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Shopify Unveil ‘Shopify Markets’
Shopify is an ecommerce provider that has enjoyed a meteoric rise in popularity over the last few years. Whilst it still tails WordPress as the leading website designer (for website designs concerned with CMS, at least) Shopify is the fastest growing online store builder in the world, as well as being the most searched ecommerce solution available. This month, Shopify launched Shopify Markets, a new ecommerce tool that will enable sellers to manage their cross-border storefronts from a central hub. Here’s everything you need to know.
What Is Shopify Markets?
Essentially, the new ecommerce solution is designed to make it easier for sellers to sell cross-border. This is because Shopify Markets will automatically take care of obstacles such as language localization, currency conversion and will even allow merchants to manage their import and export taxes.
This tool, which also allows merchants to set up their own storefront, will mean that it is much easier for sellers to enter new markets. Shopify Markets will allow users to check product availability in individual locations, as well as other specific insights into each market. Just like with other Shopify products their will be different payment plans for users to choose between. Those using Advanced Shopify or Shopify Plus will get additional benefits such as managing fulfilment locations in different locations.
How Else Can You Benefit From Using Shopify Markets?
Another interesting thing merchants should be aware of is that Shopify has recently struck a deal with the marketing service Yotpo. Yotpo is a leading marketing provider who can handle direct-to-consumer marketing such as referrals, SMS and email for digital brands.
This should excite ecommerce sellers as marketing is one of the best ways to grow your brand, especially when entering new markets. Yotpo has said that their main aim is to accelerate product development and growth, will which work perfectly with Shopify Markets.
Are Shopify The Ecommerce Provider Of The Future?
It is definitely looking that way. There is the issue of the fact that the service is currently mainly only useful in USA and Europe, although it does have plans to expand into the Asian markets. This being said, they are still one of the biggest ecommerce providers in the world. Shopify has over 1 million active websites, and they are also responsible for almost 4% of the top 1 million websites in the world.
This is mainly due to their dominance of English speaking ecommerce websites. Shopify have over 800,000 websites in the US and almost 50,000 in the UK. It is thought they command a market share of 31% in the US when it comes to ecommerce websites. The launch of Shopify Markets, as well as the addition of new languages to their services, means that they are ready to continue this growth all over the world.
If You Are An Ecommerce Seller, We Can Help You
If you have any concerns about participating in cross-border ecommerce, we at J&P can help. We 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.
Meet Our Local Team | Accounting & Bookkeeping
Today’s post is going to be a bit different. Rather than giving you advice on all things tax, ecommerce and logistics, today we want to introduce you to a couple of members of our local team. We recently spoke to Danny, a senior member of the local team who deals with VAT accounts and PAYE services, and Livia, another senior member of the local team who deals with the submission of tax returns and internal operations. These two employees have a vast array of skills and experience in the domain of accounting, and we thought you might enjoy meeting them and benefitting from their expert opinions.
So, Danny and Livia, could you please give us a general overview of the services that the local team offers?
Danny: Certainly. For the most part, we at J&P offer the general services of an accountancy firm. This includes bookkeeping and the submission of our client’s accounts to HMRC and Company House. Occasionally, we also provide business plan support for businesses and their management accounts.
Livia: We also deal with VAT compliance checks. Since the outbreak of the pandemic the government have borrowed heavily and are keen to recoup some of this money. We are definitely expecting to see more and more tax investigations over the coming months!
How does this work with clients, do you talk to them directly?
Danny: Yes, we believe that talking directly to our clients is the best way to get a clear picture of what the client wants and this means we can solve any of their issues quickly. We communicate with clients in a variety of different ways. Of course via phone call is the most direct, but we are also happy to communicate to clients via WeChat if this is their preferred method.
Livia: Also, clients also come to see us directly in the office. Even if it is an unplanned visit, we always ensure we make time for our visitors and we will never turn a client away.
So would you say you have a good relationship with our clients then?
Livia: Definitely. We understand that trust is one of the most important factors when it comes to building relationships with clients and so we always ensure we are communicative and transparent with. We are always happy to offer them our expert advice.
Danny: Yes, I would have to agree. A lot of our new clients come to us from referrals from previous or existing clients so we must be doing something right!
That’s great to hear. The past 18 months must have been difficult for our clients; could you please tell us a little bit about some of the difficulties they’ve faced and how we’ve helped them?
Danny: Well yes, the last 18 months have definitely been difficult for clients due to Brexit and the pandemic. It is hard to give a blanket answer to this question as we support a wide range of clients and so they’ve all struggled differently. For example, the ecommerce sellers and importers have struggled with Brexit due to the need to register for VAT in more EU countries and obtaining EORI numbers. On top of this a lot of them sell on Amazon and Ebay so they’ve had to deal with the new regulations regarding online marketplaces.
As for our clients in hospitality the new paper work originally caused delays in shipments. We have followed the Brexit situation closely for years, and thus we have been able to guide or clients through the situation really well and have helped them get to grips with the new paperwork.
Thanks Danny, what about the issues that have faced from the pandemic Livia?
Livia: Just as Danny said with Brexit, we have had to accommodate all of our clients in different ways. In some cases, our clients in hospitality actually didn’t fair too badly due to the increase in deliveries and people ordering takeaways. However, our clients who own businesses such as hairdressers and beauty salons have struggled more due to the fact that they had to close for months on end.
Whilst the government offered a lot of support to businesses, we’ve found in some cases that our clients have struggled to pay back these loans on time. In these cases we’ve had to help our clients find ways to pay these back on time without incurring interest and informed them of all their available options, such as instalment schemes. We’ve been in constant contact with HMRC to ensure that our clients are able to find a way to pay back what they’ve borrowed in a way that suits them.
Thank you both, it’s really interesting to hear about how those two major issues have affected our clients so differently. Are there any upcoming issues that you think business owners or prospective clients should be wary of?
Danny: I think the two main ones are the increase in HMRC tax investigations. It looks like the government are really going to ramp these up, so business owners should make sure all of their accounts are compliant and should get in contact with us if they receive notice from HMRC that they are going to be under investigation.
Also, business owners and sellers should be checking when their repayments are due for any of the government support that they’ve received over the last 18 months. Late payments could result in penalties so make sure to check all your repayment dates!
That’s really good advice. That all but concludes are interview, before I let you go I just wanted to ask what you both enjoy most about working at J&P?
Livia: I think it’s the opportunity I have had to develop myself. Due to the wide spectrum of clients we support we have to deal with a variety of different issues and so we have to be innovative in our techniques for supporting them.
Danny: For me, it’s the satisfaction I get from helping clients. I talk regularly with our clients and it feels great when we are able to solve their problems. Also, I really like the working environment we have here. We have a really strong team who works well together which means we can provide the best service possible.
That’s great to hear. Thank you both for speaking with us today!
Hopefully this interview has given you an insight into how we do things here at J&P and the advice that our experts gave has been of some value to you!
If you are a UK business, we would be more than happy to provide you with accounting and taxation services, such as Company House registration, confirmation statements, and statutory financial reports. At J&P, helping small businesses 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 end of the Coronavirus crisis and Brexit, so please do not hesitate to give us a call on 0161 637 1080 or send an e-mail to enquiries@jpaccountant.com.
Christmas Approaching Quickly For Ecommerce Sellers
It seems like the Christmas decorations in shops and ‘All I want For Christmas Is You’ are forced upon us earlier and earlier each year. Whilst this is irritating for the general public, who may also think that late September is far too early to be thinking about Christmas, ecommerce sellers need to begin thinking about how they are going to deal with the surge in demand that comes every holiday season now. This year early preparation is even more vital than usual, with experts predicting that online shopping will increase by over 7% this season (which would represent a growth of over 50% on 2019). Here are a few things sellers need to be thinking about leading up to the most wonderful time of the year…
Ensure Your Supply Options Are Ready
Most sellers are forward-thinking enough to increase their inventories before the holiday season to ensure that they can meet the increased demand, but not all of them consider how this increased demand will affect their delivery options. If forecasts are to be believed and this holiday season is once again set to be dominated by online shopping, supply chains and logistic support will be running at full capacity.
Indeed, major logistics providers DHL are already preparing for a 35% increase in volume this holiday season. In addition to this, online marketplaces such as Etsy are already advising sellers to decide on their cut-off point for deliveries so they can ensure all Christmas orders can make it to their destination before the big day. This means as a seller you should be making a list of your delivery methods, and checking them twice to ensure that they will be able to cope with an increase in demand.
Don’t Forget To Account For Returns
You know how it is; at Christmas you might get a present from your secret santa at work who gets the football team you support wrong, or you might buy something for your child, only for them to decide last minute that they never wanted that toy. Scenarios such as these, in addition to the sheer number of purchases always leads to increased returns and refund requests.
This is another aspects of operations that sellers can sometimes neglect. To ensure you keep your customers happy, you must make sure to have a clear and concise returns policy. It is also worth noting that Amazon have extended their returns policy again, meaning that consumers will have until January 31st 2022 to return their unwanted items. This begins on October 1st, so sellers must be aware of these changes before the beginning of next month.
Coronavirus Set To Affect Christmas Once Again
Whilst the effects of the Coronavirus will likely be felt less than they were last year, the last effects from the outbreak will still be prevalent this year. What is interesting is the fact that it is hard to say yet what the impact might be.
On the one hand, a study released by Ebay ads found that 26% of Brits have less disposable income this year as a result of the pandemic, with two-thirds of these people claiming that finding gifts that are good value for money is their priority this year.
On the other hand, the same study found that 20% of Brits have been able to save more this year and are planning to splash their increased savings on Christmas shopping. Over half of these people claimed they plan to spend more on Christmas this year than they did last year. This presents a bit of a dilemma for sellers as it’s hard to know whether to cut prices or hold out for the big spenders. Since there seems to be an even split it might be worth going ahead as planned for now, but sellers should remain flexible and be ready to adapt their listings and products depending on the developments in the market between now and Christmas.
If You Are An Ecommerce Seller, We Can Help You
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.
VAT Registration: Is Italy The Next Big Market?
Italy has always presented a strange proposition for ecommerce sellers. On the one hand, it is no secret that the country lags behind some of the bigger ecommerce markets in Europe such as the UK and France. However, it is one of the fastest growing ecommerce markets in the world, with an average growth of 10-20% year-on-year for the last 5 years. With ecommerce in Italy now comfortably worth more than €30 billion, it might be time for you to expand your business to the southern European country. Here’s our guide to Italian ecommerce and how to register for VAT in Italy.
Italy One Of The Fastest Growing Markets In Europe
As stated in the introduction, Italy is one of the fastest growing markets in Europe, along with the likes of Poland, Denmark and Norway. Whilst these other countries also present good opportunities, ecommerce sellers who are looking for opportunities in markets that are about to grow quickly should look no further than Italy.
This is due to the rapid digitalization of the country, coupled with a young population who are increasingly interested in buying their products from abroad. On top of this, the major online marketplaces such as Amazon and Ebay already have a strong presence in Italy, meaning that sellers who use these platforms can expand to the country easily.
What You Should Be Aware Of Before Registering For VAT In Italy
There are a few things to consider before expanding your business to Italy. One is the lack of payment options. Unlike many of the other major ecommerce markets in Europe, Italy is not blessed with many options when it comes to payment options. PayPal is active in Italy, which will come as a relief to many sellers, but UK sellers should be aware that PayPal’s fees are going up for UK-EU transactions as a result of Brexit.
Another consideration is the difficulties in delivering to the remote southern regions of Italy. Whilst delivery is still reasonably simple to these regions, extremely fast delivery may be difficult. This is probably way many Italians seem to distrust logistic providers. This is why it is important that you ensure that your supply chain in Italy will be efficient before committing to selling there.
Finally, don’t forget to ensure that the platform you are selling via uses Italian as its language. Italians much prefer to buy from sellers using there own language, rather than English or Spanish.
The VAT Registration Process In Italy
There is no Italian VAT registration threshold for non-resident traders. So If you wish to sell in Italy you will have to register for VAT. Like many EU countries, you will be required to have a fiscal representative in order to register for VAT in Italy if you are a resident of a non-EU state. This is recommended in Italy anyway, as returns can sometime be complicated if not submitted in Italy. If you require this service, please be aware that we at J&P can act as a fiscal representative in Italy and we are very experienced in dealing with the Italian tax authorities.
The usual information for registering for VAT in a country will be required, such as a letter of authority for the tax representative and the latest audited company accounts. Tax registration is relatively quick in Italy, with the process typically taking a total of 3-6 weeks.
So What Are You Waiting For?
Hopefully this article has provided you with all the information you need to expand your business into Italy. Evidently, VAT registration is an unavoidable step when it comes to expanding your business. Whilst it can be a stressful registration process, 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 or contact us through social media to receive a quote today. In addition to Italy, 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.
Ebay Seller Update Autumn 2021: All You Need To Know
The Ebay Seller Update Autumn 2021 was released last week. For the most part, sellers are likely to welcome the changes. The most noteworthy changes have come in the form of multi-user account updates, improvements to Ebay coded coupons and Ebay shops. The update also informed us that ‘Ebay promoted listings advanced’ is set to be rolled out in the UK. All of these changes are worth looking at in closer detail, and you can find the complete update announcement here.
Multi-User Account Changes
Understandably, Ebay sellers have traditionally been reluctant to share their log in details with others. This is usually because this would mean that whoever gained access would have complete control over their listings and account. The Autumn update has meant that from now on, account managers can exert more control over how much responsibility other users of their account can have.
This new feature means that sellers can delegate more tasks to others on their account without having to worry about them causing disruption to the account itself. The permissions that account managers are able to control will now include opening cases, accessing after-sale messages and handling returns. Thus, you could now allow a junior member of your team to revise your listings, but you could make it so they don’t have access to your refund requests.
Updates To Ebay Shops
The Ebay Seller Autumn Update has also promised massive improvements to Ebay Shops. Essentially, Ebay Shops is your online store front. The feature allows you to customise the way in which your buyers interact with your products and also gives you the opportunity to add your own unique branding to make you to stand out from the competition.
It seems as though Ebay are keen to expand the feature, if their new improvements are anything to go by. The changes range from small branding improvements, such as the addition of an ‘About us’ tab which will allow you to tell the story of your brand, to the introduction of new methods to interact with your buyers, such as new newsletter features and the introduction of clickable marketing banners. Sellers would definitely be wise to make the most of these new and exciting features.
The Updates To Coded Coupons
We have covered Ebay coded coupons before. If you have read our previous article on Ebay changes, you will remember that we believed this to be a very exciting edition to the Ebay interface. The updates that have been announced in the Ebay Seller Update Autumn have only served to strengthen our optimism in the usefulness of this feature.
From October 1st, you will now be able to send your coupons directly from your seller hub to specific groups of customers. In addition, Ebay are now making it much easier to track how successful these coupons are by recording the engagement between your coupons and your buyers. To get the most out of this feature, sellers should plan the timings of the coupons carefully, whether that be when your inventory is slightly overstocked, or to offer deals when trying to shift the last few items of an inventory.
The Rebranding Of Promoted Listings & The Introduction Of Promoted Listings Advanced
Not much is changing when it comes to the original form of promoted listings, except from the fact that it will be rebranded to ‘promoted listings standard’. This is in doubt to differentiate it from the introduction of the new promoted listings ‘advanced’.
As opposed to the standard model, where you will still only be charged if someone makes a purchase, the new advanced version of promoted listings means that you will be charged every time someone clicks on your ad. This is a business model known as PPC (Pay-per-click) and may seem strange on the surface. However, the sophisticated system now allows you to ‘bid’ on keywords, much like on a Google search ad. This means that you can show your ads to consumers who are searching for specific keywords.
Whilst this is a more complicated feature and sellers should be tentative to use it if they have no experience in utilising PPC, this represents a massive opportunity for sellers. If you are able to implement this feature properly, you could see your sales and exposure sky-rocket.
We Have A Great Deal Of Experience When It Comes To Supporting Ebay Sellers…
These changes are really indicative of the amount of work Ebay are doing to offer sellers a better selling experience. If you use all the above features to their full potential, you will almost certainly see a considerable increase in sales and profits.
Don’t forget our long history of working with Ebay and Amazon sellers means we can offer you expert advice, so please do not hesitate to give us a call on 0161 637 1080 or send an e-mail to enquiries@jpaccountant.com. We would be more than happy to help you register for UK & EU VAT, the UK VAT deferral scheme, EU and UK EORI number, file your UK & EU VAT returns, and help you comply with VAT in case your account faces any issues. We can even offer storage and warehouse support!
UK Food Industry Takes £2 Billion Hit From Brexit
The UK food and drink industry is about £2 billion worse off than it was before Brexit, new figures have shown. The reports come from the Food & Drink Federation, who have analysed the trade of food and drink between the UK and EU in the first 6 months of 2021. This, of course, coincides with the beginning of the post-Brexit era, since the majority of the Brexit changes came into force on the 1st January 2021. This is obviously worrying news for the food industry as a whole. The UK government are claiming that this is just a temporary drop, but some experts are not so sure.
What Has Been Hit Hardest?
The reports have shown that the worst hit area has been meat and dairy. This is likely due to the strict and often confusing rules surrounding the exportation of products of an animal origin into the EU. Beef in particular has seen exports drop by almost 25%. Other products such as chocolate and cream have also seen a significant drop off.
Aside from the products themselves, it seems that SMEs and family-run business have been hit the hardest. It seems reasonable to assume that this is because these businesses are finding it harder than their bigger counterparts to deal with the new paperwork and customs controls.
It is this paperwork that has caused the most issues since Brexit. The new obligations to document products for trading standards before entering the EU has led to huge delays at customs and ports. It is thought that the food industry is being hit particularly hard due to stringent nature of the health checks. Food exporters now have to provide correct paperwork that confirm products meet physical sanitary and phytosanitary standards, something that was not required before Brexit.
Is Brexit Definitely To Blame?
There are some that believe that the report has been too harsh on Brexit and has not placed enough significance on the affects of the pandemic on trade. It is undeniable that the coronavirus outbreak has caused massive disruption to supply chains and will have undoubtedly changed consumer habits. While this is true, it is clear that Brexit is the main contributing factor to the issues facing the UK food industry.
As mentioned earlier, Beef exports have dropped by about a quarter. This is in comparison to the same period in 2020. However, they have dropped by almost 40% compared to the same period in 2019. So whilst trade was clearly disrupted by the outbreak in early 2020, it seems that more severe drop we are seeing this year points more towards Brexit as the cause for the trade disruption.
What Can Exporters Do?
Many exporters have complained about the detrimental affect the Brexit red tape is having on their operations. This has led many UK businesses to move a portion, if not all, of their operations to the EU in order to continue trading freely within the EU. This means the loss of trade and jobs for the UK, which was supposedly the exact opposite of what those who voted Brexit wanted.
Whilst this may be an option for bigger companies, for smaller companies this is unlikely to be an option. For smaller businesses, the best options seems to be to re-evaluate their supply chains and make sure they are as compliant as possible. There is advice out there about dealing with customs after Brexit (like in our article here) and there is always the option of appointing a customs agent. Whilst this would come at an expense, it would likely be cost-effective in the long run.
How Can J&P Help Exporters Post-Brexit?
If you are a business who participates in cross border e-commerce, or exporting of any kind, we would be more than happy to help you register for UK VAT, the UK VAT deferral scheme, gain an EU and UK EORI number, 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 Brexit, so please do not hesitate to give us a call on 0161 637 1080 or send an e-mail to enquiries@jpaccountant.com.
