Sterling has taken another knock as the recent inflation rate announcement shows. Prices are rising much more quickly than wages and that’s not good news and exacerbates the pressures sterling is already experiencing with regards to Brexit.
As Currencies Direct noted: “UK inflation data was disappointing on Wednesday, although this was likely given the position consumer price growth was left in last month. Holding steady at 2.6% year-on-year was a surprise for the overall index, which had been forecast to creep up to 2.7%.
This leaves household shopping bills climbing significantly faster than wages are growing, but with plenty of breathing room for the Bank of England (BoE) before they feel the pressure to hike interest rates. Therefore the outlook for both interest rates and the UK economy remains gloomy, so the pound unsurprisingly slumped.” You can read the full post here.
What does this mean for British ecommerce marketplaces sellers? Let’s start with the glimmer of good news. If you’re exporting from the UK to elsewhere then your prices are looking very attractive right now. But that’s cold comfort if you’re buying in supplies and stock from overseas because your purchasing power is much diminished since the middle of last year.
How much do you feel that currency fluctuation is impacting your business decision making right now?
It could be that you see it as an opportunity. We’re going to see more currency uncertainty in the years to come so it’s well with embracing it, and looking overseas and especially outside of the EU for ecommerce opportunities.
Or you might be fearful. This is a period of uncertainty on many fronts and levels and that makes it obvious to double down on domestic sales. If your business is viable and profitable within our borders, you might question the need to look elsewhere.
Tamebay’s view is always that you need to make well-informed decisions based on your business and personal needs. But we also remain committed to the general principle that selling overseas is a great way to grow your enterprise, if you can make it work for you. Currency volatility brings with it both challenges and opportunity.
