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The United Kingdom is one of the world’s largest e-commerce markets, and its revenue in the e-commerce market is projected to reach US$131.38 billion by 2025, which brings significant opportunities to online sellers. However, due to Brexit, you should expect additional fees when sending products to the UK.
If you’re planning to expand your e-commerce business into the UK, this guide will walk you through everything you need to know: the impact of Brexit, how shipping costs are calculated, the major carrier options available, and, most importantly, how to reduce your shipping costs without sacrificing service quality.
Shipping from the US to the UK is similar to domestic shipping in that costs vary depending on the service you choose, package dimensions and weight, and shipping distance. The key difference is the tariffs and customs charges you need to consider.
When running an e-commerce business in the UK, you must also be aware of Value Added Tax (VAT), which is a consumption-based tax.
Here’s how VAT is structured in the UK:
Understanding these tax brackets will help you better estimate the final cost of getting your products into customers’ hands.
When looking for the cheapest way to ship a package to the UK, it is important to consider more than just carrier rates. Many items may be subject to customs duties, and every shipment requires a customs declaration form that clearly lists the contents of your package. ShipSaving helps simplify this process by automatically generating the custom forms for international shipments, which saves time and reduces the risk of errors.
You should also make sure your goods are not included on the UK’s list of prohibited items, as sending these can result in fines, prosecution, and even imprisonment. In addition, each carrier, including USPS, UPS, FedEx, and DHL Express, has its own list of restricted and prohibited items. Reviewing these guidelines in advance ensures your package moves smoothly through the shipping process.
Now that you understand the key costs, taxes, and regulations involved in shipping to the UK, the next step is choosing the right carrier. Each major courier offers different service levels, delivery times, and pricing structures, so let’s take a closer look at the main options available.
When you ship internationally with USPS, parcels are delivered in the UK by the United Kingdom’s Royal Mail service. USPS is known for its affordable international rates, making it a great choice for sellers focused on keeping costs low.
While USPS is budget-friendly, keep in mind that tracking is not available on First-Class Mail International. Since tracking is a key part of building trust with e-commerce customers, this limitation can be a drawback for sellers who want to offer full visibility on their shipments.
UPS is a strong choice for time-sensitive deliveries. It also offers UPS Paperless® Invoice, which speeds up customs clearance. Even better, when you ship with UPS through ShipSaving, you can save up to 85% off shipping rates.
FedEx offers a wide range of solutions for shipping from the US to the UK, including day- and time-definite services for urgent deliveries as well as economy options for sellers looking to save on costs. This flexibility makes FedEx a reliable choice whether you need speed or savings. Even better, when you ship with FedEx through ShipSaving, you can save up to 90% on international shipments, giving you fast, dependable service while protecting your margins.
DHL Express is renowned for its global coverage and reliability. For urgent shipments, DHL offers some of the fastest options. When you ship with DHL Express through ShipSaving, you can save up to 88% off DHL Express services.
So, what’s the most cost-effective option for sending packages across the Atlantic? Let’s compare example rates for a 1 lb parcel measuring 6in x 6in x 6in, shipped from New York to London.
Based on the comparison, USPS provides the most cost-effective option for lightweight parcels. However, delivery times are less predictable compared to other carriers, and packages must weigh under 4 lbs to qualify.
As mentioned earlier, shipping rates are affected by factors such as package dimensions, weight, and distance, which means the cheapest service can vary from one shipment to another. To make sure you always secure the lowest rate for every order, use ShipSaving’s instant rate calculator—simply enter your origin, destination, and package details to find the best option and start saving on international shipping.
Succeeding in the UK e-commerce market requires more than just great products. It means understanding the landscape, staying compliant with post-Brexit regulations, and keeping shipping costs under control. That’s where ShipSaving makes a real difference.
With access to deeply discounted international rates, ShipSaving helps you protect your margins as you grow your business overseas. Plus, our easy-to-use platform streamlines the process by automatically generating customs forms, saving you valuable time and reducing errors along the way.
Not a ShipSaving user yet? Sign up today and start saving up to 90% on your international shipments, so you can focus on expanding your business, while we handle the logistics.
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