggest dates in the ecommerce calendar so we won’t apologise for that. However, what we will apologise for is making the same mistake that countless Western ecommerce sellers make every year – overlooking Alibaba’s Single’s Day. Single’s Day (or double 11 as it’s sometimes known) is probably the biggest sales day in the world. However, as the event is primarily focused on China-based consumers, many Western sellers fail to capitalize on the opportunity presented by Single’s Day. That’s why we’ve put together this quick guide on Single’s Day, so you can take advantage of the giant sales event.
What Is Single’s Day?
Single’s Day is an event held yearly in China by Alibaba. The day is thought of as a kind of ‘anti-Valentine’s day’ and was initially created as a way to celebrate single people. This is why the day is held on the 11th of November every year as the date, 11/11, is meant to represent 4 single people (FYI, this is why the event is sometimes known as Double 11).
It is actually staggering to think that many people in the West have never heard of the Single’s Day considering the amount of revenue generated from the sales event. In 2020, JD.com and Alibaba (the two biggest ecommerce platforms in China), enjoyed record sales, with combined sales surpassing $115 billion. Another awe-inspiring statistic is that 800 million consumers participated in the event. In short, Single’s Day truly dwarves Black Friday.
So Why don’t More Western Brands Get Involved?
Traditionally, this is because China is just a harder place to import products and Chinese consumers tended to prefer local brands. However, this is all changing. Many Western brands, such as Gucci and Prada, are beginning to showcase products in China for the event. Indeed, $5 billion of Alibaba’s sales were from US brands.
In addition to this, this year looks set to be the first time that Western-based retailers attempt to hold their own sales for the event to their domestic consumers. ASOS have already confirmed that they will be holding a sale for UK and other European consumers on the 11th of November. So of course, the question now is: How can you get involved?
How To Get Involved With Single’s Day As A Western Ecommerce Seller
First step, partner with the local ecommerce providers
This might seem counter-intuitive, but the harsh reality is that you will be unlikely to make Single’s Day worth it for your business without partnering with one of the major Chinese ecommerce platforms. These platforms are so dominant that is basically means that all consumers will be glued to their web pages.
Alibaba is the most logical choice. We understand that it may seem daunting to attempt to partner with a foreign ecommerce provider but don’t worry, that is why we wrote a guide on how to get started on Alibaba which should help you get started.
Be aware of supply chain issues
Supply chains all over the world are obviously experiencing issues, but perhaps none more so than routes between China and Europe. This is because there is still lingering delays as a result of the Suez Canal blockage from earlier in the year as an unwelcome addition to the delays caused from the pandemic and the subsequent surge in ecommerce.
Whilst this means that it would be very difficult to get a large portion of your inventory to China, those of you who import your inventory from China could definitely look into the possibility of rerouting your products directly to Chinese consumers rather than importing them here, only to export them back. This would also obviously reduce logistics fees considerably.
Finally, be aware of the cutting edge marketing techniques on showcase at Single’s Day
If you can sell products at the Single’s Day event, something you have to be aware of is the vast array of technological marketing techniques that are on show. Livestreaming in particular has become particularly popular with Chinese consumers. It is also not uncommon for brands to use interactive videos or Virtual Reality to advertise their products.
Whilst this can sound daunting, we would encourage you to look into alternative forms in advertisement. You can easily find firms that can help you, and hopefully the chance to get creative and innovative is an exciting one to some of you!
So How Can We Help With Single’s Day?
As you may know, we at J&P Accountants have branches in China and serve thousands of Chinese ecommerce sellers. The fact that our network spans across China and the UK means that we have a unique insight when it comes to helping Western consumers expanding their business into China. If you have any concerns about dealing with the upcoming holiday season, we at J&P have the qualifications and knowledge to help you plan ahead, so please do not hesitate to get in touch should you have any further questions about selling on online, or if you need any help with adapting your business. We can get you VAT registered across the EU and can file your returns. Essentially, we sort out your tax so you can deal with selling your products. You can contact us at enquiries@jpaccountant.com, on our social media, or give us a call on 0161 637 1080.
Our Top 5 Black Friday Tips For Ecommerce Sellers
Black Friday is almost upon us and, if you ecommerce sellers have taken our advice, you’ve already been preparing. If you haven’t, don’t worry. There’s still 4 weeks until the big day. With this in mind, we thought now was a good time to give you some last minute tips on things that you should definitely be considering before Black Friday. Here’s our top 5 things for ecommerce sellers to consider before Black Friday.
1）Prepare Your Black Friday Sales
This one seems painfully obvious, but you would be surprised how many sellers think that putting a 10% sale on all of their products is enough to ensure they maximize their profits on Black Friday. The sellers who will benefit the most are those who hand pick which products they wish to offer a deal on and use more creative sale techniques, such as offering 2 for 1 on items that might be bought as a gift.
In addition, sellers should consider how they are communicating these sales to their potential customers. If you have a mailing list of previous customers, it might be an idea to send out an email detailing which products are up for sale. Ebay sellers could also take advantage of the coded coupon feature. For more information on this, checkout our article on Ebay coded coupons.
2）Ensure You Meet Your Customers Delivery Expectations
If you are in the ecommerce industry you are no doubt aware of the issues that supply chains all over the world are facing. Research has shown that 57% of consumers are open to buying products from across borders this Black Friday, but almost all of them are concerned about receiving their purchases on time.
Due to the issues surrounding deliveries that all ecommerce sellers are facing, it is vital that you make sure you are planning ahead and are ensuring that all your supply chains are as robust as they can possibly be. As for Amazon sellers, you need to make sure that you are aware of all the upcoming changes to FBA. If you haven’t already, you should definitely read our article on the upcoming Amazon FBA changes that are coming into effect before Black Friday.
3）Use Product Recommendations
Another area that is sometimes neglected by ecommerce sellers is upselling. If a customer is buying a product from you, chances are they might be interested in something else you sell. Recommending more products for customers to buy from you is a great way to sell more, and it also reduces the chances of delays as you can put all the purchases in one package.
On top of this, you should consider offering package deals for your customers. Rather than selling each item individually, maybe if they bought a hamper of products you could offer a discount price? If you are going to go down this route, just ensure that all the items in the hamper are related.
4）Start Your Black Friday Sales As Soon As Possible
I know you’re probably bored of hearing this from us by now so we won’t dwell on it, but it really is worth mentioning. Major retailers such as Walmart have already confirmed that they’ll be starting their sales from Monday. Ecommerce sellers should consider doing the same in order to keep up with the big retailers.
5）Make Sure To Offer Diverse Payment Options
This is yet another issue that many ecommerce sellers fail to address. Almost 15% of consumers say that they have backed out of a purchase recently at the last step because the seller doesn’t offer their preferred payment option. As we’ve stated before, PayPal is a must, and ecommerce sellers need to recognize that buy-now-pay-later options are becoming more and more popular.
Another thing to consider with this point is the fact that consumers from different places have different payment preferences. UK consumers and those from the Netherlands tend to favor PayPal, whereas French consumers seem to like mobile payments and buy-now-pay-later options. Sellers should ensure that they are fully aware of their consumers’ preferences and offer them accordingly. It could be the difference between making a sale and losing a customer.
So How Can We Help You This Black Friday?
Whether it is expanding your business to another country or you just need supply chain support, we at J&P Accountants have been supporting ecommerce sellers for years and can offer you a range of services.
If you are a business who participates in cross border ecommerce, we would be more than happy to help you register for VAT, file your 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 the Coronavirus crisis and the busy festive period, so please do not hesitate to give us a call on 0161 637 1080 or send an e-mail to enquiries@jpaccountant.com.
The Most Important Points From The Autumn Budget
One of the standout quotes of Sunak’s budget announcement was “higher borrowing today means higher interest rates and higher taxes tomorrow”. This was no doubt a reference to the fact that the UK government has borrowed at a rate not seen since the Second World War in order to support the economy throughout the coronavirus pandemic. The issue that now faces the UK government is that they have to somehow find a way to support businesses through the backend of the pandemic, whilst also recouping some of the money that they borrowed without breaking their manifesto pledges of lowering taxes. Whether the Chancellor will succeed in this seemingly impossible task will remain to be seen. In the meantime, here’s our collection of the most interesting points from the Autumn Budget Announcement.
The Economy Seems To Be In Surprisingly Good Shape Post-Pandemic
The overall tone of the Autumn Budget announcement was much more positive than the previous Budget announcement in Spring. Sunak seemed to suggest that the economy will be back to pre-Covid levels by 2022. He also revealed that research has suggested that unemployment will peak at 5%, rather than the originally forecasted 12%.
What was slightly less positive was the fact that inflation will reach 4% by the end of this year. Unfortunately, this seems to be an issue faced by countries all over the world as everyone attempts to recover from the pandemic. In reaction to this, Sunak revealed that the National Living wage will be increased to £9.50.
Something else that the Chancellor seemed to be quite concerned about is global supply chain issues. The demand for goods around the world has increased since the pandemic and it is no secret that supply chains and the logistics industry is struggling to keep up. In order to try and support the logistics industry, Sunak announced that their will be a reform to the Tonnage tax for ships, who will now be rewarded for flying the UK flag. He went on to announce that excise duty for HGVs will be frozen.
Business Rates A Hot Topic
As we predicted in our earlier article, business rates were a hot topic. From the offset, Sunak squashed any hopes of abolishing the tax altogether, claiming that now was not the time to be getting rid of a tax that brings in roughly £25 billion a year. However, he did recognize the need for reform and has thus made some big changes to the tax.
Firstly, as we predicted, he has introduced an investment relief, meaning that businesses who want to improve their buildings for the good of the environment will not be charged more. This means that businesses can now add features such as solar panels without having to pay more in business rates as their building increases in value.
Another change he made was that any improvements made to a building, such as installing CCTV or air conditioning, would not have to pay anymore in business rates for a year. He also cancelled the business rates multiplier and, perhaps most importantly of all, he has slashed business rates for the hospitality, leisure and entertainment industries by 50%. This means that establishments such as pubs, restaurants and theatres will now have their business rates cut by 50%, up to a maximum of £110,000.
More Support For Hospitality Announced In The Autumn Budget
The Autumn Budget also saw more support for the hospitality sector in the form of a reform of alcohol duty. The Chancellor claimed that there will be more ‘common sense’ used when taxing alcohol, with the new system now taxing different drinks based on their alcohol content. This means that strong alcoholic drinks such as spirits will face higher fees than beer.
Also, from 2023 sparkling wine will face the same duty as normal wine. This is apparently in response to the increase in popularity of sparkling wine such as prosecco and champagne. 2023 will also see the introduction of a ‘Draught Relief’ on pulled pints. This has been introduced as research has shown that the way we consume alcohol has changed drastically since the last time the alcohol levy was changed, making the current rules outdated.
Conclusion – The Autumn Budget Mostly Positive
The announcement has been mostly positive for business owners. Of course, some will believe that the new measures don’t go far enough to support businesses, but considering the lingering effects of the pandemic we believe that the Autumn Budget will be met with a positive reaction for the most part.
Should you require any help when it comes to business rates or any of the issues discussed in this article, we can help. We help 100s of local businesses to ensure they remain tax compliant and we can do the same for you. Please feel free to contact us on enquiries@jpaccountant.com or give us a call on 0161 637 1080 to have a quick chat to find out how we can be of service to your business.
Business Rates To Be Hot Topic In The Autumn Budget
Rishi Sunak is currently in the process of preparing for his Autumn Budget announcement. With the country in more debt than it has been for the last 50 years and businesses still reeling from the impact of the coronavirus, all eyes will be on him when he addresses the nation in a weeks’ time. One of the issues that will undoubtedly be raised will be business rates. Business rates have been a contentious topic for some time, so it is unlikely that Sunak will be able to get away with not addressing the issue in his upcoming announcement. We’re going to take a look at the discussion surrounding business rates, and speculate what Sunak may say on the topic at his announcement on October 27th.
What Is The Controversy Over Business Rates?
‘Business rates’ is the tax placed on businesses who maintain a brick-and-mortar place of operations. The rate is calculated against the value of the building. For some time now, business rates have been considered outdated due to the amount of business that is now conducted online and the advantage this gives to online businesses. There have been calls to lower the rate, or abolish it altogether. This viewpoint has only gathered momentum since the surge in ecommerce due to the pandemic.
As we have covered the positive effect the pandemic has had on ecommerce extensively, we won’t dwell on it again here. However, the fact remains that businesses who conduct most of their business online have fared far better since the pandemic than those who conduct the majority of their business on a physical premises. With reports claiming that over 330,000 UK businesses are at risk of closing over the next six months, many observers and, notably, the Labour party have called for immediate action to be taken regarding business rates.
So Why Don’t The Conservatives Just Cut Business Rates?
The UK government, and Rishi Sunak in particular, are in quite a difficult situation. As much as they need to continue to support businesses through the coronavirus, they also need to recoup some of the money that they’ve spent on the previous support. Of course, cutting business rates would not help them in this sense.
Some members of the Conservative party have suggested that business rates should be cut, but VAT should be increased to 20% in order to fund this. Whilst in theory this would be effective in recouping some of the money they’ve borrowed, it would put more strain on certain aspects of the economy and could deter people from spending. It would also go against their 2019 manifesto, in which they pledged to refrain from raising VAT. The Conservatives have already gone against their manifesto by raising the National Insurance tax, so they will be very reluctant to do so again.
If This Is The Case, Are We Likely To See Any Changes In The Upcoming Budget?
Whilst wholesale changes such as abolishing the tax altogether are unlikely, the issue will almost certainly be addressed. As it stands, the government have pledged to completely revise the tax in 5 years, this deadline will likely be bought forward. Another thing that will likely be addressed is the way in which the tax currently discourages businesses from making green improvements to their buildings.
Since the tax is based off the value of the building, if businesses choose to install features such as solar panels, this increases the value of the building and thus increases the amount of business rates those companies need to pay. Another change that Labour are pushing for is an increase to small business rates relief, which would certainly help SMEs. This seems unlikely, but possible.
Conclusion – We Will Keep You Up To Date On Any Changes
We know that many of you operate on brick-and-mortar premises and are concerned about business rates. We will ensure that you stay up to date on any changes to the rates. We will also be covering the Autumn Budget in more detail next week, so make sure you don’t miss our upcoming article on the Budget. Should you require any help when it comes to business rates, we can help. We help 100s of local businesses to ensure they remain tax compliant and we can do the same for you. Please feel free to contact us on enquiries@jpaccountant.com or give us a call on 0161 637 1080 to have a quick chat to find out how we can be of service to your business.
Amazon FBA Changes To Consider Before Black Friday
As if you weren’t already aware, Black Friday is just around the corner (November 26th). Black Friday is traditionally the beginning of the holiday shopping season for consumers, and harvest time for ecommerce sellers. Whilst we’ve discussed at length about the fact that the holiday shopping season has started earlier than ever before this year, Black Friday remains one of the most important dates in the ecommerce calendar. If you’re an ecommerce seller, you’ve probably already started preparing your business for Black Friday, but there are a few changes to Amazon FBA that you should be aware of that come into effect from the 1st of November.
Label Service Changes For Small & Light
The main change that ecommerce sellers can expect to see when it comes to small and light packages is in the label service fees. To give you some background, since the beginning of June Amazon have made it a requirement for each unit of a small and light delivery to have a barcode label. Originally, Amazon stated that if you could not do it yourself, Amazon would do it for you for free.
However, from the 1st of November this service will no longer be free. For UK sellers, the Small and Light FBA Label service will cost £0.08 per unit. This will bring it in line with other European countries, where the service typically costs €0.09 per unit.
Amazon sellers should thus consider getting their stock to Amazon before the beginning of November. Sellers should also be aware that Amazon now offer pan-European FBA for small and light packages.
New Requirements For Carrier & Tracking Information For Shipping To Amazon FBA
The next requirement that Amazon have added is an increase of information required when shipping to Amazon FBA warehouses. Amazon will require their sellers to enter the carrier name and tracking numbers. Just like with the changes to the label service charges, this comes in from the 1st November.
This new requirement will not affect all Amazon sellers, however. If you use an Amazon partnered carrier system, such as the Amazon partnered carrier programme or Amazon global logistics, since with these programmes Amazon generate the carrier and tracking information.
If you do not use these programmes, you can find how to enter them via the track shipment section of your summary page, or the Amazon marketplace web services.
Make Sure You Meet These Amazon Requirements Before Black Friday
As you can see, it will be vital that you adjust your procedures before Black Friday. We will be doing other articles to help you prepare for the big weekend in the coming weeks, and if you want more advice on Amazon changes you can find our article on Amazon’s new approach to returns and inventories by following the link.
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 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.
Why You Should Register For VAT In France
Following on from our article on why you register for VAT in Germany, this article takes a look at why you register for VAT in France. France is known to be one of the biggest ecommerce markets in Europe, a fact that has been underpinned by recent reports which have shown that French ecommerce generated over €112 billion in 2020 alone. France represents a fantastic opportunity for cross border ecommerce sellers, so let’s take a look at their ecommerce market in more detail and how you can begin trading there through VAT registration in France.
Massive Growth Due To Covid
The ecommerce market in France grew by over 8% in 2020. This, as with many other European countries, was due to lockdowns forcing the closure of traditional brick-and-mortar stores. This forced consumers online. Online sales of products and commodities increased by 32%, with internet sales overall increasing by 8.5%. The only sector of ecommerce that did not grow was the sale of services, which dropped by 10%. This can be explained by the drop in availability of travel and tourism during lockdowns.
Retail sales made up a lot of the growth, making up 13% of all online sales. This is further evidence that adopting an omnichannel business model will really add resilience to your business. We have definitely seen a strong correlation between online sales and business resilience. As we keep saying, it is not to late to move more of your business online, as the surge in ecommerce will almost certainly continue for the foreseeable future.
The Specifics Of French Ecommerce
On average, online transactions were worth about €60. This is an increase on previous years and is promising for ecommerce sellers. When you consider that there is over 41 million French people that buy online, this represents a massive market for sellers who are looking to expand their business to France.
One thing that sellers should consider though is the preferences of French consumers. Firstly, French consumers like to make purchases on mobile, with 41.4% of French buyers preferring to make transactions from their mobile phone. On top of this, instalment payments are extremely popular in France compared to other European countries. 30% of French consumers apparently prefer to use instalment payment options. PayPal is also a popular payment option in France, with 56% of shoppers using this as their preferred payment method.
VAT Registration In France
France is very similar to many other European countries when it comes to requiring you to register for VAT. If you are a UK seller, or based anywhere outside of the EU, you will have to register for VAT if you hold stock in the country. This is also the case if you ship goods from France and, as of the 1st of July, if you are based outside of the EU and make any sales to French consumers.
When it comes to VAT registration in France, you will be required to provide the typical information for registering for VAT in any country. This includes your full name and address, the address of your business and all your business’ relevant information. In terms of documentation, you will need your VAT certificate, your Articles of Association and an extract from your company’s national trade register.
Please be aware that all applications and correspondence must be conducted in French. This is why we would definitely advise you employ the services of an accountancy firm such as ourselves to assist you with the registration process. The whole process usually takes about 2 months. If you are based in the UK you will not need to appoint a tax representative. For more information, check out our guide on how to register for VAT in France.
We Can Help You Expand Your Business To France
VAT registration is an unavoidable step when it comes to expanding your business. Whilst it can be a daunting prospect, we are here to complete the process for you.
Our long history of working with ecommerce sellers, especially those who use Amazon and eBay, means we can guide you through every step of the registration process – so please do not hesitate to send us an e-mail at enquiries@jpaccountant.com to receive a quote today. In addition, 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.
