Swedes setting up e-shop in the UK

[LittleFinger]

Hi,

We are a Swedish company looking into setting up shop in the UK. We have previously never done business with UK customers. We develop and sell kitchen utensils.

General:
Seems like ebay.uk is a very strong competitor to almost every product. How does this affect your businesses? Does it make customers extra price sensitive?

Shipping:
Is it common to offer free shipping? What is considered a fair shipping rate for products weighing around 1kg?

As we wont set up a physical office in UK, are there any companies you recommend that can store our inventory and handle packing and shipping in a cost efficient way? Would also be lovely if they offer customers telephone support.

Tax
I heard on the radio a few weeks ago that there no longer is VAT on consumer products? It would not effect us as within EU we would not charge our customers VAT, but it would be interesting to know how it has affected your companies? What was the old VAT 15%?

Payment
In Sweden 50% of our customers pay with creditcard and the remaining 50% pay by invoice. What are the standard payment options in the UK? In Sweden we have a service at the post office where the customer pays upon receiving the package. This is a serious pitfall as up to 30% of customers choosing this option fail to pick up their order. Although on the invoice payments we seldom have problems with customers not paying in time. Whats the standard practice of invoice credit days and late fees? Our current creditcard system only accepts VISA and Mastercard, is this sufficient?

Traffic
Besides SEO and google adwords, are there any other specific to UK ways of driving traffic to a webshop?

Regulations and other annoyances
Is there anything else that would be useful to know, to avoid any possible pitfalls?

Thanks in advance. Know its a lot of questions which might have been vague. Appreciate if anyone finds the time to answer :)

[Calibre Designs]

Would like to know if the utensils are manufactured in Sweden?
What makes your products so unique?

Questions may seem unrelated but it's a tough market to enter in here in the UK.

[Peter Bowen]

You might want to consider hiring an English copywriter rather than Swedish one who speaks English. We've had a look at some websites for some Norwegian firms who are selling into the English speaking market. The grammar and syntax is usually ok but the style does not translate as well.

Give me a yell when you've got your site up and I'll get my partner to take a look at the words.

Cheers

Pete

[Steve2507]

Here are my opinions on your questions:

General:
Seems like ebay.uk is a very strong competitor to almost every product. How does this affect your businesses? Does it make customers extra price sensitive?

Yes, but luckily it doesn't affect us much as ebay doesn't accept sex toys.

Shipping:
Is it common to offer free shipping? What is considered a fair shipping rate for products weighing around 1kg?

As we wont set up a physical office in UK, are there any companies you recommend that can store our inventory and handle packing and shipping in a cost efficient way? Would also be lovely if they offer customers telephone support.

Customers like the option of free shipping and our research has found that by offering it over a certain value you increase the average order value.

Tax
I heard on the radio a few weeks ago that there no longer is VAT on consumer products? It would not effect us as within EU we would not charge our customers VAT, but it would be interesting to know how it has affected your companies? What was the old VAT 15%?

VAT is now charged at 15% on most products apart fron childrens clothing, food, books and at a lower rate on other items. But the 15% will go up again in 13 months (I think).

Payment
In Sweden 50% of our customers pay with creditcard and the remaining 50% pay by invoice. What are the standard payment options in the UK? In Sweden we have a service at the post office where the customer pays upon receiving the package. This is a serious pitfall as up to 30% of customers choosing this option fail to pick up their order. Although on the invoice payments we seldom have problems with customers not paying in time. Whats the standard practice of invoice credit days and late fees? Our current creditcard system only accepts VISA and Mastercard, is this sufficient?

If you are selling in the UK you would be wise to have payment by credit or debit card up front. Some large catalogue companies offer accounts where you are invoiced, but generally people are happier to pay up front.

Traffic
Besides SEO and google adwords, are there any other specific to UK ways of driving traffic to a webshop?

Leaflets, offline promotions etc.

Regulations and other annoyances
Is there anything else that would be useful to know, to avoid any possible pitfalls?

Distance selling regulations - these can be a pain for retailers, but when handled properly can show good customer service.

[LittleFinger]

Thanks for your reply! Seems like it is very similar as in Sweden.
So basically you only need to offer credit card payment. Do you have any ideas on what the major cards people use are? Is it enough to just offer VISA/Mastercard or is it wise to complement that with Paypal?

Its interesting about sex toys, seems like its the perfect product to sell online >)

Does anyone have any references of companies providing packing and shipping services in the UK?

[molly1]

Hi.

I have run a distribution company within the Uk for some twenty years. We handle a number of E-Bay accounts, although in the main they are electronics or specialist accounts. We have access to over 120 nationwide depots and can offer the kind of facilities you require. Or at least may be able to help you source them. If the nature of your goods demanded that they be shipped at a minimal cost then we could access any of the leading Express Parcels companies, Cost is usually down to spending power. The more you despatch the better the rate. As with any e-bay account the sites transparency, and the service you get from your distribution company will dictate the amount of customer issues, and hence costs you incur. Best to get those right first.

I am more than happy to discuss the project with you. just drop me an e-mail.

Dave

[adam]

Moneyman, a member here, used to or may still do so, have involvement in http://www.vdepot.co.uk/ that may provide what you are looking for.