National lockdown: stay at home

First today it was Scotland to announce more severe Coronavirus restrictions, then England. Northern Ireland and Wales were already in lockdown but even there restrictions are being extended. Now with the National lockdown order to stay at home, you may only leave your home for work if you cannot reasonably work from home.

What this means is that you need to reassess your workforce and decide who can reasonably carry out their work from home and only have those employees in the workplace who have to carry out tasks which can’t be completed at home. For many this will mean those working in the warehouse need to be in the workplace but send as many admin staff as possible home.

The lock down, which starts immediately but will become enforceable by law by Wednesday, will last until at least the February school half term, but realistically it’s going to be at least up until March. The reason for this is that the aim is by the middle of February the first vaccine dose should have been offered to everyone in the four top priority groups identified by the Joint Committee on Vaccination and Immunisation… but there is a time lag of two to three weeks from getting a jab to receiving immunity and that pushes us into March at the earliest before it’s safe to slowly start reopening the country. Even if schools reopen at half term it’s unlikely that restrictions will vanish entirely in seven week’s time. Best guess it will be April or May at the earliest before we see some serious relaxations.

Even though vaccinations have started, remember that it’s three weeks after the initial does that some significant protection from the virus as been achieved and there are millions of people to vaccinate just to cover the most vulnerable. The much wished for ‘herd immunity’ is a long way off.

Whilst no one wanted another national lockdown, this will naturally present an opportunity for online sellers many of whom are likely to be busier than ever. With the high street retail pretty much shut, the only way people with a lockdown birthday (Yep, that includes me) will get a present is if you purchase it online. Life won’t stop, it will just be severely limited for the next few months.

National lockdown key points

This National lockdown sees some some notable differences to the first lock down.

Perhaps the most important is that we’re back to 2m social distancing. Frankly the 1m+ was largely ignored and meant a free for all jostling past anyone that was in the way. Wear a mask, it’s mandatory, but start taking notice of the lines on supermarket floors which are there to give guidance as to what 2m looks like.

For businesses

If you need to travel you should stay local – meaning avoiding travelling outside of your village, town or the part of a city where you live. Don’t be going to the big supermarket in the next town if you can make do with the smaller one local to where you live. Although of course if you need to work then you can travel there. Avoid public transport if possible and if you must use it then travel off peak when it’s likely to be quieter.

You can only travel internationally – or within the UK – where you first have a legally permitted reason to leave home. This includes for instance a ban on crossing the border into Scotland from England. Generally International travel is only allowed for very large business deals so won’t apply to most people.

Those who are clinically extremely vulnerable should not attend work so if they can’t work from home you will need to put them on furlough.

With schools closed after only opening for one day, many will now have child care responsibilities and the TUC has called for employers to furlough those looking after them. The tricky part now is that furlough is no longer free and employers will have to contribute towards NI and pensions. Flexibility on both sides will be needed.

For personal

You may now only exercise with your household (or support bubble) or one other person, this should be limited to once per day, and you should not travel outside your local area. Previously the travel restriction didn’t apply and in the summer we weren’t limited to once per day.

If you do leave home for a permitted reason, you should always stay local in the village, town, or part of the city where you live. This stay local message is key as previously travel anywhere in the country was permitted.

Exams are cancelled this year – we’re expecting an announcement on how school children will receive qualifications shortly.

The post National lockdown: stay at home appeared first on Tamebay.

from Ecommerce – Tamebay https://ift.tt/2JNXtdk
via IFTTT

How to convert customers with subscription pricing

Joe Procopio Contributor

Joe Procopio is a multiexit, multifailure entrepreneur. Joe is currently building Spiffy, and previously sold Automated Insights, sold ExitEvent and built Intrepid Media.

More posts by this contributor

• How startups close their first big sales
• Here’s what happens when you decide to sell your startup

The lure of subscription pricing is the guarantee of recurring revenue for your business. Once a customer flips the switch to turn on your subscription, it’s easy money:

• Easy to recognize your revenue.
• Easy to determine your margins and profits.
• Easy to enhance your product and extend that revenue out for months, even years.

While that’s true, converting a subscription customer isn’t as simple as flipping a switch. You can build a platform, launch with fanfare, offer all sorts of incentives and trials to attract potential customers — and watch as they disengage and lapse into limbo.

Contrary to popular belief, subscription pricing doesn’t work because of the lower price point that a monthly installment allows.

That’s the actual guarantee that comes with subscription pricing, which will happen unless you cultivate a funnel that catches potential subscribers as soon as they learn about your product and follows them until their very last sign-in.

I built my first subscription-model product in 1999. I’m currently in early-access on my latest, and I’ve launched a bunch more along the way.

While the customer dynamic has changed over the last 20 years, the conversion process has not. In fact, it’s actually gotten easier to convert and retain customers through the subscription funnel.

Here’s what I’ve learned.

Why subscription pricing works

Subscription pricing is a hot trend in just about every business in every industry. Pay-as-you-go is the new normal from software to retail to service.

In my mind, the major shift occurred when mobile phones started pricing unlimited usage per period instead of fixed or cost per minute. Once usage limits were removed, use cases exploded and the promise of a truly mobile computer was finally realized.

Makers of all stripes learned that lesson: From razors to video streaming to accounting software, pricing models have emerged that focus on time periods instead of units.

But contrary to popular belief, subscription pricing doesn’t work because of the lower price point that a monthly installment allows. It’s effective because a subscription reorients each customer’s mind from product function to value proposition.

I don’t care what kind of German engineering went into my razor blades, as long as I have working blades when I need them.

As an entrepreneur, you probably use at least one digital subscription service to build your own product and company, if not several. In fact, just to get to the MVP of my new project, I subscribed to AWS, MailChimp, Zapier and Bubble. I’m still on the free tier of a few more services for some lower-priority features. There’s a few more I quit or never tried.

Thus, you know that value prop plays a big part of whether the customer will pay and stay. So reinforcing your value proposition should play a big part in every level of your customer funnel.

You must catch and track customers to be effective

A subscription-pricing model without an ability to track the steps in the conversion funnel will result in all the headaches of subscription pricing without any of the benefits.

from eCommerce – TechCrunch https://ift.tt/3ncx4U3
via IFTTT

DHL Express road services to EU restart Tuesday 5th

DHL Express road services were suspended into and out from the UK a few days before Christmas due to the French border closure. In good news, services are to restart tomorrow, Tuesday the 5th of January. However the DHL Day Definite Service remains suspended.

“Our Day Definite Domestic (Road) Service to and from Europe remains suspended today while we assess the situation at the ports. We will update you tomorrow with a date when this service will resume.

The DHL Globalmail service will restart tomorrow, 5 January 2021, subject to the correct paperwork being provided.”
– DHL

Naturally there are changes to DHL Express road services due to the new customs requirements, the following is a summary of the changes that have come into effect:

1. Customs Declarations are required between Great Britain and the European Union, therefore Commercial or Pro-Forma Invoices are needed.
2. The EU-UK Trade and Cooperation Agreement means that in most cases Customs duties will not be applied as a zero tariff has been confirmed for goods sent between GB and the EU, however this is conditional on Rules of Origin Requirements being confirmed when shipping. Note that VAT will still be levied.
3. Changes to UK VAT requirements have been implemented.
4. Details for trade with Northern Ireland have been confirmed on 31 December 2021.

   You should also ensure that if you are using a bespoke shipping tool, you have updated your system. Support is available at ESSUK@DHL.com For customers using MyDHL+, DHL have made the required updates and the system is ready for use.

   Zero Tariff under the EU-UK Trade and Cooperation Agreement (TCA)

   DHL remind customers that only products that originate from the EU or UK qualify for preferential treatment (zero tariff) under the EU-UK TCA, meaning that no customs duties are levied (but VAT still has to be paid or accounted for).

   You need to check if your products comply with the agreed Rules of Origin in Chapter 2 of the Agreement, along with product specific Rules of Origin in the Annex. The Agreement can be found here.

   To qualify for preferential treatment (zero tariff) at the time of import, the customs declaration in the EU or the UK must include a proof of origin statement/document.

   The post DHL Express road services to EU restart Tuesday 5th appeared first on Tamebay.

   
   
   from Ecommerce – Tamebay https://ift.tt/3hHzHvW
   via IFTTT

Have VAT changes for online marketplaces levelled the playing field?

The 1st of January has come and gone and with it major VAT changes in the UK, which will impact competition from overseas sellers on marketplaces. Online Marketplaces are now required to collect VAT on all sales under £135 if a seller is not registered within the UK. This is regardless of whether the product is declared to ship from abroad or is placed in a UK fulfilment house.

So, have you noticed any difference in search position for your products. Potentially many overseas sellers who have been relying on shipping without getting caught by customs will suddenly have had their prices hiked by 20% now that the marketplaces are responsible for collecting VAT. Others, who have in the past correctly collected VAT may not yet have reduced their prices but marketplaces will still have hiked the cost of their goods by 20% so their pricing may well be uncompetitive.

These VAT changes should be good news for UK sellers as it levels the playing field and ensures that all sellers, regardless of location, will have VAT applied to their products sold on online marketplace. The only exceptions will be for products valued over £135 delivered from outside the UK, and for UK sellers below the VAT threshold. Let us know if you see significant changes in search placement for the categories you trade in.

Summary of 1st Jan 2021 VAT changes

• For imports of goods from outside the UK in consignments not exceeding £135 in value (which aligns with the threshold for customs duty liability), HMRC will be moving the point at which VAT is collected from the point of importation to the point of sale. This will mean that UK supply VAT, rather than import VAT, will be due on these consignments.
• The new arrangements will also involve the abolition of Low Value Consignment Relief, which relieves import VAT on consignments of goods valued at £15 or less.
• Online marketplaces (OMPs), where they are involved in facilitating the sale, will be responsible for collecting and accounting for the VAT.
• For goods sent from overseas and sold directly to UK consumers without OMP involvement, the overseas seller will be required to register and account for the VAT to HMRC.
• For sales of goods by overseas sellers, where the goods are already in the UK at the point of sale, we will move the responsibility for accounting for VAT from the overseas seller to the OMP that facilitates the sale.
• Overseas sellers will remain responsible for accounting for the VAT on goods already in the UK and sold directly to UK consumers without OMP involvement.

The post Have VAT changes for online marketplaces levelled the playing field? appeared first on Tamebay.

from Ecommerce – Tamebay https://ift.tt/2LieaxM
via IFTTT

Takeback Monday will see peak in returns today

Today, Monday the 4th of January 2021, has been dubbed Takeback Monday as returns of online purchases are predicted to increase by 63% compared to the average number of return parcels per day in December, according to Royal Mail. As the first working day of the New YEar, Takeback Monday is the day that most Brits will return their unwanted and ill-fitting Christmas presents.

According to a study commissioned by Royal Mail, the average online shopper in the UK sends back an online purchase every month. Three in five online shoppers would be unlikely to use a retailer again if they have a difficult returns experience. The returns experience is a key part of the online shopping puzzle. It is very important to get the returns experience right first time.

Over six in ten online shoppers returned clothing, 38% returned electrical goods and 35% returned footwear. The most common reasons for making returns is for clothing not fitting properly (39%) and non-clothing goods not working properly (23%). 18% of younger shoppers (18-34-year olds) are more likely to return items because the item was not as described.

There are many different factors that come into play when it comes to how people return items and who they choose to return them with. Being able to send back unwanted goods for free is top of the list (85%) and having proof of return is just behind on 84%. Ease of returns is a strong motivator for 80% of shoppers, whilst having friendly staff is important to 70%.

This Takeback Monday, with many in Tier 4 Covid restrictions, online shoppers have the option of having their returns collected from their doorstep with Royal Mail’s new service – Parcel Collect. With this service, postmen and postwomen now collect parcels as well as deliver them on their daily round. Royal Mail’s Parcel Postboxes are another option for posting return items.

Try before you buy

Being able to try on clothes (or look at other items) before paying for them is appealing to many UK shoppers. Almost a third (30%) of people that return items use a ‘try before you buy’ service. Those aged 18-34 (47%) are significantly more likely to have tried before they’ve bought, compared to just 16% of those aged 55 and over.

“January is the busiest time of the year for returns – and we expect it to be even bigger this year given the significant move to online shopping over the 2020 festive period. Having a clear, user-friendly returns policy is a vital part of the online shopping experience. For retailers, ensuring their returns experience is in line with consumers’ expectations is key.”
– Nick Landon, Chief Commercial Officer, Royal Mail

The post Takeback Monday will see peak in returns today appeared first on Tamebay.

from Ecommerce – Tamebay https://ift.tt/2XajJ3W
via IFTTT

Get ready immediately for new UK EU rules of origin

Welcome to 2021, a year where we are still in the darkest hours of a pandemic and everything has changed regarding trade with the EU and that is despite a much heralded Free Trade Agreement being finally struck almost 4 and a half years after the UK voted to leave the EU and just days before we actually left. It was squeaky bum time as it only receiving Royal Assent in the early hours of the 31st of December 2020 before coming into effect at 11pm GMT later that same day. However there is one thing you really really need to be aware of and that’s a little clause known as rules of origin.

Everyone has been welcoming the Free Trade Agreement between the UK and EU with a sigh of relief, assuming that the only thing that stands in the way of selling across the border is paperwork. However the UK and EU agreement sets out rules of origin which effectively means that many products you sell could still be subject to tariffs.

For goods to be covered under the free trade agreement they need to be wholly obtained within either the UK or EU or substantially transformed. That means for UK sellers, your goods need to be either Made In Britain or if using materials from outside the UK or EU then they need to be worked to create a new product – effectively what counts is does it change the HS Code for which the tariffs apply. If the HS code doesn’t change then tariffs are likely to still apply and that could be a problem for many who order in from overseas and effectively then box shift from the UK.

There is a bit of leeway until the 31st of December 2021, in that you don’t have to have your rules of origin paperwork in place at the time of export before then. However that doesn’t mean you won’t still potentially have tariffs to pay if your products don’t qualify as defined by the Free Trade Agreement. Even if you don’t do the paperwork, check immediately on how your products will be classified to ensure that bills down the line don’t wipe out profits and result in selling at a loss.

You can download the The Trade and Cooperation Agreement (TCA): detailed guidance on the rules of origin here.

We understand that the Brexit changes that came into force on the 1st of January are going to be disruptive to your business, so to get a fuller overview once carriers and postal networks get themselves sorted and exporting again, we are holding a webinar on the 27th of January to run through everything you need to know. Sign up here to reserve your spot.

The post Get ready immediately for new UK EU rules of origin appeared first on Tamebay.

from Ecommerce – Tamebay https://ift.tt/3odc54V
via IFTTT

$115bn in returns set to hit businesses

It’s that time of the year that every business owner dreads and this year they can dread it even more as reports suggest consumers could be returning a staggering $115bn worth of goods that have been purchased over the festive period. It could be good news for delivery firms so long as they don’t crumble under even more pressure when dealing with yet another surge of parcels. It definitely won’t be good news for business owners who after what for many had been a hugely successful month are now being hit with returns.

Last year consumers were even getting their returns sorted on Christmas day, but with a rise in ecommerce caused by the pandemic, we can only expect a rise in returns compared to previous years and the returns could keep coming for the next several months.

Clothing hit hardest

If you sell clothing you might want to brace yourself. Businesses that sell clothing are most likely to be hit by the $115bn returns prediction, coming from consumers who have received unwanted Christmas gifts or from buyers who have bought multiple sizes to make up for not being able to try them on in a fitting room.

The process of returned goods is not as simple as it looks to the consumer. According to Optoro, it is estimated that 2.7bn kg of returned items have ended up being binned showing how this isn’t only an issue for businesses and brands but also for the environment. Dealing with returns is clearly a tricky part of ecommerce especially at this time of the year and it might be hard for a business to find a balance. Consumers are more likely to shop with companies who offer appealing returns policies and so by trying to deter returns merchants could then risk losing vital business and customers.

The post $115bn in returns set to hit businesses appeared first on Tamebay.

from Ecommerce – Tamebay https://ift.tt/3hKQuyo
via IFTTT