10 Things You Need to Know About the British Market Before You Start Selling There

Are you considering expanding to the UK market? Positioning your website in the UK is an excellent direction, and SEO is one of several areas worth focusing on.

Differences in consumer behaviors and expectations affect both the preparation of marketing strategies and business decisions, e.g., choosing a carrier that will deliver orders quickly.

To help you navigate this new terrain, we’ve compiled ten essential insights about the UK market. Let’s dive in!

1. VAT Registration Can Take Up to Several Weeks

It’s worth applying for a VAT number well in advance of your planned start of operations. The assignment of a number by the British tax authority (HM Revenue and Customs) can take up to several weeks.

VAT in the UK must be paid by any company that has achieved a turnover of over £90,000 in 12 months or expects to exceed this amount within the next 30 days.

Regardless of turnover, you must register as a VAT payer if:

• You live outside the UK.
• Your company is based in a country other than the UK.
• You supply goods or services to the UK.

2. Manufacturing or Importing Plastic Packaging Elements Is Subject to Taxation

The Plastic Packaging Tax must be paid by companies that have imported or manufactured ten or more tonnes of finished plastic elements in the UK over the last 12 months. The same applies if a company expects to import or produce such an amount within the next 30 days.

The obligation to pay this tax occurs when packaging or packaging elements contain less than 30% recycled plastic. Currently, the tax rate is £217.85 per ton.

3. The British Use the Imperial System

While the UK officially uses the metric system, many Brits still think in imperial units.

Bulk or packaged goods must be sold in metric units (grams, kilograms, etc.) throughout the UK – except in Ireland, where different regulations apply. There are exceptions to these rules, e.g., milk sold in returnable pint containers (1 pint equals 0.568 liters). Imperial units can be displayed alongside metric units, but not in a way that makes them more prominent.

4. The Customer Must Receive Information About the Right to Return the Order

The customer has the right to return the order within 14 days of purchase. However, they must receive this information from the seller.

Why is this so important? Without this information, the customer can return the order at any time within 12 months of purchase. If the store informs the customer about this possibility within these 12 months, the customer has 14 days to cancel the order.

5. Tax Relief Is Available in the UK

Businesses engaged in research and development projects can apply for corporate income tax relief. The project must meet the definition of R&D in science and technology. Meanwhile, investors can benefit from tax relief through the Enterprise Investment Scheme program.

6. Some Product Categories Have Special Labeling Rules

Labels in the UK must not offer misleading information regarding price, quantity, size, or manufacturing details.

Special labeling rules apply to the production, sale, and distribution of footwear, food and beverages, children’s products, and precious metals.

Regarding footwear labeling, a good example is the requirement to provide information (in English or through a clear pictogram) about the material that makes up 80% of the upper surface, the lining of the upper and insole, and the outer sole.

Proper labeling is not only a legal obligation but also a matter of customer trust.

7. Companies That Process Personal Data Must Pay a Data Protection Fee

The data protection fee to the Information Commissioner’s Office (ICO) applies to companies, organizations, and sole proprietorships. The fee depends on the size of the company and its turnover.

Some companies may be exempt from it. For example, a firm that employs between 11 and 250 employees and has never covered this data protection fee before will pay £40. The data of such a company or organization is placed in a public data protection register.

Data protection and privacy serve a dual purpose: on the one hand, they’re a legal requirement, and on the other, they reflect a company’s commitment to safeguarding customer information and respecting privacy.

The UK severely punishes companies that break the rules. The Information Commissioner’s Office fined two companies £340,000 for unwanted calls. Another example is a reprimand for using facial recognition technology without permission to process biometric data.

8. The UK GDPR

EU data protection regulations known as GDPR (General Data Protection Regulation) have been incorporated into UK law but with some changes. They apply as UK GDPR along with the amended Data Protection Act 2018.

The basic principles and obligations are the same. However, those concerning the transfer of personal data between the UK and the European Economic Area (EEA) have changed.

According to the European Commission’s decision, the UK ensures an “adequate level of protection of personal data.” This means that no additional permissions and safeguards are needed to transfer data from the EEA. Such actions are necessary if a third country (which the UK is after Brexit) does not provide the level of protection required by the EC.

9. British Consumers Buy Through Smartphones

The site you want to sell on must be optimized for mobile devices to allow customers to make quick and convenient purchases.

In the last quarter of 2023, these devices generated 78% of traffic in retail stores and accounted for 71% of online sales. In 2023, mobile devices accounted for almost half (47.8%) of all internet traffic.

10. Reviews and Ratings Influence Purchasing Decisions

Consumer purchasing decisions in the UK are dependent on opinions and reviews available online. This is confirmed by the latest Statista data from June 2024.

Half of the respondents declare that customer reviews on the internet are very helpful. Even more telling is that 54% of respondents admit that they always do research online before making a major purchase.

Source: Attitudes towards online shopping in the UK as of June 2024

These numbers clearly show how important it is for consumers to rely on the experiences of others. How can this information be used in a sales strategy? The credibility of the product will be enhanced by integrating a plugin on the site that displays the latest customer ratings from Google or by placing a section with customer reviews directly on the product pages.

Summary

Every business is unique, and the specific regulations you’ll need to navigate will depend on your industry and product range. However, we hope this guide has highlighted some key considerations for foreign businesses looking to establish themselves in the UK market and build strong customer relationships.

In summary, before you start operating in the UK market, consider the following issues:

1. Taxes, including VAT registration and data protection fees.
2. Consumer rights.
3. Adapting your website to shopping habits.
4. Taking advantage of business development reliefs and grants.
5. Product labeling rules and markings related to the measurement system.

Author

Dominika Sliwa

Content Marketing Specialist

Content marketing specialist and content designer. She plans, creates and customizes content to provide users with the best possible experience. Professionally, she is interested in consumer behavior and how people make purchasing decisions. Privately, she loves reading, writing poetry and walking.

Author

Raf Chomsky

Chief Executive Officer (CEO) & Co-Founder

Experienced CEO with a proven track record in the marketing and advertising industry. Skilled in search engine optimization (SEO), sales, management, business development, and marketing strategy. Strong business development professional with a Bachelor’s degree in Economics.