IMAT5211 - E-commerce Business Adaptation Strategies Post-Brexit

This report examines the impact of Brexit on e-commerce businesses, focusing on migration plans, infrastructure changes, potential benefits, and associated risks. It highlights the challenges posed by new customs tariffs and procedures, currency fluctuations, and data transfer regulations. The report suggests strategies for businesses to adapt, such as establishing logistics centers within the EU, securing transparent payment providers, and building a trustworthy online reputation. It also addresses workforce risks, competitiveness concerns, and security issues arising from Brexit, emphasizing the importance of proactive adjustments and continuous growth for online businesses. Desklib offers a platform to explore similar solved assignments and resources for students.

Running head: E-COMMERCE AND THE CASE OF BREXIT
E-commerce and the case of Brexit
Name of the student:
Name of the university:
Author Note

1E-COMMERCE AND THE CASE OF BREXIT
Executive summary
This this analysis the case of Brexit and Ecommerce is considered. This involves the migration plans
to develop the capabilities of scratch. It helps to determine the impacts for the changes for
infrastructures. Thus, it is vital benefit that is provided to measure that with proper suggestions. At
last, the vital risks that the strategies are there to minimize or avoid that are demonstrated hereafter.

2E-COMMERCE AND THE CASE OF BREXIT
Table of Contents
1. Introduction:......................................................................................................................................3
2. Understanding the e-business capabilities:........................................................................................3
2.1. Identifying the impacts on the organisation and changes to the infrastructure:.........................4
2.2. Determining the important benefits with suggestions to measure that:......................................5
2.3. Determining the important risks with strategies for avoidance and minimizing:.......................8
2.3.1. Identifying risks:..................................................................................................................8
2.3.2. Ways to mitigate the risks:................................................................................................10
3. Conclusion:......................................................................................................................................11
4. References:......................................................................................................................................12

3E-COMMERCE AND THE CASE OF BREXIT
1. Introduction:
Brexit, portmanteau of the terms “Britain” and “Exit”, is the shorthand for the Britain’s split
from the entire European Union. This indicates to the change of relationship to the bloc on trade,
migration and security. In this study helps in understanding the extent Brexit has the effect of the
security and legal of e-commerce elements for SME businesses.
The following report has been done on the migration plan for developing the abilities from
the scratch. This helps in determining the effects of changes to infrastructure. Further, the important
advantages are provided regarding how to measure them, with proper suggestions. Lastly, the
important risks with the strategies for minimising or avoiding them are evaluated here.
2. Understanding the e-business capabilities:
The birth of Brexit has caused the rise of custom tariffs and procedure clearances. As the
parties are involved to make agreement on the transitional period for a couple years, the EU-
regulations has been applicable for that particular time.
This indicates that more specifically has meant for goods that are been shipped for UK to the
European Union. There is the necessity for custom formalities, no proof of the source of goods,
custom payments to the goods of third country. Here, no customs over the British or the good EU
has been there. The goods from the Great Britain is counted as the EU goods traded with the third
countries. Next, the duty free trade has been within the EU free trade agreements (Cumming and
Zahra 2016). Besides, despite the agreement, this indicates that the UK would be treated as same to
Chine or US. Thus, as a result, the goods having a great value can exceed about 150 pounds and is
shipped from UK to EU is needed to be subjected to the custom tariffs. Thus, the textile clients has

4E-COMMERCE AND THE CASE OF BREXIT
needed to pay the clients at the rate of 12% value of good, Moreover the products with the value of
22 pounds and more has been underlying the import of sales tax to 19% as the customer are never
applied.
2.1. Identifying the impacts on the organisation and changes to the infrastructure:
The reason behind the big deal:
The Europe is one of the Britain’s vital export market and one of the greatest source of the
foreign investments and membership on that bloc. His has helped London cement to position as the
worldwide financial center. The threat of announcement from the business for leaving the Britain too
place due to the regular occurrence of Brexit.
Indirect impacts of Brexit on the Online Shops:
Currency The pound has lost its value as compared to dollar. It is the issue for the
webshops from UK that utilize the e-commerce software, hosting the providers
and other technologies from overseas since it rises the esxpenses.
GDPR The Great Britain can be categorized as the insecure third country impeding the
transferring of personal information (Coulter and Hancké 2016).
A possible strategy for avoiding the issue with custom duties, importing taxes, bureaucracy
and long delivery times has been setting up new centres of logistics and various sides of canals.
Currently, it has indicated the relevancy of both Continental European and British Companies.
Nevertheless, the issues has been for most of the business, to set up the logistics network which is
highly expensive. Particularly the online British Shops, however, has been also shipping
internationally that are already to emigrate in partial way with the business to European Union. This

5E-COMMERCE AND THE CASE OF BREXIT
is primarily to Germany (Aithal 2015). The business of e-commerce has been expecting to a simpler
access to the European Market through doing that. Thus, the German Online Shops has been
prepared for the rise in direct competition. For finding the suitable logistical strategy for dealing with
the issues one must ask some of the queries. Firstly, there is the supply side. This involves the raw
materials sourced from various geographical regions. It has been also affecting the cost of import
and exports. Next, there are also various critical issues for the time factor. The other response is from
the demand side (Batra 2018). One must determine whether the online shop has a huge proportion of
orders from another side of the canals. Here, establishments of logistics, corporation or centre having
distributors are recommended.
2.2. Determining the important benefits with suggestions to measure that:
Future for online retailers:
As one is an online retailer, one is probably confused to perform next. Considering what is to
be done for the coming two ears, to reach the solution to all the open questions, thee exporters of UK
has been seeing to continuing with the business and keeping Brexit in the back of the minds. It has
been the best course of action at the current time, Through considering what the experts has been
predicting a steady amount of sterling from that point, the British exports has been continuing to be
famous under the scenario particularly at Europe. This is because the single market has been still
ruling. Here, for the small business, it has been happening to be great scope of growth sales (Bi,
Davison and Smyrnios 2017). As U.K. intends to follow the smart “Norway Model”, that is
continued with participation under a single market has not been farfetched. As the access to the
single market has not been possible, the considering of the benefits of membership for the coming
couple of years is never a poor strategy to grow the business on the other hand.

6E-COMMERCE AND THE CASE OF BREXIT
Confidence for future:
Here, uncertainty is the word-of-the-year according to economists. It has been selling that the
owners of UK business and the consumers of UK has the difference of opinion at that place. As one
has been looking at the confidence for consumer at UK, the trend is fund to be moving towards the
months. This has been leading to the vote and taking the nose dive to directly follow the vote. Under,
the months from the vote, the numbers are found a bit. However, this has been still negative in
number (Brendel, Brauer and Hildebrandt 2016).
The benefits:
There are many questions still in the air. There is a rising concern what the small business
owners can perform. The expansion of business beyond the nation is a complicated task.
Nonetheless, one can actually be worth for performing that properly. As one requires to take the
benefits for one market, there are many things to be considered.
Securing the business
from exchange area
The banks has been frequent including the secret fees to the
exchange rates. Hence, seeking a transparent payment provider of
service is able to bring lots of benefits to business owners. Having
various scopes, one must consider the good institution that never
overcharge the fees (Chatzoglou and Chatzoudes 2016). Maximum of
them has been offering lock-in price that can be permitted to use
specific rate of exchange of further transactions.
Developing the
reputation as the
trustworthy shop
Creating online reputation has been imperative. Here, the finest schools
of advertising under the glove must reveal the similar thing. This is why
the reviews has been popular at the current times. Again lots of review
providers comprise of great platforms. However, one must reminds that

7E-COMMERCE AND THE CASE OF BREXIT
the review system has been a closed in nature. It indicates the fake
reviews to be prevented and the verified and real-life clients has been
providing the reviews. Next, one must take into consideration of getting
the quality seal or trustmark (Chen et al. 2017). It is to strengthen the
credibility. Few of the consumers has been taking the trustmark’s as the
signs of effective business practices. From the survey done from the
German market, the outcomes revealed that about 40% of the activity of
the shoppers has been looking for the trustmark as the shopping is done
over Internet. On the other hand, 60% of the shoppers has been feeling
secured to purchase the website displaying at a glance. Seeing Germany
as an effective economy, the latest market over the mainland, this
development of the reputation as a trustworthy shop for the online
business has been essential.
Keeping the legal
issues under the
check
Accessing into the new market has consisted of legal challenge, though
it has been under the EU. It has been obvious that there are various
national regulations for thinking about the selling to be done abroad.
Under Germany it has been known as the “Abmahnung’ to be great
threat to conduct online business (Conejero, Jordán and Sanabria-
Codesal 2016). Under competition law, as Anmahnung is a legal notice
issues for the competitors and legitimate associations which is ahead of
the court proceedings. This is for avoiding to move to court. It has been
expensive and more expensive as the contractual penalty gets evoked.

8E-COMMERCE AND THE CASE OF BREXIT
The uncertainty and drama beyond the Brexit is the total continent with the edge of the seats.
This includes the episode the East Enders. Apart from this, the Brexit can assure to consider the
happenings to occur. This expands that the business never be up on hold. Since, the ne trickles down
to the negotiations of public, adjustments can surely be made. However, the stagnation s the not the
way towards growth (Fan 2018). Hence, as the online business is not moving forwards, they are
moving backwards.
2.3. Determining the important risks with strategies for avoidance and minimizing:
2.3.1. Identifying risks:
Risks from workforce:
The shortage of cyber skills of United Kingdom has been long identified issue. It has been
presently the necessity for the cyber companies of UK. This is hire talent from abroad nations. The
probable implications of Brexi’ts free movement has been hindering the employment of the national
of EU. This is done by the UK-based business through limiting the scopes for the various UK
nationals outside the country. Here, every non-cyber security business has also required the talented
professionals of cyber security and adversely affecting the similar causes. Again, the universities has
been experiencing he breakdowns in relationships with various EU-based partners over the proposals
of EU funding. It has been likely to hinder the scopes of the universities to generate the scopes for
filling the gaps of the cyber skills.
Risk of competiveness:
The securing of access to the single market has been a top priority for the UK to perform the
negotiations and use broadly identified to leave the single market with notably effect of UK
business. Having that in mind, the companies of cybersecurity that are UK-based has been facing

9E-COMMERCE AND THE CASE OF BREXIT
complexities to attract the European clients (Gerding et al. 2016). Moreover, they has been including
the EU levels. The Brexit has been bringing advantages at neither UK and the EU as the user are
making contributions prominently over the stage of international cybersecurity.
Security and privacy:
A primary EU-wide risk, as researched recently, has shown to maintain the respect of EUs
greatly developed approach for primary human rights. It is seen that Brexit has been posing a notable
risk for that approach at UK. Firstly a post-Brexit UK has been no longer bound by the charter of
Fundamental Rights of EU. This has been choosing to leave the European Convention over Human
Rights. Here, the needs the powers of surveillance to be proportionate to harm the privacy. Next,
they are been raised prior through various areas of esteemed academics (Marhayanie, Ismail and
Muda 2018). Next, the approach of UK government for deploying the powers of surveillance has not
been necessarily resected through democratic process. In this way the privacy and protection of
personal information in UK has been guaranteed through post-Brexit. It has been bringing high risks
for every consumers and businesses. It can be aggravated by the calls from the UK agencies to
measure that can undermine the encryption and online security. It is equally contentious to EU.
There are risks of danger divergences to take place between EU and UK related to this aspect.
Vulnerability:
The uncertainty has been presenting the scopes to exploit. Here, scopes are there that cyber
criminals has never been turning down lightly. The hissing scams that are Brexit-related has been
already playing and researched. It is seen that over thirty percent of the surveyed Info-sec
professionals has been fearing of the rise of cyber security vulnerability at UK. This has been mainly
due to the outcomes of the reduced for EU sharing of data and efforts of cooperation. Under the light
of security and privacy risks as shown above, the UK business and the citizens has been

10E-COMMERCE AND THE CASE OF BREXIT
experiencing the notably reduced protection measures. This has been with the rise of the cyber-crime
to be commenting the rise of government surveillances (Leung et al. 2018). Here, the implications
has needed consistent attention from the industry and government players for the future days. This
can occur as Brexit runes into realty and the risks get matured. Here, having the international
existence, the optimity is able to support the business to grasp the groups with the risks, monitoring
and preparing from Brexit (Jiang 2016).
2.3.2. Ways to mitigate the risks:
It has been likely that, and at the departure point form EU, the UK has turned into a third
world country. It has indicated that UK has been n longer needing to implement the GDPR. This is
because it has been directly applicable to the regulations and never the directive of “transpose-into-
law”. Neverthelss, as third world nation, the UK has been able to pursue various aspects to assure
that the legal data protection has been compatible to the EU. This it has been assuring the free
transferring of data that are critical for business (Hawlitschek, Teubner and Gimpel 2016).
Seeking the
obtaining of
sufficient
decision on the
law of data
protection
For achieving the decision, United Kingdom must reform their Data
Protection Act. This is must be such that it is similar as GDPR. Here,
anything less is intended for bringing greater level of challenges coming
from the European Commission along with European Data Protection
Board. As necessary, the CJEU or Court of Justice of European Union
(Hiles and Hon 2016).
Negotiating to
deal with same
types of EU-US
privacy
At this case, there are high unlikeliness of the European Commission to
accompany with UK as it has been for US (Illgen and Höck 2018). Again, the
privacy of EU-US has been likely to witness to seek the notable issues for
national courts and CJEU. This is based on the bulk of collection by

11E-COMMERCE AND THE CASE OF BREXIT
protection information from US. Due to the same cause, the prospective of EU-UK has
been dealing to be likely to untenable.
3. Conclusion:
The online shops has been adapting to the IT-infrastructure. This includes the shipping and
regulations strategy for ordering the cope with new and unknown challenges. Most of the companies,
that has begun to deploy the experts and employees that can controlling the extra workload and the
complicacy. Various organizations has been setting up the centers of logistics for the regions for
ordering for reducing the bureaucracy, cost of shopping and duration. Nonetheless, it has been
problematic and expensive and the recommendable to join the network of logistics. However, a
primary factor for success lies in the developing of abilities and adapt the changing scenarios and get
prepared for different scenarios.