GFS helps UK online expand into new marketplaces with international trade tool

GFS Checkout with Duties and Taxes Calculator to make international retail purchases more transparent for customers across 220 countries

Global Freight Solutions (GFS) has launched a tool to help ecommerce brands with duties and taxes transparency at checkout. GFS Checkout with Duties & Taxes Calculator claims to bring clarity to international online delivery tariffs for consumers by estimating the full landed cost of delivery anywhere in the world.

According to recent UK retailer data from Tamebay, respondents showed a clear ambition to want to grow international sales significantly – 76% of UK retailers expect to increase international revenue over the next few years. However, 52% of UK retailer respondents said ‘calculating duties and taxes’ was in their top 3 barriers to international growth.

An export issue

The UK also shows a major disparity around exporting versus importing when compared to other nations. As the world’s sixth largest exporter, we do punch above our weight, however, we also punch below our potential. According to the IMF, approximately 90% of global economic growth in the next 10 to 15 years is expected to be generated outside the EU. The share of the UK’s exports going to the EU has also fallen, from 55% in 1999 to 44% in 2017. The drop in the EU’s share of UK exports is largely due to declining goods exports, not services.

Better transparency for overseas consumers would impact the UK in a big way. A large portion of the UK’s exports are international, about 25% of all UK dispatched orders are currently sent to non-UK consumers (according to IMRG). While the US is still the UK’s primary export market (18.4%), it’s closely followed by three European states: Germany (9.1%), France (6.6%) and the Netherlands (6.2%). But cross-border goes both ways and UK consumers do buy from non-UK websites, mainly from:
  • Europe – 53%
  • USA – 45%
  • Asia – 44%
How does the solution work??
Retailers can choose to present delivery costs as Deliver Duty Paid (DDP) with all taxes and duties included, or Deliver Duty Unpaid (DDU) with an estimate of the cost to be paid by the customer upon delivery. Additionally, customers can decide for themselves whether they want to pay for Duties & Taxes at the checkout, or when their order is delivered. This means consumers can buy with confidence without the fear of unexpected fees and charges – reducing cart abandonment and returns, and boosting global sales.

GFS is the first end-to-end delivery management provider to introduce a solution that tackles the issue of transparency around taxes and duties for international exports. The role of GFS Checkout with Duties & Taxes Calculator is to present the full landed cost of an order at the point of sale, helping to give consumers abroad the confidence to commit to a purchase, thereby reducing cart abandonment rates and growing international sales.

Technical benefits include:
  • Worldwide coverage to 220+ countries
  • 1000+ delivery options tailored to the consumer:
    • GFS Checkout’s smart Management Portal enables retailers to switch carrier services on and off at the flick of a switch
    • DDP or DDU (to give buyers the option to pay duties and taxes immediately, or upon delivery)
    • Development support at your fingertips

The service that enables and wraps around GFS Checkout with Duties and Taxes Calculator for better analysis is GFS’ International Ecommerce Services, this is made up of three options: GFS Ecommerce Express, GFS Ecommerce Plus, and GFS Ecommerce Economy technical benefits. All of which promise to increase delivery speed and tracking capability.

Neil Cotty, CEO of GFS says: “Brexit is forcing UK online retailers to deal with the logistical challenges of cross-border selling. The prospect of a no deal Brexit is really forcing the retail to face up to the underlying issue in the ecommerce industry, which is that as Brits we export much less via ecommerce than we import.

“Retailers need to think not just about Brexit, but also about removing the barrier to overcome it. And the industry needs to provide them with the services and tools to do so. Duties and taxes are big constraints for retailers, unless retailers have the ability to be transparent and offer choice to consumers. So, if you’re a UK retailer with plans to sell within the EU, you need to face up to that”.

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