Impact of Brexit on Irish Online Consumers: Challenges and Adaptations
Irish online shopping in 2020 showcased a significant increase in cross-border transactions, with the UK being a top origin market. However, the early disruption post-Brexit led to challenges like unexpected costs, delayed deliveries, and restrictions. Despite these issues, both traders and consumers have adapted to the new environment, with changes in online shopping habits and adjustments made by UK traders. The presentation by the Irish Competition and Consumer Protection Commission sheds light on the evolving landscape for Irish online consumers.
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Upholding consumer rights when shopping Upholding consumer rights when shopping outside the EU outside the EU The impact of Brexit on Irish online The impact of Brexit on Irish online consumers consumers Presentation by the Irish Competition and Consumer Protection Commission to the European Parliament Committee on the Internal Market and Consumer Protection (IMCO) Jeremy Godfrey, Chair 20 April 2022
Irish online shopping in 2020 Irish online shopping in 2020 Ireland Comparison Average total online spending in 2020 2,708 Third highest in Europe Percentage who bought from another country in 2020 84% Twice the European average Top origin markets for cross-border shopping UK 61% China 30% USA 5% China most popular origin market in most of Europe Germany popular in German- speaking countries No other country had UK as top choice, but often in top 3 Most popular item for cross-border shopping Fashion Same as in rest of Europe Source: E-commerce payment trends 2020, JP Morgan (www.jpmorgan.com/merchant-services/insights?t=tag-taxonomy:jpm/merchant-services/categories/e-commerce-payments-trends)
Significant disruption from early 2021 Significant disruption from early 2021 TCA text agreed on 24 December 2020, applied from 1 January 2021 Many UK traders not ready Problems reported by consumers in 2021: Unexpected costs or customs charges (44%) Delayed delivery (41%) Restrictions or no longer supplying to Ireland (18%) Items not arriving or delayed/blocked by customs (12%) Other (7%) Source: Brexit and COVID-19 consumer behaviour and awareness while shopping online, CCPC 2022 (www.ccpc.ie/business/research/market-research/ccpc-brexit-and-covid-19-consumer-behaviour-and-awareness-while-shopping-online/)
Traders and consumers have adapted UK traders have responded to new environment Some have made customs arrangements Some have stopped serving EU customers Amazon warehouse opening in Dublin Consumers have changed their online shopping habits % of Irish consumers who increased or decreased online purchasing from different origin markets in 2021 compared to 2020 Ireland Other EU countries Rest of World Great Britain Northern Ireland -60%-40%-20% 0% 20% 40% 60% Decreased Increased Source: Brexit and COVID-19 consumer behaviour and awareness while shopping online, CCPC 2022 (www.ccpc.ie/business/research/market-research/ccpc-brexit-and-covid-19-consumer-behaviour-and-awareness-while-shopping-online/)
Consumers now have a better understanding of differences when shopping outside EU Perceptions of Irish consumers about differences when shopping outside the EU More rights and protections in EU (23%) Lower taxes and tariffs in EU (22%) Different returns policy (10%) Different regulations (5%) Better data protection in EU (5%) Better quality standards in EU (4%) Easier to contact or complain in EU (3%) Other differences (4%) 100% 80% 60% 40% 20% 0% 2020 2021 Differences between EU and non-EU Same or similar between EU and non-EU Don't know Source: Brexit and COVID-19 consumer behaviour and awareness while shopping online, CCPC 2022 (www.ccpc.ie/business/research/market-research/ccpc-brexit-and-covid-19-consumer-behaviour-and-awareness-while-shopping-online/)
Challenges in upholding consumer rights Challenges in upholding consumer rights Little divergence to date between UK and EU consumer protection and product safety law UK International Consumer Centre expected to remain in European Consumer Centre Network But Limited information exchange with UK authorities on product safety issues even for Northern Ireland No mechanism for cross-border cooperation with UK authorities European Small Claims Procedure no longer available for disputes with UK traders
