UK and EU Inflation Rates
As you will be experiencing in your own businesses, the UK and EU inflation rates, underpinned by extreme energy costs and huge shifts in foreign currency values, is affecting every organisation. We were able to suppress increases in pricing at the beginning of 2022 following a move to a much larger operational base in the UK where our procedures were more scalable.
However, through the course of 2022 we have experienced spiralling costs in every sector of the supply chain, service providers, staffing and fixed costs. For some months we have weathered the changes by absorbing the costs, all the while working to continue increasing and refining our service offering. Like ALL ecommerce 3PLs and service providers across Europe, we now reach a pivotal moment whereby we have no choice but to address the imbalance and transfer the increase in costs further along the logistics chain toward the end buyer. Affecting all our services equally, we intend to levy a surcharge proportionate to our direct cost onto invoices raised in October, November and December, based on the forecast for UK and Netherlands inflation in Q4.
So, what does this mean for you?
- ALL Invoices from the UK business in GBP £ Sterling will incur a ‘UK Inflation Surcharge Levy’ of 8.6%
- ALL Invoice from the Netherlands business in Euro € will incur an ‘EU Inflation Surcharge Levy’ of 12.0%
We will review and alter our base pricing with a view to remove the surcharge in January 2023. The surcharge will appear automatically on all invoices. We hope that you will understand that Global E-Commerce Experts has shielded and ‘dammed’ the increases in base costs for your European business throughout 2021 and 2022 and for our overseas clients most of the charge will be offset by gains in currency changes through the course of 2022.
For clarity you can investigate and monitor the data sources:
- Inflation and price indices – Office for National Statistics (ons.gov.uk)
- Inflation Great Britain – current British inflation rate
Inflation The Netherlands – current Dutch inflation rate
If you have any specific questions regarding our actions, please don’t hesitate to get in touch with the team. We remain committed to supporting the growth of your business in the UK and EU and wish you luck for the Q4 trading period.